The purpose of the regional economic strategy

What has been achieved since the 2004 RES was published?

A number of positive outcomes have been achieved:

  • economic growth: between 2004 and 2006, residence-based gross value added (GVA) grew from £101 billion to £110 billion, while workplace-based GVA grew from £91 billion to £99 billion
  • employment: the labour force has increased by 90,000 people between October 2004 and October 2007 albeit that unemployment has also risen
  • businesses: the region gained over 10,000 extra (VAT-registered) businesses between the start of 2004 and the start of 2007
  • exports: between 2004 and 2007, the value of exports from the East of England increased from £18 billion to £19.8 billion
  • innovation: expenditure on research and development (R&D) by UK businesses in the East of England increased from £2.7 billion to £3.6 billion between 2004 and 2006 and increased from 21 per cent to 26 per cent of all R&D expenditure by UK businesses
  • skills: the number of working-age people with higher-level qualifications increased by over 10,000 between 2005 and 2006
  • growth: 72 per cent of new dwellings were built on previously developed land in 2006/07, up from 64 per cent in 2003/04. New dwellings provision increased in total to 24,800 in 2006/07 from 20,400 in 2003/04, an additional 21 per cent per annum.

Other major decisions and actions that will shape our economic future have been made:

  • approval for the port expansions at Felixstowe South, Harwich Bathside Bay and London Gateway, strengthening the East of England’s role as the UK’s premier gateway region and providing major employment opportunities
  • London has won the right to stage the London 2012 Olympic Games and Paralympic Games, and the region has responded with a business plan to seize the economic and community opportunities, alongside developing potential venues and training camp facilities
  • a new university and college campus has opened at Southend-on-Sea, with major progress also being made on new university facilities in Ipswich, Peterborough and Harlow
  • reform of business support has seen an increase in the number of front line advisors engaging with businesses
  • the region continues to attract major private sector R&D facilities and a number of enterprise hubs have opened and are supporting the growth and innovation activities of business
  • Local Area Agreements have been developed that provide a new mechanism for aligning activity and addressing needs and priorities at the local level
  • Regional Cities East has provided a nationally recognised model for small and medium-sized city growth and collaboration
  • local delivery vehicles have developed robust plans for the long-term development of key centres of development and change
  • the region has been at the forefront of renewable energy generation with over 50 MW of generating capacity added between 2004 and 2006.

However, we still face major challenges. This includes addressing our recent slowdown in economic performance; the impacts of the current credit crunch on financial and housing markets; rising food, energy, fuel and commodity prices; skills and infrastructure deficits; developing a more sustainable economy and improving economic development leadership and delivery.

More than ever, there needs to be concerted action to deliver the shared targets and priorities that have emerged through the process of developing the strategy. To this end, the RES seeks to direct the activities and investment of key regional and national agencies; inform the economic outcomes agreed with local authorities through Local Area Agreements and enable local government to contribute effectively to the region’s sustainable economic growth. However, it is vital to recognise that the private sector is the main driver of growth and job creation.

Critically, the East of England cannot achieve its ambitions for sustainable economic growth without the support of the government. This is particularly important because the East of England receives the lowest level of public expenditure per head of any UK region.

Accordingly, the regional economic strategy outlines a number of ‘asks’ of the government, around which further dialogue will need to take place:

  • stronger regional influence on the major drivers of the East of England’s performance, and in particular the scale and timing of skills and transport investment
  • greater freedoms and flexibilities to enable the region to better leverage capital from the market, specifically through approval for a new Regional Infrastructure Fund
  • greater share in the proceeds of growth, including the increasing returns from aviation tax gains from the region’s expanding airports, back to respective local authorities and the Regional Infrastructure Fund, to better manage the impacts of growth
  • continued development and delivery of national policies that will enable the East of England to meet ambitious targets for carbon reduction
  • increased investment to maintain and grow the globally renowned science and innovation base of the East of England - a unique asset for UK plc - in the face of increasing international competition for talent and R&D expenditure.

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the number of working-age people with higher-level qualifications increased by over 10,000 between 2005 and 2006