Despite the local rivalry, the two cities and counties have a lot in common and there’s significant movement between them, with people living in one city and working in the other. Congestion on the Brian Clough Way, that part of the A52 between Nottingham and Derby is testament to this.
Local Enterprise Partnerships are partnerships between local authorities and business. They are responsible for setting out local economic priorities and delivering projects that will drive up economic growth and create jobs. In case you haven’t worked it out, D2N2 LEP gets its name from the two city unitary authorities and the two county, upper-tier local authorities – Derby, Derbyshire, Nottingham, Nottinghamshire.
The area is home 2.2 million people, making it the fifth largest LEP, out of 38, in terms of population and with a GVA of £46.6bn it has the ninth largest economy. It is strong in terms of manufacturing and this is reflected in its exports where goods make up 83% of the £14bn total. Manufacturing is largely made up of transport equipment and food and drink. Other strengths include logistics, professional services and life sciences.
Driving delivery
The CBI convened a group of businesses to discuss the evidence base that D2N2 LEP recently published and to get a real-world view on the opportunities and challenges facing businesses in the area. The University of Derby kindly hosted the event at their new Enterprise Centre. We had a diverse range of business in attendance, including small start-up tech companies, an SME textile manufacturer (that has been in the same family for more than 200 years) and large international consultancy firms.
Although the attendees were diverse there was a high degree of consensus on what the challenges where and what action should be taken. Skills shortages were at the top of the list, at all levels. A shortage of people with the right management and leadership skills was noted as a priority. The region’s universities are working hard to bridge the gap here, but greater business involvement will help.
The discussion then focussed on schools where it was felt that businesses could have the most impact. Low levels of social mobility are acute in the LEP area. 13 out of 17 local authorities are identified as a ‘coldspots’ – meaning they fall within the bottom 20% worst performing areas. Research suggests that the attainment gap – the gap in school exam results between pupils from different social backgrounds – is one of the major factors leading to these ‘coldspots’. Businesses can add to the educational experience by providing the soft skills that all young people need and give teachers a better awareness of the business environment. The is an area D2N2 LEP had already identified as a strategic priority and the CBI will be working closely with them and other LEPs across the East Midlands.
A similar consensus quickly formed around transport – particularly on the need to improve public transport across the region and with neighbouring regions to the North and to the West Midlands. There was strong support for HS2 but it was felt that improving rail and road links for the towns and cities within the region was necessary for the region to fully benefit from the investment.
Clean growth was another major issue discussed. High car usage, three coal power stations and high levels of manufacturing means the region performs poorly on emission levels. Transport, industrial and domestic emissions are all above the national average. On a more positive note the LEP area has the fifth largest low carbon economy amongst the LEPs so it’s an opportunity as much as it is a challenge.
Looking ahead
We continue to engage with D2N2 LEP on the Local Industrial Strategy and will develop our plans together on schools in the new year. If you would like to get involved in either of these workstreams then please contact Mark Corbett, Senior Policy Adviser for the Midlands.