Landmark sites will unlock growth and new opportunities for the region

Landmark sites will unlock growth and new opportunities

Anew vision for the long-term future

of the East Midlands economy has been revealed – with images showing how landmark sites could together deliver tens of thousands of new jobs and drive a futuristic recovery from the pandemic.

They show how three major zones – covering areas around East Midlands Airport, the HS2 station at Toton, and Ratcliffe-on-Soar Power Station – might be transformed by major developments that would boost growth to levels which drive large-scale job creation and unlock a new era of “green” growth for the regional economy.

Artist impressions have been released as the region takes a decisive step towards setting up the organisation that will help drive the vision’s progress – after Chancellor Rishi Sunak backed the region’s bid to host a trade-boosting inland freeport.

The five councils covered by the three zones have come together to fund an interim body, which will begin the work of the planned East Midlands Development Corporation before Parliament formally approves what will be a pioneering new model for upping the pace of regional growth.

The interim body will help masterplan and enable development, working with businesses, investors and universities to help get projects off the ground.

It has now submitted a business case to Government, outlining what investment in the sites could deliver for the region – 84,000 jobs, more than £4.8bn in added value, and thousands of new homes.

Midlands Engine chairman Sir John Peace –one of the region’s most senior business figures – has chaired the group that led development of the new body.

He said: “What we have in front of us is one of the biggest opportunities the UK has ever seen to not just build on the potential of some major economic assets, but to transform the economy of an entire region in the process.

“The sites themselves are collectively the size of three London Olympic Parks and the vision for their growth is both ambitious and futuristic, embracing our net zero future and unlocking new opportunities which range from international trade to community-level growth.

“We must begin the work to unlock that potential now, and we start with the launch of the interim body.”

THE EAST MIDLANDS Development Corporation is one of the key projects of the Midlands Engine, the partnership of private and public sector organisations that works to promote investment and growth across the region. It was formally launched in October after securing an initial £235m in funding from Government to finalise these proposals.

The business case submission to Government throws a spotlight on the key role prominent regional economic assets like East Midlands Airport will play in driving economic growth. It is home to the UK’s largest dedicated air freight handling operation.

By attracting private-sector investment, the three sites will have the capacity to shift the dial of productivity for the regional economy. They are:

• East Midlands Airport area

Supporting the region’s status as a centre for advanced manufacturing and research, this national and international logistics gateway will be at the heart of the new freeport zone

• Ratcliffe-on-Soar Power Station site

Transforming part of the site of the UK’s last coal-fired power stations into a national centre for carbon zero technologies and manufacturing innovations, which is also in the freeport zone

• Toton and Chetwynd

Creating a new, connected community that will centre on a “garden of innovation” and the proposed HS2 hub station.

The airport site Artist's impression of development around the Toton hub station

“The East Midlands economy now has in front of it a series of major opportunities, which must play a decisive role in both the recovery of the region in the wake of the pandemic and in unlocking the commercial opportunities presented by our digital and carbon zero future.

“Government’s decision to award a freeport to the East Midlands is a huge vote of confidence in our prospects.

“The Development Corporation and the partnership behind it give us an additional opportunity to drive joined-up progress faster than ever before – and to turn the region into the UK’s investment destination of choice.

“It’s vital that the whole region now gets behind these opportunities and makes the most of their potential.”

East Midlands Chamber chief executive Scott Knowles

Development around Toton and Chetwynd

Ratcliffe-on-Soar Power Station is earmarked for redevelopment for green energy use

“When the region does well, so too does the airport and vice versa. It’s therefore in all of our interests that the East Midlands prospers –and the airport, which is our doorway to the world, will continue to play a key role in this.”

East Midlands Airport managing director Clare James

The business case will be considered by Government, which revealed in the budget that the East Midlands had been chosen as the site of one of eight new freeports in England.

While it requires Westminster approval, the organisation will be locally-led and supported by cash from local business rates – giving the region’s businesses a stake in its progress.

The five councils initially backing the interim vehicle are Leicestershire and Nottinghamshire county councils, together with Rushcliffe and Broxtowe borough councils, and North West Leicestershire District Council. Talks on how the model can be extended further into the East Midlands are continuing. “We are united in our support for the proposed East Midlands Development Corporation as this is our opportunity to unlock growth and create tens of thousands of new jobs to benefit generations to come. We are asking the Government to invest in our communities as we have built a vision to attract inward investors from all over the world – for every £1 invested, we will deliver £2 back.”

Nottinghamshire County Council outgoing leader Councillor Kay Cutts

“These are bold plans designed to transform the East Midlands and unlock thousands of much-needed new jobs and investment. And by advancing our green technology sector, they create a good opportunity to put our region firmly on the map. Like other areas, our economy has taken a big hit during the pandemic and I’m keen we seize every opportunity to bolster Covid recovery and support our businesses to bounce back quickly.”

Leicestershire County Council leader Councillor Nick Rushton

“The freeport has been a fantastic win for the region and we are now working with partners to deliver it at pace. The proposed East Midlands Development Corporation will provide significant investments to accelerate and sustain our region’s economic recovery and growth.”

D2N2 Local Enterprise Partnership chair Elizabeth Fagan CBE

“The goal of the Development Corporation is to ensure the East Midlands is equipped to take full advantage of the boundless business opportunities of the future, and to make our region the place for long-term investment.”

Leicester and Leicestershire Enterprise Partnership chair Kevin Harris

Cities will play a part in recovery

Covid-19 has brought the so-called “jobs miracle” of the previous decade to an abrupt halt – and cities will play a key role if the UK is to return to this period of economic strength, believes the Centre for Cities.

Between 2013 and 2019, 19.3 million positions were created in the private sector, generating a net of 2.7 million new jobs – of which 63.9% were generated within British cities –the think-tank’s research found.

Since then, the pandemic’s economic damage has triggered the deepest economic recession on record in the UK and reversed the “jobs miracle” by increasing the number of unemployed people by 1.3 million between March and November 2020.

To get these people back into work, an estimated 9.4 million jobs will need to be created, presuming a similar churn pattern persists post-pandemic.

The Centre for Cities presented its findings from a report, titled Building back better: How to recover from Covid-19, during a webinar in late March.

Senior analyst Kathrin Enenkel (pictured), co-author of the report, said in an accompanying podcast: “About seven jobs were created to generate a net single private sector role, so this churn of jobs will have an impact on how we think about the recovery after the crisis.

“When we look at our 62 cities and large towns across the UK, they had a very big contribution to job creation in the UK.”

She said the 10 largest cities, including London, accounted for 3.5% of UK land mass but half of private sector jobs created between 2013 and 2019.

New businesses were the engines of this job growth, creating 3.7 million more positions than they lost during this period, while existing firms lost just short of a million than they created.

At sector level, “local services” companies in industries such as construction and hospitality accounted for two-thirds of the new roles, with “exporting services” such as car manufacturing and investment banking generating a smaller share.

“When we look at the crisis, we find that sectors affected by coronavirus lockdown restrictions were large contributors to prepandemic job creation,” added Kathrin.

“Their recovery is likely to have a big impact on how many jobs are created after the pandemic.”

While the Centre for Cities report urged Government to support job creation in these sectors with consumer incentives and skills development, it also highlighted a productivity problem that needs to be addressed – with output just 2.3% higher in 2019 than 2013 despite the “jobs miracle”.

To boost productivity, it recommended measures such as supporting R&D via more generous grants and tax credits, and removing the business rates liability from plant and machinery to encourage more investment.