a prospectus for productivity€¦ · • for business: our growth hub will enable business growth...
TRANSCRIPT
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Devolutionfor the Heart of the South West
A Prospectus for Productivity
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Contents
03 The Heart of the South West
04 Executive Summary
06 Our Vision and Goals
08 NationalContext
09 LocalContext
13 From six Golden Opportunitiesto sixKeyChallenges
16 OurNegotiating Prospectus
25 Foundation3: TowardsaCombined Authority
26 Next Steps
27 Outline Roadmap
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Executive Summary
I nSeptember2015theHeartoftheSouthWest(HotSW)submitteditsdevolutionStatementofIntenttoGovernment.Afterconsiderablefurtherworkduringautumn2015,thepartners-17localauthorities,
twoNationalParks,theLocalEnterprisePartnership(LEP)andthethreeClinical CommissioningGroups - are now in a position to commencedetailednegotiationswithGovernmentonadevolutiondeal.
Governmenthaschallengedlocalleadershipteamstotreatproductivityas‘thechallengeofourtime’.Theyhaveaskedustodothatby‘fixingthefoundations’ of infrastructure, skills, and science through a devolutionrevolutiondeliveringlong-termpublicandprivateinvestment.
HeartoftheSouthWestproductivitycontinuesto lagbehindnationalproductivityandiscurrentlyunder80%oftheUKaverage.Toredressthisweneedmore,betterjobs,ahealthier,higherskilledlabourmarketandnewhomesforourgrowingpopulation.
WithGovernmentsupportforourproposition,by2030theHeartoftheSouthWestcanacceleratedeliveryof163,000newjobs,179,000newhomesandaneconomyofover£53bnGVA.Toputthisincontext,thisismoregrowthoverthenextfifteenyearsthanBristol,BirminghamandNottingham(thethreenon-’Powerhouse’corecities)havedeliveredinthelastfifteen.
TodothiswewillexploitanddeliverourGoldenOpportunitiesaroundinvestmentinnuclearenergyatHinkley,acrossthepeninsulainmarine,aerospace,advancedmanufacturingandenvironmentalfutures.Wewillconnectour rural communities to these transformers and address thechallengesofageingandhealth-relatedworklessnesswithunprecedented
healthandcareintegration.
Wewilltakeresponsibilityforfixingourfoundations.WeseekGovernment’ssupport to do this through negotiation and delivery of a far reachingdevolutiondealfortheHeartoftheSouthWest.
OurapproachtodeliveringthistransformationfocusesonacomprehensiveProductivityPlan:
For people:• we will build on Government’s own nationalreconfigurationoftheskillssystemtosupplybusinesswiththeskillsitneedsandalabourmarketabletodeliverproductivityperjobandperhourat‘GreaterSouthEast’levels(outsideInnerLondon).Ourplansforhealthandcareintegrationwillsupportasignificantproportionofournon-workingpopulationintowork.
For business:• our Growth Hubwill enable business growth andinternationalisationfollowingclosureofthenationalBusinessGrowthService.WewillaugmentthiswithspecificpoliciesandinitiativestorealisenationalprioritiesimplicitinourGoldenOpportunities.
For place:• wewillprovidethe infrastructureandhousingrequiredandmaketheHeartoftheSouthWestinvestmentready.Wealsorecognisethatmuchofourgrowthwilloccurinspecificsub-regionaleconomicgeographies.Wewillplanandmanagechange inthesesub-regionstoensuretheirconnectivitywitheachother,withtherestofthecountryandglobally.WewillmakesurethatruralareasaccessandleveragetheseopportunitiesandbuildonGovernment’s10pointplanforruralproductivitygeographies.1
1. The Heart of the South West’s economic transformational opportunities were identified and agreed in our Strategic Economic Plan, March 2014.
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Cohesive, coherent leadership and governance of this transformationis crucial.We propose to establish a Combined Authority to provideleadership, supported by sub-regional deliverymechanisms so powersandresourcesaredeployedonthescaleatwhichoureconomyfunctions.Thesearrangementswilldevelopnewwaysofworkingtoaddresspriorityissues.
OurproposalsbuilduponsuccessfulandstrongbusinessleadershipthroughourLocalEnterprisePartnership:wecannotdelivereffectiveeconomicinterventionswithoutastrongbusinessvoice.
Ifwedonotact,theHeartoftheSouthWestwillnotbeabletocontributetotheGovernment’sambitiontomeetthenationalproductivitychallengeassetoutinFixingtheFoundations.
Thisdocumentoutlinesourpositionandobjectives.AnearlyagreementonheadsoftermsforadevolutiondealwilltriggerthestartofourgovernancereviewandformulationofourProductivityPlan.
New housing across the Heart of the South West
Bridgwater Enterprise and Innovation Centre
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Our Vision and Goals
G overnmentrecognisesthatfixingthefoundationsanddevolutionaretheprojectsofageneration.Ourkeychallengesare:
Aninsufficientlyskilledworkforceandlimitedpoolofavailablelabour:•manyyoungpeoplemoveawaytoliveandwork,ratherthanstayormoveintoourarea.
Aneedformoreinfrastructuretosupportourexistingbusinessesand•workersandtoattractnewones.Weneedbetterandmoreresilientinfrastructure:roads,railways,broadbandandhousing.
Enabling a more effective, far-reaching support environment for•businessestosustainthosewealreadyhaveandmaketheareamoreattractivetoinwardinvestmentandhome-grownentrepreneurs.
Managingthesignificantandincreasingcostofhealthandsocialcare,•whichcombinedwithourageingpopulationthreatenstheviabilityofpublicservicesunlessradicalreformsarecompleted.
Productivity-ledgrowthintheHeartoftheSouthWestwillhavethreedimensions:
People:• whoarehealthy,withtheskillstheyneedtoaccesshighervaluejobsandgrowtheircareers.
Business: • more businesses creating new jobs and increasingproductivity.
Place: • sustainable growth across the geography, supported bymoderninfrastructureandacceleratedhousingdelivery.
WesignalledourintentiontomeetthesechallengeswithourStatementofIntent.Thesubmissionofthismoredetailedpropositionshowshowseriousourintentis.Webelievetheproposalswehavecommittedtodevelopingwillrealiseourlocalambitionsandmakedecisive,importantcontributionstoGovernment’snationalpriorities.
WithGovernmentsupportforourproposalswewillredressourproductivitygapandhelpusmanagedemographicchallengesmoreeffectively.Keyoutcomeswewillachieveby2030include:
£4bnadditionalinGVAfortheUKeconomy.•163,000newjobs.•Infrastructurethatsupportsourambitiousplans.•179,000 more homes, and accelerated delivery in major growth•points.Wagelevelshigherthanthenationalaverage.•AdditionaltaxrevenuefortheTreasuryof£113millionperyear.•Apprenticeshipstartsincreasedby400%.•Everyyoungpersonineducation,employmentortraining.•£1bnperyearwelfarebenefitssavingsasmorepeopleenter•employment.60%ofourworkforcequalifiedtoNVQlevel4orabove.•Fastermorereliablerailserviceswithgreatercapacity.•Fasterandmorereliablejourneytimesonourroadnetwork,withless•congestion.100%superfastbroadbandcoverage.•
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TheHeartoftheSouthWesthasastrongtrackrecordofdeliveringinpartnershipforresidentsandbusinesses:
Securingandsupportingmajornationalandinternationalinvestment•inthefutureofthenuclearindustryatHinkleyPoint.PlymouthandSouthWestPeninsulaCityDeal.•Atotalof£195.5msecuredthroughGrowthDeals–includingthe•highestGrowthDeal2settlementofanyLEPareainthecountry–todeliveracomprehensiveprogrammeofprojectsinpursuitofgrowth.ExeterUniversity,SciencePark, InnovationCentreand Innovation•Zone.ConnectingDevonandSomersetsuperfastbroadband.•Three Enterprise Zones: South Yard in Plymouth to support•innovationandgrowth inmarine industries,HuntspillEnergyParknear Bridgwater to support the growth of a new nuclear clustercatalysedbyinvestmentinHinkleyandeastofExetersitesalignedtoopportunitiesinenvironmentalsciencesandbigdata.DeliveryofPlymouthScienceParkbyPlymouthCityCounciland•Plymouth University, now entering phase 5, creating the largestscienceparkinthesouthofEngland.Better,morereliableroads,includingmajorimprovementstoA303,•A358,A30corridor,M5JunctionsandA361NorthDevonLink.ThePeninsulaRailTaskForce.•Connectingcommunitiesinruralareas.•ExeterandEastDevonGrowthPoint.•AhighqualityandthrivingFurtherEducationSector.•Health and social care initiatives including Somerset’s ‘Symphony’•Vanguardproject,Exeter‘ICE’,Torbay’sIntegratedCareOrganisationand‘OneSystemOneBudget’inPlymouth.
Wecanscaleupandbuildontheseexperiences.However,withoutthecomprehensive framework that our governance proposals will deliver,theHeartoftheSouthWestandnationalGovernmentwillmissoutonthe solutions, linkages, andeffectiveness that collective leadershipcanachieve.
AHeartoftheSouthWestdevolutionagreementwithrobustgovernancestructures,accelerateddelivery,andmorefocuseduseofscarceresourcesistheoptimalwayforGovernmenttoassureitselfthatthenationalFixingtheFoundationsplanisbeingproactivelyandconsistentlyledanddeliveredacrosstheHeartoftheSouthWest.
Inthisprospectuswesetoutourgoalsfor2016-2030andhowwewilldeliver the long-term and evolutionary work required to achieve ourdevolutionrevolution.
FlyBe Academy
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National Context
G overnmentsetoutitslong-termambitionsfortheUKeconomyin‘FixingtheFoundations’,itsproductivityplanfor2015-2020.Thisframeworkoutlinedhowlong-terminvestmentandadynamic
economycouldraiseproductivityandliftlivingstandards.Government’sinvitationtoareastoproposewaysthatdevolutioncouldcontributetothisagendaledtoourStatementofIntentbeingsubmittedon4thSeptember2015.
With policy developments in the autumn, and the Spending Review,Governmenthasfirmedupthefinancialintentionsbehindtheproductivityplan.Intermsoflocalcontributionsleadershipteamsneedtodeliveranextensiveportfolioofreforms:
In skills and employment, 2016-20will seemajor reformsof the•post-16andadultskillssystems(bothofcollegesandprovidersonthesupplyside,andofloansforlearnersonthedemandside).Post-16AreaReviewsandintroductionoftheApprenticeshipLevyofferopportunitiestotransformthedeliveryoflocallabourmarketskills,howeverthedemandsoftransitionmaybeacute.
Physicalinvestmentwillneedtobemanagedinthecontextofhigher•performanceexpectationsforplanningregimes,newapproachestohousing supply (especially starter home ownership) and proactiveassetmanagementatapublicestateaswellaslocalauthoritylevel.Local leadership teamswill also need to play into the revision oftheNationalInfrastructurePlanwithnewcommitmentstoflagshipschemeslikeHS2andnuclearenergy.
As the national BusinessGrowth Service closes byMarch 2016,•newpressureswillbeplacedonemerginglocalGrowthHubs.Forinnovation,localandregionalScienceandInnovationAuditswillseektoshapenationalprioritiesasResearchCouncilsandInnovateUKcometogetherinResearchUKwitharangeofnewproducts. Theseagendas,andothers,needtobedeliveredwithoutdiverting•attention from existing commitments. These include City Deals,localGrowthDeals,theEuropeanStructuralandInvestmentFundprogrammes, andother legacyprogrammes, suchas theRegionalGrowthFund,GrowingPlacesFund,existingandnewlyannouncedEnterpriseZones.
Theseagendassitalongside,andwillbeenabledby,devolutionandfiscalreformsandmanagedinthecontextofcontinuedpublicsectorexpenditureconstraint.
ThechallengefortheHeartoftheSouthWestistoshapethesenationalprioritiestoouruniquecircumstances.WehavedrawnonourStrategicEconomicPlantodescribethecausesofourproductivitychallenge,identifyourkeyGoldenOpportunitiesandunderstandhowtobuildonourtrackrecordofsuccess.
Hinkley Point C, Somerset
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T he Heart of the SouthWest covers most of the southwestpeninsula. Its1.7millionresidents live inamixtureofruralandurbansettingsservedbyastunningnaturalenvironmentandrich
culturalheritage.
Mostofourbusinessesaresmallandmediumsizedenterprises (SME)employingfewerthanfivepeople,providingexcellentpotentialforgrowthand innovation.We are also home to cutting edge engineering andmanufacturingindustriesincludingcompaniesofglobalsignificance:
Aerospace and advanced engineering industries employ more•than23,000peopleandcontributeover£1billiontotheeconomy.Businesses in the area also have specialisms in advancedelectronics/photonics,medicalscienceandwirelessandmicrowavetechnologies.
Analysis of the comparative advantages of our local assets has•identifiedthattheExeterCityRegioncanmakeauniquecontributionbybecomingagloballyrecognisedcentreofexcellenceinweatherandenvironment-relateddataanalytics.ExeterishometotheMetOffice, the city leadsEurope in combined environmental science,dataandcomputational infrastructure,hosting400 researchers inenvironmentalandsustainabilityscience.From2017,itwillalsohostthemostpowerfulsupercomputerinEurope.
• Thefirstof theUK’snewgenerationofnuclear reactorsbeingconstructedatHinkleyPointwilldeliversubstantialeconomicbenefitsacrossthesouthwest.Itispartofourgrowinglowcarbonandenergysectorandoffers£50billionworthofbusinessopportunityinthenuclearsectorwithina75-mileradiusofHinkleyPoint.
•We are a global centre of excellence for marine science andtechnology,includingPlymouthUniversity’sMarineInstituteandthePlymouthMarineLaboratory.
• Thereare30workingfishingportsacrosstheHeartoftheSouthWest,includingthetwolargestfisherylandingsinEnglandatBrixhamandPlymouth.
• TheSouthWestMarineEnergyPark, thecountry’sfirst,servesthewidersouthwestpeninsula,andoffersdirectaccesstosuperbphysicalassetsandresourcesincludingthenorthDevonandnorthSomersetmarineenergycoastsforopportunitiesinwind,tidalandnuclearenergy.
Ourmixedeconomyalsoservesourtraditionalstrengths.OurtouristandvisitoreconomyattractsmillionsofvisitorsperyearandourfoodanddrinksectorhasasignificantimpactonnationalGVA(4.2%in2011).
Whilstourlargestemploymentsectorsremainpublicadministration,healthandeducation,ourLocalEnterprisePartnership’sStrategicEconomicPlanrecognisesourareaashaving‘NewWorld’potentialifopportunitiescanbecapitaliseduponandtherightconditionsforgrowthcreated.
Local Context
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Golden Opportunities
WehaveidentifiedsixGoldenOpportunitiesthatwewillusetodriveproductivityandeconomicgrowthwhilstcontinuingtosupportourdiverseeconomyandtakingadvantageofnewopportunitiesastheyemerge.
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From six Golden Opportunities to six Key Challenges
R ealisingourvision,goalsandtargetsrequiresustoaddressandsolvesixmajor,interrelatedeconomicandsocietalchallenges:
1. Our productivity is too low and growing too slowly
Whilstnotuniformacrossthearea,in2013ourproductivityperjobfilledwasbelow80%ofUKaverages,afallofaround3%overthelastdecade.OurforecastssuggestthatunlessweunlockouremergingtransformationalopportunitiesourproductivitywillcontinuetolagbehindtherestoftheUK.
This performance is a manifestation of poor comparative skillslevels,labourmarketshortages,insufficientinfrastructure,andpoorconnectivity, the human and financial cost of ill-health, a lack ofjoined-upsupportforbusinessandneedforhighervalueindustrialdensities.
2. Our labour market is limited in size and skills levels
Akeyfactorinourlowproductivityisashortageofworkersandashortageofskills.Lowunemploymentmeansbusinesseshavealimitedlabourpoolfromwhichtodrawrecruits.Higherlevelskillsattainmentisbelownationalaveragesandout-migrationofourtalenttoLondonandothermetropolitancentres means that employers regularly report labour shortages andrecruitmentdifficulties.
3. Our enterprise and innovation performance is inconsistent and needs to improve
Evidenceshowsthatbusinessesthattakeupsupportdobetterthanthosewho don’t. However, the business support landscape is complex andconfusingandshort-termGovernmentfundingforprogrammescreatesuncertainty. TheHeart of the SouthWest ranks 38th out of 39 LEPareasonmanymeasuresofinnovationincludingpatentregistrationsandInnovateUKfunding.Wecannotresolvethesescienceandinnovationissues without more highly skilled workers and a stronger innovationenvironment,particularlyaroundourGoldenOpportunities.
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A healthier populationmeans lower public sector costs and increasedeconomicactivity.Tofill163,000morejobswemustengagethenon-workingpopulationinthelabourmarketwhichwillrequireasignificanthealthandcarecontribution.
Employmentofpeoplewithphysicaldisabilities,learningdisabilities,mentalhealthissuesandotherlong-termconditionsisstronglycorrelatedwiththeir achieving better outcomes andbeing less dependent onpubliclyfundedhealthandcareservices.Thisrepresentsconsiderableproductivepotential.
4. We are a leader in facing the challenges of an ageing population
Ourpopulationprofileshowsasignificantincreaseintheproportionofourresidentsaged65oroverandacorrespondingdecreaseintheproportionofworkingagepeopleunder45.By2036,17%ofourpopulation–morethan327,000people–willbeover75yearsofage.
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5. We are a leader in facing the challenges of health and care integration
Particularlyrelatedtoourdemography,ourhealthandcaresystemneedstobereshapedtomeetsocial,economicandfinancialpressures.Ourareaperformspoorlyformentalhealthoutcomeswhencomparedtonationalfigures,makingthisakeypriority.
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
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Heart of the South West Economic Activity by General Health
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6. Our infrastructure and connectivity needs to be modernised and more resilient
Moreinfrastructureespeciallyhousing,transportlinks,broadband,mobileconnectivityandenergygridimprovementsarerequiredtomakeourareamoreattractive to investorsandviable for the future. Improving theseconditionsarekeytogivingbusinessesinourareathetoolstheyneedto compete in globalmarkets, attract future entrepreneurs and secureinvestment.Wemustovercomethesebarriersifwearetocapitaliseonourtransformationalopportunities.
Fixing the Heart of the South West and our contribution to fixing the national foundations
Thecurrentlandscapeoffundinganddecision-makinghasonlytakenussofar.Despiteourachievementstodateweneedfreedomtoactmoredecisively.AdevolutionagreementmeanswecantakeresponsibilityforouruniquechallengesandcapitaliseonourGoldenOpportunities.
ThedividendfortheNationalProductivityPlanisconsiderable.Besidesthespecificmetricsidentifiedinourgoals,theUKwillbenefitfromglobalandnationalenergyinvestmentsandsecurity,environmentalfuturesandbigdatacapabilities,anat-scalesetofsolutionstohealthandcareintegrationandpublicservicereforms.
Thisnegotiatingprospectuslaysouttheheadsoftermsofanagreementtocreatethefoundationsforatransformationaljumpinproductivity.Itwilldeliverquickwinsthisdecadewhilstplanningforthemediumandlong-term.
Design & Access Statement
Perspective of South Elevation
Met Office, Exeter
Fingle Bridge, Devon
ImprovementsbyRail
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W ewishtoagreewithGovernmentasharedcommitmenttobuildingthreepillarsofadevolutiondealfortheHeartoftheSouthWest.
Foundation 1: The Productivity Plan
TheProductivityPlanwillbeourinstrumentforfixingourfoundations.ItwillincorporatetherefreshofourStrategicEconomicPlanandscaleuplocalgrowthagendas for2016-20 incorporatingSpendingReviewandpublicservicereformpriorities.ItwillincludeproposalsforourStrategicLabourMarketPlanandStrategicInfrastructurePlan.Itwillalsoreflectourambitionsforintegrationofhealthandsocialcarewheretheylinktoourdevolutiondeal.
Our negotiating prospectusFoundation 2: The Single Investment Framework
TheSingleInvestmentFrameworkwillsetthefinancialparametersofouragreementandencompassdevolvedfundsandlocallyalignedresources.Itislikelytoinclude:
Asingle infrastructurefundtoprovidethephysical investmentfor1.backbone,nationally-significantinfrastructure.A housing delivery instrument to accelerate housing delivery by2.unlockingkeysitesandstimulatingmarketactivity.Skillsandemploymentallocationstoenableremodellingoftheskills3.andemploymentlandscape.Devolvedhealthandcarebudgetsdeliveringagreedbusinesscases4.withNHSEnglandandotherpartners.
Webelieveagreementtoformulatethesetwofoundationswillenableearlydeliveryofacceleratedhousingdevelopment,skillsreform,andimprovedbusinesssupport,withhealthandsocialcare reformand infrastructuredevelopmenttakingplaceinparallel.
These two foundationswill be overseen and assured by aCombinedAuthorityarrangement.Thiswill,onceestablished,providetheHeartoftheSouthWestcounterparttoGovernmentforplanningandmanagementofourdevolutiondeal.Itwilltakeresponsibilityforthepowers,resourcesanddeliverablesoutlinedbelow.
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People
A highly skilled, high productivity labour market meeting businesses’ employment priorities
Weareclearthatwithoutproactiveleadershipandinterventionourskillsprofilewillremainachronicblocktofixingourfoundationsanddeliveringourvision.
Weintendtousenationalreforms, ledandshaped locally, todeliveralabourmarket capable of achieving productivity atGreater SouthEastlevels(excludingthedistortingeffectofInnerLondon).
Government’sexpectationsoflocalleadershipteamsfor2016-20aslaidout inexistingdevolutionagreements,the2015SpendingReviewandotherpoliciesinclude:
Planningandmanagementofphaseddevolutionofpost-19public•sectoradultskillsbudgets,leadingtofullcommissioningandfundingofprovidersfrom2018-19.
Chairing and facilitation of successful Area Reviews of post-16•educationandtraining,implementationofreviewrecommendationsincludingreshapingprovisionwhererequired.
Co-designofapprenticeship reforms including introductionof the•levyanddeploymentofApprenticeshipGrantforEmployers.
Co-designof futureemploymentsupportprogrammeswithDWP•andperformancemanagementregimes.
The Combined Authority will take responsibility for delivering theseagendas,augmentedbyspecificasksaround:
Specification and delivery management of Careers, Education•Information,AdviceandGuidanceinschoolsandcolleges.
SupportfromGovernmenttodeliverawiderHigherEducationoffer•forSomerset,includinganewuniversity.
Our Offer Our ask of Government
Responsibility for reshaping theskills and employment system.Delivered through formulation,agreement,resourcinganddeliverymanagement of a business-ledStrategic Labour Market Plan.
Fulldevolutionofpowers to theCombinedAuthority,phasedoveranumberofyears,with relevantskills,educationandemploymentbudgetsintotheSingleInvestmentFramework.
Government departments andagencies to co-design and co-deliver the Strategic LabourMarketPlan.
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Why is this important?
Ouranalysishasshown:
Youngpeoplearenotgettingtheindependent,qualitycareersand•educationadviceandguidancetohelpthemmakeinformeddecisionsontheireducationandtraining.
Employerproductivityimprovementsareheldbackbyshortagesand•lackofskillsinlocallabourmarkets.
Thenationalprovider system ispoorat anticipatingandsecuring•futureskillsneeds.
Supportfortheworklessisineffectiveforthosefurthestfromthe•labourmarket.Ourevidenceshowsadistinct lackofprogress forthoseinreceiptofEmploymentSupportAllowancedespitesignificantinvestmentandreform.
Key outcomes
With thepowersand fundingoutlinedabovewebelieveadevolutiondealwillallowustodelivertheskilledworkforceourproductivityambitionrequires.WewillworkwithGovernmenttodesignsystemreformsthatdeliver:
40,000peoplehelpedtomovefrombenefitsintopaidwork.•
BenefitbillsavingstoGovernmentof£1bnperyear.•
Additionalmoneyearningslocallyperyearof£800m.•
AdditionaltaxincomeforGovernmentof£113mperyear.•
Allyoungpeopleinemployment,educationortraining.•
Apprenticeship starts increased by 400% and aligned to our six•
GoldenOpportunities.
Parityofesteembetweenvocationalandacademicpathways.•
MaximisedlinksbetweenGoldenOpportunitiesandskillsdevelopment•
toencourageyoungpeopleintoourarea’shightechindustries.
AuniversityforSomerset.•
Babcock Training
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A national demonstrator of effective health and care integration for improved wellbeing
TheHeartoftheSouthWestalreadyhaswellestablishedandinnovativelocal approachestohealthandcareintegration,howeveroursystemcontinuestobeunderdemographicpressure.Wenowhaveanopportunitytobringtogetherresourcesacrossthepublicsectortodeliverthesystemicreformneededbythehealthandcaresystemandthroughstronglocalleadershipcanengagecommunitiesandvoluntarysectorinthatenterprise.Wewanttocreateasystemwherepreventionandearlyinterventionareanintegralpartandwhichrethinksitsapproachtomentalhealthandwellbeing.Insummary:
Our Key Offer Our ask of government
Building on the NHS 5-YearForward View, we will deliver a‘wholesystem’approachtohealthandcare.
Devolutionof5-yearplace-based population budgetsfor health, care, andpublichealth
This will include:Devolvedcommissioningofprimaryandassociatedspecialistcareservicesincludingmentalhealth.Flexibilityinregulationandbudgeting,includingfreedomforpartnerstopoolresources.Greateremphasisonpublichealthandthelinkbetweenhealthandhousing.Capitation-basedpayments.Supporttoaddressskillsshortages.
Why is this important?
Wewantpeopletoleadlonger,healthier,moreproductiveandfulfillingliveswhileensuringthesustainabilityofourhealthandcareservices.
Healthoutcomesaregenerallygoodandlifeexpectancyishigh,buttoomanypeopledevelopavoidablelong-termmultipleconditionswhichaffectboththequalityoftheirlivesandtheirabilitytowork.Peoplewithmentalhealthconditionsareintoomanycasespoorlyservedbyafragmentedsysteminwhichthereisnoeffectivelinkbetweenpreventive,primarycareandacuteservices.
Healthandcareisthesecondlargestsectorinoureconomybutproductivitylagsbehindotherareasandthereareworkforceandskillsshortageswhichaffectboththequalityandcostofprovision.Theseissuescanonlybetackledthroughwhole-systemreformandaclosermatchingofstrategyandresourcestolocalneed.
Ourageingpopulationdemographyisaheadofmanyotherareasmeaningwehaveanopportunitytoleadthewayintacklingtheassociatedhealth,careandeconomicchallenges.
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Key outcomes
Devolutionwillhelpuscreateahealthandcaresystemthatsupportsahealthierpopulation,greaterpersonal independenceandwellbeing,andimprovedworkforceproductivity:
Betterphysicalandmentalhealthoutcomes.•Asystemthatisintegratedandfinanciallysustainable,offeringawhole•systemapproach,andisatest-bedforGovernmentinnovation.Peopleofallagesencouragedandsupportedtomakehealthylifestyle•choicesandmanagetheirowncare,thereforedivertingordelaying
dependency.
Devolution offers the potential for us to go further, faster, and bringreforminitiativestogetheratascaleandwithascopethatcanprovideademonstrator(givenouradvanceddemographicprofiles)tohealthandcarereformsinotherpartsofthecountry:
TheNHS5-yearForwardViewand the requirementonareas to•developtransformationplansforlocalareas.The financial settlement for local government, including the•requirementtosubmitintegrationplansby2017.ChangingBetterCareFundguidanceandtheoptiontoworkacross•localauthorityareastoplananddeliverit.The‘SuccessRegime’applyingtoNEWDevonClinicalCommissioning•Group and its impact on, and learning for, other health and careeconomies.
Improved heath care and wellbeing.
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Business growth and innovation
Governmentexpectationsoflocalleadershipteamsfor2016-20includes sustaininganddevelopingsupportforbusinessgrowthafterclosureoftheBusinessGrowthService,aswellasenablingdistinctivecontributionstonationalresearchandinnovation-ledgrowthpriorities.ForusthismeansscalingupthereachandimpactofourGrowthHubandrealisingthefullpotentialofourGoldenOpportunities.
Todeliver thisHeartof theSouthWestpartnersalreadyhaveprimaryresponsibilitiesfor:
OperationandperformancemanagementoftheGrowthHuband•shapingofnationalagency(egUKTI)accessandsupporttoHeartoftheSouthWestbusiness.
Strengtheningthecoherenceandeffectivenessoflocalinnovation•eco-systemsaroundourGoldenOpportunities-notablythemarinecluster anchored by Plymouth, the environmental futures clusteranchoredbyMetOfficeinvestmentsinExeter,theUKHydrographicOffice’s long-term commitment to Taunton, the nuclear clustercatalysedbyHinkleyPointC,andthebroaderSouthWestaerospaceclusterwithitsmajorgrowthnodeinSouthSomerset.
Ourskillsandinfrastructureproposalsprovideanumberofinterventionstoaddressthesechallenges.ThesewillfeedintoandthroughtheGrowthHubsoourbusinessgrowthandinnovationstrand,insummary,will:
Our Key Offer Our ask of Government
ScaleupandassureaGrowthHubprovidingaseamlessapproachtobusinessgrowthsupport.
Strengthenanetworkandclusterof ‘innovation eco-systems’anchoredbyeachofourGoldenOpportunities
Anincreaseddevolvedrevenuepotforatleast5yearswhichcandrawifrequiredontheSingleInvestmentFramework.
Co-commissioningofallremainingnationalbusinessgrowthandinternationalisationservices.
CommitmenttobespokeagreementswithnationalagenciestorealisetheUKandlocalgrowthdividendsofeachoftheGoldenOpportunities-underpinnedbyanearlyScienceandInnovationAuditundertakenbyaconsortiumofsouthwestLEPsanduniversities.
This strand will include:CollaborationwithneighbouringLEPsonaclusterapproachtoinwardinvestment.
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Why is this important?
Dischargeoftheseprimaryresponsibilitiesisimpededbynationalpressureswhichmanifestthemselveslocally.Analysisshows:
SMEsandearlystageentrepreneursfindnationalandlocalsystems•fragmented, opaque and bureaucratic. This leads to low rates ofbusiness growth support take-up and entrepreneurial/start-upactivity.
Inward investment, internationalisation and trade, and our visitor•economyareheldbackbecausetheSouthWestisperceivedtobeadistantperiphery.Offersarepoorlyjoined-upandwehavealownationalprofile,andarealowpriorityforUKTI,VisitEnglandandotheragencies.
National science and innovation products and services are not•accessedconsistentlybyexistingbusiness.Furthermoreournationalofferisnotinvestment-readysocannoteasilytakeadvantageofthepotentialofourGoldenOpportunities.
WeneedmorecertaintyofinvestmentandfreedomfromnationalfundingcyclessowecanoperateourproposedSingleInvestmentFrameworkandensuretherightinterventionsaremadeattherighttimetosupportoureconomicopportunities.
Key outcomes
OurGoldenOpportunitiesanddistinctiveassetshavethepotentialto
releasemajor productivity gains for us and for the national economy.Businesssupportdevolutionwilldriveproductivitythrough:
Morebusinessestakingupthesupporttheyneed.• ·20%ofbusinessstockinformedaboutbusinesssupport ·3,000businessessupported ·750businessaccountsmanaged ·10OperationalLevelAgreementssignedbetweenbusinesssupportdeliverypartners ·360businessesreceivingintensivesupport ·36eventstoco-ordinatenetworkbusinessessupportdelivering withtheaimtosimplifybusinesssupportcustomerjourney
Significantlyincreasedlevelsofinwardinvestment.•
HeartoftheSouthWestbusinessescompetingstronglyintheglobal•economy.
Betterengagementwithbusinessandanentrepreneurialculture.•
DoublethenumberofinternationaltouriststotheHeartoftheSouth•Westandmorenationaltourists.
Greater levelsof science and innovation inour economy:double•the uptake of Innovate UK support, and increased research anddevelopment.
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Place
Government expectations of local leadership teams over 2016-20include:
Adoption and implementation of Local Plans with demonstrable•collaboration across functional economic areas to drive physicalinvestment.
A performance regime that accelerates housing and employment•growth.
Devolved local transport budgets and plans including both•developmentandregulatoryfunctions,toimprovesystemperformancelocally and add value to national infrastructure investments andprogrammes.
Contributions to specific national and pan-regional infrastructure•priorities, including Hinkley energy agreements andrecommendationsofthePeninsulaRailTaskGroup.
ProactivedeliverymanagementofStarterHomes,housinginvestment•potsandlocalauthoritycontributionstonewhousing.
Completion of backbone superfast broadband infrastructure and•increasingtake-uptosupportthedigitaleconomyandwellbeing.
Localauthorityandotherpublicsectorlanddisposal,development•andrationalisationstrategies.
Our proposalswill enable us to take responsibility for delivering theseagendas,including,insummary:
Our Key Offer Our ask of Government
EstablishmentofanInfrastructureCommission to formulate a newStrategic InfrastructurePlanwithimplementation overseen by theCombinedAuthority.
Support to develop, fundand deliver the StrategicInfrastructurePlan.
A commitment to create a flexible funding model tosupportacceleratedhousingdelivery, targeting locallyidentifiedgrowthareas.
This will include Government commitments to:Existingandnewinfrastructuredevelopment,includingthe•A361 North Devon Link, A303/A358/A30 improvementsandPeninsulaRailTaskForce20-yearplan.
Matchfundingandco-productiontodeliver100%superfast•broadbandcoverage
UsethetwoNationalParksastestbedsforintegratedland•managementandruralproductivity.
Inclusion of Plymouth on the Strategic National Corridor•network.
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This will include Government commitments to:DevolvedAirPassengerDutyfromExeterAirport.•
Support to develop and sustain new energy initiatives•includingwind,sub-seaandgridimprovements.
ANationalPolicyStatementforrenewableenergygeneration•intheBristolChannelandSevernEstuary.
Key outcomes
Tosupportproductivitygrowth,infrastructuredevolutionwilldeliver:
179,000newhomes,andanewGardenTowninSomerset.•
Acceleratedhousingandemploymentgrowthintheidentifiedgrowth•areasofGreaterExeter,HinkleyGrowthZone,Plymouth,Taunton,andTorbay.
FasterrailconnectionstoLondon,theSouthEast,andMidlands.•
100% superfast broadband availability and reliable mobile phone•connectivity.
Prioritised and sequenced infrastructure projects tomaximise the•valueofinvestments.
Innovationinenergydevelopmentandsupplytosupportthenational•energystrategy.
Greaterresilienceofourinfrastructure.•
Innovative approach to environmental management, increasing•productivity,improvingresilience,andgrowingourruraleconomy.
Why is this important?
Long-terminvestmentinourinfrastructureiscriticaltounlockinggrowthanddeliveringourproductivitytargets.OurStrategicInfrastructurePlanwillsetoutwhereandwheninvestmentisrequired.Weneedtoacceleratehousingandemploymentlandallocations,electroniccommunicationsforourbusinesses,morehousing forourworkers,and improved transportlinkstoallowfastermovementofourworkforce,goodsandservices.Thisinfrastructureunderpinsgrowthandisthekeytoourfutureproductivity.
Despiterecentsuccessesweareunderfundedcomparedtootherareas.Long-terminvestmentisvitaltoprovideconfidencefordevelopersandto drive productivity through faster,more reliable transport and digitalconnectivity.Investmentinresilienceisessentialtominimisedisruptionandfinanciallossduringacrisis.ThereisconsiderableuntappedresourceandmarketopportunityfortheHeartoftheSouthWesttocontributemoretotheenergysupplyofthenation.Wehavethepotentialtobecomealeaderinlowcarbonenergyandrenewables,howevercurrentgridinfrastructureislimitingdeployment.
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Foundation 3: Towards a Combined Authority
T hepartnerstothisproposalrecognisethatleadershipandgovernanceofdeliveryofourdealwillrequiretransparent,robust,andefficientstructuresandprocessescommandingtheconfidenceandsupport
ofGovernment,localcommunities,andbusiness.
WealsorecogniseGovernment’spreferredmodelofchoiceforthisvehicleistheCombinedAuthority(CA),withMayoral leadershipinthecaseofCoreCityRegions.
WewillcreateaCombinedAuthoritywithappropriatestrongleadershipandaccountabilities.WewillcarryoutaGovernanceReviewtoidentifythemosteffectivestructureandprocessesforputtingthiscommitmentintoeffect,ideallywithaninceptiondateofeitherApril2017orApril2018.
The Governance Review shall draw on the principles outlined in ourStatementofIntentasastartingpoint.ThereviewwillproceedintandemwithboththeenactmentoftheCitiesandLocalGovernmentBill,andtheprogressofourdevolutionagreementnegotiationsandrequirementsofitseffectiveimplementation.
TheGovernanceReviewwill setout thepowers, roles, functions, andoperationalarrangementsfortheCombinedAuthority-andproposeitsrelationshipswithandtokeydeliverypartnersnationally,locallyandwithneighbours.
Ataminimum,theHeartoftheSouthWestLEP,CCGsandothersasappropriatewillbecomefullnon-constituentmembersoftheemerging
Combined Authority, playing leadership roles where appropriatein its sub-structures, for example to build on the LEP’s businesscredentials.
Inaddition,weconsidertherewillbeanumberofcollaborativearrangementsthatweshallwishtoprogresswithvariableconsortiaofSouthWestneighbours.Thesemayincludea‘TransportSouthWest’proposition,thein-trainScienceandInnovationAuditconsortiumwithneighbouringLEPsandnationalclusters inareassuchasnuclear,renewablesenergy,
Similarly,ourprospectusrecognisesthatspecificsub-regionalgeographieswillaccommodatesignificantsharesofthegrowthtobedelivered.BespokearrangementstoplanandmanagethesechangeswillbuildonoradaptexistingarrangementsincludingTheGreaterExeterGroup,ThePlymouthandSouthWestPeninsulaCityDeal,theemergentHinkley,TauntonandBridgwatertriangle.Optionsforstrengtheningandadaptingthesearrangements(orelaboratingnewplace-basedgovernance)may includeDevelopmentCorporations,SpecialEconomicZones,AcceleratedDevelopmentZones,orothermodels.
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Next Steps
Delivering devolution requires careful sequencing. A high levelroadmap for developing and delivering our deal is outlinedbelow.
AHeartoftheSouthWestpartnersgroupwilllaunchshadowCombinedAuthority arrangements and a formal ProgrammeManagementOffice(PMO)uponagreementfromGovernmentofseriousintenttoprogresstowardsadevolutionagreement.ThePMOwillberesourcedtosupportdevolution agreement workstreams with business case and financialmanagementcapacity,includingassuringfiscalneutrality.
TheshadowCombinedAuthorityandPMOwillworkwithGovernmenttodeliversixco-producedworkstreamsbyearly2017:
TheGovernance Reviewwill apply the processes required under1.legislation to specify, agree and launch the form of CombinedAuthorityeventuallydetermined.Thisworkwillincludetheroleandvoiceofbusinessandsub-regionalgeographicalarrangements.
TheProductivityPlanwillelaboratetheevidencebase,strategiesand2.performancemanagementrequiredtodeliverthevisionandgoalsofthedevolutionagreement.
Weare seekingGovernment agreement toestablish aJointSkills3.Commissiontooverseenationalpolicyrequirementsandtheprocessoflocalisingtheseunderthetermsofourdevolutiondeal.
The local leadership team will work with our successful health 4.integrationexemplars,NHSEngland,andotherlocal,regionaland
nationalpartnerstoidentifywideropportunitiestocontributetotheProductivityPlanandnationalhealthandcareintegrationpriorities.
TheLEPwillensureexistinglocalgrowthcommitmentsaredelivered5.effectively, that the refresh of the Strategic Economic Plan feedsintothewiderProductivityPlanandthatbusinessengagement intheestablishmentandoperationoftheCombinedAuthorityanditsprioritiesisstrong.
We are seeking Government commitment to establish a Joint6.InfrastructureCommissiontofirmupthephysicalinvestmentneedsidentifiedinnationalandHeartoftheSouthWestprioritiesandhowtheSingleInvestmentFrameworkwillresourcethese.
Thisprocesswillallowearlywinstobemade,includingacceleratedhousingdevelopmentandinitialskillsandbusinesssupportreform,whilstspecifyingandagreeingthestructuresneededtodeliverthemediumandlong-termoutcomesofourdevolutionagreement.
In anticipation of a positive outcome from negotiations on our deal we seek early agreement from Government on a match-funded budgetary contribution to co-deliver these workstreams.
WeinviteGovernmenttobeginformalnegotiationwithusonourproposalsandthedetailbehindthemwithaviewtosigningadealduringthefirsthalfof2016.
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Outline Roadmap
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RoyalWilliamYard,Plymouth