03/11

DECISION CANNOT BE TAKEN BEFORE TUESDAY, 1

FEBRUARY 2011

Title ISLE OF WIGHT LOCAL ECONOMIC ASSESSMENT

Report Author DEPUTY LEADER AND CABINET MEMBER FOR THE

ECONOMY, TOURISM, LEISURE, LANNING AND
PROPERTY

PURPOSE

1. To accept the completed assessment of the Isle of Wight’s current and potential
economic status.

OUTCOMES

2. A clearer understanding of the state of the Isle of Wight economy, the key challenges
facing the Island and the opportunities that may be available to improve its overall
economic well being.

BACKGROUND

3. The Council is required to complete a Local Economic Assessment (LEA). The

purpose of the assessment is to provide the Council and its partners with a robust
analysis of the local economic conditions on the Island, that can be used to inform
the production of effective strategies and interventions in the identified key economic
drivers.

4. The LEA is intended to build on existing data and, where appropriate, collect
additional bespoke data to help meet any information gaps in order to provide a
complete picture of the state of the Island’s economic well being.

5. The Isle of Wight LEA has been produced by the Council’s economic development
service provider and covers the following drivers of economic well being:

• The Island’s economy.

• Links to the mainland.
• The Island’s people.
• Child poverty and well being.
• The Island’s labour market.
• The Island’s businesses.
• The Island’s prosperity.

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6. The LEA considers the Island’s economy as a whole, but also looks in some detail at
the local economies of three areas of the Island: Ryde, the Medina Valley and the
Bay area. This work has been undertaken in order to understand the contribution
that each of these distinct but related areas makes to the Island’s economy as a
whole. The work will also inform the production of the area action plans for these
areas that will follow from the completion of the Local Development Framework.

7. The LEA also goes beyond what the Council is statutorily obliged to do by suggesting
a number of scenarios and how they could impact on the Island’s economy. The
scenarios are all based in the possible levels of intervention that the Council and its
partners may chose/be able to use to help sustain economic growth in the medium
term.

8. It is important to note that the LEA, whilst making reference to the emerging Solent
Local Enterprise Partnership (LEP), was prepared before the Government gave
approval for the formation of the Solent LEP. It does not therefore explore the
potential impact of the LEP on the Island’s economy. The LEP is still in the process
of being formed so it is unclear, at this stage, what its initial priority activities may be
and how they will be delivered. The LEA will, however, be a key document in
informing the decisions and activities of the LEP in respect of the Island’s wants and
needs.

9. The LEA runs to 120 pages of detailed and technical information about the Island
(excluding appendices). It will be published on the Council’s website for the use of
the Council and its partners. An executive summary of the key findings of the LEP
has been attached at appendix 1 to this paper.

STRATEGIC CONTEXT

10. The LEA provides and summarises information that is much use in helping to deliver
each of the four themes of the Eco Island Sustainable Community Strategy (2008-
2020). It is of special relevance to the theme of ‘thriving Island’ and the aspiration to,
“support economic development and regeneration, enabling everyone to share in the
Island’s economic success, by increasing the skills of the whole community”.

11. The delivery of activities to underpin the corporate priority of ‘Regeneration and the
Economy’ will be greatly enhanced by the publication, distribution and use of the
information contained in the LEA.

CONSULTATION

12. The LEA has been prepared following extensive desk research, underpinned by a
number of meetings with key business leaders and Council officers. Preliminary
findings were discussed with the Economic and Environment Partnership Board of
the Island Strategic Partnership. Bespoke information was collected from Island
businesses through the quarterly business survey, which was enhanced to inform the
LEA. A total of some 600 businesses were surveyed in July and August 2010.

FINANCIAL / BUDGET IMPLICATIONS

13. There are no financial or budget implications arising from the receipt and publication
of the Local Economic Assessment.

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14. Any actions which the Council chooses to take in response to the findings of the LEA,
either independently or in partnership with others, will need to be funded from within
existing budgets or through externally funded grants (eg the Regional Growth Fund).

LEGAL IMPLICATIONS

15. The duty to undertake a Local Economic Assessment was introduced by the previous
Government in the Local Democracy and Construction Act (2009).

16. The current Government revoked the associated guidance on how LEAs are to be
produced in July 2010, but has not yet revoked the need for local authorities to
produce a LEA.

OPTIONS

17. There are two options available in respect of the LEA:

(i) The Council accept the findings of the Local Economic Assessment and
bring forward a paper to a future Cabinet meeting setting out how it will
respond to the findings.

(ii) Reject the findings of the Local Economic Assessment and identify
other areas of additional work required for its acceptance.

RISK MANAGEMENT

18. There is a low risk that the findings of the LEA are not used in future strategic
planning of the Council or its partners. Such plans would be less effective in
achieving their intended outcomes if the authors were not to use the findings of the
LEA.

19. The LEA provides an analysis of the economic trends and activity on the Island at a
moment in time. Its findings will therefore be most effective in informing business
and strategic planning processes that will take place in the medium term. There is a
low risk that those who could benefit from its finding will be slow to adopt the LEA
and therefore not achieve the maximum potential improvements in economic
performance.

EVALUATION

20. The LEA has been produced through a robust process that has analysed in some
detail the relevant information that informs the picture of the Island’s economy and
the key drivers to the economy. It has identified where the Island’s economy is most
at risk and where there are opportunities for its improvement.

21. The analysis that has been provided will be a key source document in informing the
production of strategies and community plans that seek to improve on the individual
drivers that contribute to the Island’s overall well being (including economic, social
and environmental).

22. The analysis produced for Ryde, the Medina Valley and the Bay area, will be of some
importance in helping to shape improvement plans for each of these areas which are
shown to have markedly different characteristics, but to be collectively central to the
Island’s economy.

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23. Ultimately the Council could choose to satisfy its statutory duty by receiving the LEA
and doing nothing more with the analysis it contains. This would be something of a
missed opportunity to shape the future planning in a number of service areas based
on a detailed and robust analysis of the state of the Island across a number of
distinct but interrelated factors.

24. The LEA will be an important tool in helping to achieve recognition of the Island’s
needs in the current discussions about the role, purpose and shape of the Solent
LEP. The LEP will need to take a long term view of what it is seeking to achieve
across the Solent area but this will be informed by the information that is available
about the current state of the economy across the whole area. The LEA provides
this information and will help secure the Island’s aspirations in the LEP.

RECOMMENDATION

25. That option (i) be adopted and the Council accept the findings of the Local Economic
Assessment and bring forward a paper to a future Cabinet meeting setting out how it
will respond to the findings.

APPENDICES ATTACHED

26. APPENDIX - The Isle of Wight Local Economic Assessment, Executive Summary

BACKGROUND PAPERS

27. The Isle of Wight Local Economic Assessment, Full Report; available at:

http://www.iwight.com/council/documents/docFiles/Isle_of_Wight_LEA_Report.pdf

Contact Point: John Metcalfe Deputy Director: Economy, Tourism and Leisure
 01983 823146 e-mail john.metcalfe@iow.gov.uk

STUART LOVE COUNCILLOR GEORGE BROWN

Strategic Director of Economy & Deputy Leader and Cabinet Member for
Environment Economy, Tourism, Leisure, Planning &
Property

Decision
Signed
Date