Agenda item

A report regarding the above was before the Executive Advisory Board (EAB) for consideration.  The purpose of the report was to obtain the views and comments of the EAB in respect of the Economic Development Strategy 2023-2040 and the associated draft Action Plan, supported by an Evidence Base document, which would be subject to further consultation with strategic partners.

The Council had appointed property consultants Avison Young to advise in relation to the Strategy and Action Plan and representatives of the consultancy were in attendance at the meeting.  The Company benefited from considerable experience in respect of working with local authorities and local enterprise partnerships etc to create local economic development strategies.

The Lead Councillor for Customer and Commercial Services introduced the report and advised that a number of the Council’s economic strategies had now reached their expiration and were in need of updating.  In addition, the Borough had experienced the impact of considerable economic shocks, such as the COVID-19 pandemic, Brexit and the cost-of-living crisis, which had brought changes and uncertainties to the local economic landscape requiring a reassessment of the Council’s challenges, opportunities and priorities.

The Borough had strong economic foundations linked to its location and transport connections rendering it accessible to other important national and international economic nodes.  It also benefitted from a highly skilled local workforce and was home to strong economic clusters such as the visitor economy, the vibrant gaming industry and the innovative rural economy.  However, the Borough was currently experiencing relatively weak economic performance compared to other areas, which was a trend preceding the pandemic.  Therefore, there was an impetus in line with the Council’s Corporate Plan 2021 – 2025 to set out a refreshed Strategy and Action Plan to reinvigorate Guildford’s economy and outline a renewed vision and priorities to support the local economy to ensure it was a place where businesses and residents could continue to thrive.  Extensive research and consultation exercises had been conducted to produce the documents and shape the new vision, which featured innovative, progressive, productive, inclusive and green economy aspects.  These were characterised by unique clusters of high growth, knowledge and production-based economic activity, benefiting from the involvement of partners and stakeholders to ensure delivery of the vision.

Representatives of Avison Young gave a presentation which outlined the introduction, purpose, process, outputs, findings, vision, themes and recommendations associated with the Strategy and Action Plan.

In terms of purpose, the consultancy had been commissioned to produce the documents which defined a ten year ambition for Guildford’s economy and identified actions which the Council and its partners needed to undertake to achieve the ambition.  The Strategy was underpinned by evidence, informed by extensive engagement and shaped by the existing strategy and policy.  Whilst the Strategy was ambitious, influenced by best practice and concise to appeal to different audiences, and for sharing between the various organisations responsible for economic development, it was tailored to the current financial landscape of constraints.

The process consisted of four phases, namely, evidence gathering, stakeholder engagement, producing draft outputs, and consulting parties through various methods with regard to the content and recommendations of the Strategy.  The final stage of the process would be to refine the documents to reflect feedback received.

The outputs of the three documents were outlined.  Information concerning associated activities was available to access online together with some of the key findings.

The findings from research indicated that Guildford had an important economy consisting of 7,000 businesses supported by 80,000 employees collectively contributing in excess of £5.3 billion to the national economy each year.  Guildford’s urban economy was centred in and around the town and underpinned by international, national and regionally important economic anchors.  These anchors, amongst others, supported economic specialisms in higher value and wage sectors such as professional services, ICT and health in addition to niche subsectors including space and satellite technology, video gaming, digital technologies, pharmaceuticals and medical technology.  Whilst Guildford’s rural economy was more dispersed, it was characterised by traditional land-based industries such as agriculture and forestry, in addition to arts, crafts and non-traditional knowledge-based activities.  As the Borough had experienced minimal economic growth during the five years preceding the pandemic, there was a need to invigorate its economy by tackling the economic barriers which included the supply of office and industrial space, the nature of commercial space not meeting the demands of modern occupiers, housing market constraints, and traffic and infrastructure issues.

The aim was to reignite the Borough’s economy to regain its former strength and to stimulate economic growth to enable the Borough to compete with other towns and cities around London to become the first choice for businesses to locate outside London enabling residents to benefit from local economic activity.

There were six themes underpinning the vision, namely, productivity; property; people; provision; place; and planet.  The actions were organised under these themes and reflected barriers to economic growth seeking to unlock the local economy.

Recommended actions were set out under each of the six themes to assist with the implementation of the Strategy’s vision.  The intention was that the actions were ambitious and deliverable.  There were short, medium and long term actions including those allocated to partners in recognition that the Council was not responsible for delivering economic growth alone.

The following points arose from ensuing questions, comments and discussion:

1.           The Strategy and Action Plan were welcomed as beneficial policy documents which set the economic direction for the Council to follow and from which much important work would flow.  Sitting below and reflecting the themes of the Corporate Plan, the documents would influence every aspect of the Council’s services and ultimately be submitted to full Council for approval following further consultation.

2.           The Strategy included a specific section relating to the local visitor economy and hospitality as these were important facets of Guildford’s overall economy.  A series of actions stemmed from this section which sought to enhance awareness of the Borough’s visitor offering with a view to improving the provision of overnight stays to support the visitor and hospitality economy and to enable visitor attractions to prosper further.  It was clarified that the Strategy included references to Wisley Royal Horticultural Society Gardens as being one of a number of important tourism assets that attracted more than 5.5 million local, domestic and overseas visitors each year.  However, the references to the asset could be strengthened to reflect its status as one of the largest local employers and key anchor institutions which drove the Borough’s economic performance boosting the visitor economy and contributing to the Shaping Guildford’s Future initiative.

3.           The retail sector, which was linked to the visitor and hospitality economy and of equal importance, featured in a section contained within the Strategy relating to the future and diversification of Guildford town centre.  It was acknowledged that the retail sector was changing and currently facing a number of pressures.

4.           Residential development providing new homes in the Borough would increase the population and footfall in the town fuelling the demand for leisure activities such as culture, museums, theatres and general entertainment including bars, restaurants and cafés adding value to heritage and culture.

5.           In terms of data, Avison Young typically utilised information provided by the Office of National Statistics which was downloaded in accordance with best practice.  However, the validity of some of the data relating to the villages, which formed a large part of the Borough outside the town centre, was questioned.

6.           The delivery group structure identified in the Strategy, consisting of five thematic sub-groups that reflected the business base and economic specialisms positioned below a potential overarching Guildford Economic Partnership Group, was largely welcomed.  However, the possibility of establishing an additional more open engagement platform with a broader membership to enable residents and business representatives to make contributions on an ongoing basis was suggested.

7.           The importance of driving economic growth by supporting entrepreneurs and micro businesses through the provision of measures such as co-working spaces, accelerators or incubators, in addition to assisting larger established firms, was highlighted.  Councillors were advised that the Assets Team was constantly seeking opportunities to maximise the use of the existing asset base in response to inward investment queries and an example of this was the refurbishment and letting of space within Old Millmead House for this purpose.  Such provisions in the town centre would lead to Guildford becoming increasingly dynamic.  As this was a medium term priority in the Action Plan, it was questioned whether this initiative could be progressed more rapidly as a short term objective in the event that there were under-utilised buildings or other facilities which could be made available to assist small businesses.  Including details of the business needs of the latter in the Strategy would be valuable to direct the Council in its endeavours to meet such needs.

8.           Outcomes of two past residents’ surveys had indicated a preference for the Council to prioritise the provision of services to support less advantaged and vulnerable residents above heritage and cultural services.  One survey had been undertaken in respect of the Council’s Corporate Plan and the other in relation to the Council’s budget setting during the pandemic which may have swayed residents’ views.  Although the Strategy documents included a focus on promoting and utilising heritage assets, whilst referring to barriers, it did not expand on ways to support the electorate specifically.  However, the documents extensively discussed vulnerable groups who featured as part of the vision which included inclusive growth and linking people with opportunities.  There was also a chapter dedicated to people which explored the options for connecting the less advantaged to access the opportunities that Guildford’s economy provided.

9.           With regard to where the Strategy and Action Plan were positioned amongst the Council’s significant number of existing plans, policies and processes, officers had sought to achieve a balance whereby duplication of other documents was avoided and the Strategy and Action Plan contained references and links to other relevant policies.  Consideration could be given to strengthening references in the Strategy to the role that planning policies might have in enabling economic growth.  In terms of the business interface, there was also an aim to add value and strategic insight without replicating other existing networks and forums.

10.        In terms of the planning context, it was felt that the Strategy indicated a way of working and embedding certain behaviours and objectives within the Council’s operating procedures, including some consideration of economic issues.  However, the Council was constrained by policies contained within the related statutory strategic planning policy framework documents and a Planning Committee should exercise caution where appearing to place reliance on non-statutory documents.  The Strategy sought to offer advice regarding what could be achieved to support economic development through planning policies and was designed to dovetail and align with other policies and strategies.

11.        Whilst the Strategy and Action Plan sought to identify and respond to green environmental issues, it was recognised that such issues were cross-cutting across the whole Borough and should be embedded in all of the Council’s decisions and functions leading to behavioural change.  Officers had a relationship with Zero Carbon Guildford and were working with that organisation which was supporting local green companies through engagement and the provision of business advice.  A representative of Avison Young had attended the launch of Zero Carbon Guildford’s Sustainable Business Network and it was recognised that the organisation had been suggested as a potential partner to assist with the delivery of the Action Plan.

The Chairman advised that, owing to the current postal strike, those councillors who chose to receive hard paper copies of EAB agendas had received the paperwork later than anticipated and therefore had only a limited opportunity to evaluate this important report and formulate views thereon.  As it was therefore felt that the EAB was not in a position to make recommendations to the Executive at this stage, members were invited to forward specific queries and points to officers who would look into them and respond, building them into the next version of the Strategy as appropriate for consideration by the Executive.