Bath Chronicle Bath 2025

Bath 2025 whatâ&#x20AC;&#x2122;s in store for business in the city over the next ten years...

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Bath’s reputation as a quality destination continues to drive the leisure market apace. Hotel operators remain focussed on the city with YTL having very recently opened their Spa hotel and Kingsmead House now reduced to a pile of rubble as Apex Hotels press on with their scheme which will provide a further 177 beds during 2016. There is an appetite for more but where? The residential market powers on with BWR moving into phase 2, Linden Homes on site at the former MOD campus at Ensleigh and Curo making significant progress at Mulberry Park. In the retirement sector, Pegasus have recently acquired the former Hinton Garage and other operators in this sector continue to seek sites in the city. But what of the commercial sector? It is well documented that office occupiers are facing a genuine shortage with limited stock available. As a result, companies have looked West and names such as Parmenion, Semperian and Purple Secure can now

be found in Bristol. It is therefore encouraging to see 20 Manvers Street coming forward which will deliver 40,000 sq.ft. into the supply chain and has the potential to establish rental levels in excess of £20 per sq. ft. It is also encouraging to note that B&NES Council are proactively intervening in the market to condition planning applications in such a way that employment space will be delivered alongside residential. This should see proposed schemes at Roseberry Place and Bath Press come forward on a genuine mixed use basis. The introduction of Permitted Development Rights certainly impacted and whilst the upside was the removal of outdated office stock many have been surprised to see the closure of the Tram Shed on Walcot Street comprising 15,000 sq.ft. This building is fully occupied by smaller creative businesses all of whom will be homeless in the short term, surely this was not what PDR was intended to achieve and on this basis an end to the scheme in early 2016 would appear to be timely. It could also be argued that there is a place for public sector intervention in other more creative ways through leasehold structures and through delivery of space such as has been created at the Guildhall Hub which is now home to an expanding cluster of small dynamic companies. The introduction of flexible lease/occupational structures with some form of overarching interest might well be

the way forward particularly if this helps to deliver the “office factory” concept which has met with such success in other locations. Bath and Bristol is now recognised as being the largest market focus for the digital and creative sector outside of London. The city must respond to this and provide the type of space that this sector requires. Bath must have a certain volume of quality Grade A space and it is to be hoped that Bath Quays North will in due course deliver this. In this respect,

market. Wider changes in terms of the rail infrastructure for Bath will impact with electrification in 2017, resulting in not only in reduced journey times but more importantly increased capacity. The city continues to offer a “small but beautifully formed” destination which attracts developer and investor interest across a broad spectrum of property options. With developers and funds requiring little persuasion that Bath is a place in which to do business the response must

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be a can do approach from those who can influence the development process whilst at the same time recognising that there are tensions between competing land uses. This is arguably the most dynamic phase that the city has seen and with the correct response and vision from not only the policy makers but those that are responsible for implementation, Bath should be well placed to build upon its historic success and to embrace emerging opportunities.

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for commuters as more modern Turbo trains, currently used on services in the Thames Valley, replace older trains currently in use on the Bristol suburban services. These will create more than 3,400 additional seats around the city – a 52% increase compared to today. The key CardiffBristol-Portsmouth services will be predominantly operated by five-carriage trains. And by December 2018 all our trains in the Bristol area will offer free WiFi. It’s not just the trains that are being upgraded, a £50 million investment with our partners to improve stations, including 2,000 new car park spaces across the network, customer in-

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The real step change for long distance services occurs from December 2018, when a major timetable change will unlock 45 more services a day between Bristol and London and faster services, using these new trains. With new or updated trains in every area of the network, these fast trains will also be operating between South Wales and London as well as Bristol and London cutting journey times into Bristol Temple Meads by up to 17 minutes and Cardiff by up to 14 minutes. There will also be more seats available

formation improvements and improved PA systems will change the journey experience for customers. Bristol isn’t the only area which is benefitting from this investment. Subject to government approval we have proposals for a brand new fleet of privately funded intercity trains for services to and from Devon and Cornwall - creating three million additional seats a year for customers. All this will be done under our new name, GWR, which is already being used on the long distance First Class carriages and we will begin the rebrand with the start of the new franchise in September. First Great Western Managing

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Director Mark Hopwood said: “I am pleased and proud that we will be running the Great Western network for another three and a half years. The Great Western network is already seeing the biggest investment since Brunel, and our new franchise has been designed to match that investment and ambition. It gives passengers newer trains, faster, more frequent services and importantly, given the growth this franchise has seen in recent years, more seats. “I am particularly pleased that we have been able to announce these improvements for the Bristol area in its year as European Green Capital. We are a key partner, and the improvements we have agreed today can only encourage more people out of their cars and onto the train.”

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Two years ago Bath and North East Somerset Council unveiled plans for the city’s £1 billion Enterprise Area. The area would stretch from Manvers Street, where there are plans for a new innovation quarter, along the River Avon, to a new production quarter at Newbridge. At the heart of the Enterprise Area are the North and South Quay projects. The two zones, which will lie north and south of the river covering the old Newark Works site and Green Park, will become hubs of innovation. It is estimated that the entire enterprise area would create 9,000 jobs, 650,000 square feet of workspace and 2,500 new homes. However, investment is needed to build infrastructure such as roads and facilities like the Avon Street car park need to be relocated. The local authority has already announced plans to demolish the multi-storey car park, which would mean the loss of 414 parking spaces. The work is expected to take place by the end of the year. It is not known if the parking spaces will be relocated elsewhere in the city. There are also plans to make Corn Street two-way and extend it through the existing coach park to link up with Green Park Road. A 100-metre stretch of Green Park Road, parallel with Avon Street Car Park, will no longer be open to traffic. It is also hoped the changes will create a new waterfront space, which will transform the riverside with walkways, cycle routes, cafes and encourage events such as boat races. Bath and North East Somerset Council has said it will seek funding from the West of England Local Enterprise Partnership and the private sector to push the Enterprise Area forward. Many companies are already be-

lieved to be interested in being part of the investment scheme including Bath defence firm BMT, which has revealed it wants to be part of the first phase of the £65 million Innovation Quay. The company, which has three subsidiaries in the city, has reached an outline agreement with council chiefs over the old Newark Works on Lower Bristol Road. It wants to create a new home for more than 330 staff members based in the city centre. BMT regional director for UK and Europe, Gary Smith said: “BMT’s current office space in Bath doesn’t allow for future expansion, nor does it allow all three BMT companies to be housed in the same complex which would be ideal. In order for BMT’s presence in the South West to grow at an appropriate rate to support its key clients, new, larger office accommodation must be secured. “We’re very aware of the historical significance of the Bath Quays South site and will work with the council to ensure that any redevelopment is sympathetic to Bath’s unique architectural heritage.” The site, which has sat derelict for many years and has been targeted by squatters, originally caught the attention of inventor Sir James Dyson who wanted to build a new engineering school in the heart of the city but flooding concerns meant the scheme failed. In 2014 Bath and North East Somerset Council secured £6.2 million of funding to help with flood alleviation works along the River Avon, which were essential for the Enterprise Area plans. The Bath Quays Waterside Project aims to provide improved flood defences to the north and south banks of the River Avon between Churchill Bridge, and Midland Bridge. The council is working with the Environment Agency on the proposals which also aim to improve accessibility for pedestrians and cyclists on the riverside. But BMT are not the only people with plans for the Newark Works, once home to the famous Stothert and Pitt crane makers. Plans have been revealed that would turn the abandoned Grade II Stothert and Pitt factories into an innovation centre bringing Bath’s creative fraternity together under one roof. The £15-million scheme would create workshop space for small and me-

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dium-sized businesses to share ideas as well as resources, an exhibition area, conference facilities and a cafe. The Craneworks project is being spearheaded by a group of business leaders from a variety of city-based

organisations such as Creative Bath, Bath Bridge, Buro Happold and Feilden Clegg Bradley. Spokesman Rhodri Samuel, former regeneration manager at Bath and North East Somerset Council, said the

site was crying out for development and was the perfect opportunity to prevent a creative drain from the city. “Everyone is bored of talking. We want to deliver something that is genuinely going to benefit the city.”

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� �� “�� ”� �� ’� �� \ol ul~ hnl vm {ol hwwylu{pjlzopw The government has given itself a very challenging target of creating 3 million new apprenticeships over the life of this parliament and this ambition is to be applauded. Over the past five years or so we have seen a renaissance in apprenticeships and now we see the emergence of the apprenticeship as one of the best skills development and training programmes for young people. Apprenticeships are key to successful skills systems across the world but unfortunately, in this country, various governments have tinkered with them

too much; at one point they were virtually wiped out but now we have consensus across the political spectrum that apprenticeships are key to workforce development and economic growth. In Bath and North East Somerset we have seen tremendous growth in the number of young people taking up an apprenticeship over the past five years. We have also seen a rise in the number of small and large employers engaging in the apprenticeship programme and valuing this particular training and development approach. As Principal and Chief Executive of the area’s largest provider of apprenticeships I have noticed a shift in the last few years; a shift away from University being considered as the only choice for those completing A level programmes, a shift to a position where young people finishing GCSEs and A levels are seriously considering an apprenticeship as an accelerated route into well-paid employment. But in this area we still have much to do. We need our local school teachers, and those giving advice to young people, to have a better understanding of the true value of the apprenticeship programme. Last year, I met a young man who had just finished his A-levels at a local school. He gained two As and a B in maths and science subjects and progressed on to the fantastic Rotork engineering apprenticeship – he was told by his tutor that he was mad to do

an apprenticeshship and that he should be going to university. Well let’s look at the facts. He is now being paid a very healthy wage by one of the world’s leading engineering companies, who will work with him to continue his learning to degree level. Sounds pretty sane to me! We also need to ensure that parents are better informed about apprenticeships. As a parent of an 11 year old daughter, I would be delighted if, when she starts secondary school in September, her school were telling her about apprenticeships from day 1 and I would be equally delighted if, at the age of 16 or 18, she wanted to join an apprenticeship programme with one of our local businesses. In Bath and North East Somerset we have a significant number of fantastic businesses actively engaged in the apprenticeship programme. Organisations like Rotork, Cross Engineering, Bath Aqua Glass, B&NES Council, Westgate IT, the Bath Building Society and Crest Nicholson, all understand the benefits of apprenticeships and are great advocates for the programme. But the fact is, we need more of our local businesses and public sector organisations to engage with the programme and to use the programme to develop future talent. The government has committed to abolishing National Insurance Contributions for almost all apprentices under the age of 25 for April

2016 and there is already an apprenticeship grant in place for small and medium sized companies.

Ll}lsvwpun ul~ ylsh{pvuzopwz huk ul~ ~h z vm ~vyrpun We have a relatively good employment and skills situation in Bath and North East Somerset but whilst this is a cause for celebration, we must not be complacent or too pleased with ourselves. Our local economy does face a number of challenges; I am committed to fundamentally reshaping how my organisation delivers education and training and part of this is to develop new, deep relationships with employers and industry groups. Last week, I had the pleasure of hosting around 20 business people from our fantastic hospitality and tourism industry, a key part of Bath’s visitor economy. These were all very successful businesses, businesses with a shared challenge – the availability of a skilled workforce. All of these businesses struggle to recruit and retain staff because in the local industry the demand for staff significantly outweighs the supply of labour. The UK’s hospitality industry will need an additional 660,000 people by 2020 to prosper. This is why we are taking a good look at the hospitality and catering training we deliver and have decided to work much closer and more strategically with the local industry to provide a talent pipeline

whereby our trainee chefs are linked with local businesses from day one of their training. I have every confidence in the quality of training we provide but recognise that we need to be much better at working with local businesses to provide their talent pipeline. The hospitality industry is just one example of where we are doing this and we have a number of exciting projects in hand to support the construction, engineering and creative and digital industries in similar ways. Xyvmlzzpvuhspzpun }vjh{pvuhs lk|jh{pvu In my organisation we no longer talk about vocational education, instead we talk about professional and technical education and training. We know that what we do is essential to support the local economy and we know that improving and strengthening professional and technical education and training is essential to the future success of our economy and national prosperity.

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vailable office accommodation in Bath has reached critically low levels in the past 18 months, says Wood Street-based national property consultants Carter Jo-

nas. Figures released by the firm this spring showed that office supply in Bath fell by 30 per cent during 2014 and this trend has continued in 2015. The city is now facing a significant challenge for employers says the firm’s Commercial Edge report, which shows the high demand for space is likely to push rental growth up to £25 per square foot by the end of this year. The report also indicates the severe lack of top quality stock will continue to force employers to consider relocating to surrounding areas, particularly Bristol and west Wiltshire. BANES Enterprise Area Master Plan offers a unique opportunity to deliver much needed space, although, says Carter Jonas, the timescale for delivery will be too long for some employers. The Master Plan challenges the city to deliver high quality jobs through regeneration of derelict and existing employment sites. The two most significant sites in the enterprise area are Bath Quays North and South, owned by the council, and it is delivery of these two sites that will create the momentum for the wider area. Carter Jonas is advising BMT Group, which has an outline agreement with Bath & North East Somerset Council to redevelop the long derelict Bath Quays South site. BMT Group, the leading international maritime design, engineering and risk management consultancy is one of the largest employers in the city and has reached capacity with its existing sites. Rehousing the company within a new, purpose built office building would secure existing jobs in Bath and allow the company to expand further within the city. The company employs more than 500 people in the city, mainly in specialist technical, engineering roles. The North Quays site has capacity to provide around a quarter of a million square feet of office accommodation, which, according to Carter Jonas partner Philip Marshall, is desperately required. Mr Marshall said: “A combination of factors, including an improving economy and changing working practices, has left Bath with a critical shortage in the supply of office space. The office market has been changing rapidly and Bath needs to deliver both high quality space for larger businesses, as well as flexible, interesting working spaces for start-up and smaller businesses. “This latter space needs to be delivered within a business model which allows businesses to grow and move with ease, in a way that historic leasing arrangements cannot provide. The BANES area has a strong tradition of innovation – we need to recognise the need for growth and provide a range of business accommodation to suit both larger and newer businesses,” said Mr Marshall.

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ath is the West of England’s biggest brand, known across the globe as a centre of historical and cultural excellence. It’s a tourist hotspot and the Roman Baths is a world class attraction, with plans to make it even more popular. And therein lies the problem. Just as Bristol has much more history and culture than people from far afield first realise, so Bath has real creative abilities, cutting edge technology and entrepreneurial spirit, factors that are sometimes overlooked. Over the next ten years we will preserve and grow our tourist and retail offering but we will also create a sustainable economy for the long term by doing three key things. First, we will create the most attractive riverside Enterprise Area, providing vital modern office space close to the city centre which will allow our existing companies to grow. We have been great at inspiring businesses to start up but it is now widely acknowledged that there is a danger they may be forced to leave the City for want of space. The new offices will also draw in those businesses from outside who want to operate in the fantastic World Heritage Site environment. Second, we will build enough houses to ensure the people needed to work in Bath can afford to live there without the need for tortuous commutes. We have leading companies, such as BMT, Buro Happold and Rotork who are constantly on the look out for fresh talent. We will need to help them and others like them to attract the best talent to Bath. This means having the courage to take what some might see as unpopular decisions when it comes to giving permission for development. But local politicians can be assured that the business community will be right behind them when it comes to voting in favour of what is right. It will mean the young people of Bath can stay in the City they love, near their families and pursuing worthwhile careers. Third, we will crack the transport conundrum, allowing people into the centre of Bath whilst reducing the intrusion of vehicles. Several things will have to come together. The electrification of the main rail line is already coming, which will bring Bath ever closer to London. But we need more park and ride capacity, including a new site to the east, which is available 24/7, and better public transport which encourages drivers to leave their cars at home. Those things are all possible. Bath businesses are wide ranging with a broad outlook and they know that we cannot stand as an isolated island. We recognise we must be part of a larger grouping in order to gain both Government attention and funding. Bristol provides the economic engine for that grouping, however it emerges. But Bath can provide the turbo charger to turn an ordinary vehicle into something with a true national and international performance.

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ilsted Langdon’s Consultant Economist, Kevin Butler – who recently hosted a Business Club Dinner at The Royal Crescent Hotel in Bath – believes that Bath has a diversified economy, in which business and consumer services, high value-added engineering and the ‘knowledge economy’ (partly related to the universities) all make important contributions. “The city has recovered strongly from the recession, but this success has also brought its challenges; shortages of space for new commercial and housing investment and a transport infrastructure which needs to adapt as the city’s economy grows. Capacity is tight, labour and skills are in short supply and the cost of materials, such as in construction, has increased sharply. On the other hand, opportunities for business growth over the next few years are significant and I’m confident that Bath businesses will convert this rising demand into higher profitability.” Indeed, since it moved into Queen Square in Bath, Milsted Langdon – which also has offices in Bristol, London, Taunton and Yeovil – has expanded significantly as it has seen an increase in its client base. Director Peter Groves said: “We first opened the Bath office because we saw significant growth opportunities in the city but it also reinforced the firm’s commitment to the businesses and individuals of Bath, who are able to benefit from levels of service normally only found at bigger firms.” Milsted Langdon’s Bath office provides a full service offering and has developed its services and is led by Partner Ian Lloyd. In the Bath office, Ian and Peter also have the support of dedicated Tax Partner Rachael Verinder, who is a Chartered Tax Advisor with specialisms that include entrepreneurs, high net worth and ultra-high net worth individuals. In addition, Corporate Finance Partner Susannah Adams will spend a large proportion of her time in Bath advising businesses of all sizes, including listed companies and owner-managed businesses in the SME sector that are engaged in M&A activities as well as corporate fund-raising. “Bath truly is a great city to be involved with and I’m proud of the service we can offer clients from our base in Queen Square,” said Ian. “I see a bright future ahead, not only for Milsted Langdon but for Bath too. “This is a world-renowned city which offers people a great place to live and work and provides an inspiring environment for business. “This is a city that is famous for its pioneers, artists, scientists and engineers and I believe that in the future it will continue to be shaped by creative entrepreneurs working digitally from their base in Bath.”

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have run the University of Bath’s Innovation Centre at the heart of what is now the Enterprise Area for over ten years. While my team has been busy working with over 250 high tech, high growth start-up business from our offices on Broad Quay, we have seen the area achieve an incredible transformation, with the new Southgate Centre and development around Bath Spa station creating a vibrant new quarter for the City. What a difference 10 years can make and what a positive example of our collective ability to make a profound change to our environment. Working in the City-centre I am one of the many people that appreciate the High Street brands, tempting restaurants and bustling bars as a places to go and shop, eat and drink. However when I look ahead to what we can and should achieve in the next 10 years, I hope that this wonderful ‘consumers paradise’ will complemented by a similar investment in our City’s ability to create, innovate and produce. I hope that the Enterprise Area will become the focal point for businesses that have been grown or been attracted to Bath by its compelling lifestyle, great business culture and of course its talented workforce. The opportunity is immense. Our university’s world class research creates knowledge base in many of the key enabling technologies that will determine the future – the next generation of digital, the kind of homes we’ll live in, the cars and vehicles we’ll drive and indeed the air we’ll breathe, the food we’ll eat and the water we’ll drink. These capabilities are founded on people –professors, young researchers, students the staff that support them – all creating the knowledge that will be the building blocks of innovation and businesses of the future. The role of the Enterprise Area is to capture this capability and ensure that as much of it as possible is retained in Bath – as startup businesses founded by our graduating students, as advisors and consultants for established businesses that are attracted to set-up Bath because of the easy access to this know-how, and as world class research facilities a make our City is synonymous with the creation of new ideas and solution to the world’s biggest problems and opportunities. We have the right ingredients, that’s indisputable and has been well-catalogued in many, many reports written about our potential. The challenge is to translate our potential into performance and unless we set about this with real urgency, we run the risk of squandering the opportunity and falling behind lesser cities, many of which do not have our natural assets, but do have the get up and go to get things done. I think a vision for an Enterprise Area in 2025 is important – but, even more important is a clear idea of the steps we must take to get there. What should we have achieved by 2020? What must be done by 2016 in order for us to be on the right track?

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;OL QV\YUL` continues. We’re proud to have been appointed as custodians of the Great Western Railway for another 3½ years. It allows the hard work of upgrading the network and our services to continue. Together with Network Rail we are in the middle of a £7.5 billion improvement programme. It represents the greatest investment ZPUJL 0ZHTIHYK 2PUNKVT )Y\ULS ÄYZ[ I\PS[ V\Y YHPS^H` 3PRL [OL NYLH[ man, our vision is to pump lifeblood into the region once more. /V^& )` JVUK\J[PUN [OL IPNNLZ[ ÅLL[ \WNYHKL PU H NLULYH[PVU >P[O bigger, faster, more frequent trains with free on-board Wi-Fi, and an extra 3 million seats per year across the network, by 2018. New Super Express Trains will be introduced from 2017, with 15% more standard class seats. We’re adding 45 services from Bristol to 3VUKVU WLY KH` HUK J\[[PUN [OL QV\YUL` [PTL I` \W [V TPU\[LZ We will be bringing in bigger, more modern trains from 2016 and adding 52% extra seats to our services in and around Bristol. We’re also investing £50 million in stations with our partners. But our commitment to the region extends beyond the tracks. We’ve created a £2.2 million fund to help lower-income communities. We’re developing a Get Into Railways mentoring programme with the Prince’s Trust. And introducing free travel to interviews for the long-term unemployed. Helping people, supporting communities and improving services. We’ll be working tirelessly for the next 3½ years to build a greater west.

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#GreaterWest Find out what this means for you at firstgreatwestern.co.uk/GreaterWest and on Twitter @FGW

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