Policy GESP9: Economic Targets
In order to improve wellbeing and raise the standard of living in the Greater Exeter area the following targets are set for the economy by 2040:
- Double the size of the economy to £20 billion
- Increase average (median) earnings to above the national average (median)
- Increase the number of jobs by 35,000
6.3 Economic success is one of the three arms of sustainable development, providing jobs, income and wealth to the local population as well as contributing to the region and This success is necessary for standards of living and quality of life; through a thriving economy, offering jobs and prospects for local people and attracting the inward investment needed to deliver infrastructure and community facilities. Monetary values are in 2018 prices.
6.4 Greater Exeter is dynamic and The Economic Development Needs Assessment states that with Exeter at its heart it has experienced strong economic and job growth in recent years. The Greater Exeter area currently has a very good balance of jobs to people (92 jobs per 100 working age people in 2017, compared to a national figure of 83 per 100). The assessment suggests that this success is likely to be maintained with continued jobs growth.
6.5 Nevertheless it would be foolish to take a relaxed view of our prospects; there will always be risks to the local economy so significant investment continues to be necessary to improve local economic resilience. The GESP needs to give due prominence to the economic needs of the area; draft policy GESP9 sets three central economic targets which build on the vision and our evidence, taking full account of the Local Enterprise Partnership’s
6.6 The Local Enterprise Partnership has published the Productivity Strategy and has drafted a Local Industrial Strategy. The headline target is to double the size of the economy, and therefore we consider this target should be carried into the This will be partially related to the jobs growth target, but a significant element of achieving this will be through increased productivity (as the strategy name implies). Productivity is the key to delivering better wages, better jobs, stronger businesses, better public services and a fantastic place for people and businesses to live and work. Taking an approach which considers the specific circumstances of a place is a building block for addressing the productivity challenge; we are proposing policies for the GESP that address the specific constraints that hold us back as an area and deliver the sites and projects that will have the most productive outcomes.
6.7 By concentrating on productivity, we want annual earning across the GESP area to increase in line with our draft GESP vision. Wages are below the national average. The 2017 estimated median full time wage was £26,281 in the Greater Exeter area, whereas in England and Wales the figure was £28,933. The main levers to improve productivity are considered to be:
- Improved housing affordability which improves labour mobility and access to skilled workers by local firms, including the retention of young talented people within the area
- Expansion of key high productivity economic sectors
- Improved training, skills and education
6.8 Draft policies and proposals included in later chapters help to deliver on these factors.
6.9 Despite the existing healthy job availability, continued population growth over the plan period will occur, so additional jobs in the area will be needed. The growth in working age population to 2040 is expected to be about 30,000. The Economic Development Needs Assessment calculates that 35,000 additional jobs (a 13% increase) is feasible, which is broadly consistent.