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Liverpool City Region MAA ECONOMY PLATFORMDRAFT – 2nd April 2009

1. Introduction

1.1The Liverpool City Region’s collective vision is to: “Establish our status as a thriving international City Region by 2025”. To this end the Liverpool City Region economy has experienced an impressive recent renaissance. Over the past ten years the economy has experienced a 5.7% rise in employment, 62% rise in total economic value, and a 21% rise in business density. These rates have often exceeded the UK, North West and other comparator areas. Substantial investment has been made in the physical infrastructure of the City Region, and its cultural and tourism offer, boosted by Liverpool European Capital of Culture 2008, is one of the UKs most compelling.

1.2However, even with these impressive figures, the gap between the Liverpool City Region and the UK average still remains significant, and that despite strong performance this has not closed substantially.

What is now clear is that the ‘business as usual’ approach will not be enough to close the gap, particularly in the current economic climate. Our Story of Place shows emphasises that a twin-track approach is required – to increase the scale of activity within the economy, be that in employment or in business numbers, but also to raise the productivity of existing businesses.

1.3The Liverpool City Region is therefore seeking to use the economy section of its MAA to enter into a long term strategic relationship with Government to progress major transformational actions that will help to address both the scale and productivity of the economy. Using these actions we will close this gap with the rest of the UK, provide the basis for a future local economy that can be internationally competitive, and help the North West and UK punch above its weight in a global economy.

DRAFT - Liverpool City Region MAA – Economy Platform 2nd April 09

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1.4The following diagram shows the formulation for our MAA in the wider context of the overall City Region development picture.

The overall story of place has been agreed between partners and with Government in January 2009, together with proposals for employment and skills. This economy platform, alongside similar proposals for housing and transport will be agreed in June 2009.

1.5The focus on transformational actions means that there are a number of things that aren’t included in the economy section of this MAA. This includes all of the work that we are doing collaboratively on inward investment, on tourism and culture, and on enterprise and business growth.

These are important aspects of our overall strategy, but are areas where our intentions are well articulated elsewhere, that all partners are agreed and signed up to, or at this stage need no further intervention from Government to deliver.


What we are already delivering.

The following priorities are being delivered

collaboratively by LCR partners, and fall outside the MAA.

New Governance arrangements for the Liverpool City Region

Enterprise and Business Growth

Strategy

LCR Inward Investment Agency

LCR Tourism Strategy (building on Capital of

Culture)

Merseyside Municipal Waste Strategy

Key infrastructure investments in

Regionally significant sites

Outcomes relevant to Story

of Place

Closing the GVA Gap

Increasing Skills Levels

Accelerating Enterprise and

Business Growth Rates

Addressing Worklessness

Tackling Deprivation

Story of PlaceSets out our key opportunities and challenges for the Liverpool City Region, and provides further detail about

what we are already delivering as a partnershipAgreed and Signed January 2009

Economy

Focuses on transformational actions required to accelerate economic performance and close gaps with the rest of the UK. These big ideas are supported by interventions in other platforms.

Low Carbon Economy

Liverpool SuperPort

Knowledge Economy

The platform also details the role that we are playing, as part of the wider North West approach to addressing the economic downturn

Transport

An efficient and sustainable transport network that supports the LCR’s aspirations across economic growth, skills & employment, and housing

Improving Access to employment opportunities

Improving Capacity and Connectivity

Low Carbon Transport Demonstration City Region

Housing

Focuses on improving the Liverpool City Region housing offer so that it underpins our economic aspirations.

Improving the quality of existing housing

Improving the condition and management of the private rented sector

Appropriate numbers of new homes in the right places

Linking residents of vulnerable housing market areas to new opportunities for education, training and employment

Employment and Skills

(Agreed and signed January 09)

Ensuring the supply of appropriately skilled labour to meet current and future employment demand including higher levels skills and qualifications, and bringing a greater number of people into the labour market and therefore reducing worklessness.

Developing and employment and skills strategy and commissioning plan.

A range of measures specific to the City Region• Flexible New Deal Programme• Fit For Work plan• Testing new ways of

information advice and guidance

The Liverpool City Region MAA

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2. Economic Governance

2.1 Governance

The Liverpool City Region Cabinet comprises the Leaders of each of the six Local Authorities and the Chair of the Mersey Partnership. The Cabinet was established in shadow form in October 2008 and it will be accountable for the delivery of the city region vision and objectives, as set out in an integrated strategic framework, together with the determination of policy priorities and performance management including the delivery of the MAA. The Cabinet will be supported by six Policy Boards including the Economy Board which will oversee the operation of the Economy Platform of the MAA.

2.2 The Mersey Partnership

Current proposals are for the Economy Board to build on the existing role of the Mersey Partnership Board which is an employer led organisation representing some 500 businesses across the city region. The members of the Mersey Partnership reflect the many diverse sectors which are the trademark of the city region’s economy and include private, third sector and public sector organisations. Members range from household names such as Pilkington and Jaguar Land Rover to small and medium sized enterprises and they play an important role in supporting and developing the Mersey Partnership’s activities in its three core areas of economic development, investment and tourism.

2.3 The Economy Board

Reflecting the strengths of the Mersey Partnership Board, the Economy Board will strengthen the strategic capacity of the Liverpool City Region to play key role in the implementation of proposals resulting from the Government’s Sub-National Review of economic development and regeneration. As a result it will contribute to improved and streamlined economic development activity leading to a reduction in the regional disparity between the Liverpool City Region and the UK in respect of economic performance.

Membership and terms of reference for the Economy Board and its relationship with the existing Mersey Partnership Board are currently being reviewed by the Mersey Partnership and its local authority partners. The aim is to ensure strong leadership and clearer decision making on economic priorities and related investment decisions in order to complement and provide clear linkage to the structures and processes being introduced at the regional level through the Sub-National Review proposals.

Key milestones for establishing the Board are included in the timetable set out in Section ? of this document with formal adoption of the new Board’s roles and responsibilities taking place in October 2009. This timetable reflects the City Region Cabinet’s decision to move towards a statutory sub region authority, once enabling legislation is in place, and to have in place by October 2009 a full city region governance structure.

2.4 An Economic Prosperity Board

The intention to progress towards a statutory sub region authority was reinforced in January 2009 by the Liverpool City Region Cabinet’s decision to progress the development of an Economic Prosperity Board. This reflects the proposals set out in the Government’s Local Democracy, Economic Development and Construction Bill. This would further enhance effective long term and strategic decision making in respect of economic development and regeneration at the city region level and work will therefore take place to define the relationships between such a Board, the Liverpool City Region Cabinet and the Economy Board to determine the most appropriate sub regional arrangements.

DRAFT - Liverpool City Region MAA – Economy Platform 2nd April 09 3

2.5 Economic Assessment

Progressing the establishment of an Economic Prosperity Board will include a review of current economic development arrangements across the city region and will be informed by the local authorities economic assessments as set out in the Sub-National Review. These assessments will be carried out at the local level by each of the local authorities but, reflecting the government’s intention that economic decisions should be taken at the most appropriate spatial level, the assessments will enable a robust, shared evidence base to be developed at a city region level.

This shared evidence base will support the Economy Board to produce an overall strategic framework and related investment plan for the city region which will support both sub regional and regional strategic planning and investment. Drawing together economic assessments at the city region level will build on and incorporate work that has already been undertaken through the Mersey Partnership which includes:

The Merseyside Economic Review The Liverpool City Region Development Plan The Liverpool City Region Action Plan

This work will support the Economy Board in increasing the capacity for strategic decision making at the city region level and strengthen capacity for delivery and implementation of a range of programmes including the Economy Platform of the MAA.

2.6 City Region Priorities

Progressing strategic economic priorities will be supported by a process that enables a clear definition of projects and programmes that will be identified as the responsibility of the city region. This will include a gateway system for assessing and agreeing priorities which will be ‘kite-marked’ as city region projects or programmes. This will involve full consultation with relevant partnerships, joint boards and key stakeholders together with agreement as to the most appropriate delivery vehicle.

This process will be overseen by the City Region Cabinet, but the Economy Board will play a key role in determining economic activity that cannot be undertaken without collaborative working and which should be put forward for kite-marking. In addition the Board will ensure that kite-marked projects are developed and progress monitored to ensure maximum economic benefit for the residents of the Liverpool City Region.


3. Economic Evidence: The case for transformation

3.1 Liverpool City Region’s recent renaissance

An impressive recent renaissance has seen the Liverpool City Region become a significant driver of growth within the North West economy, with a total value of over £17bn, 540,000 jobs and nearly 40,000 businesses. Our track record includes:

Significant investment such as the £1bn Liverpool One development that is transforming the appearance, image and confidence of the City Region. This has been delivered in partnership with the private sector, with public investment removing barriers to investment and stimulating the market.

Impressive economic growth over the past ten years, including a 5.7% rise in employment, 62% rise in total economic value, and a 21% rise in business density. These rates have often exceeded the UK, North West and other comparator areas.

A significantly enhanced culture and tourism offer, underpinned by Liverpool European Capital of Culture 2008, contributing £1.2 billion to the economy.

Transformation of the City Region’s housing stock.

3.2 Significant challenges remain

Despite recent growth, significant challenges remain to be addressed for the Liverpool City Region. These challenges have been updated from the MAA story of place based on work undertaken by MIS Mott Macdonald in November 2008.

Significant GVA per capita gapThe GVA gap between Merseyside and the UK currently stands at around £5,045 per capita. The Merseyside economy

would need to grow by £6.85bn against the UK to close this gap.

Workforce productivityApproximately half of the gap in GVA per capita between Merseyside and the UK is due to the difference between local

and national productivity levels. This difference results in a £2,554 per capita gap against the UK (or, equivalently, £3.46bn). Although productivity grew marginally faster than the UK between 2002 and 2005 (adding about £666 million on average to the Merseyside economy each year), the gap between UK and Merseyside productivity has

actually increased in absolute terms. Productivity is determined by a number of factors, including capital utilisation, skill levels and management techniques.

Employment and Economic Inactivity RatesIn 2007, the employment rate in Merseyside stood at around 68.1% compared to 74.4% in Great Britain overall

Bringing employment up to the national PSA target of 80% by 2015 would require an additional 107,280 people going into employment. Although the inactivity rate in Merseyside declined between 2004 and 2007, the inactivity rate of

26.4% of the working age population still compares unfavourably with the UK average of 21.6%. Together, lower employment and activity rates result in a gap of some £1,554 per capita compared to the UK overall. Taking into

account commuting rates, the gap against the UK increases to £3.4bn.

Low Business BaseThe business stock in Merseyside currently stands at 27,960. Although the business start-up rate has been consistently higher than the England average, the gap in business density has risen in absolute terms. In terms of VAT-registrations (per 10,000 working age people), the number of registrations would need to grow by approximately 33% and 50% in

order to close the gap with the Northwest and UK, respectively.

In terms of total VAT-registered stock (per 10,000 working age people), the stock would need to grow by approximately 40% and 65% in order to close the gap with the Northwest and UK, respectively.

Skills GapSome 18.6% of working age people in Merseyside has no NVQ qualifications, compared to 13.1% for the UK. Across all skills levels the Liverpool City Region is lagging 4 – 7 percentage points behind the UK average. In order to match UK

skill levels, around 31,877 extra people would have to be educated to at least NVQ2+, 62,279 people to at least NVQ3+ and 63,057 people to NVQ4+.


3.3 Economic Forecasts

Work undertaken by Cambridge Econometrics in 2007 assessed the longer term prospects of the economy in the Liverpool City Region. The economic downturn of the past 18 months has substantially changed the economic climate that these forecasts were developed in.

We are in the process of updating these forecasts with three specific aims To understand what impact the economic downturn will have on our long-term forecasts

for the economy. The provide baseline likely recovery scenarios To examine the impact that this MAA, and other major initiatives will have on the

baseline forecasts.

This work will also be aligned to forecasting work underway across the North West in preparation for the development of the Regional Strategy 2010.

However, based on previous forecasts undertaken in 2007, our understanding of the current economy, and our understanding of the impact of the recession we are basing our platform on the following predictions.

Likely employment gains in key sectorsIn the 2007 forecasts employment levels were predicted to rise with an increase of 12% by 2020. We now know that this figure is too optimistic. However the underlying basis of these predictions still remains valid.

The City Region’s critical mass of culture and tourism infrastructure has been given a significant boost by European Capital of Culture 2008. This provides a platform for further business growth and employment opportunities in the Leisure, Tourism and Creative and Digital sectors – all of which have experienced between 20 – 40% employment growth over the past 8 years, and with travel patterns predicted to increase demand in the UK short stay market we expect that this sector will continue to provide job opportunities.

The £1billion investment by Grosvenor in Liverpool One has immediately moved Liverpool from 17th to 5th in the league table of retail cities, and footfall in the City Centre remains buoyant. The timing of this investment may insulate Liverpool, compared to other cities, and will continue to provide job opportunities.

In 2007 employment growth was predicted in the logistics, transport and distribution sectors. These sectors will be strengthened by major multi-model investments across the City Region, and our inward investment operation in these sectors remains confident of job increases.

The City Region has a high proportion of public sector employment in comparison to other comparator City Regions. In times of growth this is seen as a negative factor, as it provides a drag on the productivity levels of the City Region. However, in times of recession it can provide a degree of insulation in terms of job losses. There are also opportunities here, as Government departments, responding to the need to make cost savings look at Liverpool City Region as an attractive destination for relocation.

This will be offset by job losses in other sectors. The City Region is particularly at risk from redundancies from major employers within the manufacturing industry. Due to the size of these operations in relation to the overall employment base of the City Region, losses in these plants can have cause huge shock to the economy.

GVA and productivityIn the 2007, growth in the City Region was predicted to increase by £8.5bn (£17bn in the wider City Region ‘travel to work’ area). This now seems unrealistic as businesses cut back expansion plans, and key infrastructure gets put on hold.


Even with overall growth predicted, the productivity gap was not predicted to close – due to the largely low incomes of predicted job opportunities. This is likely to remain the case in the light of the predictions of employment growth.

3.4 Transformational actions

It would be possible for the Liverpool City Region to continue on our current trajectory, taking a shorter term view of economic prospects and making an agreement with Government that meets our immediate, short term priorities. However, the evidence suggests that something longer term, and wholly more transformational is required in order to give the uplift required in economic performance. We have therefore taken the approach in this platform to focus on major, long term strategic interventions that meet the following criteria.

Greater outcomes - These actions will deliver on all of our key indicators – more jobs, higher value business opportunities, more investment, greater innovation, higher quality-of-life for residents and lower carbon emissions.

Build on the distinctive features of the Liverpool City Region Economy, and identify areas where we have existing market advantage.

Future looking - These actions are about re-engineering our economy to be globally competitive in the future, building on our existing strengths.

Co-operation required - These are actions within which we must to cooperate to deliver at a local, City Region, North West and National level.

No individual district can deliver the scale and extent of gains needed, or deliver programmes of this scale in isolation. To deliver successfully will require the alignment of national, regional and local policy and initiatives behind these City Region priorities.

These actions must be delivered ‘across platforms’. They require a truly integrated approach to economic development, housing, transport, employment and skills, and environment. In Liverpool City Region governance terms they are cross-board activities.

They require multi-agency alignment and will require alignment of effort from the private sector, voluntary and community sectors and various public sector agencies.

The actions will need strong central government support, as they may require specific policy intervention to deliver.

Deliver UK PSA targets

The following diagram demonstrates how the objectives of the four transformational actions will impact on UK PSA targets


MAA Outcomes and relationship with PSA Targets

SuperPort

Jobs in the freight and logistics sectorBusiness growth (and increased

turnover) in the maritime, freight and logistics sector

Additional inward investmentMaritime professional and financial

services increasesInnovation in traditional industries

Skills increases in relevant market sector

Low Carbon Economy

Jobs across a range of occupational levels

Enterprise supply chain creation and stimulation + Inward Investment

Adaptation and transformation of the existing industrial and commercial base

Decoupling economic growth with carbon emmissions

Knowledge Economy

Enterprise creation and supply chain development in high tech industries.

Increases in skills levels across the spectrum – career progression.

Graduate retention High value jobs and associated support

occupationsAdaption of the economy towards

global future.

PSA Targets

PSA 1: Raise the productivity of the UK economy

PSA 4: Promote world class science and innovation in the UK

PSA 6: Deliver the conditions for business success in the UK

PSA 7: Improve the economic performance of all English regions and reduce the gap in economic growth rates between regions.

PSA 8: Maximise employment opportunity for all

LAA Targets

NI 151: Overall Employment rate (working age) (4 LAs) - PSA 7 & 8

NI 153: Working age people claiming out of work benefits in

the worst performing neighbourhoods (6 LAs) – DWP

NI 171: New business registration rate (6 LAs) - BERR

NI 172: Percentage of small businesses in an area showing employment growth (2 LAs) -

BERR

NI 166: Median earnings of employees in the area (2 LAs) -

BERR


5. Liverpool SuperPort

5.1 Why Liverpool SuperPort?

International business is now operating on a completely new scale, leading to concentration whereby fewer, larger companies take an increasing share of global business, particularly in manufacturing, retail and transport. Creating a new burgeoning market and building on existing considerable maritime capabilities, SuperPort is the Liverpool City Region’s response to become a leader in this dynamic and truly global market place.

At the cornerstone of the SuperPort is Peel Group’s Ocean Gateway strategy for the Mersey and Manchester Ship Canal and Stobart Group’s plans for extending their logistics footprint in the city region, ensuring that the overall SuperPort concept is very much private sector driven. In essence, the role of Government, and the public sector in general, is to ensure that the appropriate physical and policy environment is provided to encourage the planned developments to proceed.

Current Configuration

Liverpool John Lennon Airport

Port of Liverpool (Seaforth)

Other Mersey Ports

Mersey Multi Modal Gateway (3MG)

West Coast Mainline

Knowsley Rail Freight Terminal

• Owned by Peel Holdings Ltd• Customers 5M annually• Turnover -xxx• Jobs –xxx• Freight tonnage - xxx

• Owned by Stobart Group Ltd• Extensive expansion plans• Turnover –xxx• Jobs –xxx• Tonnage -xxx

• Owned by The Potter Group• Turnover –xxx• Tonnage –xxx• Jobs -xxx

• Owned by Peel Ports (51%)• Turnover -• Tonnage –34M • Jobs -

• Include Garston, Wirral, Weston

• Tonnage -• Total jobs –

• Operated by Network Rail• Recent developments to aid

freight movement –Olive Mount Chord and gauge enhancements

5.2 SuperPort – Outline & Vision

SuperPort physically comprises the core assets of port, airport, logistics and transportation infrastructure but conceptually it can be much more by integrating these attributes together to provide a cohesive cost efficient entity. In addition, the region also has a world class freight community able to make best use of these physical assets. Indeed, SuperPort has the potential to become a genuine unique selling proposition for the Liverpool City Region and the North West by seizing competitive advantages in a global industry with an assured, long-term future.

By learning and applying best practice from across the world Liverpool SuperPort can become a leading example of technical and service innovation, harnessing the potential of its supply


chains and ensuring that not only does it become a global destination and transshipment hub of choice but becomes a pioneer in the field of sustainability.

SuperPort also has the potential to provide a key driver in the development of inward investment as external parties are made aware of the opportunities opening up in the City Region through the inward investment activity of The Mersey Partnership.

Contribution towards Liverpool City Region Economic Targets

Expansion of Liverpool John Lennon Airport

Expansion of Mersey Multi Modal

Gateway (3MG)

Mersey Gateway (Halton)

• Full Airport Masterplan in place.• £xMinvestment plans to 2025• Long term plans to extend

runway to boost freight operations from xMtonnes to yMtonnes by 2025

• Work in progress in extending 3MG by extra 100 acres at a cost of £xM

• Forecast economic uplift of £xM

• Prospects for extra z jobs

Post PanamaxFacility

(Seaforth)

• Core element of Liverpool SuperPort

• £xMinvestment in deep sea river berth

• X additional acres of container storage

Parkside Strategic Rail Freight

Interchange (St.H)

• Transformational development on former colliery site

• Astral Development plans for x acre site

• Prospects for x jobs

Liverpool SuperPort

• New Mersey crossing at Halton• £xMinvestment

5.3 Why City Region cooperation is needed regarding SuperPort

SuperPort impacts on all of the Liverpool City Region Local Authority areas. The Port of Liverpool and Liverpool John Lennon Airport sits along the Sefton, Wirral and Liverpool boundaries while there are development plans for assets in Halton (Weston Docks, Gateway), Wirral (Wirral Waters), St.Helens (Parkside), Knowsley (Knowsley Industrial Park) to name just a selection. Add to these the resulting logistics supply chains and end customers and the level DRAFT - Liverpool City Region MAA – Economy Platform 2nd April 09

Case Study: Maersk and Liverpool City Region’s Maritime Core

Liverpool City Region has a particularly strong maritime heritage, and this gives us significant clustering strengths, especially in the provision of maritime services. We know that maritime business like to be located close to one another. We also know that expansion of the maritime sector also means jobs and business opportunities in transportation, freight handling, logistics, storage and refrigeration, legal and financial services.

Maersk have just announced a move of their UK HQ facility to the Liverpool City Region. This is a substantial image boost and provides an initial 80 jobs, including their senior management team. 50 of these jobs however are in the £15 – 25,000 range, emphasising the point that impacts of SuperPort are likely to provide a wide range of opportunities.

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of cooperation that will be needed across political boundaries to realise the immense SuperPort potential becomes evident. In particular, private sector developers will be looking to public sector partners in providing the policy framework that allows pipeline projects to proceed in optimum conditions, especially in these challenging economic times.

5.4 SuperPort Positioning Statement

The Mersey ports can currently handle over 800k TEU (Twenty foot Equivalent Units – the standard measure for containers) of freight per annum. With the delivery of the proposed Post-Panamax Facility this capacity will double to 2M TEU.

Liverpool John Lennon Airport, one of the fastest growing airports in Europe, handles over 5M passengers per annum and has achieved 23% growth per annum from 1994 to 2004 against the national average of 5.8% in the same period. The Airport Masterplan is predicting an up-lift to 8.3M passengers by 2015 and 12.3M by 2030.

Freight at LJLA is currently at a low level (only 9.2k tonnes per annum as of 2004) but capacity does exist for a substantial penetration into this market if a number of key infrastructure developments are delivered successfully and to schedule (World Cargo Centre, Runway extension). The Airport Masterplan is then predicting an up-lift to over 30k tonnes by 2015, a year on year increase of 11.5%.

The logistics industry within the Liverpool City Region is expanding with the development of 3MG in Halton and the proposals for the redevelopment of the Parkside colliery site as a major logistics hub.

Although each of these SuperPort assets are predicting substantial growth, which will need to be supported through policy development and implementation, the essence of the concept is the extent that they integrate with each other to provide a stronger global customer proposition and a key driver for the Liverpool City Region economy.


Liverpool SuperPort will need to be globally and nationally competitive

Container traffic in the UK is forecast to increase, on average, by around 4% per annum between 2005 and 2030.

Liverpool SuperPort needs to be equipped to take maximum opportunity from global growth in containerised traffic, particularly in those markets that it currently does not have a recognised strength in such as the Far East.

As can be seen by the scale of competing ports if Liverpool SuperPort is to develop its global presence it will need to gear up from its existing position of 800k TEU (standard container) per annum.

The delivery of the Post PanamaxFacility at Seaforth allowing access to the World’s largest ships is a critical component in achieving this goal.

Forecast containerised traffic 2004-2030, by World Region (‘000 TEU)

Europe’s 20 largest container ports by throughput

Source: MDS Transmodal, 2004

Source: DfTMaritime Statistics 2007

Liverpool SuperPort projected capacity (up

to 2,000 TEU)

5.5 Priorities

Exact priorities for the Liverpool SuperPort are still emerging but in the immediate future the delivery of the key infrastructure currently in the pipeline (esp. Post-Panamax Facility, LJLA Runway extension, Olive Mt Chord, Halton Curve, Mersey Gateway, Parkside, Weston Docks expansion, A5036 port access road etc) is essential.

SuperPort needs to ensure, in the short term, that it influences the development and refresh of policies at national, regional and local level such as the Regional Economic Strategy (RES), Regional Spatial Strategy (RSS), Action Plan for the Liverpool City Region and ultimately the Single Strategy for the North West.

Liverpool SuperPort will be used as a global brand that can be leveraged to entice increased private sector investment, inward investment from outside the UK and new freight and passenger customers into the Liverpool City Region. Ultimately its aim is that the Liverpool City Region becomes as synonymous with its role as a SuperPort as Dubai and Singapore are synonymous with their roles as regional and international logistics hubs. To this end Liverpool SuperPort needs to ensure, that it is promoted and recognised as a port of national importance by regional and national Government.

5.6 Notable Barriers

For Liverpool City Region to fully realise the potential of SuperPort it will need to address a number of issues.

i) The Liverpool City Region needs to ensure delivery of the key proposed SuperPort assets such as the Runway extension, Post Panamax Facility, World Cargo Centre


and Parkside development in St.Helens.

ii) Recent Government investment continues to support the dominance of the South East ports, despite serious issues around road congestion in and out of the ports and airports.

iii) As a fledgling market for LJLA the impending threat of Air Freight Taxation being imposed on the industry casts a major doubt on the forecasted growth figures.

iv) At present there is inadequate surface access to the ports and airport. With the growth forecasted this is likely to become increasingly problematic. This refers not just to road access but also to the poor standard of rail access currently provided, especially from a passenger perspective.

v) Despite growth of the ports and airports across the UK there is still too much reliance by freight consumers on extended road haulage journeys moving freight from South East ports when journey miles could be reduced by using the Mersey Ports and Ship Canal.

vi) For nearly 20 years Liverpool City Region has had no connections to the major UK air hubs (Heathrow, Gatwick), placing the sub-region at a disadvantage to other ‘competing’ city regions such as Manchester, Leeds and Newcastle.

vii) There is inadequate identification, prioritisation and provision of appropriate land made available for maximising development of ports, airport and logistics operations.

viii) Despite recent strong growth in the ports, airport and logistics industries, Liverpool City Region still needs to work on developing its reputations as a major hub in a global marketplace.

5.7 Strategies for Overcoming Barriers

The Liverpool City Region will need to adopt a number of key strategies if it is to overcome the recognised barriers, these include:

Securing increased private sector investment in SuperPort infrastructure.

Direct investment from the public sector where private sector intervention is not appropriate.

Align policy development around ports, airport, logistics and transportation with the aims of the Liverpool SuperPort.

Lobbying key influential bodies such as the Northern Way and CLG to ensure that policies supporting the development of the SuperPort reach the statute books.

Marketing of Liverpool City Region as a SuperPort to potential investors at a national and global level.

Develop and coordinate effective land strategy for future development of ports, airport and logistics operations with public and private sector partners.

Set up effective linkages to alternative air hubs outside the UK.

Establish and manage effective partnerships between private and public bodies in the delivery of SuperPort infrastructure and services.


5.8 Outcomes and Deliverables

Although the physical infrastructure to be delivered is largely already included in the SuperPort concept due to the complex and multi-agency nature of its delivery, it is difficult to articulate the headline benefits for the City Region in terms of jobs, GVA, investment levels etc. However, City Region partners – through the SuperPort Steering Group – are commissioning a study that will examine proposed returns from the key infrastructure developments. This is expected to report back in May 09.

5.9 Ask of Government

Discussions with key sub-regional partners are needed to establish the exact needs of Government, but early indications are as follows:

1. Government has already approved the development of the Post Panamax Facility and we would ask that this kind of support would continue for other SuperPort projects such as the runway extension at LJLA and the associated supporting infrastructure (rail and road access).

2. Ensure that future taxation changes being considered do not put the UK at a disadvantage in the development and penetration of key markets such as air freight.

3. Support Liverpool City Region in its attempts to establish effective communications with London and the South East that meet the demands of a growing business base, either through land transport or acceptable air links.

4. Acknowledgement of Liverpool Ports as ports of national significance and subsequent equitable treatment in relation to southern-based ports, such as Felixstowe and Southampton, with Government investment and policy creation.

5. To explore with BERR, Treasury and other relevant Departments the possibility for certain components of SuperPort proposal, both spatial areas and key transport infrastructure, to be designated Accelerated Development Zones (see appendix 2 for further details).


6. Low Carbon Economy

6.1 Positioning the Liverpool City Region

Context International consensus on the need to significantly reduce carbon emissions. The Kyoto

protocol is to be updated in Copenhagen in December 2009. The EU and UK governments have set legally binding targets to reduce emissions. The

UK has gone further than any other developed nation by committing to reduce carbon emissions by 80% of 2005 levels by 2050.

The UK government established the Department of Energy and Climate Change in October 2008 to deliver its carbon reduction commitments.

The North West has one of the UK’s most developed and integrated climate change programmes led by the North West Climate Change team. For this reason, NWDA is the lead Regional Development Agency for the new Department for Energy and Climate Change.

The demand for low carbon products and services is set to grow strongly across all market and geographic sectors. UK taxation policies are being amended to favour low carbon products and services.

There is now extreme volatility in global energy supply systems which are reflected in supply market rates. Long term energy supply security and fuel poverty are emerging strategic issues down to a local level.

The three main sources of carbon in all developed economies are emissions from power production, transport and buildings.

International impetus and government targets provide the basis - significant investment opportunities for those who produce low carbon products and services.

Global competitiveness is likely to demand a well-adapted location with the appropriate supply-chain and skills mix.

Energy cost and supply will be a future driver of business competitiveness.

Directly relates Liverpool City Region assets and opportunities Natural – Significant tidal, on and offshore wind and bio-mass renewable energy

opportunities Business base – Existing strengths in off-shore engineering, complex manufacturing, alternative fuel production and energy abstraction industries

Directly relates to Liverpool City Region challenges Re-engineering the current industrial base – with the potential to drive growth in

professional and financial services, as well as high skilled (and growing) manufacturing industries.

Driver of future employment increases – with employment across the range of skills industries.

The future requires resilience Understand that there will be a certain amount of climate change already happening: -

need to develop adaptation to temperature rise, and resistance to flooding.

6.2 Potential of the Liverpool City Region

Renewable Energy Potential self-sufficiency for the Sub Region from indigenous renewable energy assets –

addressing issues of carbon reduction, energy security and fuel poverty. This level of renewable generation would also allow the City Region to become a net power exporter. Low carbon energy will be an increasingly valuable commodity and, consequently, out-of-region export will develop into a major revenue stream. .


To develop the renewable energy manufacturing and service sectors. This would build on existing manufacturing strengths and offer transformational opportunities to existing companies.

There is an opportunity to lead the development of tidal energy systems. Technology options in this area are still being developed and there is an opportunity to harness the private sector know-how to the City Region’s academic prowess in related areas to create a global centre of excellence in this emerging market.

The City Region has significant bio fuel capacity from both virgin crops and from waste arboreal matter. Both aspects require the development of a stable supply chain and the acceptance of burning wood material. Biomass has two strong attractions. It transforms a waste cost stream into a low carbon income stream. Secondly, virgin biomass production works well on remediated brownfield sites such as collieries and capped landfill, thus creating a public amenity during growth and employment in growth and harvesting.

Sustainable Transport Internal transport links – the existing heavy-rail network and potential light-rail

development can both be powered exclusively from electricity. By linking this electrical requirement to local renewable generation it would be possible for the City Region to have a zero-carbon public transport core network. A significant proportion of the rail network in the City region is already electrified with relatively minor ‘in-fill’ schemes required to complete the network. Electrification also enables more efficient rolling stock to be introduced that can use regenerative braking to put power back into the network.

The area’s bus network will continue to be a core element of the system. The fleet should be moved towards hybrids and biofuels and eventually towards hydrogen.

External transport links – The SuperPort concept provides the most carbon-efficient means of moving international freight to end destinations in the north of the UK. In order to maximise the carbon benefits, freight landed in Liverpool must be able to move freely, preferably by rail or barge, to its end destination. The City region has strong rail links, though additional gauge clearance is required. The Ship Canal also provides a significant opportunity to move bulk cargoes away from road.

The City Region fundamentally requires full connectivity to the emerging High Speed 2 rail link from London to the North. The City Region requires excellent connectivity to the South and Europe. Emissions-based taxation systems for transport are being introduced in EU member states. Air travel will fare badly in this regime with the potential impact on individual route viability and hence reduced regional connectivity. High speed rail would mitigate some of these effects.

The City region still retains a significant presence in the manufacture of vehicles and vehicle fuels. Both manufacturing areas also support extensive supply chains and research and development facilities. Both sectors need to adapt to a low carbon output as quickly as possible to gain first-mover advantages. The vehicle manufacturers need to produce products that are as low carbon as possible through advanced materials and next generation propulsion systems. The fuel manufacturers need to produce zero-carbon fuel from sustainable sources. One significant area of potential growth for the fuel sector is for synthetic bio fuels for aircraft to replace Jet A1 for commercial aviation.

Low Carbon Buildings There is significant scope to reduce the carbon output of both public and residential

building stock within the City Region. This will have the dual advantage of reducing occupier’s energy costs and carbon emissions whilst also providing enhanced demand for low carbon building products and services.

The City Region already has a strong and vibrant building products sector especially in areas such as glazing, insulation and building controls. Emerging technologies such as LED lighting and microgeneration are also well represented. The issue to be addressed is to maximise take-up of these technologies. Key to enabling this is to develop a strong professional services sector to inform, support and fund such low carbon technology applications.


The City Region is leading the move to apply low carbon principles in its new building stock. Examples such as ACC Liverpool, Newton Academy and ASDA Bootle demonstrate the art of the possible. Developers, both public and private, must be directed to adopt such exemplar buildings as the City Region authorities’ expectations from all new developments. This could be done by creating a local building code.

Given the existing strength of the building sector in areas such as glazing, insulation and photo voltaics a strong case can be made to establish a Northern centre for the Building Research Establishment (BRE) within the City Region. This would act as a focal point for low carbon research and development and as a showcase for the technologies and practices.

6.3 Outcomes

Jobs Professional Services (architects, consultants, financiers, legal and planning services)Management and AdministrationConstructionMaintenanceManufacturing.Research and Development

SkillsSkills from across the spectrum

EnterpriseSupply chain creation and stimulation and increase in the market.Long-term programme to transform and adapt the existing business baseInward Investment Export opportunities

InnovationAdaptation and transformation of the existing industrial and commercial baseFirst-mover advantage

CarbonDe-coupling economic growth from carbon emissionsMarket a low carbon economy as a business and social advantage to investors.

6.4 Strategy for Delivery

Renewable Energy Promote the City Region as a centre for renewable energy development based around

existing and planned installations. Provide infrastructure to support renewable development

o Utility network improvements to facilitate renewable feeds into the Grido Identify and secure an appropriate land and seabed banko Refine local planning conditions to favour renewable developmento Develop appropriate skills provision in relevant sectorso Develop local financing capacity and capability for low carbon business support.

Integrated political support for o Tidal energy (particularly Wirral, Sefton and Liverpool)o Offshore and onshore wind (Sefton, Liverpool, Wirral)o Biomass (all) o Low carbon procurement strategy (all)o Low carbon development standards (all).


Sustainable Transport Develop a fully electrified heavy-rail network Lobby for the City Region to be directly connected to High Speed 2 Develop a light-rail network Create an emissions and bio fuel standard for all bus operations Integrate emissions factors and sustainable emissions loads into spatial planning.

Low Carbon Buildings Create a low carbon development standard Introduce approved low carbon professional and contractor standards and only award

contracts to such approved contractors Development of a BREAMM equivalent for residential new build and refurbishment Develop a lease-finance system for environmental technologies to grow take-up Set carbon development and operation caps for new developments.

Ancillary supporting actions Consider a City Region carbon permit and trading system Research and development in associated products – links with knowledge economy

agenda Image promotion and marketing Identify and partner with other city regions leading the move to a low carbon economy.

6.5 National Government support

Energy Mersey Tidal project to be given comparative status and access to tidal energy

innovation scheme funding comparable to the Severn Tidal project Support the development of an HV DC electrical grid trial site Develop the Smart Grid concept across the City Region Network operators to have renewable energy capacity provision targets included in their

regulated price formulas Support further development and take-up of the Energy Crops Scheme for conversion of

brownfield land into solid bio-fuel woodland.

Transport The Integrated Transport Authority (ITA) to be allowed to set carbon emission targets in

franchise renewals for heavy rail and bus operations To allow Merseyrail to specify low-carbon electricity to provide AC and DC power from

Network Rail and to explore independent, locally-sourced power-supply provision To link the commencement of airlines entry into the European Emissions Trading

Scheme (ETS) in 2011 to development of high speed rail alternatives for the regions

Buildings

District heating schemes to be considered for all major developments Sustainable Building Code to be accelerated Local content quotas for energy saving and production requirements

Knowledge and Skills

To develop a northern centre for BRE within the City Region to complement the existing BRE Innovation Hub in Salford by focusing on glazing, photo-voltaics and micro CHP

To support the development of a Photo Voltaic demonstration and research centre combining private sector expertise with HEI and FEI applied research capabilities


To support the development of a Tidal Energy demonstration and research centre combining private sector expertise with HEI and FEI applied research capabilities

To support the creation of a research facility to develop battery technologies for application in the automotive and transport sector and building energy supply.

Finance and Procurement

To further enhance the taxation regime applied to building products and heating systems to encourage the take-up of low carbon products in these areas

To further develop integrated support packages for major corporates who are developing low carbon products and services and renewable energy schemes

Support the development of local content consideration in public-sector procurement


7. Liverpool Knowledge Economy

7.1 Positioning the Liverpool City Region

Section to be re-drafted following Knowledge Economy Steering Group on 30th March 2009.

Section to cover

Context setting Why is knowledge important in a future economy? Liverpool City Region assets and opportunities

What are we doing to further the knowledge economy? Sector strengths in life sciences, health and creative / digital industries Innovation and knowledge more generally

Barriers to growth

What could Government do to support?


Case Study: Sony Computer Entertainment LiverpoolOriginally an independent games developer, SCE Studios is now the oldest and second largest games development studio in Sony’s European operation. The company now employs some X people. Y number of these jobs are made up of high-skilled graduates usually in the fields of the arts and maths. A further X are made up of a games testing division drawn from pool of lower skilled labour.

This provides a snapshot for the future of Liverpool City Region’s intended Knowledge Economy growth model. Local creativity, combined with international investment within particular niche markets, providing both high value business growth, and jobs across all skills levels.

Case Study: Massachusetts Bio-scienceBoston, Massachusetts provides an international comparator to the Liverpool City Region in terms of its competitive advantages in the field of bio-technology. With a substantial focus on promoting the sector, employment grew from In 5 years, from 19,000 in 2001, to 25,637 – substantially higher than the US average. Further interest is found in breaking these jobs down by occupation type – with 3,300 scientists requiring 13,850 clinical and laboratory technicians, a ratio of 4 to 1.

We know that the Liverpool City Region has a substantial asset base in this field, with an estimated 800 scientists. Recent investment in the Liverpool School of Tropical Medicine alone has created 600 jobs. We aim to grow this sector substantially – but in doing so anticipate that the impact will be far wider than high value activity alone, providing a driver for intermediate jobs well suited to the progression model outlined in our Employment and Skills activities

Case Study: PrinovisPrinovis Ltd is a market leading illustration print company. Following their £xm investment in South Liverpool in 2004 they now employ 420 people. Their investment is a strong example of the linkages between economic development and employment and skills. Working closely with the Learning and Skills Council, using discretionary Objective 1 funding, a skills programme was developed to train 400 staff in job related skills relevant to the high end manufacturing operation.

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8. What we are already delivering

The Liverpool City Region recognises that to deliver long term transformation will not depend solely on the delivery of the transformational actions.

We also recognize that for Government to enter into this multi-area agreement with the Liverpool City Region requires us to be delivering a range of activities in support of the transformational ideas.

8.1 Stronger Economic Leadership Independent of this MAA we will be delivering, through new governance arrangements for the City region:

Identify clear priorities for infrastructure investment across the City Region Be more demand-led in identifying these investment priorities, working closely with the

private sector. Continue to work with the private sector to foster a delivery partnership that instills

confidence in order to realise the scale of the opportunities presenting the City Region To drive-up inward investment levels, linking people with job growth, in particular high

growth activities. This will include supporting existing investors to remain competitive. Underpin economic performance with a strong supporting offer in housing, transport, health

and education.

This MAA is set in the context of a range of activities that are already underway within the Liverpool City Region to drive up economic performance.

8.2 Liverpool City Region Inward Investment Agency

NWDA and the 6 Local Authorities within the Liverpool City Region have already boosted the inward investment capability within the City Region. They have collectively invested over £1million in The Mersey Partnership as the single investment agency – with the specific aim of selling the Liverpool City Region investment destination under the attach brand of Liverpool, with particular focus on the City Region’s key sector strengths aligned with this MAA. This investment will return 1,500 new or safeguarded jobs per year.

8.3 Liverpool City Region Tourism Strategy

Section being drafted by LCR Tourism Board – to be returned on 8th April 2009

8.4 Liverpool City Region Enterprise and Business Growth Strategy

The scale of our enterprise challenge is reflected in the key economic messages in section 2. The table below summarises this.

In response to these challenges, the Liverpool City Region has agreed an Enterprise and Business Growth Strategy with three over-arching imperatives:

1. Grow the scale of the existing business base through increased business starts and improved survival rates, including making self-employment an attractive option for workless people

2. Support the creation of value through business growth and expansion3. Deliver competitiveness by increasing business productivity.


The diagram below goes further, identifying the range of activities required to meet these aims, and the inter-relationships between enterprise and business growth and other drivers such as skills and investment.

8.5 Continued Infrastructure Investment

The map below shows recent investments made across the Liverpool City Region, and these sites continue to provide major development opportunities. Development on these sites as clearly slowed due to the availability of credit for private sector developers, but the City Region is looking at innovative ways of using its resources, especially ERDF, to prepare for recovery. These sites remain priorities.


Figure Deficit Impact needed Deficit Impact needed

United Kingdom £33,717

North West £30,492

Merseyside £28,448 -£2,044 £1,337 million -£5,270 £3,448 million

United Kingdom £17,149

North West £15,080

Merseyside £12,594 -£2,487 £3,676 million -£4,556 £6,733 million

Great Britain 50

North West 43.7

Merseyside 31.6 -12 1,060 -18.4 1,620

Great Britain 532

North West 453

Merseyside 317 -136 12,000 -215 18,900

Great Britain 9.3

North West 8.2

Merseyside 6.8 -1.4 12,200 -2.5 21,800

Deficits table for self-employment rates, 2006

Compared to the North West Compared to the UK

GVA per employee, 2004

Deficits table for GVA per capita, 2004

Deficits table for VAT registrations per 10,000 working age people, 2006

Deficits table for VAT registered-stocks per 10,000 working age people, 2006

• Skills solutions for business

• Innovation collaboration

• Leveraging key knowledge/technology assets

• Enhance enterprise education & raise awareness levels

• Graduate enterprise & retention

• Business creation

• Local community business coaching/support

• Getting the most from FDI

More Businesses

Growing Businesses

Productive Businesses

Availability of Suitable Business Premises

Strategic Aim 1: Strategic Aim 2: Strategic Aim 3:

Access to Finance

Environmental Sustainability

Operating Aims Operating Aims Operating Aims•Developing an enterprise culture

•Local enterprise development

•Encouraging a more dynamic & sustainable start-up market

•Securing FDI

•Tailored business advice & support for retention & growth

•Prioritising key sectors/ developing networks

•Capturing local purchasing opportunities

•Maximising investor development

•Maximising international trade development

•Tailored business advice & support for increased productivity

•Improving leadership & management skills

•Value added diversification and innovation

•Improving supply chain performance

•Exploiting ICT & technology transfer

Cross-cutting themes

• Business collaboration networks & priority sector development

• Preparing to export/ investigating new markets

• Access to business expertise for growth

Action Areas(aligning with BSSP

product themes)

Skills & Employment

By 2013, the Liverpool City Region economy will be recognised for its diverse portfolio of competitive knowledge-based business assets. Additionally, it will be equally well known for its highly skilled, innovative, flexible and enterprising workforce, and inward investment success.

• Skills solutions for business

• Innovation collaboration

• Leveraging key knowledge/technology assets

• Enhance enterprise education & raise awareness levels

• Graduate enterprise & retention

• Business creation

• Local community business coaching/support

• Getting the most from FDI

More Businesses

Growing Businesses

Productive Businesses

Availability of Suitable Business Premises

Strategic Aim 1: Strategic Aim 2: Strategic Aim 3:

Access to Finance

Environmental Sustainability

Operating Aims Operating Aims Operating Aims•Developing an enterprise culture

•Local enterprise development

•Encouraging a more dynamic & sustainable start-up market

•Securing FDI

•Tailored business advice & support for retention & growth

•Prioritising key sectors/ developing networks

•Capturing local purchasing opportunities

•Maximising investor development

•Maximising international trade development

•Tailored business advice & support for increased productivity

•Improving leadership & management skills

•Value added diversification and innovation

•Improving supply chain performance

•Exploiting ICT & technology transfer

Cross-cutting themes

• Business collaboration networks & priority sector development

• Preparing to export/ investigating new markets

• Access to business expertise for growth

Action Areas(aligning with BSSP

product themes)

Skills & Employment

By 2013, the Liverpool City Region economy will be recognised for its diverse portfolio of competitive knowledge-based business assets. Additionally, it will be equally well known for its highly skilled, innovative, flexible and enterprising workforce, and inward investment success.

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Over the next 2 – 5 years we expect the following to come on stream:

New high-quality commercial office space. Approximately 35,000 sq m of Grade A office space was planned prior to the recession, with some of these projects now on hold.

The further development of the Liverpool waterfront as an international visitor destination, including the new Museum of Liverpool, the new cruise liner terminal and public realm improvements along the Mersey Waterfront Regional Park.

A City Centre Movement Strategy to strengthen Liverpool’s offer as both a premier destination and a compelling proposition for inward investment.


•King’s Business Park•Knowsley Industrial Estate•M62 junction improvements

• Daresbury Science and Innovation Campus

• 3MG Multi-Modal Gateway• Castlefields• Widnes Waterfront EDZ

• Mersey Waterfront Regional Park• New Heartlands HMRI• Merseyside and Halton Local

Transport Plan improvements

•Destination St Helens• St Helens Central Station and

town Centre improvements

•Wirral International Business Park•Brand New Brighton•12 Quays Roll on Roll Off terminal

•Liverpool One •Cruise Liner Terminal•Museum of Liverpool•City Centre Commercial District•Met Quarter•National Bio-manufacturing Centre•Liverpool School of Tropical Medicine•Liverpool Science Park•St George’s Hall refurbishment

•Southport Resort Improvements•Southport Commerce Park•Atlantic Gateway•Aintree Racecourse Redevelopment

• Liverpool John Lennon Airport• Liverpool South Parkway• National Bio-manufacturing

Centre & Estuary Business ParkExamples of recent major Infrastructure

Investments in the Liverpool City Region

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8. Responding to current economic conditions

This section is currently being redrafted by NWDA and TMP. Re-drafted section to be complete by 10th April 2009.

Section to cover

Recent economic situation in the Liverpool City Region

Aligning our response to the North West approach in the following areas:a. Information and intelligence sharingb. Preventative measures to protect businesses and jobsc. Lessening the impact of recession – including redundancy planning and training

etc.d. Providing a platform for recovery – longer term aspirations

Any specifics / distinctive issues facing the Liverpool City Region not picked up in the North West approach.

What could Government do to support?


Annex 2 - Accelerated Development Zones and SuperPort

The idea of an Accelerated Development Zone (ADZ) has recently been outlined in a report prepared by PWC for the Core Cities Group (“Unlocking City Growth”). The concept is based on that of Tax Increment Financing (TIF), pioneered in the US. It is designed to allow cities to “participate in the growth dividend” by allowing local authorities to capture incremental value in the form of tax revenue generated from new development.

TIF is a financing tool designed to forward-fund key infrastructure improvements, and it works by using the projected future tax gains which those improvements will generate to finance the infrastructure itself. When improvements in public infrastructure (roads, housing, schools or contaminated land remediation) are carried out, there is an increase in the value of surrounding real estate, and often new and additional investment in the area. This increased site value and investment creates more taxable property, which in turn increases potential tax revenues. These increased tax revenues are the ‘tax increment’. Tax Increment Financing uses this increased revenue to finance debt issued to pay for the initial infrastructure development.

In order to do this, cities require the power to retain long-term local tax revenues generated from development, such as business rates, allowing funds to be raised for investments through securitisation of those revenues. The evidence from the case studies in the PWC report indicates that without some prioritisation of investment and this link between investment and returns, future projects will be delayed or will not happen. Once investment has been repaid, future income streams could be redirected to their normal ’home’.

The report outlines the key aspects of the concept, which include:

- That ADZs would need to be strictly geographically defined as physical areas linked by a common infrastructure requirement.

- Within this defined geographical area, local authorities could reinvest additional business rates and use that projected income to raise funding for upfront infrastructure.

- New business rates could only be reinvested for a maximum length of time (the report suggests 20 years or until funds raised to invest in upfront enabling infrastructure are repaid).

The report stresses that cities would “need to make the case to the Government so that designated zones create the maximum sustainable economic impact”. The report also stresses that approved ADZs would need to meet strict criteria on achieving accelerated growth and multiplied outputs.

SuperPort in the context of ADZ’s

A key development barrier for delivery of SuperPort (as outlined in section 6) is the delivery of key infrastructure improvements. In the current economic climate this may be difficult, and ADZs provides a potential mechanism to accelerate this investment.

Accelerated investment is currently an attractive proposition to stimulate jobs at a time of economic difficulty.

PWC criteria fit well with SuperPort’s range of both spatial and transport infrastructure requirements.


Annex 1: MAA Linkages Table

Story of Place Imperatives

Asks

Tackling Worklessness and improving the quality of life of the most deprived people in the LCR.

Improving the size and depth of the LCR business base.

Equitably closing the wealth gap between the LCR and the rest of the UK.

Significantly raising the skill level of the LCR population.

Developing a sustainable, modern and efficient infrastructure (digital, transport and energy)

Improve the quality, availability and affordability of the LCR housing stock.

Economy Platform:

SuperPort

Government support for projects integral to the development of the SuperPort

Future taxation changes should not disadvantage key emerging sectors such as air freight

Support Liverpool City Region in its attempts to establish effective communications with London and the South East

Acknowledgement of Liverpool Ports as ports of national significance and subsequent equitable treatment in relation to southern-based ports with government investment and policy creation

To explore with BERR, Treasury and other relevant Departments the possibility for certain components of SuperPort proposal to be designated Accelerated Development Zones

Economy Platform:

Low Carbon

Economy

Support the City Region in the development of major tidal power provision

Support development of renewable energy manufacturing and service sectors

Explore the potential for bio fuel capacity from both virgin crops and from waste arboreal matter

Support the development of a low carbon transport syste

Reduce the carbon footprint of the LCR building stock by supporting the establishment of a Northern Building Research Establishment (BRE)

Economy Platform

Government considers extending flexibilities relating to Test Trading to help people from deprived areas make the transition to self-employment

Housing Platform

Recognition that the City Region is the right spatial level to solve the issues outlined in the housing platform paper and support for a framework that will address them.

Flexibility for the use or phasing of funds to allow funding to be moved between different programmes in response to changing market conditions, and to allow support for revenue projects.

Development of a number of products to support achievement of the LCR’s ‘balanced communities’ aims, to develop appropriate equity loans schemes to support home purchases, and to agree proposals for investing in Asset-Backed Vehicles and Local Housing Companies to facilitate housing development. We would also like HCA to consider the relaxation of ‘double subsidy’ rules.

Government investigate provision of financial incentives and technical advice to developers seeking to build on sites identified as ‘difficult to develop’ in Local Brownfield Strategies.


Government to introduce a range of measures to assist us in improving the private rented sector

Transport

Government to re-affirm their commitment to accessibility planning and ensure priorities are set out in clear lines of responsibilities for all stakeholders.

Government and local partners to map funding streams and timelines and to agree how synergy between different funding streams can be achieved to enable a single accessibility strategy to be offered and delivered.

The LCR and Government to examine the cross sector benefits of transport interventions to create a clear understanding of costs and benefits across the different delivery and funding agents.

Examine clearer guidelines on locational choice at both home and destination.

Employment and

Skills

Develop and agree an Employment and Skills Strategy and Commissioning Plan

DWP and the LCR will implement a Flexible New Deal programme

Development and implementation of a ‘Fit for Work’ plan

DIUS will work with LCR partners to test new ways of delivering information, advice and guidance services to help individuals to develop their careers or to get into work.

Participation in a data sharing pilot Agreement in principle to a commissioning geography that includes Halton

Roll out of Skills Account trials tailored to support LCR priorities.


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