Envisioning the Future of the Taunton Economy

Envisioning the Future of the Taunton
Economy
A report prepared for Taunton Deane Borough
Council
Professor Mark Hepworth
27 April 2009
Contents
Executive Summary ............................................................................................................ 1
1
Introduction.............................................................................................................. 3
2
Creating an Economic Vision ................................................................................ 6
3
Creativity and Culture .......................................................................................... 15
4
Digital and Green .................................................................................................. 19
5
Health and Education ........................................................................................... 24
6
Production and Construction .............................................................................. 29
7
Governance for Economic Development ........................................................... 35
8.
Recommendations ................................................................................................. 39
Annex 1: List of Interviewees
Acknowledgements
We would like to thank Taunton Deane Borough Council for inviting Geoeconomics to
undertake this economic visioning project. Further thanks go to Somerset County Council for
lending their support to the project.
Philip Sharatt and his economic development team were excellent to work with. Their local
knowledge and organisation of the stakeholder interview programme were invaluable.
The strategic issues and options identified through the stakeholder interviews are not my
own invention. They come directly from the many business and public sector representatives
who kindly contributed their time and expertise to this consultation exercise – please see
Annex.
The report, it is important to emphasise, was drafted in the context of Britain’s worst-ever
recession. Taunton, like the rest of the country, has to navigate through the recession – 20092011 – and then re-build its local economy against a background of highly constrained
government and consumer spending – 2012 – 2018.
The challenges are immense, as everybody knows. Economic development was never
needed more than it is now. This report is therefore timely.
About the author
Mark Hepworth is a founding director of Geoeconomics (www.geoeconomics.com), a
research and strategy consultancy which specialises in sustainable development as a globallocal agenda for government and business. He is also a visiting professor in applied
economic geography at Birkbeck College, University of London. Mark has acted as a policy
adviser to the OECD, EC and the UN Economic Council, as well as to UK government
departments and cabinet ministers. His reports have influenced knowledge economy
strategy at all levels, including the Government’s innovation and skills policies and the
economic strategies of regional development agencies, sub-regional partnerships and local
authorities.
The new direction of Mark’s work is researching and developing strategies for The Green
Knowledge Economy. Other new work includes assessing the geo-economic impacts of large
companies (in partnership with Oxford Economics) and the wider economic benefits of
major transport schemes. He is a director of the Thames Innovation Centre, and a regular
contributor to the media and conference events. Mark has a first degree in economics from
the University of Warwick and a doctorate from the University of Toronto, as well as UK and
Canadian planning qualifications.
Executive Summary
This report develops a fresh and challenging vision for Taunton’s economy based on a
stakeholder consultation exercise in March 2009. It was commissioned by Taunton Deane
Borough Council (TDBC), and supported by its main partner in economic development,
Somerset County Council.
Individual and group interviews were held with political and business leaders, chief
executives of colleges and hospitals, commercial developers, promoters of the arts, culture
and sports, technology, tourism and the town centre, managers from employment and
training agencies, economic development directors and lead officers and sixth-form and
undergraduate students.
The interviews centred on three basic questions:
•
•
•
How would you describe the state of Taunton Deane’s economy?
What vision of Taunton’s economic future do you think is desirable and realistic?
What big steps do you think need to be taken to realise this vision?
___________________________________
The recommended economic vision for Taunton is:
By 2026 Taunton will be one of Europe’s most successful and sustainable towns with a
dynamic knowledge economy and a high quality of life.
The vision captures necessity and ambition: necessity because of Taunton’s Growth Point
status and the Recession; ambition because of an intensifying demand for higher levels of
diversity, choice and quality in the local economy.
Key opportunities were identified for certain areas of Taunton’s economy. These need to be
addressed in a concerted, connected and strategic way by engaging the energy, commitment,
resources and ingenuity of the private, public and third sectors – and the community itself.
•
Creativity & Culture: A dedicated organising infrastructure for connecting and
promoting Creative Taunton; on-going, stable funding for creative projects; growing
creative industries; space for creativity and culture
•
Digital & Green: Southwest One and the IBM partnership; a dynamic ‘green economy’
town; a telework strategy for public employers
•
Health & Education: A physical central place for higher education in Taunton; building
‘knowledge communities’ – green, creative and health innovation; retaining and
attracting talent
1
•
Production & Construction: Modern industrial estates; a green building programme;
engaging with employers; a buy local programme
The public sector drivers behind Taunton’s economy will be weak for at least a decade.
Therefore, we recommend a bottom-up approach to economic development with ‘knowledge
communities’ delivering the technological, organisational and social innovations needed to
make Taunton a green, healthy and creative town.
Governance is Taunton’s ‘Achilles Heel’ – the most vulnerable aspect of economic
development. Therefore, it needs to be strengthened by establishing:
•
New strategic alliances between the private and public sectors which give Taunton’s
economic development strategy a strong business flavour and help to network Taunton
with other towns and cities in the UK, Europe and the rest of the world.
•
New commitments with Taunton’s communities which encourage public engagement
in economic development and give the Council a mandate to make big decisions – for
example, on employment land issues.
•
New corporate governance in the Council, with economic development becoming a
strategic level function which mobilises commitment, knowledge and resources
internally and externally.
Taunton’s economic development strategy has to be underpinned by evidence which is
relevant, timely and carefully researched. This is essential for monitoring and evaluation
purposes, as well as for engaging and motivating ‘knowledge communities’ – the building
blocks for a more innovative and mobilised Taunton.
2
1
Introduction
This report presents an economic vision for Taunton based on an intensive programme of
stakeholder consultation in March 2009. It was commissioned by Taunton Deane Borough
Council (TDBC), and supported by its main partner in economic development, Somerset
County Council.
___________________________________
The challenge of growth
Taunton Deane needs a ‘step change’ in its economic performance over the next two decades.
This is the consensus view of the businesses and public sector organisations who
participated in this consultation exercise.
Taunton’s growth challenge has been accepted by TDBC and the community – as shown in
the Sustainable Community Strategy, the Economic Development Strategy, and the
Corporate Strategy. The scale of the challenge can be appreciated by looking at the simple
arithmetic of job-creation, as set out below:
1. In 2008 roughly 60,000 people worked in Taunton Deane (Annual Population Survey)
2. By 2026 this job total has to rise by 27.5% to 76,500 owing to Taunton’s designation as a
Growth Point in the South West England Regional Spatial Strategy.
3. Taunton’s ‘claimant count’ unemployment rate stood at 2.5% in February 2009. By the
end of 2011 this could reach at least 7%, if this recession is as severe as the 1992 one. This
means about 4,000 jobs will be needed to return to the baseline levels used for calculating
the Growth Point targets. (Please see Chart 1.1.)
The ‘inconvenient truth’ is that upwards of 20,000 new local jobs must be created between
2011 and 2026. Furthermore, a higher proportion of these jobs than before have to be
concentrated in high skill, high paid occupations – in other words, the challenge is more and
better jobs if TDBC objectives are to be met. The job quality challenge also needs to be
understood:
4. More full-time jobs have to be created. A massive 36% of today’s 60,000 employment
total consists of part-time jobs – compared against regional and national figures of 28%
and 24% respectively.
5. Business job-creation in knowledge-intensive sectors (e.g. technology, creative and
business services) has to be 60% higher than job-creation in the economy as a whole,
including the public sector. Only then will local earnings catch up with the rest of the
South West by 2026.
3
Chart 1.1: The Unemployment Rate, September 2005 to March 2009
3.5
% unemployed
3.0
2.5
2.0
1.5
1.0
0.5
South West
Taunton Deane
Source: Geoeconomics, ONS
Taunton’s job challenge pre-dates the recession. But the recession is now with us and will be
with use for several years to come. Consider the following comments from the South West of
England Regional Development Agency (SWERDA):
“South West England is still in the long tunnel of adjustment with no one really sure whether the
distant light at the end is the new dawn or the oncoming train of further closures and redundancies. If
we are right about the global and national outlook, the region will turn positive in due course. The
risk, however, is that it will be a long road back to recovery”. (Economics Review, February 2009)
Under the pressure of the recession, and faced with the prospect of a slow and difficult
recovery, minds in Taunton Deane may become more concentrated. This is the economic and
political context of the present study. Looking ahead and beyond the economic and financial
crisis, what path should Taunton take to successfully meet its “growth challenge”. What
vision of the local economy illuminates this path? These are the questions we have explored
with a wide cross-section of local stakeholders.
___________________________________
4
This report
The stakeholder consultation exercise was carried out in March 2009. Individual and group
interviews were held with political and business leaders, chief executives of colleges and
hospitals, commercial developers, promoters of the arts, culture and sports, technology,
tourism and the town centre, managers from employment and training agencies, economic
development directors and lead officers and sixth-form and undergraduate students (see
Annex 1).
The interviews centred on three basic questions:
•
•
•
How would you describe the state of Taunton Deane’s economy?
What vision of Taunton’s economic future do you think is desirable and realistic?
What big steps do you think need to be taken to realise this vision?
The report is organised as follows:
Section 2 distils an economic vision of Taunton from the answers to the first and second
questions above. A targeted data analysis is used to illuminate a number of key issues.
Sections 3, 4, 5 and 6 are based on the answers to the third question. They cover four areas of
economic dynamism in the Taunton economy: creativity and culture; digital and green;
health and education; and, production and construction.
(At the local level, every sector counts and Taunton should aim to create a favourable
business climate in which all firms can thrive and which attracts all types of investors. )
Section 7 discusses the critical area of governance for economic development in Taunton. It
argues that all possible governance barriers to economic development should be knocked
down as a matter of urgency because of the seriousness of the recession.
Section 8 presents a set of recommendations for consideration by TDBC and its partners.
5
2
Creating an Economic Vision
The current recession is a good time for a confidence-building exercise. According to
Steve Bone of Government Office South West, “Taunton should use the recession as an
opportunity to create a fresh vision”.
This chapter develops an economic vision for Taunton based on the stakeholder
interviews, and a supporting analysis of government data. (Here, it is useful to refer to the
Taunton Deane Economic Assessment.)
Taunton Deane, as a local authority service area, has a ‘sustainable community’ vision.
Wellington has its own vision for the market town. Taunton Town Centre has a physical
regeneration vision. The common idea is sustainable economic growth. The visions and
strategies are complementary though different in terms of jurisdiction, funding, timescales and geography.
___________________________________
To grow or not to grow
A powerful growth ambition has to characterise Taunton’s economic vision. The status quo
is not an option, but there is resistance to change. Managing growth is the real challenge.
Taunton is ‘at the crossroads’.
•
•
•
•
•
•
Ten years ago Taunton’s vision was to stay a market town. Planning was not about employment
growth or change but about maintaining the status quo. Real change started with Taunton Vision.
We are now at a cusp – and there is visible evidence of ambition.
What’s best for Taunton people? The issue is sustainable growth.
If Taunton doesn’t renew itself, it may go into a downward spiral. It has lost its rural drive but
hasn’t replaced it with an urban drive. The livestock market left two years ago. We need a new icon.
Taunton is on the edge and could go either way. It doesn’t have a modern urban appeal.
Taunton will become a dormitory town for Exeter and Bristol if we don’t build a stronger local
economy.
It is unlikely that more will be invested in Taunton given SWERDA’s own funding problems.
Taunton should be able to stand up on its own.
Taunton is already under government pressure to grow its economy owing to its designation
as a strategic urban centre in the South West region. Growth Point status is a challenge and
an opportunity.
•
•
•
Housing and jobs have to be at the centre of a new vision for Taunton because of its regional
Growth Point status. This means getting ‘fit for purpose’ to deliver this extra growth.
Taunton is an important growth hub of the South West geographically but doesn’t make the most
of it economically.
Taunton has a clear niche role in the region, particularly within the M5 Corridor economic zone.
6
•
•
It’s about incremental growth. There’s barely the capacity to deliver the Project Taunton vision.
“Aspirations are racing ahead of capacity”.
Growth Point status was externally imposed not locally determined. Nobody has identified the
type and quality of the job growth.
___________________________________
Economic diversity in future
Economic choice and diversity is likely to increase – some interviewees referred to the
‘flatness’ or lack of variety in jobs and town centre amenities. A new balance between the
private and public sectors is needed.
•
•
•
•
There is a big job dependency on town and county halls. Taunton’s private sector has to be
strengthened. Public investment has dried up and will decline even after the recession.
The partners of nurses and doctors need local career opportunities too. That’s why we need major
private sector employers not government bureaucracies.
There needs to be a great leap forward in business growth, but I know of nothing that is likely to
change things. Can Taunton ‘change its stripes’?
What type of growth do we want, which is not developer-led? The forward planners need to know
now – the new Local Development Framework is due by October.
Micro businesses will continue to proliferate in Taunton Deane in various sectors, including
food and drink, creative and cultural industries, and ICT and business services. This ‘flea
population’ (management guru Charles Handy’s term for innovative and flexible micro
businesses) is dispersed across rural and urban Taunton Deane.
•
•
•
•
•
Taunton could have multiple street markets (flea, antique, crafts, local produce, etc) in place of a
livestock market. It’s about markets in modern towns, rather than traditional ‘market towns’.
The future economy will be based on micro industries – media and creative, ICT. They’ll be
geography unrelated sectors that can work from rural and peripheral locations over the web.
College students are already entrepreneurial. They focus on the green, digital and creative
industries.
More ‘cottage industries’ will emerge after the recession. Attracting a handful of decent-size
companies and growing ‘cottage industries’ means a two pronged approach to economic
development.
There are a lot of lifestyle businesses in the £30-100k range. Though hated by the RDA for not
being productive job-creators, about 10-20% of them are likely to be dynamic micro businesses.
Taunton needs to grow its business base in higher value sectors, particularly ‘tradable
sectors’ with markets that extend beyond Somerset and the region. These sectors include
creative and cultural industries, health and education services, tourism, food and drink and
other branches of manufacturing. The ‘knowledge economy’ was a unifying theme.
•
Project Taunton has to shift its start-up focus on physical regeneration (mainly the Firepool site)
and attune itself to the more ambitious task of building a high value knowledge economy, over the
next 2 years. There is a clear link between quality and growth.
7
•
•
•
•
Tourism is unremarkable. The countryside could offer specialist outdoor holidays and build on
successful food, crafts and other festivals. Taunton needs tourism.
Manufacturing is becoming more knowledge-intensive but many successful firms are omitted
from ‘key sector’ lists used by the RDA and other economic agencies.
Independent schools and colleges are important businesses. They are also magnets for inward
investors and micro business migrants.
Musgrave Hospital is a £200 million regional business with a growing HE medical-health
training business – its heath-education crossover partnership with neighbour Somerset College.
___________________________________
Looking outwards
Networking with other towns and cities can enhance Taunton’s future growth prospects.
Barriers to development can be overcome, such as shortages of employment land; a critical
mass of business growth can make cluster policies more feasible; and, marketing Taunton to
government funding agencies and private investors can be enhanced. Inter-jurisdictional
collaboration is dogged by political problems. Reliable evidence to support the case for
networking does not exist.
•
•
•
•
•
An economic vision for Taunton has to be weighty and outward looking beyond the Town. It has
to reflect a niche role for Taunton in relation to Bristol, Exeter and Weston-super-Mare – and
Swindon..
Taunton and Bridgwater together offer critical mass. Otherwise Somerset is a low priority for the
RDA. The economy is central to the future of both places.
Any future bidding round for ‘growth point’ status will have to come from Bridgwater and
Taunton jointly. This is written into the regional spatial strategy and accepted at CEO and
political level.
The RDA is less concerned with employment land in Taunton because it sees Bridgwater and
Taunton as connected and complementary – plus Wellington. A wider spatial lens produces a
different and less constrained economic picture.
There’s a territorial rivalry. I’m sceptical about overcoming political problems, which would have
been less if Somerset had got unitary status.
__________________________________
The importance of leadership
A critical success factor in delivering growth was thought to be political and economic
leadership. One interviewee referred to the need for a ‘can do’ attitude (US President Barack
Obama). This matter was discussed with reference to the achievements of other places –
Exeter in particular. Plymouth and Yeovil and Bridgwater were cited as other models of
what Taunton leaders could do to achieve growth and change.
•
My benchmark is Exeter. We can drive to it in half an hour. It has business parks and big names
on the way in, very aggressive use of land, vision and drive for the city centre and gets the right
people in. Taunton needs a step change to catch up. It needs new blood in the local economy.
8
•
•
•
Exeter transformed itself ten years ago and is now ten years ahead of us. There was a political will
there in Devon CC. Developers who did Exeter would come here in droves if the planning system
and political culture was right.
A successful growth strategy needs a genuine commitment by political and business leaders.
Taunton Deane Council has to lead. Yeovil did this successfully three years ago, through
workshops and open forums to explore options for economic change. People saw things
happening…the process helped with real development
Taunton Deane Council has no record for economic development and a “can do” attitude. There’s
a lack of leadership, no vision and it’s too parochial. Also there are no obvious private sector
champions. Taunton doesn’t look after its companies like South Somerset and Yeovil.
__________________________________
What the statistics say
It is worth using available statistics to weigh up some of the key issues raised by the
stakeholders. Here attention focuses on Taunton’s ‘part-time economy’, recent migration
patterns and the issue of housing affordability. A more comprehensive data analysis is given
in the Taunton Deane Economic Assessment report.
Relatively speaking, Taunton Deane has a bigger ‘part-time economy’ than the rest of the
region, the country and Exeter (Chart 2.1). It is known that nearly 90% of South West parttime workers choose not to have a full-time job (2008 Labour Force Survey). On this basis, it
is reasonable to assume that the 35% minority of borough residents who work part-time
actually chose to do so. The 90% majority of these part-time workers are women working in
local public services and consumer services.
Taunton Deane’s gap in ‘part-time employment’ widens when the analysis shifts from
residents to workplaces – from the supply-side to the demand side of the local labour
market. The Borough’s economy generates a much higher proportion of part-time job
opportunities than Exeter and the South West as a whole. 77% of these local jobs are filled by
residents whereas in Exeter this figure drops to 59%. The latter’s local authority boundaries
are more tightly drawn than Taunton Deane, giving it a bigger commuter hinterland.
Taunton’s big ‘part-time’ economy has profound consequences for its growth potential.
There is no significant difference between Taunton Deane and Exeter with respect to their
median skills and earnings profiles. The big difference lies in Taunton’s inferior performance
on total earnings per employed person. Although earnings in Taunton Deane for full and
part time employees are close to those in Exeter (96% and 102% respectively in 2008),
earnings per employed person drop to 81% because of Taunton’s substantial proportion of
part time employees.
9
Chart 2.1: The Proportion of Part-time Employment by Workplace and by Residence (%), 2008
40
35
30
25
Workplace
20
Residents
15
10
5
0
Great Britain
South West
Exeter
Taunton Deane
Source: Geoeconomics, ONS Annual Population Survey
A ‘part-time economy’ results in lower overall income-generation capacity – hence lower
consumer spending and lower business investment. These are structural limits to growth
and specialisation in Taunton’s local economy. The potential for specialisation which
normally accompanies increasing economic scale is limited. This is manifest by the limited
variety of shops, restaurants and leisure and entertainment services. It is also evident in the
narrow spectrum of occupations and businesses outside the public sector, which is driven by
demographics rather than markets. Apparently this picture of ‘truncated’ economic
development applies to the Taunton situation. All of the interviewees commented on the lack
of diversity and choice for consumers, would-be entrepreneurs, business people and tourists.
Importantly, Taunton’s relatively small size as an urban centre compounds this problem of
economic ‘truncation’. As the American economist George Stigler’s famous dictum goes “the
division of labour is limited by the extent of the market”. ‘Smallness’ restricts the
opportunities for economic diversity and choice – for entrepreneurs and career-minded job
seekers. This situation is perceived most negatively by young people, by the health and
education sectors particularly and by all employers who need new graduate talent to grow
their markets from Taunton. Taunton graduates migrate to big cities to begin careers. Growing the
economy will give young people a greater breadth of opportunity. David Allwright, Head of
Operations at Musgrave Hospital, believes that the future growth of the health-education
sector would benefit from Taunton having a sub-culture of independent restaurants, niche chops
and ‘buzz’.
Analysis of migration trends also helps to understand the dynamics of Taunton Deane’s
economy. The available data are highly aggregated and raise more questions than answers.
Nevertheless recent trends appear to be broadly consistent with the stakeholder perceptions.
10
The impact of a university presence – a high-profile target of Somerset’s economic
development strategy – is evident from the net migration flows within the 15-19 year old
group (Chart 2.2). It is an established fact that universities do have significant direct and
indirect economic impacts on the places where they are located. However, having a
university does not mean new graduate talent is retained in the area – as the negative flows
in the 20-24 years age group for Exeter and Plymouth show. Bristol is more successful in this
respect. In fact, evidence on the UK and the US shows that very few cities have a ‘brain gain’
of new graduates.
Chart 2.2: Net Migration Flows, 2001 – 2007
15
Net migration (thousands)
10
5
15-19
20-24
25-29
0
30-44
45+
-5
-10
Bristol
Plymouth
Exeter
Taunton Deane
Source: Geoeconomics, ONS (National Health Service Central Register and the Patient Register Data System)
Where Taunton Deane stands out in Chart 2.2 is its stronger performance in attracting new
migrants in the 30 plus age groups. This group is likely to consist mainly of more
experienced ‘knowledge workers’ – individuals working in professional, managerial and
scientific and technical occupations across the private and public sectors. Plausible
explanations for Taunton Deane’s strong performance are:
•
•
•
As stated above, Taunton’s local authority boundaries are drawn to take in relatively
more of its suburban commuter hinterland.
Many of the new migrants will be knowledge economy ‘fleas’– micro businesses run
from home by professional people who moved from other regions of the UK, including
London and the South East.
The high growth of public services between 2001 and 2007 will have attracted more highlevel government, health and education workers.
It is an established fact that Taunton’s high-performing independent schools and FE colleges
function are magnets for ‘knowledge workers’ planning to move out of London and the
South East for lifestyle and financial reasons. The availability of high-end housing in rural
11
and suburban areas acts as another magnet to these same socio-economic groups. The big
questions, from Taunton’s economic perspective, are: to what extent do the work-style and
life-style and shop-style choices of these high-value migrant groups inhibit or enhance
Taunton’s growth prospects? There is only partial evidence on this issue. Based on the local
knowledge of the interviewees it appears that the economic behaviour of these migrant
groups (as shoppers, audiences and entrepreneurs) is an important barrier to Taunton’s
economic growth.
This pattern of migration has important implications for housing affordability – a growing
problem which Taunton Deane shares with the rest of the South West (Chart 2.3).
Chart 2.3: Trends in Housing Affordability, 1997-2008
Measured by the ratio of median house price to median income
9.00
8.00
7.00
6.00
South West
5.00
Exeter
4.00
Taunton Deane
England
3.00
2.00
1.00
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
0.00
Source: Geoeconomics, DCLG
New migrants with a high socio-economic profile clearly do not find affordability an issue.
However, as the main drivers of the rising trends shown in Chart 2.3 their migration
decisions have negative side-effects on Taunton’s indigenous resident population,
particularly young family households looking to enter the housing market. This is clearly
evident from the Place Survey 2008, which found that 28% of residents think that affordable
decent housing should be the main target of Taunton’s policies.
Finally, Taunton’s ‘part-time’ economy does have negative implications for a significant
minority of residents with respect to job prospects (housing affordability and job prospects
are closely linked). The Place Survey found that 22% of borough residents want ‘improving
job prospects’ to be made the Council’s top priority. This is an under-estimate and the
figure will have climbed since the survey was undertaken. A more relevant picture of the
need for improved job prospects would have been obtained by a ‘sub-survey’ of the
Borough’s economically active population (weighting techniques only partly compensate for
this). And even more to the point, the recession has worsened job prospects considerably
since Christmas 2008 (the close of the Survey). In other words, the percentage of residents
most at risk by the recession and Taunton’s economic prospects will be much higher by now.
12
With new forecasts suggesting that a genuine employment recovery may not happen until
2015, Taunton Deane residents face a prolonged period of job and income uncertainty.
__________________________________
Towards an economic vision
This report’s fresh look at Taunton’s economic development is necessary and timely. The
current recession, which economists now agree is the worst downturn since the Great
Depression in the 1930s, is a good time to develop an economic vision for Taunton over the
next two decades.
The vision needs to capture necessity and ambition. The necessity component comes from
having Growth Point status (16,500 new jobs needed) and the recession (4,000 jobs need
replacing). The ambition component is not externally imposed, nor can it be – it has to come
from within Taunton itself.
The stakeholder interviews undoubtedly suggest that Taunton is ready for change. Change,
as we saw in the first half of the chapter, has to happen in many tangible and intangible
ways. In the former case, investments in physical capital are needed – such as employment
land and premises and road improvements, and natural capital must be protected and
enhanced as wealth assets (countryside and the environment). However, the key to wealth
creation in Taunton’s lies in developing its intangible capital assets:
•
•
Human capital– the knowledge and skills of the workforce
Social capital – the trust among people in a society and their ability to work together for a
common purpose
According to a World Bank study entitled Where is the Wealth of Nations (2006), 80 per cent of
wealth in advanced economies like the UK is made up of “intangible capital”. Furthermore,
social capital or governance accounts for 60 per cent of national variation in intangible
capital endowments. In other words, leadership, governance and culture are critical to
economic success. These critical factors, according to the stakeholders interviewed in this
study, are Taunton’s “Achilles heel”. Who will own and champion Taunton’s new economic
vision? What new governance arrangement is needed? How will the prevailing economic
culture be transformed? These are the big issues raised by the stakeholders.
Tackling these issues goes well beyond solving the employment land problem which
appeared to be uppermost in the minds of some business people. The problem is obviously
important and needs to be resolved. However it can have the untoward effect of narrowing
debate and ultimately land-use has to be seen as part of a bigger economic development
equation. A sustainable growth trajectory requires space but also enterprise, connectivity,
people, vision and voice. This requires a wide-ranging economic development strategy that
extends from the usual competitiveness policy domains – enterprise, skills, innovation,
infrastructure and finance – to the softer but more complex requirements of leadership and
partnership and community and business engagement. And to cap it all, an economic
development strategy for Taunton has to come with a 20-year commitment to sustainable
growth and radical change.
13
After weighing up the results of both the stakeholder consultation and the economic
assessment I propose the following economic vision for Taunton:
By 2026 Taunton will be one of Europe’s most successful and sustainable towns with a
dynamic knowledge economy and a high quality of life.
Taunton will not evolve into a “city” by 2026. It would need to pass the 100,000 population
threshold or merge with Bridgwater (building a new cathedral would not do the trick). Two
decades from now, it will still be a “town” but definitely not a “market town”. There will be
various markets in town, ranging from books to organic produce to green technology
innovations. A thriving knowledge economy will bring with it a new spirit of urbanism, and
a ‘day out in Bath’ will alternate with ‘a day in Taunton’. It will be bigger and busier, and
also ‘healthier, wealthier and happier’. Its future stakeholders will have no reason to call it “a
sleepy backwater market town’.
Why Europe? This is because Taunton is already a regional hub within the South West
economy and the Capital of the County of Somerset. The next level up is Taunton within the
UK. But why stop there – why not Europe instead?
14
3
Creativity and Culture
Discussion
In today’s knowledge economy the generation of value in many sectors depends on the
ability of firms to embed creativity and cultural content within the goods and services they
produce. Firms in clothing, furniture and food and drink depend on well designed and
culturally distinctive products for their competitive success. Design innovation is central to a
range of advanced engineering, bio-medical and ICT products. Exmoor Plastics deserves
mention for winning the prestigious 2008 Cutler’s Prize for innovation in medical instruments. In
addition there is a set of creative industries producing ‘cultural goods’ – film and TV
production, new media, electronic games, publishing, marketing and advertising, specialised
design (graphic, industrial, interior, fashion, etc) architecture and related services, music and
the visual and performing arts and professional sport. Congratulations to the Taunton-based
England Women’s Cricket Team for winning the World Cup!
Many towns and cities across the globe have come to recognise the economic and social
benefits that flow from the creative economy. The new Cultural Strategy for Somerset, for
instance, aims to make the County the heart of cultural activity in the South West region.
Taunton has made growing the creative sector a top priority in the borough’s economic
development strategy. Creative and cultural sites are cornerstones of the Project Taunton
initiative. The Public Arts and Design Panel reported on progress and ways forward –
including a proposal for a public arts design code to guide developers. Active creative and
cultural partnerships exist at all levels – South West, Somerset and Taunton.
The creative and cultural sectors are a ‘must have’ in Taunton’s future knowledge economy.
This is widely recognised. So how are these indispensable sectors performing in Taunton,
and what should be done to nurture and promote them? My impression is that Taunton’s
creative and cultural sectors have been ‘in rehearsal’ since 2005 – it is now time to perform in
public.
__________________________________
Issues
A fundamental issue is the lack of demand for Taunton’s cultural services by highlyeducated middle-class residents living outside the central urban area. Cultural events – such
as theatre and music concerts – are dispersed around schools and villages, but central
Taunton is under-used and under-visited. Demand is ‘donut’ shaped. Part of the solution to
this problem is to raise the quality of Taunton’s cultural offer to international standards:
The town took off when Botham and Richards and Gardner played here. It was a fantastic time for the
town”. This shows if you create the standard, then you’ll get the result. Similarly Elton John played the
Cricket Ground – again a big boost.
15
A lack of effective demand means that key cultural institutions come under financial
pressure. The Brewhouse Theatre and Arts Centre is an obvious case in point. There appear
to be issues surrounding the scale, design and programme content of the Brewhouse – but
these obstacles can be sensibly addressed. The basic point is that if the Brewhouse didn’t
exist, it would have to be invented! Without stable and adequate financial resources, projects
to nurture and grow Taunton’s creative sector cannot achieve their goals.
The Brewhouse Theatre and Somerset Cricket Club are major economic assets for Taunton
owing to their regional market geography (see Chart 3.1). A key priority for Taunton’s
economic development strategy is to expand these market geographies to the national and
international levels. Max Hebditch, Chairman of the Taunton Cultural Consortium, has this
to say about the need for an international reach:
So we should be looking at what is culturally unique to Taunton, of international significance, and
capable of long term development. The Cricket Club has already done it for sport through women’s
cricket. But probably as important is giving programming in the Museum and the Theatre and Arts
Centre an international flavour.
Putting a creative and cultural ‘heart’ into Taunton will bring in more tourism – which
currently benefits the rural areas of Taunton Deane (and Somerset). It will also send an
important confidence-building message to Taunton’s young talent – for example, trainees at
the new SPACE centre. A ‘heart’ will also increase local recognition and support for
Somerset College’s prize-winning fashion and design students:
We’re punching above our weight in terms of external achievements and presence. We present at
‘catwalk’ fashion weeks in London and also at design council exhibitions in Islington for textiles and
surface design. However, all of this presentation and marketing of ‘made in Taunton’ talent goes on in
London and elsewhere so it has no local recognition.
More local recognition for home-grown talent is essential. A more serious branding exercise
is needed for Taunton which not only attracts tourists from outside the region, but also
which encourages people living within the Deane to use Taunton as a cultural destination.
_________________________________
Opportunities
•
A dedicated organising infrastructure for connecting and promoting Creative Taunton
This could be a networked, multi-stakeholder, umbrella organisation. Whatever its form and
structure, the Creative Taunton Office will need to span the public, private and non-profit
sectors to be effective. Armed with a mandate to enhance the creative potential of Taunton
the mission of the ‘Office’ will be to connect existing creative capacity and resources that
currently work in silos whether in different sectors, businesses, organisations,
neighbourhoods, government departments, socio-economic groups or learning institutions.
•
Ongoing, stable funding for creative projects
16
This requires a renewed commitment at all levels of government – Taunton, Somerset and
the South West Region – and a coordinated campaign to engage private sector actors in a
focused and effective way.
•
Growing creative industries
Taunton is strong on the educational side of the creative economy but weak on the business
side. Enterprise development can be encouraged in various ways:
Specialised entrepreneurship support/business skill development for creative industries
Availability of cultural/creative risk capital
A new Centre for Design and Innovation
Street markets for familiar businesses with culturally distinctive products, including local
producers of furniture, food and drink and clothing
Attract a major high street retailer with fashion and textile credentials - Leicester has
grown a fashion district around Next with its own little city.
An annual fashion show for Somerset College students and local micro businesses at an
appropriate Taunton venue. Raise sponsorship from local businesses.
Develop and promote the Design Enterprise Network
•
Space for creativity and culture
Many creative businesses are high risk and struggle to make ends meet, especially at the
start-up stage. Incubators, such as the private sector-led one in the Barnicott's old factory
building, are a common component of the creative sector infrastructure. Improving creative
city spaces is necessary to attract and retain talent, investment and tourism. Regeneration can
be creative sector-led.
Project Taunton has to deliver its vision of improved creative city spaces – better design
for built form and the public realm. A review of Project Taunton is needed to set a fresh
baseline. The Public Arts and Design Panel’s proposals for year-round street festivals and
a design code for developers are steps in the right direction.
There is a broader need for capital investment in major cultural institutions, heritage
preservation and financing and promoting art for public spaces
Neighbourhood-level creative and cultural activities need to be encouraged, particularly
through regeneration programmes in deprived areas.
17
Chart 3.1: The regional pull of Taunton’s main cultural players – the Brewhouse Theatre (above)
and Somerset County Cricket Club
18
4
Digital and Green
Discussion
The ‘digital economy’ – the production and use of ICT infrastructure, software and value
added services – has been at the centre of economic policy agendas at all levels for more than
three decades. Environmental sustainability has, of course, been a major issue over this time.
However, the ‘green economy’ agenda is newer and has gained momentum as a result of the
global economic and financial crisis. The UN Environment Programme (UNEP) offers the
following definition of so called ‘green-collar jobs’:
We define green jobs as work in agricultural, manufacturing, research and development, administrative
and service activities that contribute substantially to preserving or restoring environmental quality.
Specifically, but not exclusively, this includes jobs that help to protect ecosystems and biodiversity,
reduce energy, materials, and water consumption through high-efficiency strategies; de-carbonise the
economy; and minimise or altogether avoid generation of all forms of waste and pollution.
Charts 4.1 and 4.2 show how governments and market analysts attempt to define ‘green
industries’ and ‘green jobs’.
Chart 4.1: Green Jobs: Types of Occupations Generated by Six Types of Climate Change Strategy
Building Retrofitting
Electricians, Heating/Air Conditioning Installers, Carpenters, Construction Equipment
Operators, Roofers, Insulation Workers, Carpenter Helpers, Industrial Truck Drivers,
Construction Managers, Building Inspectors
Public Transport
Civil Engineers, Rail Track Layers, Electricians, Welders, Metal Fabricators, Engine
Assemblers, Production Helpers, Bus Drivers, Transport Supervisors, Dispatchers
Energy-Efficient Cars
Computer Software Engineers, Electrical Engineers, Engineering Technicians, Welders,
Transportation Equipment Painters, Metal Fabricators, Computer-Controlled Machine
Operators, Engine Assemblers, Production Helpers, Operations Managers
Wind Power
Environmental Engineers, Iron and Steel Workers, Millwrights, Sheet Metal Workers,
Machinists, Electrical Equipment Assemblers, Construction Equipment Operators,
Industrial Truck Drivers, Industrial Production Managers, First-line Production
Supervisors
Solar Power
Electrical Engineers, Electricians, Industrial Machinery Mechanics, Welders, Metal
Fabricators, Electrial Equipment Assemblers, Construction Equipment Operators,
Installation Helpers, Labourers, Construction Managers
Cellulosic Biofuels
Chemical Engineers, Chemists, Chemical Equipment Operators, Chemical Technicians,
Mixing and Blending Machine Operators, Agricultural Workers, Industrial Truck Drivers,
Farm Product Purchases, Agricultural and Forestry Supervisors, Agricultural Inspectors
Source: Job Opportunities for the Green Economy, Robert Pollin and Jeannette Wicks-Lim, Political Economy Research Institute,
University of Massachusetts, June 2008
19
Chart 4.2: Green Industries: the Environmental Goods and Services Sector
Air pollution control
Cleaner technologies and processes
Decommissioning & decontamination of nuclear sites
Environmental consultancy
Environmental monitoring, instrumentation and analysis
Energy management/efficiency
Marine pollution control
Noise and vibration control
Remediation and reclamation of land
Renewable energy
Waste management, recovery and recycling
Water supply and wastewater treatment
Sustainable transport
Source: UK Government Definitions of the Environmental Goods and Services Sector, Final October 2000, DEFRA/BERR.
The ‘green’ and ‘digital’ economies – as markets and industries, and product and process
innovations – feature strongly in the South West regional economic and spatial strategies.
Somerset County Council is assessing the economic potential of the environmental goods
and services sector; Connecting Somerset is highly active in promoting ICT innovation
among small and micro businesses; illustrating the convergence of the two policy agendas, a
Somerset “green ICT’ conference is scheduled for Autumn 2009.
Taunton Deane’s sustainable community strategy includes priorities for tackling climate
change and moving to a low-carbon economy. Also Project Taunton’s vision has a strong
green flavour: Redevelopment in the town centre will be an exemplar both in terms of sustainability
and design quality, having achieved recognition nationally and internationally. All new buildings will
have achieved a BREAM excellent rating with a zero carbon footprint. A large amount of renewable
energy will be generated within the town centre. The Transition Town movement has arrived in
Taunton Deane, and Somerset has declared itself the first ‘Transition County’.
The Local Government Association (LGA) argues that 150,000 new jobs could be created by
the shift to a low carbon economy, including 20,000 jobs from home energy efficiency alone
(Creating Green Jobs, 2009). The LGA and other lobbying groups (e.g. the Trades Union
Congress) argue that the Government needs to be more proactive in creating the right
regulatory and financial environment (the Confederation of British Industry says that
leading companies are pulling back on alternative energy investments). Nevertheless, local
authorities have emissions targets to meet under the Climate Change Act, and are integrating
‘green industries and jobs’ into their economic development strategies. Places which lead in
green innovation, design and technology development are more likely to retain and create
new green jobs.
Undoubtedly the ‘digital economy’ and the ‘green economy’ are important dimensions of
Taunton’s potential growth and future development. Here they are coupled together because
there are some interesting areas where the two ‘economies’ converge to create fresh
opportunities for innovation and change.
_________________________________
20
Issues
Reliable baselines on the state of the ‘green’ and ‘digital’ economies are missing at the
Somerset and Taunton levels. Evidence is patchy and anecdotal – without it monitoring and
evaluating progress is impossible, and funding cases can not be made effectively and
priorities are difficult to establish.
Taunton lacks a systematic approach to developing these ‘economies’, which is reflected in a
lack of champions, identity and voice.
•
•
•
•
•
Nobody is championing ‘green industries’ here.
Taunton needs a digital identity – probably related to creative and cultural industries
This is the only place in the UK where IBM is systematically applying its “corporate citizenship
programme”. Economic development is part of Southest One’s ‘assured deliverables’. But nobody has
challenged us about it.
Taunton Transition Town as a sustainability agenda is beginning to emerge. Presently there is a gap
between ideas and reality, though interest is growing rapidly. A green infrastructure strategy is due out
soon.
There’s no deliberate strategy to tackle the ‘digital divide’. There should be Internet cafes in depressed areas,
like north Taunton.
Interviewees with direct commercial and policy implementation experience suggest that
Taunton appears to lack a significant enterprise base of ‘green’ and ‘digital’ suppliers:
•
•
•
There’s a lot of talk about the energy-based economy but there are very few SME suppliers. They are
typically community groups and social enterprises but green technology businesses are absent.
Connecting Somerset works with technology partners, but none are located in Taunton. Yeovil is the centre
of innovation and ICT – including software businesses linked to aerospace.
We are exemplars of public sector innovation. We don’t hear from local ICT companies about getting
involved. Nobody within Somerset has contacted us.
There is a low rate of innovation in the Somerset SME population, particularly because of the
high representation of ‘lifestyle businesses’ with minimal growth ambitions:
•
•
75% of Somerset businesses are not innovation ready to exploit the ICT infrastructure because a lot are
lifestyle businesses. Half of local businesses fall into this category. We estimated this at Connecting
Somerset when we invited all businesses to apply for technology grants.
SMEs need to be energised and shown what to do for the digital economy to grow. Business Link is limited
in doing this. Connecting Somerset started in 2005 and is now catching its breath. We’ve entered a
watershed.
There is no evidence of home-based telework schemes being systematically used by public
sector employers to reduce the need for car-based commuting and traffic congestion in the
town centre. Traffic congestion is the biggest problem facing Taunton Deane according to
local residents, and Taunton’s public services are the biggest employers in the area,
particularly of highly skilled office workers who are the main car-based commuters. Public
sector organisations are all required to produce ‘green travel plans’. What progress is being
made on cutting CO2 emissions? Car parking and congestion problems make Taunton a ‘no
go area’ – a co-ordinated strategy to increase home-working in the public sector would help
21
to tackle these problems, making the urban core greener and more attractive as a business
location.
•
Telework schemes should be more councils-led and more active. For example, Bath and North East Somerset
Council has implemented telework projects because of the city’s congestion problems. There needs to be a
‘Homeworker’s Portal’ for Taunton’s big public sector workforce.
_________________________________
Opportunities
The ‘green economy’ agenda cuts across jurisdictional, departmental and geographical
boundaries – the ‘digital economy ‘ is also inherently ‘boundless’ in this respect. Therefore,
there is a case for a coordinated strategy based on private-public partnerships within
Taunton and between Taunton and the rest of Somerset – most notably Sedgemoor, where
alternative energy and the ‘green economy’ are priority sectors. A Somerset-wide approach
to the ‘green and digital economies’ would give critical mass and greater leverage – natural
environmental systems, transport and ICT networks, learning and skills, local food systems
and supply chains and so on transcend Taunton’s restricted urban boundaries.
•
Southwest One and the IBM partnership
Southwest One is the biggest example of public sector innovation in Europe and IBM itself is
a global player with an interest in market and policy areas where ‘green meets digital’ to
generate innovation. Southwest One has suggested a number of project ideas, all of which
should be evaluated by Taunton and Somerset partners. These include a virtual incubator
dubbed “The Online Garage”, which will offer on-line business mentoring, access to IBM
software and Business Link services, one-stop and shared infrastructure and information
services (supplier directories, meeting room booking facilities, etc); and, a ‘wireless town’
concept as part of Taunton’s virtual infrastructure – complementing Project Taunton’s
physical infrastructure. These types of possible enhancements to Taunton’s knowledge
economy infrastructure could be used to market the town to inward investors and
entrepreneurs.
Develop Taunton as Centre of Excellence in Public Sector Innovation - where ‘green
meets digital’ and an innovative public sector leads by example. The place-marketing
benefits are potentially great, and Taunton’s public sector can ‘punch its weight’
economically.
Ensure that the IBM brand is highly visible by locating Southwest One on the Firepool
flagship site – the size of the direct office requirement may be relatively small, but the
intangible marketing benefits are potentially great. The Online Garage could touch down
here physically in the form of an ICT sector incubator, which should enable more local
businesses to join the Southwest One innovation project.
Establish a robust monitoring and evaluation system for assessing the economic
development impacts of Southwest One. This is essential given the virtual and
innovative nature of the project opportunities and the likelihood that Taunton’s public
sector partners will have to contribute time and resources to make the projects a success.
22
•
A dynamic ‘green economy’ town
The ‘green economy’ agenda is clearly generating interest in Taunton and across the
Borough. This interest needs to be nurtured and channelled into innovative schemes for
developing ‘green’ economic activities – new business and job opportunities. A co-ordinated
‘green economy’ strategy for Taunton could have the following strands:
Set and deliver ambitious targets for the adoption of low carbon and energy-efficiency
technologies and services by Taunton businesses
Ensure that Taunton SMEs take advantage of IBM’s Smarter Planet global programme for
‘green ICT’ innovation
Taunton’s big public sector employers – local authorities, health and education and the
emergency services – should take the lead in adopting and showcasing energy-efficiency
and low-carbon innovations (note Somerset’s reputation for excellence in waste
management)
Deliver the ‘green building’ proposals contained in the Project Taunton regeneration
strategy, and reinforced by the Public Arts and Design Panel more recently
Exploit the Growth Point opportunity to set high standards in sustainable construction
and new ‘eco-home’ building.
Embed ‘green innovations’ within neighbourhood regeneration plans in deprived areas –
supported by educational, skills training and enterprise development. Note from Chart
4.1 that many ‘green jobs’ include level 3 production-related, construction and
installation skills.
Develop and promote the sustainable construction centre “Genesis” as a vehicle for
innovation, enterprise and skills. It might be worth considering re-locating the centre
from Somerset College into Taunton’s emerging creative quarter.
Map out and assess the potential of Taunton’s Environmental Goods and Services (EGS)
sector, using the findings to create supplier directories and to identify support needs and
requirements. This should build on the current Somerset EGS sector study.
Integrate green ICT infrastructure into Taunton’s industrial estates with the participation
of manufacturing and logistics sector tenants as well as innovative developers
Develop a ‘green town’ information service as part of Taunton’s e-government
infrastructure, for residents, businesses and community groups.
•
A telework strategy for public employers
This is the perfect time to promote telework as a multiple solution to Taunton’s serious
congestion and car-parking problems, and as a glaringly obvious way of reducing transportgenerated C02 emissions. Taunton and Somerset councils, together with other public sector
employers already prepare ‘green travel plans’. A proacative, results-driven strategy for
public sector telework is long overdue and with public sector spending under pressure, it is
both necessary and timely.
23
Health and Education
5
Discussion
Alongside Business Services, Health and Education have been leading sectors of job-creation
over the past decade in Taunton, as shown in Chart 5.1. This pattern of job-creation can be
seen everywhere in the UK. As large employers with a high proportion of skilled workers
with degree-level qualifications, Health and Education are major players in Taunton’s
knowledge economy. Importantly like the creative and cultural sectors, they have a regional
and national market reach.
Chart 5.1: Employees Growth by Sector for Taunton Deane, 1998 - 2007
Taunton Deane: change in number of employees 1998 - 2007
2500
2000
1500
1000
500
0
-500
-1000
-1500
22 : Publishing, printing and reproduction of media
660 : Insurance and pension funding…
752 : Provision of services to the community as a…
651 : Monetary intermediation
642 : Telecommunications
33 : Manu. of medical, precision and optical …
24 : Manu. of chemicals and chemical products
40 : Electricity, gas, steam and hot water supply
672 : Activities auxiliary to insurance and pension…
652 : Other financial intermediation
32 : Manu. of radio, tv and comms equipment
35 : Manu. of transport equipment
804 : Adult and other education
725 : Maintenance and repair of office, accounting…
731 : R&D on natural sciences and engineering
31 : Manu. of electrical apparatus not elsewhere…
925 : Library, archives, museums and other cultural…
912 : Activities of trade unions
732 : R&D on social sciences and humanities
621 : Scheduled air transport
34 : Manu. of motor vehicles, trailers and semi-trailers
924 : News agency activities
623 : Space transport
612 : Inland water transport
603 : Transport via pipelines
601 : Transport via railways
23 : Manu. of coke, refined petroleum products and …
16 : Manu. of tobacco products
11 : Extraction of crude petroleum and natural gas
723 : Data processing
611 : Sea and coastal water transport
721 : Hardware consultancy
30 : Manu. of office machinery and computers
913 : Activities of other membership organisations
724 : Data base activities
743 : Technical testing and analysis
911 : Activities of business…
722 : Software consultancy and supply
41 : Collection, purification and distribution of water
923 : Other entertainment activities
922 : Radio and television activities
622 : Non-scheduled air transport
744 : Advertising
852 : Veterinary activities
921 : Motion picture and video activities
803 : Higher education
671 : Activities auxiliary to financial intermediation…
726 : Other computer related activities
802 : Secondary Education
753 : Compulsory social security activities
703 : Real estate activities on a fee or contract basis
801 : Primary education
745 : Labour recruitment and provision of personnel
853 : Social work activities
741 : Legal, accounting, book-keeping and auditing …
742 : Architectural and engineering activities…
751 : Administration of the State…
851 : Human health activities
Source: Geoeconomics, ABI
Health is dominated by large employers including NHS and private hospitals, primary care
trusts and ambulance services. There are also many self-employed people – for example,
therapists and tutors – and non-profit enterprises. With a 3000 strong workforce, Somerset
Care’s recent 10% annual growth rate will continue as it expands within and beyond the
region. Already a £200 million business, Musgrove Hospital is creating 100 new jobs through
the building of a new cancer centre. Health employment in the South West is predicted to
increase by 10% up to 2014, with replacement demand (as a result of people leaving the
sector or retiring) accounting for most of the increase. Drivers of change include an ageing
population, genetics and new technology, a renewed focus on public health, and regulatory
24
and organisational trends within the NHS (e.g. the way services and education/training is
commissioned).
Taunton and Somerset stakeholders tend to rue the absence of a university. However,
education is well-represented by excellent FE colleges and independent schools. According
to the South West FE Colleges Capacity Building Project, the economic value of the region’s
FE colleges added up to £1billion value in 2006/07 – as employers they generated about 26
thousand jobs. Locally, Richard Huish College’s turnover is £10 million, compared to 2.7
million in 1997 – staff and turnover growth is continuing at 5% per year. Taunton impressive
cluster of independent schools add to the economic weight of its education sector. As noted
earlier, the schools are also a powerful magnet for attracting mobile talent, skills and
knowledge-based micro-businesses into the area.
Health and education will continue to be large, dynamic sectors of Taunton’s knowledge
economy through to 2026. Interestingly, the UK National Accounts treats FE and sixth-form
colleges and independent schools (because of their charity status) as part of the private
sector; but, the Labour Force Survey, which is based on self-assessment survey responses),
tends to classify employees in education and health as part of the public sector. Defining the
boundaries of the private and public sectors is not simple and should be approached with
caution. Note for example that the Lloyds TSB Group and the Royal Bank of Scotland have
been re-classified as part of the public sector! Achieving a new private-public sector balance
in the Taunton economy needs to reflect the complex institutional framework of public
services provision.
_________________________________
Issues
The absence of a university in Somerset is seen as a major obstacle in building a dynamic
knowledge economy within the County – including Taunton. This was a common talking
point in the stakeholder interviews. However, it is worth noting that most UK universities –
including the research-intensive “Russell Group” universities – have very weak links with
businesses and the local economies in which they are located. The so called ‘new
universities’ – the old ‘polytechnics’ – have stronger links owing to their long-standing mix
of academic and vocational learning. A recent article in The Times newspaper argued for
‘bringing back the polytechnics’ as a way of aligning HE/FE provision more closely with the
skills and training needs of employers in all sectors, including manufacturing and services.
A renaissance of the Polytechnic appears to resonate with the business directions being
pursued by Richard Huish College and Somerset College:
There is a ‘back to the future’ trend. Universities are not the only track to a successful professional and
managerial career. The call to ‘bring back the polys’ is getting louder. This plays into our hands. A
combination of higher education and apprenticeships is a stronger bridge to the local economy. The
education and training market is expanding in these areas. This is our HE/FE vision, which is shared by
other colleges – “a Super-Poly”.
25
The academic and vocational learning mix – with a strong emphasis on practical work
experience/placements – is very much in tune with the needs of today’s knowledge economy
and its human capital requirements for level 3 and level 4 skills. The Somerset colleges,
together with Musgrove Hospital, appear to be highly competitive in this respect, each
developing as centres of excellence:
Richard Huish for Business Services; Bridgwater for Energy; Yeovil for Engineering;
Somerset for Creativity & Design; Musgrove for Health
This is a powerful platform of HE/FE provision and institutional capacity to build a
diversified knowledge economy within the County. It is the vision of ‘high quality,
responsive and innovative higher education’ that guides the Somerset Universities
Partnership Project (SUPP) – it is the right one. It is consistent with the economic vision
proposed here – Taunton as a dynamic knowledge economy.
The SUPP echoes the views of its Taunton college partners and Musgrove Hospital with
respect to the challenge of growing the HE/FE platform. A key issue related to the need for
higher levels of engagement with local businesses, where colleges lack the type of access to
funding/programmes that benefit universities:
Somerset College doesn’t have access to the ‘good stuff’ that HE institutions get – such as knowledge
transfer partnerships, innovation vouchers and funding for business development managers who can
increase business engagement. We don’t do R&D so we don’t qualify.
One way forward highlighted by SUPP is to work with the colleges’ university partners to
obtain access to the funding programmes set out in Innovation Nation white paper
(Department of Innovation, Universities and Skills, 2008) – the Government’s latest
knowledge economy strategy statement. The prospect here is to position Somerset colleges as
HE learning and knowledge hubs with demonstrable potential for boosting sub-regional and
local economic development. Organising and marketing this ‘hub’ role is the top-priority of
the SUPP – again it is on the right track. According to the college representatives interviewed
here:
In the absence of a university, there must be professional and on-going development services to companies in
this part of the world. Smaller units with cutting edge knowledge for specific sectors would be possible.
There should be a set of business services that are shared and delivered through a network to SMEs.
A wider set of issues related to Taunton (and Somerset) shortcomings as a place to study –
and in the process to live and gain work/career experience:
We hear there’s a housing problem because of a small private renting sector. We’re looking at social housing
with housing associations. This is important to recruiting younger nurses who have to possess a degree –
they will replace nurses in their fifties (a ‘time bomb’ scenario).
A physical presence is essential. We don’t like rubbing shoulders with 16 year olds. So it’s hard to organise
events. A dedicated multi-purpose centre for HE students would be great.
There is no focal point for students – medical students do tend to stay where they do their training. They
need a sub-culture of independent restaurants, niche shops and buzz.
26
We want lots of small firms in Taunton to give graduates a local choice. There are lots of creative graduates
working in Taunton’s bars and restaurants. What’s the size of this population and how can its talent be
mobilised?
All traditional and new UK universities are growing beyond their cities and regions through
on-line courses and remote campuses – HE is a global business. Somerset Colleges are
growing in this way as campuses for South West universities – such as Plymouth,
Bournemouth and UWE (all ‘new universities’). This continues to be a promising route to
growth.
However there is clearly a need for a physical HE presence – to give students from all
disciplines and all colleges a place to socialise, exchange ideas and develop a sense of place.
This would give Taunton an ‘urban buzz’ and its key education sector more visibility and
marketing leverage
___________________________________
Opportunities
The following courses of action can help to grow the health and education sectors of
Taunton’s economy:
•
A physical central place for higher education
Build a campus in central Taunton for all higher education students studying in Somerset,
including medical and nursing students. This should include a state-of-the-art student union
building, exhibition and conference facilities and a range of learning spaces – including
‘classrooms’ for multi-disciplinary teaching. This high tech, architecturally stunning campus
should be seen as Taunton’s iconic development, its economic vision come to life: a place
which generates the ‘urban buzz’ needed to attract and keep talent, and which will also
function as a forum and a hub for the urban and rural ‘flea population’ – micro knowledgeintensive businesses.
•
Building ‘knowledge communities’
‘Knowledge communities’ are networks of people who come together to develop and share
ideas for a common purpose – specifically to innovate. They can meet physically but today
most ‘knowledge communities’ form and grow on the Web. There are a number of areas
where these ‘communities’ could flourish and increase dynamism and diversity in Taunton’s
health and education sectors – each community would have its own web portal:
A ‘green town’ network for Taunton’s sustainability-driven residents, consumers and
businesses
A ‘creative town’ network for Somerset and Taunton students, enterprise start-ups and
more established businesses
A ‘healthy town’ network for promoting healthier lifestyles in Taunton, including
consumer knowledge of nutrition and self-help remedies.
27
There are other types of ‘knowledge community’ of course. They will possess commercial
and social trajectories of their own. Building these ‘communities’ of consumers, produces,
distributors and intermediaries will help to build a dynamic, inclusive and sustainable
knowledge economy in Taunton. The education sector, at all levels, will play a leading role
in these communities – but learning through interacting, doing and using will be encouraged
as a cultural activity.
•
Retaining and attracting talent
Retaining graduates is a target of Somerset’s economic development strategy. It would
benefit Taunton according to the stakeholders. It could be useful to give students a bigger
stake and a greater say in Taunton’s economic development, while responding to more
specific needs:
Hold student competitions to generate new ideas and schemes for improving Taunton’s
appeal as a ‘university town’ and young person’s live-work environment
Showcase student project work in exhibitions and events – for example, fashion and
design shows
Organise ‘studios’ which team-up students with businesses, public sector and third
sector players to develop innovative solutions to specific problems in Taunton
Encourage more business and public sector employers to sponsor student
entrepreneurship activities
Increase the level and share of suitable work placements in local businesses
Target certain types of inward investment – such as ‘sample studios’ – or support
students wishing to start up a ‘studio’ themselves. (A good model here is Nottingham’s
Fashion City initiative.)
The basic message is that graduates are more likely to remain if they have a genuine stake in
the economic life of Taunton. Those graduates wishing to pursue careers in the public sector
– especially local government and health and education – are more likely to remain in the
area. However, for more the more business-minded, Taunton will have to work harder to
persuade them to stay unless they are given real opportunities to build portfolios and CVs
and make a start as entrepreneurs and career employees. The ‘feel good’ and ‘feel at home’
factors may become increasingly influential after the recession.
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6
Production and Construction
Discussion
The recession and the City’s ‘fall from grace’ have highlighted the need for Britain to have a
diversified economy, including a competitive manufacturing base. ‘Making things’ is back in
favour, as is ‘building things’ – the construction sector. A ‘green industrial revolution’ is
based on the knowledge, skills and technologies of manufacturing and construction
companies (see Chart 4.2).
The Government’s ‘knowledge economy’ agenda, which has dominated national and
regional industrial policy since the late 1990s, has been biased towards science and
technology-based industries. The City (finance) and business services and creative industries
have also been at the heart of national and regional strategies aimed primarily at increasing
the UK’s international competitiveness. Many branches of manufacturing have felt ‘shortchanged and neglected’ by the Government’s bias towards high technology and service
industries. Construction, housing and commercial property, thrived during the ten ‘boom
years’ of economic growth, but is now mired in a financial crisis (the ‘credit crunch’)
From Chart 6.2, which was used for the Taunton Deane Economic Assessment, we can see that
many branches of manufacturing are included in the Geoeconomics classification of
‘knowledge intensive sectors’ (which matches closely with the EU schema). The public and
private sectors of the ‘knowledge-intensive’ economy are shown in yellow and grey
respectively – but, please note our earlier comments about the fuzzy boundaries used for the
institutional classification system in the National Economic Accounts and Labour Force
Survey.
Under this classification, the engineering companies interviewed for this study Exmoor
Plastics and Taunton Aerospace would be counted in as part of the private sector of
Taunton’s ‘knowledge economy’. But because their sectors fall outside this classification,
Cotleigh Breweries (food and drink), Swallowfield (personal care products) and the two
construction companies, Gadd and Stacey would be counted out of Taunton’s ‘knowledge
economy’. Around 30 per cent of knowledge-intensive businesses ‘slip through the net’ of
this sector-based classification; further, as a national classification it can not pick up local
differences in ‘knowledge-intensity’ within sectors – patterns of functional specialisation
with sectors and firms. Thus, all of the Taunton Deane firms that are untowardly excluded
from the classification should be counted in – because they have their head offices and highly
skilled workers based in the area. In other words, as far as Taunton’s economic vision is
concerned, all of these manufacturing and construction companies are an integral part of the
area’s future as a diversified knowledge economy. According to Exmoor Plastics, “the
business has a long-term future because of the brand and reputation and innovative
products.” These companies should be treated as rare and valuable economic assets, and
treated accordingly by Taunton and its economic development partners, including Somerset
and SWERDA.
29
Chart 6.1: Classification of Knowledge-Intensive Sectors, Great Britain, 2005
Markets
Infrastructure
Governance
Manufacturing Production
Oil & gas extraction
Tobacco products
Printing, & publishing
Coke, petrol, nuclear
Chemicals/products
Office machinery, computer
manufacture
Electrical machinery
Radio, TV, & communication
equip.
Medical, precision & optical
equip.
Motor vehicles
Other transport (incl. aerospace)
Private Services
Financial & Business:
Finance
Real estate
Computer-related
R&D
Professional
Energy Utilities
Transport
Electricity, gas, etc
Water
Railways
Sea/inland
Government
Non-Governmental Organisations
Public Administration
Defence, law, fire, etc
Compulsory social security
Business, employers & professional
organisations
Trade unions
Other membership and non-profit
bodies
Cultural:
Travel agencies
Radio, TV
Other entertainment
News agencies
Museums, libraries, archives
Motion picture, video
Public Services
Education:
Higher
Secondary
Primary
Adult other
Health & Social Work:
Human
Veterinary
Social Work
Telecommunications
Pipelines
Air
Telecommunications
Source: Geoeconomics, ONS
Issues
There appears to be a lack of appreciation and understanding of the strategic economic
importance of manufacturing to Taunton’s future, which is reflected in the unfavourable
perceptions and experiences of the firms interviewed. In some cases the firm themselves
admit that they have contributed to this ‘relationship gap’ by failing to cultivate a local
presence and identity.
Taunton is about services – including hospitals and councils. I’m not sure there’s been any support for
manufacturing. Even when we were big employers in the past (Thales aerospace), we didn’t see ourselves as
part of the local community or economy.
We won the prestigious Cutler’s Prize in 2008 for innovation in medical instruments (an epidrum, a new
device for carrying out epidural anaesthesia). We saw no advantage in publicising this in the local press
because we don’t see ourselves as a local company, but…..the future market potential globally is massive
and would transform our business 40 times over.
The firms are actually mis-identifying themselves – they are global by market, but local in a
fundamental respect: the staff whose knowledge, skills and competences which make the
businesses a success live in Taunton Deane or within a short commuting radius. All of the
managing directors and owner-manager recognised the importance of their local staff
(loyalty and longevity), but not the strategic and marketing value to them of their local
presence as employers and investors.
30
An untoward result of this weak local link, some firms have had encountered problems with
respect to land and premises, which have been exacerbated by council planning policies:
We’re not connected with the Chamber which is town-centre focused, or any other business organisation.
We feel isolated in Taunton and don’t think the council is on our side. When we wanted to expand, they
undermined us. We need to scale up manufacturing facilities and raise skills with the new product. We
want to consolidate on one site from our present two sites.
We’ve wanted a piece of land to develop ourselves for the last 5-6 years. We have been going back and forth
to the Council all of this time. We found a site in Taunton East, a deprived ward where jobs are needed. The
site was zoned for light industrial. But the developers who got it left it derelict, for use as housing land.
When forced to sell it as employment land they refused to sell it to us and they asked for a very high price.
Council planners were on our side and said we should be allowed to but it. But the council (politicians) said
no and they tried to get us to go to Wellington. We’re much worse off now as a business because we didn’t
get the land as an asset (for use as collateral)
As the saying goes ‘there is no smoke without fire’, and employment land issues are a top
priority for Taunton Deane Borough Council. The key point is that Taunton has to treat and
be seen to treat its businesses well – Yeovil and South Somerset have a reputation for doing
this, but Taunton does not. As a general rule, employment land issues have to be resolved in
favour of businesses with growth potential, particularly firms that are capable of generating
more highly skilled jobs, not only graduate-level but skilled production and crafts-based
jobs. Local job-creation clearly helps to increase economic well-being in Taunton’s
communities. And it may be constantly reminding ourselves that: Taunton is successful in
attracting knowledge-intensive workers as residents, but is unsuccessful in attracting
knowledge-intensive businesses as employers.
The Council should sell off employment land in smaller lots so firms like us can develop it themselves and be
less rigid in planning (the release of land). Don’t sell it to the big developers – only if it makes sense and
benefits the community.
The Council should base decisions on the economic carrying-capacity of land. We have great tranches of
land owned by developers who are not developing it. We’d develop it. If we can’t get this we have to
seriously think about leaving the area.
We can’t relocate because of the existing staff with fabrication skills. We’re trying to automate to reduce the
degree of this dependency.
We have to move within a 10 year time frame to a purpose built industrial site. This site employs 350, down
from 450. Most people live within a 15 mile radius
As stated earlier, the manufacturing firms interviewed are ‘knowledge-intensive’ businesses
and they are already here. What is harder to do and more risky – attract knowledge-intensive
firms from somewhere else in the UK or the rest of the world, or relocate local knowledgeintensive firms within Taunton? The former option, inward investment strategy, is fraught
with difficulties and uncertainties – significant in-flows of manufacturing investment are
highly unlikely. It is also noteworthy that Project Taunton is trying to build a government
office presence on the flagship Firepool site by attracting ‘bit and pieces’ of departments
scattered around Somerset and the South West. Many city growth strategies are based on
concentrating old firms on new sites. This is part of what economists call ‘indigenous
growth’ strategy as opposed to ‘inward investment’ strategy. Somerset’s economic
31
development portfolio holder Alvin Horsfall commented: “the County has shifted to a more
proactive view of the economy based on more indigenous investment”.
Access to skills is another key issue for Taunton’s manufacturing and construction firms.
Businesses are investing in training and technological innovation to overcome skills
problems, the result being that workforces are shrinking but becoming more skilled:
We’ll be slimming down and automating but more multi-skilled jobs – fewer altogether and more highly
skilled and white collar. This is the face of modern manufacturing.
We employ a range of staff from Ph.D. graduates people with basic skills. More than a hundred people are
put through level 2 training; another 50 through level 3 – these are supervisors and equivalent to A-levels,
some work on the production line, perhaps promoted from other jobs. At least 80 percent of our production
staff will be level 2 plus. We recruit two graduates a year. Over the last 2 years, we’ve gone back to
apprenticeships trained at Bridgwater College. So it’s ‘back to the future’ over the last three years. Grads
don’t want to know about the nuts and bolts of engineering workshops. We struggle to find good ones for a
£16.5k starting salary.
There is a need for a more co-ordinated approach to skills development in Taunton which
should be part of an economic-recovery plan. Better evidence is needed to target employer
needs, particularly outside big companies:
There’s a big issue with skills and training. Attitude is the problem. Bricklayers and carpenter core skills are
hard to find. A skills strategy has to be planned for a future economic recovery and the long-term.
Businesses want people with specific skills to fill specific tasks, so they are tending to customise ‘in house’
training programmes. Augusta Westland does this by contracting out a customised apprenticeship training
programme. We can’t get a picture of these developments in training for other companies – especially SMEs
who employ most of the workforce.
We need a ‘local employer survey’ like the Learning and Skills Council national survey. Presently skills and
training information is not finely grained enough and also very standardised. There is a need for greater
local flexibility and funding in national skills and training programmes.
___________________________________
Opportunities
The following suggestions for strengthening Taunton’s manufacturing and construction
sectors were made by the interviewees. They merit close consideration, particularly by the
Employment Land Task and Finish Group.
•
Modern industrial estates
Taunton should be able to offer manufacturing companies a choice of modern industrial
estates with freehold services accommodation, which is competitive with Yeovil (seen as a
benchmark of good practice). Engineering companies should be concentrated on a modern
‘badged’ trading estate, a successful model being the Granby estate in Weymouth. Taunton’s
trading estates should be designed and built as zero carbon’ showcases with manufacturers
supported by innovative energy-efficiency practices and technologies. Feasibility studies
could be undertaken for the Priorswood and Galmington estates.
32
•
A Green Building Programme
Taunton’s Growth Point Status is an opportunity to launch a high-profile Green Building
Programme - the practice of increasing the efficiency with which buildings use resources
(energy, water and materials). Taunton’s achievements could be used to market itself as
Britain’s ‘most sustainable town’ – US cities, such as Portland, Atlanta and Denver, are useful
case studies in this respect. Project Taunton’s vision encapsulates a green built environment.
How much real progress has been made? A green building programme would need to cover
the Growth Point area, rather than just the town centre. It would also need to tie in with how
Taunton Deane and other part of the local public sector are implementing the Government’s
Climate Change targets for reducing CO2 emissions. Launching a Taunton Green Building
Programme would help to refresh ideas, set baselines, form ‘knowledge communities’ for
innovation, and a co-ordinated, results-driven strategy to make Taunton Britain’s “most
sustainable town”.
•
Engaging with employers
The interviews underlined the need to engage more closely with Taunton’s manufacturing
and construction employers. Relationship building is key to embedding firms in the local
economy and could be helped through a familiar set of initiatives:
Form partnerships to kick-start projects that have wider economic benefits, working
through supply chains. Set up business-public sector consortia to created a critical mass
of demand for local EGS suppliers, for example re-manufacturers with moulding shops,
or waste-management companies.
Establish an on-line directory of manufacturing and construction suppliers in order to
enhance opportunities for local networking and purchasing
Invite heads of manufacturing and construction firms to become members of a new
Taunton Business Forum, so that their knowledge and interests help to shape and drive
economic development – the recession is a good time to do this.
Increase public and political awareness of the economic contribution of Taunton’s
manufacturing and construction sectors – this will help to create social capital in support
of planning decisions.
Showcase manufacturing and construction products and the companies themselves
through a new Centre for Design and Innovation (see earlier recommendation). This
would help to create a new image for manufacturing industry and help to attract suitable
graduates and young people into apprenticeship programmes.
•
A “Buy Local” Programme
This should run alongside the “Green Building” programme with the overall aim of both
programmes being to make Taunton Britain’s “most sustainable town”. Farmers markets and
green buildings per capita, as well as local green business directories are all used now as
indicators of sustainability by US cities.
33
Increase local sourcing by Taunton’s public sector organisations, using these practices at
every opportunity to showcase ‘home-made’ products and services produced by micro
businesses and small enterprises.
Also work with large companies in all sectors of Taunton’s economy to increase their
percentage of local sourcing – this is a priority area for Sedgemoor given the new
Morrison development.
Establish reliable local green business directories for small suppliers of EGS products and
services, as well as local producers of food and drink, and household and clothing items.
Make ‘street markets’ one of Taunton’s most important economic signatures – this should
include a high quality farmers’ market as well as ‘flea markets’ and a variety of antique
and craft products. To make these ‘markets in towns’ truly economically significant they
should be open to vendors and traders from all over Somerset, the South West, the UK
and the rest of the world. This will attract more tourists and give Taunton producers a
global reach using the Web as a marketing and selling medium.
These types of initiatives are not original. What matters though is that they are integrated
into a vision of Taunton as a leading ‘sustainable town’ within the UK and Europe – that is to
say they are given a wider and more strategic economic context. All of the initiatives should
definitely be underpinned by robust monitoring and evaluation systems, with performance
indicators being regularly publicised in the local media.
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7
Governance for Economic Development
Governance is the process whereby societies or organisations make important decisions,
determine whom they involve and how they render account – Institute on Governance,
Ottawa, Canada
Governance is the exercise of political authority and the use of institutional resources to
manage society’s problems and affairs – the World Bank.
___________________________________
All of the stakeholders commented on the lack of an effective governance structure for
Taunton’s economic development. Note that local government is only one institutional actor
in Taunton’s economic governance arrangements. Other institutional actors include the
private sector, including developers, other public sector bodies and a variety of third sector
organisations.
There is a consensus among economists that good governance is a prerequisite for economic
success. The Government has therefore made partnerships the preferred mode of governance
in the area of economic development. So, do present governance arrangements for Taunton’s
economic development ‘pass the test’ for successful partnerships? What if we applied the
standard type of assessment tool shown in Chart 7.1 to the Taunton situation?
Chart 7.1: Good Governance Principles for Partnerships, Institute on Governance, Ottawa, Canada
Legitimacy and Voice:
•
•
•
•
Everyone who needs to be, is at the table
There are forums for bringing the partners together
The forums are managed so that the various voices are listened to and the dialogue is genuine and respectful
There is a consensus orientation among all those at the table
Direction/Strategic Vision:
•
•
•
•
All parties share a joint and clearly articulated vision of their goal
Each party to the partnership sees how their organisation can contribute to the vision
Roles and responsibilities are clearly defined
The parties have adequately adjusted to any changes to the vision that have occurred over time
Performance:
•
•
•
•
•
There is a clear idea among participants as to what constitutes success
Performance is monitored and reported
The framework for performance measurement and reporting is developed jointly
There are sufficient resources to build and maintain the partnership
The different contexts in which the parties work is understood and accepted
Accountability:
•
•
•
•
The accountability of all of the parties are clear
There is an open, transparent and accountable relationship between the parties
The accountability relationships of the parties to their respective organisations is recognised and respected
The effectiveness of the partnership is reported publicly
35
Fairness:
•
•
•
All parties believe they receive sufficient value from the partnership
The clients of the parties and the public more broadly benefit from the partnership
The laws that govern each party are recognised and respected
The stakeholder interviews suggest that Taunton would not score well on the governance
assessment test. The absence of economic vision and leadership was highlighted in Chapter
2. Business employers do not ‘sit round the table’ with public sector partners, outside town
centre retail collaboration.
As Chart 7.1 indicates, effective partnerships have to be built around a powerful and stable
vision of economic development. For example, if the Firepool site is truly to be a ‘flagship’
development, it should be used primarily to accommodate Taunton’s most promising
knowledge-intensive sectors – as discussed in Chapters 3 to 6. If it becomes a home to
government bureaucracy, it can no longer be marketed and presented to Taunton’s
community as a ‘flagship’. This is a big test of Taunton’s commitment to economic
development-led planning and regeneration delivery.
The employment land question is a vexing and complicated issue, but at the end of the day it
is important to recognise that land – like other factors of production, such as labour and
capital – has to be mobilised for economic development. Governance barriers stand in the
way of mobilising employment land in Taunton. Resolving these employment land issues is
now extremely urgent – solutions have to be found.
We need a strong planning framework that doesn’t cow-tow to developers. Somebody has to buy the
development site options back – another developer has to do that. We have to get it moving. There are several
major sites but over 15 years but none have been brought forward. We have to get this sorted through the
Local Development Framework.
There is a Project Taunton partnership in place – made up of the County, Taunton Deane BC and
SWERDA – which should be help to skew the physical development of the Firepool site so it has the right
businesses and sectors. But this partnership doesn’t need formalising into an economic development
company. Taunton does not have resources to do this on its own.
At the time of writing this chapter (April 22-23, 2009), Chancellor Alistair Darling presented
a Budget which economists believe will change the economic landscape of the country for
the next ten years – indeed most of the way to 2026, when Taunton is expected to have
successfully emerged as a Growth Point in the South West region. Ten years of public sector
growth will now give way to ten years of public sector decline; financial services will no
longer function as ‘engines of growth; housing and consumer services will be restrained
rather than openly credit-fuelled; the Government is pinning its hopes on a manufacturing
renaissance and green and emerging technology sectors. On the same day as the Budget,
Britain’s unemployment total reached 2.1 million, up by 177,000 people from the previous
quarter. The Chancellor’s growth predictions for 2010 (with a late 2009 recovery) have been
challenged by the IMF and other economic think tanks.
36
Taunton stakeholders have to be bold and imaginative in resolving governance issues.
Taunton already has a big, ‘part-time economy’. High unemployment and its impacts on
consumer spending and business investment would shrink its ‘down-sized’ economy even
further – it would take years to recover. What would this mean for Taunton residents who
depend on the local economy for job opportunities? The 2008 Place Survey was carried out
too early in the recession for it to have picked up what has become a universal drop in job
stability and confidence. Taunton and Somerset are ‘fire-fighting’ the recession like councils
everywhere, however the real challenge is to grow the local economy and aggressively
remove all obstacles which get in the way of doing so.
Governance issues can be addressed – if employment land problems can be solved in Exeter,
they can be solved in Taunton. The same holds for learning and skills – what’s holding back
partnership working, as jobs disappear and employers shift to streamlined, higher skill
workplaces?
There needs to be some kind of network / process and overarching leadership that challenges public sector
and private sector investors to generate the maximum skills and learning benefit to Taunton and Somerset.
Currently organisations work in silos and don’t communicate.
There is a need to develop a co-ordinated approach to the public sector’s skills and employment needs given
the ‘crowding out’ effect that comes from Taunton’s high concentration of government agencies
This is a crucial area for developing more effective governance or partnerships given the
recession and its implications for the future of skills and employment – and hence the public
education and training infrastructure. Partnerships make sound economic sense – only a
political culture of non-cooperation can undermine them. Successful economic development
is in their mutual interests. According to Chart 7.1 the principles of accountability and
fairness should apply to Taunton’s economic development strategy – governance is an
integral and defining component of the strategy.
___________________________________
Chart 7.1 is very useful because it returns to the first principles of good governance and
successful partnerships at a time when economic development in Taunton could not be more
necessary and urgent. This standard assessment tool should be used to help put together
Taunton’s new economic development strategy, including its consultation process and
governance arrangements.
Economic development is about growth in the productive capacity of Taunton’s economy as
well as change in governance structures – that is to say, growth and governance are
inseparable.
New strategic alliances between the private and public sectors have to be created in order to
make Taunton “a successful and sustainable European town”. These alliances should
build business and economic networks beyond Taunton – the rest of the UK, Europe and
other world regions. Closer to home, there is much discussion about closer economic ties
between Taunton and Bridgwater along the M5 Corridor. Research is needed to assess
these apparent wider economic benefits, before moving toward formalising these ties.
37
New commitments have to be made to Taunton’s communities, under the ‘place-making’
strategy for sustainable development. There has to be ‘grassroots support and
participation’ in the Council’s economic development action plans, so that it has a
mandate to make tough decisions.
New corporate governance arrangements within the Council, which reflects the new economic
vision and ambition for Taunton. Economic development should become a strategic level
function within the Council’s governance system, its mission being to mobilise
knowledge and resources across departmental boundaries (internal) and across the
Council’s jurisdictional boundaries – other stakeholder institutions and the community.
The economic development function’s capability in these internal and external aspects of
mobilisation will determine whether Taunton succeeds or fails to become a successful
and sustainable European town by 2026.
A profound implication of the recession and its long-term impacts on the UK economy and
society is that a ‘bottom up’ approach to economic development has become all the more
necessary. As Taunton’s democratically elected economic institution, the Council should see
itself as a ‘flagship’ capable of making the big decisions necessary to keeping Taunton on
track to 2026, while the global economic storms continue to rage. Leadership by example
goes a long way to confidence-building and sending the right message to the private sector,
public sector partners and the community. These comments from Richard Gould, Chief
Executive of Somerset County Cricket Club illustrate this point:
The Loch Fyne debacle is a great example to learn from, because by the time the council decided to support
them, it was too late (and Loch Fyne is the sort of brand that would give others the confidence to trade in
Taunton). If we are to promote inward investment we need to try and help push things along, rather than
allow people just to be gatekeepers of their own small areas. That is why I was so pleased to see joined up
action to help Forward Space take on the Barnicotts Building. It could be that such positive action from
council officers is the key to giving Taunton the competitive edge it is looking for.
38
8
Recommendations
The purpose of this report was to create a fresh and challenging vision for Taunton’s
economy based on a stakeholder consultation exercise. It identifies a range of
opportunities for growth and change, which could be fleshed out and incorporated into a
long-range economic development strategy. Institutional change is an integral aspect of
economic development. Therefore, the report suggests changes in governance for TDBC
and its partners to consider.
__________________________________
1. The recommended economic vision for Taunton is:
By 2026 Taunton will be one of Europe’s most successful and sustainable towns with a
dynamic knowledge economy and a high quality of life.
The vision captures necessity and ambition: necessity because of Taunton’s Growth Point
status and the Recession; ambition because of an intensifying demand for higher levels of
diversity, choice and quality in the local economy.
2. Key opportunities were identified in a number of areas of Taunton’s economy, as
summarised in Chart 8.1 below.
Chart 8.1: Recapping the Opportunities
A dedicated organising infrastructure for connecting and promoting
Creative Taunton
Creativity & Culture
Ongoing, stable funding for creative projects
Growing creative industries
Space for creativity and culture
Southwest One and the IBM partnership
Digital & Green
A dynamic ‘green economy’ town
A telework strategy for public employers
A physical central place for higher education in Taunton
Health & Education
Building ‘knowledge communities’ – green, creative and health innovation
Retaining and attracting talent
Modern industrial estates
Production &
A green building programme
Construction
Engaging with employers
A buy local programme
These opportunities need to be addressed in a concerted, connected and strategic way by
engaging the energy, commitment, resources and ingenuity of not only organisations – from
the private, public and third sectors – but also of Taunton’s community or communities. We
favour a bottom-up approach to the types of technological, organisational and social
innovations Taunton will need to get to 2026. These are called “knowledge communities” –
movements for innovation.
39
3. Recommended directions for creating new governance arrangements for Taunton’s
economic development included the following ideas:
New strategic alliances between the private and public sectors have to be created, which
give Taunton’s economic development strategy a strong business flavour and help to
network Taunton with other towns and cities in the UK, Europe and the rest of the
world.
New commitments have to be made to Taunton’s communities. There has to be ‘grassroots
support and participation’ in the Council’s economic development action plans, so
that it has a mandate to make tough decisions.
New corporate governance arrangements within the Council. Economic development
should become a strategic level function within the Council’s governance system, its
mission being to mobilise commitment, knowledge and resources internally and
externally.
4. Taunton’s economic development strategy has to be underpinned by evidence which is
relevant, timely and carefully researched. This is essential for monitoring and evaluation
purposes, as well as for engaging and motivating ‘knowledge communities’ – the
building blocks for a more innovative and mobilised Taunton.
__________________________________
Together with the Taunton Deane Economic Assessment, this report provides an informed basis
for drafting a new economic development strategy for Taunton. There is now an economic
vision, a set of opportunities for action and an evidence base. The next steps are to validate
the vision proposed here, evaluate the opportunities identified in this report and then agree
on how to deliver an agreed programme of economic development activities. This begin with
a workshop presentation to be held at Somerset College on 30th April 2009.
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Annex 1 – List of Interviewees
Cllr.Jefferson Horsley
Cllr.Habib Farbahi
Cllr.Alvin Horsfall
Cllr. Anne Fraser
Peter Allinson
Frederik Domellof
Kevin East
Gary Francis
Richard Gould
Paul Hughes
Philip Kerr
Richard Lloyd
Ian Mackinnon
Tim Martin
Peter Radford
Shaun Stacey
James Cashmore
Peter Tansey
David Allwright
Stuart Annett
Peter Avery
Steve Bone
Paul Glossop
Carl Budden
Francis Cornish
Max Hebditch
Alan Madge
Satnam Singh
Ian Franklin
Mark Green
Chris Taylor
Richard Mannion
Pauline Osborne
Kay Allen
Matt Ballard
Dave Cornish
Doug Bamsey
Claire Pearce
Brendan Cleere
Joy Wishlade
Kevin Toller
Trevor Wall
Jayne Hares
David Dundas
Caroline Corfe
Taunton Deane Borough Council
Taunton Deane Borough Council
Somerset County Council
Sedgemoor District Council
Exchange House
Cotleigh Breweries
Exmoor Plastics
Taunton Aerospace
Somerset County Cricket Club
Gadd Group
Kenningtons
Summerfield Developments
Swallowfield
The Brewhouse Theatre & Arts Centre
South West One/IBM
Stacey Construction
Orchard 360 Consulting
BT, Global Services
Taunton & Somerset NHS Foundation
Trust
Peninsular Enterprise – Business Link
Richard Huish College
Government Office South West
Government Office South West
South West RDA
Taunton Town Centre Company
Taunton Cultural Forum
Jobcentre Plus
Somerset Learning & Skills Council
Project Taunton
Project Taunton
Somerset College
Somerset College
Somerset College
Somerset County Council
Somerset County Council
Somerset County Council
Sedgemoor District Council
Sedgemoor District Council
Taunton Deane Borough Council
Taunton Deane Borough Council
Taunton Deane Borough Council
Taunton Deane Borough Council
Taunton Deane Borough Council
Taunton Deane Borough Council
Taunton Deane Borough Council
Econ. Development Portfolio Holder
Councillor
Econ. Development Portfolio Holder
Econ. Development Portfolio Holder
Proprietor
Director
Director
Managing Director
Chief Executive
Group Managing Director
Partner
Chief Executive & Chairman
Chief Executive Officer
Visual Arts Coordinator
Vice President
Managing Director
Founding Director
Client Director SW, Public Sector
Chief Operations Officer
Director
Principal
Locality Manager, Somerset & Devon
Economic Partnership Manager
Head of Regeneration, Somerset
Chairman
Chairman
Somerset Partnership Manager
Economic Development Manager
Project Director
Project Manager
Head, Division of Arts and Design
Lecturer
HE Development Manager
Head of Community & Regeneration
Connecting Somerset
Connecting Somerset
Director
Group Manager, Econ. Development
Strategic Director
Strategic Director
Strategic Director
Senior Rural Regeneration Officer
Communities Officer
Employment and Skills Officer
Community Arts Officer
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Millie Smyth, John Peart,
Tom Coles
Abigail Williams, Katie
Quinn, Tim Brough, Piotr
Pavelec
Richard Huish College
Students
Somerset College
Students
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