The Hertfordshire Economy: John Gourd Chair – Hertfordshire LEP January 2012

Hertfordshire - the perception: - the reality: ‘Powerhouse of UK economy’ –GVA £25bn p/a (5 th largest outside London) –1m people –47,000 businesses High quality of life Highly skilled & entrepreneurial people Losing our competitive edge Increased commuting to London Polarised economy – wealth/deprivation Business perceptions: –‘anti-growth’ - 60% green-belt –Congested, creaking infrastructure –Expensive - premises, salaries, housing etc.

The recession has hit Herts businesses… 915 fewer enterprises since 2008 …leading to fewer people in work… 10,000 people more claiming out of work benefits 1 in 5 young people out of work (and rising) …and impacting on living standards. 6% fall in real terms incomes

There are long term issues… Economy actually stagnating from 2001 –Loss of small and large firms Polarised performance across districts –Job creation –Unemployment Lack of key employment sites Falling behind our competitors nationally and internationally

…and long term challenges… By 2031 for every three people of working age there will be two ‘dependants’ £2.6bn infrastructure deficit Not enough housing to satisfy projected demand Increased pressure on land and other environmental resources - utilities

…however, Herts has all the key elements for growth Key sectors –Life sciences –Film & media –Advanced manufacturing/aerospace –Business services (financial & ICT) Skills base –Higher than UK average for level 2-4 skills Strategic location –M25, M1, A1, 3 Airports Quality of life

The newcomer - Hertfordshire LEP

LEP - Initial Priorities 2011 –‘set up mode’ – governance, executive, premises, website etc. –Supporting key infrastructure bids Croxley Rail Link Superfast Broadband –Team Hertfordshire – inward investment support 2012 –an action plan for economic growth Allocated £10m to kick-start growth

Conclusions: Weathering recession but economy still ‘sliding’ over long term We have the component parts (sectors, skills, location) to grow the economy BUT We need to convince business & government that Herts is a sound investment We need an ambitious, prioritised plan to grow our economy –What, where and when (using new tools/levers) –Buy-in from private & public sector We need to pick up the pace…

The Hertfordshire Economy: John Gourd Chair – Hertfordshire LEP January 2012