Agenda item

To consider the report  of the Assistant Director Economy.

Councillor Donovan declared an interest as a supplier of services to the Met Office. 

The Economy and Tourism Manager reported on the new Economic Development Strategy, based on the Knowledge Economy Strategy, which had been adopted by the Scrutiny Committee - Economy in November 2013.  This Strategy had also taken into account the contribution and impact of other adopted city strategies on the economic success of Exeter.  The development of the city’s Knowledge Economy has been an ongoing priority for the City Council and even though the city’s economy has proved resilient there was no room for complacency.  The focus remained on improving employees’ skills, qualifications and employability and supporting business growth and investment through working in partnership with the business community and the Heart of South West Local Enterprise Partnership (HSWLEP), not just for Exeter, but also for the travel to work areas. The aim of the strategy had been to address issues within the city such as low average wages, low productivity and to respond to changes and opportunities within the economy following the recession. A higher training level should result in higher pay for employees, and they should, in turn, have more disposable income with less pressure on the public purse.

The Chief Executive stated that this was one of the most important documents to have emerged in recent years and it provided clarity drawing together a number of different strategies.  He agreed that the City Council and the city could not deliver this alone, and it was vital for the HSWLEP to buy into this otherwise we will be unable to achieve the opportunity. Exeter was the one place in the South West Peninsular that was capable of moving from a traditional employment base to a knowledge economy, and could emulate York or Cambridge in terms of the knowledge economy sector, taking the city’s economy onto another level. 

Members received responses to a number of comments -

·       The Assistant Director Economy provided an update on the Science Park and of the two buildings that had already been developed, for a private company and a new Science Park Centre that was in effect another Innovation Centre.  The new Science Park would provide enlarged space for businesses in the current centre at Exeter University providing another base for a growing small number of high tech businesses.  It was likely that the two centres will be run together to ensure that the range of specialist business support was available to users of both Centres and more widely.  An experienced commercial agency will be promoting the Science Park around the country and they had already responded to a number of enquiries.

·         The Economy and Tourism Manager welcomed a comment on the importance of developing the local supply chain.  A small working group had been set up focusing on one sector as the first attempt to pull together large employers with experts at the University and also to explore how best to develop the sector and specifically related to the local supply chain.  Using the local supply chain had been a key priority for the development of the Science Park and the Met Office.

·         The Chief Executive & Growth Director responded to a comment on the progress of the redevelopment of the Bus and Coach Station site advising that a design team had commenced some preliminary work.  A public notice would be placed in the European Journal publication and Land Securities and the Crown Estate will be progressing the pre-planning consultation and after two years of work, there was now, hopefully, a commercially viable scheme.

·      In response to a comment on providing low rents for local people, the Chief Executive & Growth Director also advised that the City Council was acutely aware of providing affordable housing to tackle housing issues, particularly for those paid below the national living wage.   

Scrutiny Committee - Economy supported and requested Executive to approve the Exeter Economic Development Strategy as summarised in the circulated report.