Malvern Hills Economic Vision
On the 19th September 2023 the Executive Committee approved a new Economic Vision for Malvern Hills District
It is more important than ever to be clear about the economic ambitions we have for Malvern Hills. We are not so naïve as to believe that a relatively small District Council can deliver this Vision on our own. However, by leading by example, we anticipate our public, private and third sector partners locally, regionally, nationally and internationally to step up to the plate and work alongside us to deliver the change required.
We will work more closely than ever with all those who have a direct impact on the success of our economy including schools, colleges, universities, entrepreneurs, business support organisations, Government and of course, our existing businesses whose continued growth will be key to the success, or otherwise, of our economy.
Our Economic Vision is not intended to be a detailed plan of all the activity we intend delivering over the next 10 – 15 years. The constantly evolving macro-economic conditions and national policy responses make this impractical.
It is, however, a strong statement of intent. A statement that will shape how we apply our own resources, and influence others to do the same, to achieve the sustainable growth of our economy
Our Vision for the economy is
Malvern Hills is recognised as a leading location for highly productive high growth businesses, our digital sector, clean and advanced technologies, our vibrant centres and green tourism, with our primary focus on providing quality jobs to attract and retain talent at all levels.
Our approach to achieving this Vision will be based on creating the conditions for growth focussing on six related ambitions, each of which contributes to strengthening our economic resilience. These are:
- Increasing Pay and Productivity by helping existing and new businesses find the skills and property they need to thrive
- Building on the strength of our existing Vibrant Towns, we will seek to provide more opportunities for more people to spend more time in each more often
- Raising awareness of and expanding our already excellent visitor economy offer to create a Centre for Green Tourism with a focus on sustainability
- Supporting the delivery of Destination Zero by Encouraging Clean Growth Across All Sectors
- Building on the strength of Existing Clusters of High Growth and Innovative Businesses
- Seeking to deal with existing and future labour shortages by Addressing Barriers to Work and Training
All of this will be underpinned by a continuous programme of engagement with our businesses via one to one contact with our Officers and the Worcestershire Growth Hub as well as representative bodies including the Herefordshire and Worcestershire Chamber of Commerce, Federation of Small Businesses and the National Farmers Union.
Each ambition is outlined in more detail as follows -
Ambition 1 - Increasing Pay and Productivity
Despite the district’s relatively high skilled population and strengths in higher productivity sectors, including cybersecurity, information communications technologies, advanced manufacturing, hospitality and visitor economy activities, its economic growth and productivity performance does not reflect this potential and has fallen behind the regional and national averages. It is also recognised that we have significant land-based and rural enterprises that can contribute to improved productivity and pay levels across the district
Our ability to turn this position around relies heavily on our vigilance in creating and supporting the conditions for growth to ensure labour and skills supply and the supply of suitable land and premises
Creating new, higher-quality jobs is reliant on attracting and retaining people with higher level qualifications, linking our schools to our employers especially those in high growth sectors and companies to support our efforts to upskill those who lack the skills required in a more knowledge-based economy. However, the absence of nearby Higher and Further Education provision results in significant logistics challenges.
From a property point of view, a greater supply of high quality and suitably sized commercial floorspace is required for both organic growth of our existing businesses as well as attracting inward investment from outside the district.
Our Commitment:
We will work with landowners and developers to ensure that the needs of growing and new businesses are met in the provision of suitably sized and located office and industrial accommodation with farm diversification also accommodated as appropriate.
We will lead by example in the commercial development of land owned by the District Council including Blackmore Park and MHSP.
We will invest the resources available to us in the reskilling of employees to meet the requirements of a more knowledge led and low carbon economy.
We will support linking our schools into our employers to develop greater intern and apprenticeship opportunities for young people locally with a focus on opening up opportunity for young people from deprived areas.
Deepen links to Higher and Further education providers and to local employers to foster more graduate apprenticeships and in-work learning.
We will reinforce the strength of the nationally significant cluster of business activities relating to cybersecurity, ICT, defence and advanced manufacturing including harnessing digitalisation, AI, robotics and machine learning.
Our Target:
- Workplace pay at or above Worcestershire average by 2030
- 65% of workforce in higher skills employment (SOC 1 – 3) by 2030
- Productivity (GVA per hour worked) to continue to grow year on year
Ambition 2 - Vibrant Towns
The vitality and viability of the district’s main centres is threatened by the on-going structural transition of traditional retail to online, and the relative underperformance of the visitor economy compared with pre-2020 levels.
The dispersed, semi-rural character of the district means that the population relies on the five centres for their social and economic needs, in terms of retail, leisure, culture and employment. Footfall has yet to recover to 2019 levels
There is a need to improve the quality of existing town centres by creating and promoting a more diversified offer and providing a central place where people come together without the over reliance on traditional retail. Providing more interest for more people for more of the time i.e., cultural, leisure and night-time offer.
We will build on our Town Centre Plans to establish tangible development proposals alongside a suite of business support and promotional activities.
Our Commitment:
We commit to work with local businesses and other stakeholders to incentivise residents and visitors to firstly use the town centres, and secondly to extend their dwell time and maximise their spend in accordance with our adopted Town Plans.
We will continue to invest in town centre businesses and public realm using the resources available to us and will encourage others to do the same.
Our Target:
- Footfall in our town centres to at least reach pre-covid levels by 2026 and grow by a further 10% by 2030
- Vacancies in our town centres to match pre-covid levels by 2026 and reduce to no more than 3% by 2030
Ambition 3 - A Centre for Green Tourism
Our visitor economy has been remarkably resilient through the pandemic.
In 2019, the visitor economy was worth £145 m and provided jobs for 2,900 people. In 2020, these numbers fell dramatically as would be expected with the annual value of the economy being just over £72m with 2200 employed in the sector. By the end of 2021, the economy had recovered to a value of £156m with over 3500 employed within the sector.
The district’s Visitor Economy Action Plan (‘VEAP’) seeks to support local business adaptation, particularly to enhance sustainability or accessibility, and tapping into an underexploited market for experiential activities relating to food and beverage, independent retail and leisure, cultural events and festivals, alongside the established strength of the existing tourist offer of accessible attractions
Given the variety of the district’s tourist destinations, including the towns of Malvern, Tenbury Wells and Upton-upon-Severn, the VEAP identifies the opportunity to proactively market the district as a coherent offer with a focus on increasing overnight stays. The district’s strong association with arts and culture, including the Elgar Festival, Malvern Theatres and variety of Festivals, as well as rural tourism activities and local produce, offers a strong basis for expanding the visitor audience.
Our Commitment:
We commit to work with and promote all businesses contributing to the visitor economy of Malvern Hills to support their sustainable growth and accessibility.
We commit to promote Malvern Hills as a centre for Green Tourism and a recognised UK destination for health and well-being.
We will continue to invest in tourism businesses using the resources available to us and will encourage others to do the same.
Our Target:
- A visitor economy worth over £200m per year by 2030
- Over 4000 people employed in the sector by 2030
Ambition 4 - Encouraging Clean Growth Across All Sectors
MHDC declared a climate emergency in June 2019 and adopted its Destination Zero strategy as a vision to guide policy and economic development in the District in accordance with the UK’s Net Zero Strategy.
There is a significant opportunity to support the delivery of Destination Zero by supporting start-up and growing businesses involved in a number of related sectors including:
- Installation of energy efficiency measures in homes and businesses, such as insulation and small-scale renewable technologies
- Delivery of larger-scale low carbon energy generation including biomass, biomethane, hydrogen and solar;
- Delivery of electric vehicle infrastructure and servicing of electric vehicles
- Consultancy and manufacturing to support the above
The Malvern Hills district has a superb environment and businesses from all sectors are looking to save energy, lower their carbon footprint and seize market opportunities to produce or deliver services more sustainably.
Our Commitment:
We will help businesses save energy, reduce greenhouse gas emissions, and develop low carbon technologies
Provide targeted business support to low carbon businesses
Our Target:
- £3,000,000 private sector investment secured in low carbon technology across the District by 2030
- In line with WLEP target increase renewable electricity generation from 5% of local demand to 15% by 2030
Ambition 5 – Build on the strength of existing clusters of high growth and innovative businesses
The District benefits from a significant cluster of high growth and innovative businesses in high value sectors with many centred on Malvern Hills Science Park (MHSP) and QinetiQ but with a wide range across our district.
Our high growth firms across the district are delivering high growth levels and well paid employment with opportunities to retain our graduate talent and local 18-24 year olds.
The Worcestershire Strategic Economic Plan and Local Industrial Strategy identifies significant potential for growth, through building on these assets and working collaboratively with others. The UK Cyber Security Sectoral Analysis (2021) produced by Ipsos Mori and Perspective Economics identifies Malvern as part of a sub-regional ecosystem of cyber security companies and employees, including CyNam (Cheltenham and Gloucestershire).
The innovative potential of the District’s economic base provides a key opportunity for the levelling up of Worcestershire’s productivity and driving greater R&D intensity. Malvern Hills based businesses have received in excess 50% of Innovate UK UKRI Funding in Worcestershire, some £9.8m, which reflects this strength.
Focussing on this existing cluster of private sector activity, comprising over 1000 jobs at MHSP and QinetiQ alone, provides a significant opportunity for supporting high-quality job creation through supply-side intervention in technical/entrepreneurial skills and growing the sectoral support ecosystem, through schemes like BetaDen, to unlock the latent potential of this key growth sector.
Our Commitment:
We will commit to the continued expansion of the Malvern Hills Science and Technology Park.
Identifying high growth businesses and ensuring that expert advice and support is available to them alongside technology start ups and for innovative products and services.
Our Target:
- Provide a 20% increase in workspace available for high value added sector on the Malvern Hills Science Park by 2030
- Provide targeted business support for new and existing innovative, technology based and high growth businesses
Ambition 6 – Addressing Barriers to Work and Training
Labour shortages are a significant barrier to achieving sustainable economic growth and is frequently cited as a significant issue limiting growth by existing businesses.
As of July 2023, MHDC youth unemployment for 18-24 year olds was 3.8%, lower than the national average of 4.9%. Whilst encouraging, interventions are required to bring economically inactive young people into the workplace, particularly those furthest from the labour market, significant barriers to employment exist in Malvern Hills. These include:
- Access to appropriate Further and Higher Education facilities resulting in significant logistics problems.
- Low take up of Apprenticeships despite many opportunities being available
- Access to employment opportunities per se given the dispersed nature of Malvern Hills’ employers.
Our Commitment:
We will commit to provide support for apprenticeships and training, particularly encouraging apprenticeships in our high growth and key sectors.
Promote vocational training and apprenticeships to our local school children.
Our Target:
- Reduce the percentage of 18-24 year olds unemployed and keep at least 1% below national average by 2026
- Support businesses to create 100 new Apprenticeships by 2026