Business Manifesto 2019
Thames Valley the UK’s true turbo-economy
Thames Valley Business Manifesto 2019
PRESIDENT’S WELCOME The Thames Valley Chamber of Commerce is a politically neutral membership organisation which aims to be the independent voice of business for one of the most economically successful regions of the UK. Our membership consists of businesses large and small, local, regional, national and international. The Thames Valley is a great place to live, work and play. It has developed clusters of excellence not only for ICT, for which it is internationally renowned, but for life sciences and healthcare, advanced manufacturing, the creative industries, automotive, aerospace and indeed space itself and associated scientific research in all these areas. Judging by the number of patents applied for in the last 12 months alone, the Thames Valley has become a centre of innovation and a home for high growth and entrepreneurial businesses that are taking technology to new levels. Unlike other regions of the UK (The Northern Powerhouse, the Midlands Engine, London) and those combined authorities with Metro Mayors, there is no one dominant city or Mayor within our region to act as a unified voice and attract investment from both within and outside of the UK. Someone has to shout louder for the Thames Valley, and the Chamber is ideally positioned to fulfill that role. Sadly, the word ‘complacency’ is often used to describe the Thames Valley, yet, when talking to businesses large and small around the region, I see a desire to move forward, grow, develop new markets and welcome competition that drives innovation. I hear of concerns that national priorities might take this seemingly economically privileged region for granted and invest elsewhere. It would be narrow-sighted to take this approach, as our prosperity feeds other less economically well-developed regions. The success of our 2018 Business Manifesto lay in its simple and direct messages and calls to action. We have made progress on securing the Western Rail Link to Heathrow and yet the development of the third runway – so crucial to the success of the whole UK economy in an increasingly global market for goods and services – still seems a long way off. For 2019 we have retained our six themes – Ambitious, Competitive, Connected, Global, Influential and Working - but refreshed our asks of Central Government, Local Government, the Local Enterprise Partnerships and the Thames Valley business community so that all our energies are directed towards helping the region to grow, thrive and prosper. This Manifesto, produced as a result of extensive consultation with the Thames Valley business community, represents our clear agenda for action in 2019: a seminal year in this country’s history and one during which we will undoubtedly need to address challenges in order to maintain the status of our region as the ‘turbo-economy’ of the UK.
Bill Gornall-King Group President
Thames Valley Business Manifesto 2019
FOREWORD I welcome the opportunity to once again contribute to the Thames Valley Business Manifesto. The British Chambers of Commerce and the Accredited Chamber Network recognise the importance of encouraging partners to play their part where possible in their local area. Indeed, the ambitious aims identified demonstrate how the Thames Valley is a strong and powerful champion for business across the region. Over the next year, as the government negotiates our future relationship with the EU, there will be a degree of uncertainty. Despite this, the Thames Valley Chamber’s continued work with member organisations, helping them drive forward and focus on the factors that can achieve wealth generation for everyone, should be applauded. This manifesto is the ideal opportunity to take stock and set out future challenges, whilst looking forward and identifying new opportunities that will allow members to make decisions that have a significant and positive impact. Undoubtedly, the success of the Chamber Network relies on the active support and dedication of our member businesses, and in setting out some of the key topics, Thames Valley Chamber is leading the way in framing and ultimately delivering the future economic prosperity of the region. In setting clear goals and ambitions in this manifesto, Thames Valley have outlined objectives that speak for many across the Accredited Chamber Network. At the British Chambers of Commerce, we use this experience and knowledge within the Chamber Network to run national campaigns and lobby government for change at a national level. That’s why the British Chambers of Commerce has been calling for a greater focus on ‘fixing the fundamentals’ of the UK business environment to remove barriers to growth. Working with the Chamber Network to write a budget submission in 2018, we called on the Chancellor to make seven changes that would enable companies to do more to invest and grow. Working together, we made progress on five of our seven asks, including rates relief for the high street and our top ask of an increase in the Annual Investment Allowance from £250,000 to £1 million. As we enter a period of change, the British Chambers of Commerce will continue to support the work of our wider network, just as the Thames Valley Chamber of Commerce works to support us to stand up for business, no matter how large or small, to grow and export but also to contribute to the debate about how to harness the sense of competitive ambition and work together to achieve more.
Dr Adam Marshall Director General British Chambers of Commerce
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Thames Valley Business Manifesto 2019
EXECUTIVE SUMMARY Welcome to the Thames Valley Chamber’s Business Manifesto. The second annual statement of its kind, it sets out the opportunities and challenges our membership want to champion and which we believe will have most impact. It commits the Chamber, a politically neutral organisation, to lead, support and campaign for a programme of activity across the region in 2019. In our Manifesto we set out the following four main priorities, on which the Chamber will focus: Provide a business solution to securing commitment to, the funding and delivery of the Western Rail Link to Heathrow (WRLtH). Maintain the momentum behind delivering expansion, including the 3rd runway, at Heathrow Airport. Lobby Government to deliver practical and real-world interventions to ensure that frictionless investment and trade agreements are secured as we move to a post-BREXIT business environment. Promote stronger collaboration with academic institutions, showcasing good practice, encouraging investment and bridging the gap between work and education, engaging students at all levels of our work. These priorities are framed by six core themes that inform, influence and shape our vision and wider programme of work and events across the region and at the local level. These are Ambitious, Competitive, Connected, Global, Influential and Working Thames Valley. We reflect on a successful 2018, where our membership responded to our call to action to support, engage with and help us to lead an ambitious agenda. The work of the Business Advisory Group (BMAG) has led to some real change and progress; Chamber members now represent the region on national BCC panels and committees in Whitehall, which has undoubtedly strengthened our reputation. Furthermore, local Chamber Councils have acted as advocates, mobilising the strength of the entire Chamber network. During the past year, we have also recorded significant examples of measurable success: advancing the delivery of WRLtH; gaining Government commitment to the expansion of Heathrow Airport; responding to Government’s call to help develop and lead a Thames Valley life sciences sector deal, and beginning to coalesce a coherent, single, business voice on the critical drivers that will sustain the region’s economic growth and prosperity. The Business Manifesto 2019 outlines how we propose to build on the excellent work we have already done to showcase and promote the Thames Valley as the UK’s true turbo-economy. We call upon our members to remain engaged and actively involved in helping the business community deliver the region’s future economic growth and well-being.
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Thames Valley Business Manifesto 2019
OUR BUSINESS MANIFESTO PRIORITIES
Ambitious
Help define a business-led identity for the Thames Valley. Build on the success of the region’s growing reputation as a centre of excellence for attracting and delivering sector/market-based inward investment and trade services.
Develop new strategic partnerships with overseas regions where there are evidential inward investment and trade synergies. Support the ambitious targets of our key partners, including the Local Enterprise Partnerships and stakeholders such as Heathrow Airport, Thames Water and Great Western Railway, to deliver the infrastructure investments that will secure the region’s long term economic growth and productivity.
Competitive Maintain our leadership in promoting the Thames Valley as one of the UK’s most successful regions for attracting inward investment. Work to develop and strengthen the delivery of business trade, and wider support services, to maintain the region as one of the UK’s most active (trading locations), both by volume and value. Help increase the percentage of export-orientated businesses located in the region. Continue to build and support appropriate sector and market networks that connect the region’s entrepreneurs, start-up and scale-up businesses with big businesses and leaders. Identify ways to showcase and promote the Thames Valley as the UK’s true turbo-economy, the ‘Silicon Valley of Europe’, and one of the UK’s most competitive, highly productive regions and smart destinations of choice.
Connected
Maintain support for the timely expansion of Heathrow Airport. Secure Government funding for and the delivery of the Western Rail Link to Heathrow (WRLtH). Support investment proposals along the CambridgeMilton Keynes-Oxford (CaMkOx) Growth Corridor.
Call for investment along the Great Western line to free capacity and help bring Swindon within ‘the golden hour’ of London. 3
Thames Valley Business Manifesto 2019
Global
Ensure the Thames Valley continues to be a great place to do business for all and allows companies to prosper and grow in an innovative environment.
Maintain a strong working partnership with the Department for International Trade (DIT) to help shape and frame a post-BREXIT structure that is fit for purpose and can deliver wider UK inward investment and trade targets. Showcase what is ‘truly unique, truly global’ about the region to potential inward investors, politicians, policymakers and existing Thames Valley businesses. Grow our global membership services and support to foreign-owned and export-orientated businesses, targeting no less than 100 members in 2019. Engage our membership on key strategic policy issues and make Government aware of the ambient and future needs of business pre and post
leaving the European Union.
Influential Look at measures to convert the value of our activity and focus outlined in our local policy priorities into strengthening membership value. Develop closer, and stronger, links with the British Chambers of Commerce (BCC), Government and other key stakeholders to ensure the voice of business is heard and crucially represented in shaping and framing future decision-making. Strengthen our sector and market approach to delivering inward investment and trade services. Remain agile and flexible in responding to the needs of our business as we exit the European Union and engage Government on a post-BREXIT Britain. ‘Shout louder’ in promoting and preserving the Thames Valley as a great place to do business, a smart destination of choice and the UK’s true turbo-economy.
Working Engage our membership, wider business community, MPs and academic establishments to represent the region and lobby on key strategic education and skills challenges. Establish and support 50 Young Chamber members in developing strategic links with local companies. Raise awareness and adoption of the Government’s apprenticeship scheme and the benefits it offers to business and individuals, both new and in work, by showcasing and sharing best-practice examples. Help support the Government’s commitment to create three million Apprenticeships by 2020. 4
Thames Valley Business Manifesto 2019
CALL TO ACTION
FROM OUR BUSINESS COMMUNITY Business responded positively to our call to action last year providing strong direction, leadership, support and scrutiny in helping progress the four priorities and six themes of our first Business Manifesto.
We would like to take this opportunity to thank those members and individuals who have: Provided guidance to the Business Manifesto Advisory Group (BMAG), which has led to the real change outlined in this Manifesto. Championed the Thames Valley by representing the region on national British Chambers of Commerce panels and, at the call of Government, making representations to Whitehall, which has unequivocally grown our reputation as a valued critical friend. Acted as advocates within our local Chamber Councils and new sector groups, helping mobilise the strength of the entire Chamber network. As one of the UK’s most successful accredited Chambers in the UK, our energies are directed towards helping business and economies in the Thames Valley to thrive and grow. Past performance is no longer a guarantee of future prosperity and we ask for your continued support to ensure the voice of business is heard.
Organisations across the Thames Valley have a role to help shape and frame the region’s future economic growth and well being. We invite the business community to help: Deliver the priorities and themes set out in the Business Manifesto. Communicate the coherent, integrated, messages behind the strengths, opportunities and challenges that impact on the future growth of the region. Support our work in representing both place and sector as drivers for the enablers of growth. Engage, influence and inform the Chamber’s key working groups and surveys. Build the innovative networks that will foster greater collaboration and innovation across academia, business and community sectors. Champion the Thames Valley as the UK’s true turbo-economy. Challenge and engage Government, and its partners, to deliver sustained economic, social and environmental well-being.
The Thames Valley continues to grow in strength and depth as a region where companies want to be. Bayer is just one of the top 10 pharmaceutical companies represented in the region, which also has the highest density of digital businesses in the UK located alongside biotech companies, four of the world’s top 10 universities and five medical research institutes, all capable of delivering global excellence in the fields of innovation and science excellence. - Simon Greenstreet Head of Communications & Public Affairs UK/ Ireland, Bayer Plc
Thames Valley Business Manifesto 2019
THAMES VALLEY
THE UK’S TRUE TURBO-ECONOMY The Thames Valley is the fastest-growing region outside of London in the country, where companies from all around the world, representing a wide range of sectors, are part of a connected business community. With key strengths in the life sciences and healthcare, digital technology and advanced manufacturing industries, the region has many sector-based Centres of Excellence. 48% of working-age residents hold a degree or equivalent qualification, compared to the UK average of 38%, making the region’s robust population of 2.1 m people a highly skilled workforce.
The Thames Valley is also home to:
BUCKINGHAMSHIRE
UNIVERSITY OF OXFORD
Entrepreneurial hub of the UK
No 1 in the world
OXFORD & READING
HEATHROW AIRPORT
Oxfordshire
204
Highest performing towns
Greater London
Swindon
10
SWINDON
Top 10 most improved town
worldwide destinations
Berkshire
READING fastest GROWING town
6
£
SLOUGH
No 2 largest trading town
AMBITIOUS
THAMES VALLEY
In 2019, we will:
Help define a business-led identity for the Thames Valley.
Deliver sector and market based inward investment and trade services.
Build new strategic overseas partnerships.
Lobby for the infrastructure investment that will secure the region’s future.
Thames Valley Business Manifesto 2019
AMBITIOUS
THAMES VALLEY
Throughout the Business Manifesto we are setting our sights high and identifying actions which will have most impact and provide valuable business input. When we engage our membership, what we are consistently struck by is the shared sense of ambition, appetite and commitment to the Thames Valley and its future growth and success. In 2018, the Business Manifesto Advisory Group (BMAG) was a strong advocate and champion of these views. Their work provides a strong foundation on which to take our priorities forward, maintaining momentum in our work to promote a more coordinated, integrated approach across the region. In its 2018 report, ‘The Thames Valley: A Framework for Growth’, EY describes how the region’s positive attributes have combined to create and drive “a virtuous circle of investment, jobs, skills and more investment”. The challenge, as the report also points out, is to help ensure the threats of cost, complacency and competition do not break this circle. We have two clear focal points for an ambitious agenda for the Thames Valley in 2019 (and beyond): To continue to promote and strengthen our relationship with the British Chambers of Commerce and its wider international network. To bring together those key stakeholders that attract and retain the investment and trade activity that drives our economy forward. As one of the largest accredited Chambers in the UK, we are focused on ensuring that the Thames Valley’s business community is heard. We want to help ensure it has every opportunity to represent, and celebrate, the region on relevant national-profile British Chambers of Commerce platforms and representative avenues into central Government. We will help to bring together those partners who are active in international markets and sectors, and who will help us to attract, and retain, investment, trade, jobs and people to the region. Wherever possible, we will look to share the drivers for success in our vibrant region.
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Thames Valley Business Manifesto 2019 We will work to ensure meaningful collaboration. We will focus on helping co-ordinate action that builds on the complementary strengths of organisations, networks and stakeholders to ensure we are fully behind delivering continued economic growth through the enablers of competitiveness, innovation and productivity outlined in the EY report. 2019 will be a critical year and a window of opportunity for partners to come together and deliver an economic framework of good growth, a stronger sense of place and a consistent narrative for the Thames Valley. The Local Industrial Strategies are a catalyst for collaboration to implement this framework. (To be clear, we are not calling for a single economic strategy for the region).
The Thames Valley is dynamic – it’s where all major technology companies have located their headquarters, it’s where the UK’s major IT distributors are located and it’s where the fastest growing population of tech skilled students exist outside of London. It has the connections that make it ripe for business both nationally and internationally. The technology industry will drive the next 30 years of growth in our country and investing in the Thames Valley makes the greatest sense from large corporates to start-ups.
© ESA - A. Le Floc'h ESA’s ECSAT on the Harwell Campus in Oxfordshire
We commit to supporting leaders in Government, driving their respective policy and project work to help provide business-led solutions. We will continue to offer a sector and market-led, evidence-based approach. We will ensure we are investor-ready and focused on helping to attract investment and increase the number of businesses trading. We will sustain our support for inclusive growth, particularly around skills and education, housing and transport infrastructure, and the role of business in contributing to our local communities.
- Alex Tatham Managing Director, Westcoast Ltd
To support our Ambitious priorities, we will: Increase our effective engagement with the BCC and the national policy agenda for the benefit of those living and working in the Thames Valley business community. Engage members as advocates for the region as a vibrant, innovative, growing economy and in promoting our strategic priorities. Reiterate our position as a point of contact for businesses to navigate the post-BREXIT landscape, embracing key changes over the next few years. Be the ‘go-to’ place for practical advice to help businesses trade internationally. Reflect and showcase the niche and global, innovative and IP-rich businesses located across the Thames Valley. Promote the Thames Valley to our international partners, through a premium venue event programme, including the flagship Windsor Debates. Continue to strengthen trade and inward investment services, including the Thames Valley UK inward investment portal, global membership initiative and the sector and market-based programme of business roundtables. Encourage, support and scrutinise the region’s Local Enterprise Partnerships to align priorities and work together to feed projects, initiatives, ambition and a single message into Government.
COMPETITIVE THAMES VALLEY
In 2019, we will:
Promote the Thames Valley as a destination for inward investment.
Maintain the region’s position as one the UK’s most active trading locations.
Build and support sector and market focused business networks.
Showcase the region as the UK’s true turbo-economy – the Silicon Valley of Europe.
Thames Valley Business Manifesto 2019
COMPETITIVE THAMES VALLEY
As one of Europe’s top regional economies offering excellent growth opportunities and investment potential, the Thames Valley truly is a unique and great place to do business.
The Porter Building, Slough
With the combination of a strong trading history, world-leading universities, close proximity to London and Heathrow Airport, and strengths in sectors such as advanced engineering, creative industries, life sciences and digital technology, the Thames Valley continues to attract investment from all over the world.
The region is very well placed to capitalise on the opportunities afforded by the 4th Industrial Revolution and drive the UK economy forward. We can make a significant contribution to helping Government deliver the actions and priorities of the four grand challenges outlined in its Industrial Strategy and meet its R&D targets (2.4% of GDP) by 2027. We are in extraordinary times, where the pace of technological change is unprecedented. Data is the new oil. How to translate the information ‘coming down the numerous channels’ into useful knowledge and commercialise its value is one of the key industry drivers. As the ‘Silicon Valley of Europe’, we have the cluster of businesses and talent to take most advantage.
A high-value business demographic and strong consumer market ensure we continue to be host to a unique depth of IPrich, innovative and highly productive businesses. We remain an important destination for many overseas companies with international aspirations, and a destination of choice for companies ranging from famous brands to innovative, high-growth start-ups, disruptive newcomers and university spinouts.
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Thames Valley Business Manifesto 2019
The Thames Valley is such a dynamic and exciting region to operate from in the UK. Its accessibility and proximity to London, Heathrow Airport and the wider UK via its excellent road and rail links, undoubtedly gives the region a head start, both in terms of its international and UK offerings. As a technology focused business ourselves, we experience the wealth of talent working in the region on a daily basis. Individuals wanting to work in innovative, entrepreneurial businesses with world class technology will always have the Thames Valley on their shortlist. - Rob Hayes Corporate Partner and Head of Technology, Penningtons Manches LLP
Thames Valley Chamber of Commerce is committed to leading and supporting efforts to help maintain the region’s global competitive advantage and build sustained growth and prosperity. We know that effective engagement, through strong partnerships and structured collaboration, is key.
There should be no secret in the fact that our continued success is achieved by delivering an economic, social and environmental balance. Mutually dependent and beneficial, this includes ensuring we attract the right people and skills; provide and invest in our infrastructure; enable enterprise and investment to grow; look at ways to enhance the place we call the Thames Valley, its villages and towns, and the quality of life we enjoy, and; foster good governance and leadership.
Our region’s challenge, amid, for example, the uncertainty of BREXIT and global trade agreements, the increasing competitiveness of rival UK and global destinations for investment and a continued procrastination around delivering investment at Heathrow, is to reassure existing and new investors that we are very much still open for business.
To support our Competitive priorities, we will: Work with relevant and active, public and private stakeholders to promote the Thames Valley as one of the UK’s most important and competitive European regions. Constructively challenge public authorities to ensure they are, actively and appropriately, investing in their business community and creating the conditions to enable companies to set up and grow. Call on Government to invest our in success and ensure priorities, the Thames Valley continue to compete on the To support Ambitious wecanwill: global stage. Work towards an integrated, balanced plan for the region, which focuses on driving growth, innovation and productivity. Continue to promote the strength and depth of the region’s globally competitive key sectors through our events, campaigns, publications and our web-portals for inward investment (www.thamesvalley.co.uk) and trade (www.thamesvalleychamber.co.uk/international-trade/). Maximise the international impact of our publications and websites.
CONNECTED THAMES VALLEY In 2019, we will:
Maintain support for the timely expansion of Heathrow Airport.
Help secure the delivery of the WRLtH.
Support proposals for investment along the CaMkOx Growth Corridor.
Bring Swindon within the ‘golden hour’ of London.
Thames Valley Business Manifesto 2019
CONNECTED THAMES VALLEY With excellent transport systems already in place and a series of major investment improvements also in the pipeline, the Thames Valley is very much ‘right on track’. As a region, we continue to benefit from our proximity to the UK’s only hub airport – London Heathrow. In 2018, the Government confirmed its commitment to supporting expansion at the airport, proposals that will have a significant impact on the future economic growth and prosperity of the region and wider South East. Crossrail, or the Elizabeth Line as it will be known, is expected to open in Autumn 2019. With increased investment interest and access to talent, it is already creating value in parts of the Thames Valley. Several major infrastructure projects are helping change the face of the region: Western Rail Link to London Heathrow (WRLtH). Currently scheduled to be completed by 2027, the proposed new direct rail link will improve journeys to Britain’s busiest airport and help increase economic productivity. Cambridge-Milton Keynes-Oxford (CaMkOx) Growth Corridor Transport infrastructure will play a central role in unleashing the huge potential of the CaMkOx Corridor. Key projects are: - East-West Rail – connecting Oxford to Cambridge, the western section is due to be operational in 2023. - Oxford to Cambridge Expressway – enabling faster, more efficient connectivity, the Expressway will help support the economic growth of three of the most successful and productive cities in the country. M4 Smart Motorway. Commenced in Autumn 2018, it is anticipated to be complete and operational by Spring 2022. We will maintain our efforts in lobbying Government and its agencies, to secure the timely delivery of projects, as further investment in our transport infrastructure will create an integrated system. We will seek to highlight the challenges, and drag on productivity, that congestion causes. This is particularly acute in the last few miles (‘the last mile problem’), as it is often described from the main highways/trunk network onto local roads.
Projected Impact of Elizabeth Line:
(Population within a one hour catchment of London)
Thames Valley Business Manifesto 2019 Heathrow Airport There is a continued need to sustain digital capacity to ensure all businesses and residents have suitable access. We will continue to help identify and share regional ‘not-spots’ with the BCC as part of their national programme of identification to Government.
Connectivity to global markets and to the rest of the UK is a critical factor in Thames Valley’s position as a vibrant, growing, global economy and a vital contributor to UK plc. To maintain our competitive advantage we need continued investment in rail, air and road infrastructure. - Ruth Bagley Director, Ardynt Consulting Ltd
Where appropriate, we will support the region’s LEPs in their efforts to complete their respective targets for superfast broadband coverage. We will also champion efforts to use digital technology to deliver sustained, future-proofed solutions to enable the movement of people, goods and services, within and to and from our region.
In delivering a Connected Thames Valley, the key to success is an ongoing and active engagement with project leads and sponsors. We are strong advocates for all of the projects above, which will benefit businesses, residents and the economy far beyond the Thames Valley. We will continue to highlight the advantages and look to actively participate in programmes that promote these schemes.
To support our Connected priorities, we will: Promote the opportunities that the expansion of Heathrow offers to businesses in the Thames Valley and across the south of England. Push for a business-led solution to delivering WRLtH, mobilising partners to address the current challenges and issues affecting its implementation and support the next steps. Seek to maximise business benefits and investment in the region, particularly from initiatives that help achieve the potential of the Growth Corridor. Promote the benefits of applying technology and ‘digital’ initiatives to future-proof our infrastructure and improve our environmental quality of life. This may include championing developments like autonomous vehicles and connected, or ‘SMART’ cities across the region. Encourage measures and support networks to develop an inclusive Thames Valley, where everyone has the opportunity to engage in the benefits of a prosperous region. Articulate the business need for investment in the region’s road infrastructure, including road safety and capacity improvements along the A34(T); A40 and A420. Secure the expeditious delivery of the M4 smart motorway programme (junctions 3-12) within the timeframes outlined. Endorse the principle of a Southern rail link to Heathrow Airport. Lobby for investment and demand-side initiatives that secure a step-change in water supply resilience, enabling growth and protecting business against the economic impacts of water-use restrictions during drought. ?
Raise awareness of the importance of moving people between transportation hubs and highlight solutions to address the associated challenge.
GLOBAL
THAMES VALLEY
In 2019, we will:
Ensure the Thames Valley continues to be a great place to do business and grow your business.
Work with Government to deliver inward investment and trade targets.
Showcase the Thames Valley’s truly unique, truly global assets.
Grow our global membership and services.
Thames Valley Business Manifesto 2019
GLOBAL
THAMES VALLEY
For the past 25 years, the Thames Valley has been the UK’s long-running regional success story; achieving continued economic growth and high rates of productivity, delivering innovation and prosperity. Regularly placed in Europe’s top-10 most economically thriving regions, with an economy worth more than £80 billion (U$D100bn), the Thames Valley is the UK’s true turbo-economy. The region is home to some of the country’s truly unique, truly global assets, including several internationally competitive sector and industry clusters. Most notable among these are advanced engineering and manufacturing, including space and space-related technologies; creative industries and multimedia; life sciences and healthcare; digital technology and financial services. Driven by our infrastructure and academic assets, such as London Heathrow, the UK’s only hub airport, and the University of Oxford, the number one university in the world for the third year in a row , the strength of our sector clusters contributes to making the region an economic success story. This success has been reflected in several ways; for example, the Thames Valley is: The fastest growing region in the UK, with forecast GVA growth of 2.3% until 2020 – outperforming London (2.2%) and the South East (2.0%). The UK’s most successful region for attracting inward investment. A leading exporting region, responsible for 14% of the UK’s exports and 20% of its imports in 2017.
It’s to its credit that the Thames Valley is often seen in the context of competing with continental European business locations – geography obviously helps but it’s also about the environment and infrastructure, both social and business, that makes it such an attractive location to put a European or globally focussed business. - Ian Howells Senior Vice President, Honda Motor Europe Ltd
In 2019, we will press and scrutinise Government departments and their agencies (including Local Enterprise Partnerships) to ensure they meet their commitments on delivering infrastructure investment, create the appropriate frameworks that enable our business and academic communities to retain and attract the internationally mobile talent they require, and cultivate the right trading conditions to allow our businesses to trade internationally in an unhindered, effective and efficient way.
Thames Valley Business Manifesto 2019
University of Oxford
We will also sustain our calls on Government to ‘invest in success’ so that the Thames Valley remains one of Europe’s topperforming economies. This means establishing a consistent, authentic narrative around showcasing our ‘truly unique, truly global’ assets. We will also continue to take every opportunity to celebrate the region’s success and achievement. Whilst the Thames Valley clearly has a strong international profile and positioning, there is always room for improvement. This is particularly, but not exclusively, the case for the North American, and we anticipate, post-BREXIT, European markets. There are also key sector messages which need to be better articulated; and broader propositions must be as strong as possible.
To support our Global priorities, we will: Actively lobby Government, directly and via the British Chambers of Commerce, to ensure it is working towards delivering a business-friendly BREXIT and the UK remains open for business. This will include our existing campaign for new trading relationships which provide Thames Valley companies with unbureaucratic, low-cost access to the single market and other trading agreements. Work alongside key partners and stakeholders to showcase the region’s global assets and sector strengths. This will include holding technology and life sciences sector and market-based roundtables; hosting flagship events, such as the Thames Valley’s International Technology Conference; and promoting the Thames Valley through the portal as a destination of choice for foreign direct investment. Strengthen our relationship with Heathrow Airport as a global asset on our doorstep, maintaining our support for expansion and identifying opportunities for business growth in the Thames Valley. Continue to promote our Chamber as a centre of excellence for inward investment and trade (inc. COBCOE Connects) services. Highlight to business, local and regional partners, DIT and other Government departments that the Chamber is available, and resourced through our membership, to help them achieve their export and foreign direct investment targets.
ESA Astronaut Tim Peake
© ESA
INFLUENTIAL THAMES VALLEY
In 2019, we will:
Strengthen the value proposition linking local policy priorities and membership.
Champion the voice of business.
Strengthen our sector and market approach.
Be agile to a post-BREXIT Britain.
Thames Valley Business Manifesto 2019
INFLUENTIAL THAMES VALLEY
The Thames Valley economy is one of the largest and most productive in Europe. Bolstered by our proximity to London and Heathrow Airport, and our strength in key growth sectors, we are well placed to help influence the future economic growth of the UK in a post-BREXIT environment. We believe the Chamber has a role to play in ensuring that we sustain the enviable position which the Thames Valley and its business community have worked hard to achieve. As one of the few organisations with a region-wide coverage, we have a business remit to influence and inform, promote and represent the Thames Valley. It is incumbent upon the Chamber to actively help identify the key issues and challenges that affect business and provide forums for debate. Progress has been made and partners motivated to join the calls outlined in our 2018 Business Manifesto. However, challenges remain, and we will continue our work to: Make sure a meaningful Thames Valley business voice is placed at the heart of national and local decision-making. Promote a business community-led vision and/or position statement for the Thames Valley, centred on the pillar of sustainable economic growth. Advocate a sector and market-based approach to promoting the Thames Valley. Help businesses to think digitally, develop the skills of their existing and future workforce and capitalise on the opportunities afforded by digital and scientific transformation. Encourage our political leaders to be strong, think strategically and take a global perspective to help preserve and enhance the Thames Valley as a smart destination of choice.
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Business has the appetite to contribute. Our membership has called upon the Chamber to take on a responsibility to influence decision makers and help deliver a clear, cohesive message to our regional and national political leaders. The business community wants to make certain that its political leaders are listening and actively responding to calls to ensure we are competitive, our region remains ‘fit for purpose’ and we have the ability to meet today’s challenges as well as anticipate those of tomorrow.
Thames Valley Business Manifesto 2019
For a global business such as ours, proximity to London, ease of access to Heathrow Airport and the development of new rail transport links have made Thames Valley hard to beat as a location for our UK headquarters. But the region cannot stand still; the pace of change that this manifesto helps drive, including a focus on helping businesses to think digitally and on skills development of the existing and future workforce, will be essential in helping to preserve Thames Valley as a smart destination of choice. - Hugh Milward Director, Corporate, External and Legal Affairs, Microsoft Ltd The Thames Valley Chamber of Commerce at the Annual Awards
To support our Influential priorities, we will: Provide a sustained programme that promotes greater local engagement, regional representation and global opportunity. This will include seeking ways to convert the value of our local Chamber activity by informing policy, supporting membership retention and helping shape the strategic direction of the Chamber. Sustain our active engagement with the British Chambers of Commerce and Government around a wide agenda of policy issues, programmes and groups to ensure the Thames Valley business voice is heard. We anticipate that our attention will focus on BREXIT, digital connectivity, education and skills, planning, trade, transportation and the fundamentals of the business environment and productivity. Continue our momentum in engaging, supporting and challenging the BCC to champion the region at the highest political level. This will mean continued visibility and contribution from key business leaders, businesses and wider networks. Strengthen relations and our regular engagement with our political leaders, including Government and regional MPs. This may be achieved through, for example, business roundtables for MPs, political working lunches and MP e-briefings. Challenge, offer scrutiny and provide support to our political leaders to deliver on economic growth aspirations and project priorities; invite them to actively participate in our activities and engage our members. Support and scrutinise our local government partners, including LEPs. Provide an open invitation to LEPs to engage our Chamber membership to help shape and frame core policy programmes and delivery outcomes (e.g. local industrial strategies). Showcase the truly global cluster of the innovative, high-growth technology sector at the fifth Thames Valley Chamber of Commerce International Technology Conference. Strengthen our series of Strategic Policy and Local Chamber Policy priority statements that frame our focus and future work programme. Develop our relationship with Heathrow Airport to reposition its connection with the Thames Valley. Host a second Thames Valley Chamber Business Awards to showcase business excellence and celebrate the success of home-grown, inbound and trading companies.
WORKING
THAMES VALLEY In 2019, we will:
Engage our membership on the strategic education and skills challenges.
Establish a Thames Valley Young Chamber.
Raise awareness and adoption of the Apprenticeship Scheme.
Thames Valley Business Manifesto 2019
WORKING
THAMES VALLEY The Thames Valley vies with London as the fastest growing region in the UK, with Reading the UK’s fastest growing city, where companies from all around the world, representing a wide range of sectors, are part of a connected, entrepreneurial business community. The labour market continues to perform well. Overall employment rates remain high, and unemployment and economic activity remain low, albeit amongst younger people (16-24-year olds) the position is generally less rosy. TVCC has long-standing relationships with businesses and academic establishments in the region; handson experience of working with not-for-profit, charity, social enterprise and education business partnership organisations, as well as students, on the ground level. In the last year, TVCC has worked with businesses and academia to help identify key issues within the current education system, and recognise the importance of creativity and problem-solving in early education for a productive future workforce, and called on Government to further simplify policies and initiatives to boost the natural abilities of young people.
The Thames Valley is set to continue outperforming all UK regions through to 2020. Reading tops the growth league, with average GVA growth of 3.8% from 2014-17 and employment growth outpacing the UK as a whole by 0.3%. According to PwC’s Good Growth for Cities Index 2018, Oxford and Reading are the two highest performing cities in the UK,reflecting continued improvement across a range of measures, particularly income and transport. Moreover, Oxfordshire, Buckinghamshire and Berkshire are all at the top of the LEP Growth Index. Productivity and innovation are drivers of long-term economic growth. Finding new and better ways of making goods and delivering services improves the performance of businesses, which, in turn, increases the productivity of city economies.
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Thames Valley Business Manifesto 2019
Businesses still report difficulties in recruitment, and particularly in hiring people with the right skills. For many sectors, the gap has become the ‘skills chasm’, extending across the whole workforce from those requiring both high (technology) and lower-skilled (e.g. hospitality) employees. We suggest that these issues could be addressed, in part, by: Learning from successful education models delivered by other countries, to help create a workforce of people who are better equipped to solve real-life problems. Educating parents/guardians on careers available to their children and the best routes into them. Recognising that teachers are the solution and not the problem. Their expertise can help reshape the way we measure educational performance and prepare children for effective leadership in the future. Identifying challenges for businesses and academia in understanding Government initiatives, frameworks and policies – for example, the Apprenticeship Levy, T-Levels, Gatsby Benchmarking, Careers Leaders in every school and Student-Business Encounters. Developing sustained, effective and much more productive relationships and genuine partnerships between academic establishments and industry. As ‘science is the engine of prosperity’, calling on Government to sustain long term investment in STREAM subjects, and allowing teachers reasonable autonomy in how they teach. Business and education leaders continuing to work closely together to shape the future talent pool and the early business experience of 14-19-year olds, recognising that Thames Valley needs a greater number of students with strong STREAM skills.
The diversity of the local workforce, the ability to bridge skills gaps and organically grow the business has kept us located in the region for 20 years. Increased skills development opportunities through apprenticeships and even more focus on emerging talent will continue to benefit Thames Valley SMEs like ours. - Dominique Unsworth BEM CEO, Resource Productions
To support our Working priorities, we will: Identify skills challenges in key sectors through, for example, our life sciences and healthcare and digital technology roundtables. Share best practice and case studies of small and medium sized enterprises working with educators and trainers from across the Thames Valley region, and provide feedback to relevant bodies on the practical barriers to ‘bridging the gap’. Develop our new membership, Young Chamber, for academic establishments, with the aim of helping to consolidate genuine relationships between industry, the education sector and young people. Encourage our members to invest in talent and the future workforce, supporting and directing them in taking on apprenticeships. Support businesses in engaging with educational establishments to form close relationships and genuine education-business partnerships, ultimately helping young people understand routes to careers. Strengthen our connections with the educational community by increasing the number of educational establishments with which we actively engage.
Thames Valley – The number one region outside of London for attracting inward investment In 2017/18, the Thames Valley region delivered another impressive set of inward investment results, not only by volume, but also in terms of the value of investment attracted, making it the number one region outside of London for securing foreign direct investment (FDI) into the United Kingdom. Furthermore, two of our LEPs - Oxfordshire and Thames Valley Berkshire – are top-performing, recording their strongest levels of FDI since recent records began. These results emphasise the important and consistent contribution made by the region to UK plc and the growth of the British economy. As one of the most economically productive regions, we continue to be a destination of choice for overseas investors looking to establish, operate and expand their business in the UK. The Thames Valley has continued to attract investment from a wide range of global markets, including Australia, Canada, China, India and the UAE, as well as several European countries. Consistent with the region’s sector strengths and global assets, and the truly unique Centres of Excellence located here, it attracts investment from specific markets. The United States remains the dominant source of FDI, with approximately a third of all investments coming from this market.
INWARD INVESTMENT STATISTICS:
Project Types by Year
2017 / 2018
2016 7 / 2015
2015
/ 2014 6
2014
2013
/ 2012 4
/ 20135
48
76
total projects
Comparison with previous year:
87
total projects
28
119
9
13 57
45
total projects
36
38
New Investments +169% Expansions -1% Mergers and Acquisitions +44% (including Joint Ventures)
38
112
total projects
53
+70%
28
13
58
Projects by Investment Thames Valley - 2017/18 *excluding multi-site projects 49
191
total projects
Berkshire Buckinghamshire
44
Oxfordshire
121 22
21
New Investments Expansions Mergers and Acquisitions
5 New Investments
2 Expansions
5
5 0
Mergers and Acquisitions
Thames Valley’s Trading Giant Through the Thames Valley Chamber of Commerce Group, businesses have access to a full suite of international trade services, enabling them to trade successfully with the rest of the world. As one of largest accredited Chambers in the UK, we support and represent over 3,000 businesses. We do this by offering members a range of services including business advice, networking events and training as well as international trade support. The Chamber is recognised as the leading voice of business, representing micro to major multinational organisations and committed to long-term relationships with members and providing them with relevant, value added services that help, support and protect regional, national and international business. The British Chambers of Commerce (BCC) is playing a leading role in the Governments Get Britain Exporting agenda, by launching a new National Trade Skills Training programme. Developed after demand from employers for a national skills experience for their staff, the BCC is making a vital contribution to helping the Government achieve its target of creating 100,000 new exporters.
INTERNATIONAL TRADE STATISTICS: Documents issued:
23, 319 (YTD September 2018)
Value of exports:
ÂŁ1.24 billion (YTD September 2018)
23.44% growth in value of exports
Oman
India
Top 10 Destinations by Value
South Africa
Kuwait
Egypt
Qatar
Turkey
United Arab Emirates
Saudi Arabia
Azerbaijan
(September 2017 - September 2018)
(YTD September 2018)
Exports from the South East increased by 11.1% between 2016 and 2017
11.96% growth in documents issued (September 2017 - September 2018)
Published: November 2018 Tel: +44 (0)1753 870500 www.thamesvalleychamber.co.uk Thames Valley Chamber of Commerce Group | 150 Edinburgh Avenue | Slough | Berkshire | SL1 4SS