Agenda item

RECOMMENDATION

The committee are asked to note the contents of the presentation, provide any comments for the Cabinet member and officers to consider further and are asked to support :

1.    Using the proposed priorities to target and focus our approach to achieving the best economic outcomes for the district.

2.    The “business as usual” approach of delivering green economic growth from the council’s work.

Councillor Lucille Thompson, Cabinet Member for Business and Culture introduced the agenda item which set out a presentation regarding the Winchester District Economy Review, (available here).  The introduction included the following points.

1. The presentation contained a wealth of information and data that would inform the council's position on various policy initiatives moving forward.
2. That there had been significant growth in the district's population between the 2011 and 2021 census data, noting an increase of almost 9.4%.
3. Despite the population growth, the number of economically active individuals had decreased by a similar percentage.
4. Councillor Thompson emphasized the district's ageing population, highlighting it as an imbalance that needed to be addressed.
5. She referred to the council's quarterly economic dashboard, which provided up-to-date statistics and insights into the district's economy, noting its usefulness for keeping track of ongoing changes.

Susan Robbins, Corporate Head of Economy & Community and Professor Suzanne Dixon, Economic Development Officer (Green Growth) provided a presentation which gave an overview of the Winchester District Economy Review which could be summarised as follows:

1. The review aimed to provide high-level data and insights, and it discussed emerging policies, the changing economic landscape, and aligned council priorities with plans.
2. While the presentation offered a flavour of key performance indicators, they noted that more detailed data was available from the Office of National Statistics.
3. The district had experienced a slight decrease in economic activity and an increase in economically active retired individuals, reflecting the ageing population.
4. Although the number of people claiming out-of-work benefits was relatively low, over half were in the 25 to 49 age group, indicating a specific demographic concern.
5. The district boasted a diverse mix of jobs across sectors such as the public sector, retail, technical, and professional roles, which helped guard against economic shocks in any single sector.
6. There were over 8,000 enterprises in the district, approximately 82% were micro-enterprises (0 to 9 employees), highlighting the importance of small businesses to the local economy.
7. The presence of high-quality educational institutions contributed to residents being highly qualified and consistently performing well in skills and qualification levels.
8. Residents earned slightly more than those working in the district, with recent data showing a slight divergence that could affect affordability and cost of living.
9. There was a decrease in people commuting by car and an increase in home working, possibly influenced by COVID-19 and changing work patterns; this had resulted in fewer people both entering and leaving the district for work.
10. Winchester had a high number of jobs per working-age population, attracting more people into the district for employment.
11. Vacancy rates on the High Street remained low, and business sentiment showed optimism despite external challenges like the cost of living and rising energy costs.
12. Businesses faced challenges in retaining and recruiting staff, rising operational costs, and difficulties unique to rural areas such as transport and digital connectivity.
13. They concluded that while the Winchester economy was performing well, certain areas required monitoring to ensure sustained and improved performance, particularly considering the ageing population and changes in commuting and work patterns.

The committee was asked to note the contents of the presentation, provide any comments for the Cabinet member and officers to consider further and are asked to support:

1. Using the proposed priorities to target and focus our approach to achieving the best economic outcomes for the district.
2. The “business as usual” approach of delivering green economic growth from the council’s work.

The committee proceeded to ask questions and debate the report. In summary, the following matters were raised:

1. A question was asked to clarify the meaning of the phrase "business as usual" in the context of developing the green economy.
2. Clarification was sought on how the council was measuring the green impact and the projected carbon savings from businesses, including the impact of the green development plan.
3. Questions were raised about encouraging the necessary skills for people to be trained in retrofitting, addressing the current insufficiency of resources to meet demand.
4. Further information was requested on whether enough sites had been identified across the district for employment, considering the potential lack of employment sites in rural areas where new housing was planned.
5. A question was asked on how the council planned to allocate land to businesses, given that significant employment sites seemed limited to areas like Bushfield.
6. Clarification was sought on strategies to encourage visitors to spend longer in Winchester, thereby increasing tourism revenue and sustainability.
7. A question was raised on how to create jobs where people are living, particularly in rural areas lacking designated employment sites in the local plan.
8. The committee questioned whether the data on market towns and rural areas was sufficient and if these areas were receiving enough priority in the proposed measures.
9. Further clarification was sought on whether the potential devolution of business rates to local authorities had been considered in future planning, especially regarding levelling the playing field between local independent businesses and large online retailers.
10. Questions were asked about persuading owners of offices in areas like Whiteley, not owned by the council, to adopt policies such as installing solar panels.
11. Clarification was requested on how to introduce hydrocarbon-free heating systems in offices currently using electrical or gas heating, and whether the council could insist or organise conversions to more sustainable systems.
12. A question was asked about whether data on High Street performance, such as vacancy rates and business confidence, was being collected for retail areas in other parts of the district, such as Weeke, Harestock, and the retail park in Winnall.
13. Concern was raised that relying on the presence of two universities for economic opportunities might be a weakness if future government higher education policies change, and whether this reliance had been considered.
14. Questions were raised about ensuring career pathways in Winchester for those trained in green or creative skills to prevent graduates from leaving for opportunities elsewhere.
15. The committee sought to understand if there was a risk that market towns and rural areas were dependent on a small number of large businesses, and if this should be considered a threat in the SWOT analysis.
16. Further clarification was sought on how to support the majority of businesses in the district, which are micro-businesses, given their diversity and varied needs.
17. A question was asked about other aspects, beyond incubator hubs and start-up spaces, that should be considered to support graduate retention in the Winchester district, possibly involving the wider council plan.

These points were responded to by Susan Robbins, Corporate Head of Economy & Community, Suzanne Dixon, Economic Development Officer (Green Growth), Councillor Lucille Thompson, Cabinet Member for Business and Culture and Councillor Martin Tod, Leader and Cabinet member for Asset Management accordingly.

RESOLVED:

1. That the committee noted the contents of the Winchester District Economy Review presentation.
2. That the committee provided comments on the presentation as requested.
3. The committee agreed to ask the Cabinet Member to consider the following: