The spatial response

Milton Keynes South Midlands growth area focusing on Luton as a regional city

Inter-regional regeneration and growth focus

Milton Keynes South Midlands (MKSM) is a national growth area spanning parts of the East of England, South East and East Midlands. The economy of the East of England part of the MKSM growth area is centred on the two conurbations of Bedford/Kempston and Luton/Dunstable/ Houghton Regis. The sub-region has a population of 590,000 people, with Luton being one of the most ethnically diverse places in the region. The area has seen steady population growth and significant immigration over the recent years.

The main economic ambition for the area is to continue the transition to a higher value economy and raise GVA growth rates. This will enable the sub-region to play a complementary role to the strong growth forecast in neighbouring Milton Keynes, Northampton and Cambridge, and realise the benefits of proximity to London. The sub-region has committed to delivering 50,000 jobs by 2021, and housing targets of over 26,000 for Luton/Dunstable/Houghton Regis and nearly 20,000 for Bedford/Kempston. Important to the area’s success will be developing a stronger sub-regional employment land offer and marketing proposition to attract and retain companies and entrepreneurs.

Assets and opportunities
  • Luton and South Bedfordshire have undertaken significant economic restructuring and are continuing the move into higher-value industries. A higher proportion of the workforce is now employed in financial and business services
  • London Luton Airport is a major gateway for London and the Greater South East, and provides the base for major airline operations including EasyJet Airlines, Monarch Airlines, Monarch Engineering Ltd and Britannia Airways
  • strong higher and further education infrastructure, including the unique applied research and postgraduate offer of Cranfield University and the business and skills-focused University of Bedfordshire
  • leading companies and facilities such as Unilever, BAE Systems, Nissan, Lockheed Martin Insys, Astra Zeneca, Siemens, Trafficmaster and the Millbrook Proving Ground
  • the Bedford growth area has also been successful in attracting logistics inward investors such as Amazon, ASDA, Argos and Healthcare Logistics, given proximity to key UK markets and location on the strategic transport network 
  • good North-South strategic transport routes such as the A1, M1 and the West Coast and Midland main line rail routes, albeit suffering increased congestion
  • proposed new developments including the National Institute of Research into Aquatic Habitats (NIRAH) and a new Center Parcs village, which enable the development of further new housing and leisure facilities
  • a young and diverse population profile, and a vibrant cultural offer including Luton Carnival and the UK Centre for Carnival Arts
  • proximity to Milton Keynes, as a major employment centre and growth locality that will grow to near core city scale by the end of the regional economic strategy period
  • location at the heart of the Oxford2Cambridge Arc increasing opportunities for inward investment, innovation and technology transfer.
Constraints
  • compared to the rest of the region, there are lower rates of business start-up
  • meeting the demand in supply of affordable housing completions
  • poor east/west transport links, eg rail links with the Midland and East Coast main lines
  • traffic congestion, particularly on the main routes between and within urban centres, and the need for improved connection between the local and national network
  • in Luton and South Bedfordshire just under 23 per cent of the workingage population have level 4 qualifications, well below regional and national levels. In line with this, more of our people have no qualifications, 17 per cent compared to 14 per cent in the region and England
  • persistent pockets of deprivation, particularly concentrated in the urban areas of Luton and Bedford.
Strategic ambitions
  • significantly raise entrepreneurship, employment and skills rates - and, in particular, to narrow the gaps between disadvantaged communities and the average
  • enable continued growth of Luton as a regional city and reinvent town centres in Bedford and Dunstable
  • promote business growth and innovation through high-quality physical developments combined with a complimentary business support offer, such as Butterfield Park and Capability Green in Luton, Priory Business Park and the i-lab in Bedford
  • develop a next-generation science park at Colworth, anchored by Unilever, with a thriving business community collaborating with both private sector and university R&D expertise
  • realise the role of Cranfield University as a major driver of the local and regional economy, through a sustained programme of investment in applied research, ensuring access of local and regional entrepreneurs to leading management expertise and further developing the Technology and Air Parks as preferred locations for local and multi-national businesses seeking academic partnerships
  • ensure delivery of high-quality and mixed housing supply, with a major focus on sustainable urban extensions
  • ensure enhanced environmental assets to provide a network of green infrastructure of national importance (eg Forest of Marston Vale, the Chilterns Area of Outstanding Natural Beauty)
  • continue to grow the University of Bedfordshire's contribution to higher-level skills in the local economy and extend the knowledge hub offer, supporting business start-up and growth and applied research
  • improve rail and public transport in the sub-region and connections to the national road network (eg M1)
  • continue the grow the University of Hertfordshire as the UK's leading business-facing university and Anglia Ruskin University's applied science offer.

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