Oldham Strategic Investment Framework SIF 1 Contents 1

Oldham Strategic Investment Framework (SIF) 1

Contents 1. Scope 2. Challenges and opportunities 3. Vision and objectives 4. Investment framework 5. Making it happen Scope Challenges and Existing Future opportunities content prospects Economic Growth Performance Vision and objectives Making it happen and Competitiveness Investment framework Connectivity Agglomeration profiling Index (EGCI) 2

Scope Profile of Oldham Scope and purpose of the SIF The purpose of the SIF… Area – 142 sq km • Guide investment and development activity in Population – 228, 800 the short to medium term • A single document, expressing Oldham’s Employment – 91, 100 economic and investment ambitions • Identifies priorities for action, based on robust analytical research • Sets out an approach to delivery, focusing on the role of the Council • Provides an overarching linkage between the GMS, the Oldham plan and individual action plans • Audience – local partners and GM partners Scope Challenges and opportunities Vision and objectives Investment framework Making it happen 3

Business (1) GVA per capita is low compared with Greater Manchester, North West and UK GVA per employee (productivity) is also low Relatively poor employment change Growing proportion of employment has been part time and public sector Scope Challenges and opportunities Vision and objectives Investment framework Making it happen 4

Business (2) Key hightech sectors (2014) Sectoral strengths in: construction, textile and other manufacturing, logistics, wholesale and retail, personal and employment activities, education and health/social care Scope Challenges and opportunities Vision and objectives Oldham – jobs Oldham – Location Quotient GM – Location Quotient Rubber products 300 5. 46 1. 84 Plastics products 800 2. 17 1. 65 Electronic components and boards 400 6. 24 1. 10 1, 300 3. 94 1. 05 General purpose machinery Investment framework Making it happen 5

Business (3) Relatively low entrepreneurship levels Oldham is projected to perform relatively poorly in terms of forecast growth in employment and GVA Scope Challenges and opportunities Vision and objectives Investment framework Making it happen 6

Business (4) Oldham agglomeration balance Oldham both generates and receives agglomeration benefits Net agglomeration benefits delivered to: Rochdale Net agglomeration benefits received from: Manchester, Salford, Stockport, Tameside Oldham particularly benefits from proximity to Manchester Scope Challenges and opportunities Vision and objectives Investment framework Making it happen 7

People (1) High proportion in lower order occupations and earnings are relatively low Lower proportion of NVQ 4+ skills and higher proportion of no qualifications Median annual earnings (£) Oldham 2010 21, 442 2011 22, 120 2012 22, 050 2013 22, 080 2014 22, 936 2015 22, 810 Scope GM 23, 838 23, 939 24, 603 25, 000 24, 968 25, 512 NW 24, 291 24, 166 24, 646 25, 309 25, 324 25, 721 Challenges and opportunities GB 26, 000 26, 228 26, 559 27, 123 27, 315 27, 721 Improvement in skills base, albeit gap remains in relation to NVQ 4+ regional and national averages Higher than average increased in NVQ 2 level skills attainment Vision and objectives Investment framework Making it happen 8

People (2) Oldham has relatively high levels of unemployment Total population forecast to grow more slowly than GM average Working age population is also forecast to grow at a lower rate Scope Challenges and Existing Future opportunities content prospects Economic Growth Performance Vision and objectives Making it happen and Competitiveness Investment framework Connectivity Agglomeration profiling Index (EGCI) 9

People (3) Commuter balance (2011) Within LAD commuting Manchester destination commuting (net outflows to Manchester) Oldham has one of the higher intra-LAD commuting rates in GM Oldham has a low/moderate net Manchester commute rates in GM – there is a net outflow, but it is relatively modest – albeit before Metrolink Scope Challenges and Existing Future opportunities content prospects Economic Growth Performance Vision and objectives Making it happen and Competitiveness Investment framework Connectivity Agglomeration profiling Index (EGCI) 10

Place (1) Cluster of very high IMD areas in Oldham and North Manchester Scope Challenges and opportunities Vision and objectives Investment framework Making it happen 11

Place (2) Isolate areas – entrapment of poor households who are unable to break out of living in deprived areas; Transit areas – young or newlyestablished households coming from more ‘comfortable’ backgrounds and starting out on the housing ladder; Escalator areas – neighbourhood becomes part of a continuous onwardand-upward progression through the housing and labour markets; and Gentrifier areas - ones in which there is a degree of social improvement since most in-movers come from less deprived areas and most out-movers go to similarly or more deprived areas. Scope Challenges and opportunities Vision and objectives Investment framework Making it happen 12

Place (3) Housing market dominated by terraced properties (41% compared to 21% in North West) 71% of homes in lower end council tax bands A and B Scope Challenges and opportunities Oldham is projected to perform relatively poorly in terms of growth in new homes Vision and objectives Investment framework Making it happen 13

Place (4) Retail Commercial offices Large catchment but strong competition dominated by regional centre and Trafford Centre Greater Manchester - Regional centre dominates. Salford Quays – established “alternative” location, with diverse range of support businesses Catchment close to Oldham relatively poor, affecting type of shops attracted – but changing with M&S decision to invest Spindles Shopping Centre – principal retail centre, relatively good quality but limited investment Traditionally significant leakage of expenditure Need to ‘energise’ town centre offer with complementary niche retail and leisure/restaurant – significant progress with Old Town Hall, Independent Quarter and leisure centre Scope Challenges and opportunities Office market in town centre traditionally dominated by public sector users, with private sector demand mainly from local professional companies However, it may be possible to change these market conditions given the accessibility of the town centre/key business park and relatively ‘inexpensive’ land/premises Vision and objectives Investment framework Making it happen 14

Place (5) Leisure Industrial and specialist sectors Traditionally thriving bar/club culture, which can make it difficult to attract other users to the town centre – but being addressed on Yorkshire Street Projected continued decline of employment in traditional manufacturing industries but growth in GVA Also previously not well provided with other forms of leisure Lack of cinema and expanded family leisure market being addressed through Old Town Hall development New Leisure Centre will also expand the offer Scope Challenges and opportunities Dereliction and poor environmental quality and premises in traditional industrial area Need to ensure availability of good quality modern accommodation if firms are to compete effectively (e. g. Foxdenton and Hollinwood) Potential for growth in some sectors, such as logistics – but need for large well accessed sites (potential issue of Green Belt land release) Vision and objectives Investment framework Making it happen 15

Place (6) Good access to motorway network Metrolink provides greatly improved public sector accessibility to Manchester and Rochdale Around 8, 000 passengers start or finish their Metrolink journey in Oldham each day Good availability of Superfast Broadband Scope Challenges and opportunities Vision and objectives Investment framework Making it happen 16

Realising the potential (1) – Productivity performance Oldham Productivity Performance Asset Contribution to Productivity (GVA (£) per hour & England Decile) (GVA (£) per hour – GM Profile) Oldham faces significant development challenges: Scope • Underperformance in all asset groups • Particularly weak in terms of: skills, access and industrial structure • Other primary weaknesses in terms of: property, housing and enterprise Challenges and opportunities Vision and objectives Investment framework Making it happen 17

Realising the potential (2) – competitive advantage: Employment Sectors of potential local competitive advantage in terms of employment change are shown in the top right quadrant Scope Challenges and opportunities Vision and objectives Investment framework Making it happen 18

Vision and objectives – Strategic context Place Marketing Strategy National strategies and polices Housing Strategy GM strategies and plans The Oldham Plan The Corporate Plan Economic Framework Oldham Strategic Investment Framework Interim Education Strategy Conditions mean a comprehensive Investment Framework is required Scope Challenges and opportunities Local Development Plan Invest in Oldham prospectus Vision and objectives Investment framework Making it happen 19

Vision and objectives – Structure (1) Oldham Plan Corporate Plan Investment, skills and good quality jobs A productive place, where business and enterprise thrive Strategic Investment Framework Delivering the Economy and Skills objectives by securing investment and growth and improving the quality of life of Oldham residents Aims Contributing positively to the sustainable growth of Greater Manchester and the Northern Powerhouse by realising the opportunities Removing the ‘drag effect’ on Greater Manchester – higher levels of inequality are associated with lower growth in particular in large cities 1 OECD Regional Development Working Papers 2014/10 – Income Inequality, Urban Size and Economic Growth in OECD Regions Scope Challenges and opportunities Vision and objectives Investment framework Making it happen 20

Vision and objectives – Structure (2) The Oldham Plan The Corporate Plan Oldham SIF Skilled, educated and dynamic workforce Decent, secure and well-paid jobs A working borough: create job opportunities for local people People More inward investment More business startups and increased survival rates Open for business: a place to invest and do business Business Strategic objectives Economic priorities Actions Place that supports economic growth, encourages enterprise and capitalises on new technology Scope A regenerated borough: transform Oldham into a vibrant borough Challenges and opportunities Place Vision and objectives Investment framework Making it happen 21

Vision and objectives – Strategic objectives People Develop a skilled, educated and dynamic workforce Support people into decent, secure and well-paid jobs Business Achieve a balanced local economy, more inward investment and a strong position in GM Enable more business start-ups and increase survival rates Place Ensure we are a place that supports economic growth, encourages enterprise and capitalises on new technology Create a town centre that meets local residents needs and wants, is a thriving place for business and attracts visitors to the borough Scope Challenges and opportunities Vision and objectives Investment framework Making it happen 22

Investment Framework – Overview Investment, skills and good quality jobs Business People Education and Skills • Skills for Growth Programme • Higher level apprenticeships • Enhanced FE/HE business offer • Schools & Business Programme Employment • Employability programme • Social Inclusion Programme Place Enterprise development • Sector development • Supply chain development • Inward investment • Business advice, support and mentoring • Entrepreneurship support Finance/capital • Access to finance • Promoting awareness of funding sources R&D&I • Technology transfer and R&D • Innovation Initiatives Infrastructure • Transport Investment • Broadband • Cultural assets • Other Infrastructure Investment Land premises • Town centre • Sites and Premise Programme • District centres • Co-Investment Vehicle • Land disposal Housing • Market support programme • Land disposal • Co-Investment Vehicle Marketing and promotion • Marketing programme Logistics Scope Construction / property Challenges and opportunities Key manufacturing sub-sectors Health & social care Vision and objectives Retail / leisure Professional & business support / back office services Investment framework Making it happen 23

Investment Framework – People Economic Priorities Education and skills Employability and social inclusion Scope Programmes / actions Projects / activities Schools and business • Ambassador programme (STEM/priority growth sectors) • ‘Careers offer’ – high quality advice and guidance • Education/Industry skills exchange Enhanced vocational FE offer • Targeted marketing and communications with GM Apprenticeship hub • ‘Skills offer’ – via GOW; MGC (Business Hub; Skills Company) • Employer engagement/intelligence to ensure demand led curriculum, to address skills gaps and shortages Higher level skills • Promote benefits of industry/HE collaborations • Higher level apprenticeships (GM Apprenticeship hub) • Graduate retention; Knowledge Transfer Partnerships Skills for growth • Tailored/bespoke training for priority growth sectors (short course; workplace delivery) • Upskilling, CPD • Collaborative training initiatives (shared apprenticeships) for priority growth sectors Social inclusion programme • Outreach engagement – IAG/support to overcome barriers (finance, skills, health and well being) • Single point of contact – e. g. Positive Steps • Social cohesion – volunteering; participation Employability programme • Sector based academies • ILM support • Access routes through to higher level provision (community provision) Challenges and opportunities Vision and objectives Investment framework Making it happen 24

Investment Framework – People: education & skills Scope Challenges and opportunities Vision and objectives Investment framework Making it happen 25

Investment Framework – People: employability & social inclusion Scope Challenges and opportunities Vision and objectives Investment framework Making it happen 26

Investment Framework – Business Economic priorities Enterprise development Programmes / actions Projects / activities Sector development (including sector groupings) • Develop sector growth plans Supply chain development • • Deliver bespoke programmes responding to specific needs Developing supply linkages (in particular in target sectors) Inward investment • • Supply chain efficiency improvements – particularly to meet tier 1 supplier requirements Work with GM and UKTI partners to target inward investment opportunities • Develop packaged support to new investors • • Deliver aftercare support Identify businesses with growth potential and develop Oldham Business Account working with other providers • Development of incubation/innovation centres (e. g. as part of new office quarter) • Develop shared business engagement and support programme working with Oldham Chamber and others • Develop business support campaign • Tailoring business support to meet Oldham’s needs Business advice, support and mentoring Scope Challenges and opportunities Vision and objectives Investment framework Making it happen 27

Investment Framework – Business Economic priorities Finance/capital Programmes / actions Projects / activities Access to finance • Develop a grant/loan scheme including turnover rent offer for Council premises for start-up businesses • Develop rent/rates scheme/policy that supports delivery of objectives • Marketing and signposting support to raise awareness • Assisting businesses to access funding including venture capital • • Develop relationship with local banks Development of health centre of excellence • Maximise the benefits of existing assets • • Assisting businesses to access the results of research Promote innovation and the adoption of new technologies – including green technologies • Work with target sectors to promote innovation Promoting awareness of funding sources R&D&I Technology transfer Innovation programme Scope Challenges and opportunities Vision and objectives Investment framework Making it happen 28

Investment Framework – Business: sector development Target sector supply side requirements Sector Workforce skills Land premises IT infrastructure Transport access Priority locations Logistics Relatively low skilled. Some higher level Range from very large to medium / small warehouse space. Sensitive to occupational costs Intermediate capacity Very good road access to markets and suppliers M 60 employment zone. Possible new allocation Health and social care Medium to high level skills Office or medical accommodation. Potential to develop clustered centre of excellence Intermediate to high capacity. Potential to further develop ehealth and e-wellbeing Good quality access, in particular for patient focused services Town centre / central locations Support / back office services Low to medium level skills Office accommodation close to public transport and other facilities Potentially high capacity Good quality access for workers Town centre / business parks Leisure / retail Low – medium skilled. Key role of Hotel Futures New facilities and developments (e. g. Old Town Hall) Low – medium capacity Good quality access Town Centre/district centres Key manufacturing sectors (advanced) Medium to high level skills Manufacturing Intermediate capacity Good quality access Key business parks Construction / property Low to high level skills Office accommodation / yard and storage Low capacity Good quality access Town Centre / industrial areas 29

Investment Framework – Place Economic priorities Land Premises Programmes / actions Projects / activities Town Centre (e. g. office quarter) • • • Hollinwood • • • Foxdenton Broadway Business Park Greengate District Centres Co-Investment Vehicle Land disposal and lettings policy Potential new strategic employment site Scope Challenges and opportunities Completion of key projects – Prince Street Gate, Old Town Hall and Public realm Delivery of Hotel Future, New Coliseum and Heritage Centre and Bloom Street projects Development of office quarter Delivery of town centre residential Delivery of Civic Centre Scheme Delivery of town centre quarters/areas such as independent quarter and Tommyfield market Removal of gas holder and site servicing Phase development by joint venture Delivery of other Hollinwood sites Work with joint venture to deliver scheme – addressing access issues Promote and market development Develop district centre development plans Royton Town Centre development Chadderton and Shaw programmes Complete establishment of vehicle Identify and deliver initial phase of scheme Continued strategic approach to land disposal – working with investors, developers and coinvestment vehicle • Develop a Property Lettings and Investment Policy to focus our attention on attracting quality tenants to existing premises • Update Corporate Asset Strategy • Potential release of green belt land near Stakehillto accommodate a new strategic employment site Vision and objectives Investment framework Making it happen 30

Investment Framework – Place Economic priorities Housing Infrastructure Programmes / actions Projects / activities Market support programme • Advice/support to developers to access public sector funding • Promote delivery of key sites such as Lancaster Club and Fletchers Mill • Specific actions targeted at vacant properties, private rented sector, key groups and retrofitting Land disposal Co-Investment Vehicle • Continued strategic approach to land disposal – working with investors, developers and co -investment vehicle • Directly invest in the deliver of housing through the Co-Investment vehicle Transport • Work with Tf. GM to deliver programme of strategic and local improvements/investments Broadband • • Cultural assets Marketing and promotion Scope Marketing programme Challenges and opportunities Continued improvements to broadband Wi. Fi infrastructure Support demand stimulation Delivery of New Coliseum and Heritage Centre projects Enhance use of existing assets – Gallery, libraries, etc • Update/refresh Place Marketing Strategy • Implement plan through co-ordinated – advertising, stakeholder engagement, production of new marketing materials, event delivery, enquiry/customer relationship management, and embedding key messages in documents • Continue to develop a suite of prospectus’ • Develop role of ‘Oldham Ambassador’ • Develop Tourism campaign and offer • Develop a shared business events calendar with partners Vision and objectives Investment framework Making it happen 31

Investment Framework – Place: spatial framework 32

Investment Framework – Place: Town Centre framework Town Centre Framework Scope Challenges and opportunities Vision and objectives Investment framework Making it happen 33

Investment framework – Targets Indicators Oldham baseline GM baseline Oldham target (2030) % working age residents with NVQ 3/4+ 43% 53% % working age residents with no qualifications 16% 11% Rate of improvement at or above GM average Percentage achieving 5+ A*-C GCSEs 52. 4% 56. 2% Employment rate (16 -74) 61. 6% 64. 6% Median annual earnings of Oldham residents £ 22, 810 £ 25, 500 GVA per capita £ 14, 593 £ 20, 615 Number of active enterprises (per 10, 000 pop) 290 354 Number of business births (per 10, 000 pop) 38 52 7, 631 (£ 156. 4 m) - >8, 250 (£ 170 m) 29% 34% 16. 3% [] Rate of growth at or above GM average Retail expenditure retained within the borough [] - [ ]% Number of inward investment enquiries [] - [] Number of commercial properties and rateable value % homes in Council tax band C-G Vacancy rate within town centre Scope Challenges and opportunities Vision and objectives Investment framework Rate of growth at or above GM average Making it happen 34

Investment Framework – Direct impacts: Jobs • Economic impact model Target growth rate developed to demonstrate benefits of Oldham ‘closing the gap’ with GM +3, 400 jobs +4, 700 jobs • Two growth scenarios: +2, 700 jobs o Match GM growth rate o Higher than GM growth rate (sufficient to remove employment rate gap by 2030) • It is estimated that to narrow the employment rate gap compared to the GM average, some 4, 700 or more jobs will have to be created above the base forecast (+2, 700) Scope Challenges and opportunities Vision and objectives Investment framework Making it happen 35

Investment Framework – Direct impacts: Enterprise • The achievement of the SIF Target growth rate aims would also help to reduce the ‘enterprise gap’ within Oldham +250 businesses +340 businesses • To ensure that Oldham does +190 businesses not fall further behind the GM average, it is forecast that an 340 additional businesses will need to be created above base forecasts (+190 businesses) Scope Challenges and opportunities Vision and objectives Investment framework Making it happen 36

Investment Framework – Direct impacts – GVA • Jobs growth would drive 47% increase in GVA between 2015 and 2030, compared to 39% under base scenario • Productivity improvements could increase this growth rate to 53% Scope Challenges and opportunities Vision and objectives Investment framework Making it happen 37

Investment Framework – Consequential impacts: GVA • OECD research – assess whether/how income inequality is associated with regional growth • Assessment period covers 2004 – 2010, which may affect results • Simulations prepared using OECD results applied to Greater Manchester • Required construction of specific database designed to mimic OECD dataset – included development of Gini coefficients for GM and each borough Indicators Simulation 1 Simulation 2 Simulation 3 GM inequality reduced by 1% +1. 04% +2. 46% +1. 66% GM inequality reduced by 5% +5. 3% +12. 76% +8. 45% GM inequality reduced by 10% +10. 8% +26. 59% +17. 29% Scope Challenges and opportunities Vision and objectives Investment framework Making it happen 38

Investment Framework – Consequential impacts: Public sector savings and revenues • Potential for public sector savings between 2015 and 2030 of £ 141 million, comprising of savings in benefits payments and savings to the NHS related to a reduction in health care costs associated with being out of work • Additional locally retained business rates of £ 28 million (50% retained, no reset), support £ 22 million of TIF funding • Generation of some £ 11 million of additional Council tax and New Homes Bonus revenues due to housing development Scope Challenges and opportunities Vision and objectives Investment framework Making it happen 39

Making it happen – delivery arrangements • Focused delivery team with clear roles/responsibilities • Governance – Leadership Board Economy and Skills • Process and procedures o Investment Planning cycle o Programme management o Projects • Partnerships and linkages – establishment of clear and effective partnerships and working arrangements at a project-by-project level Scope Challenges and opportunities Vision and objectives Investment framework Making it happen 40

Making it happen – approach • Investment Plans – prioritise actions by area and programme • Targeted, sequenced and joined-up investments – projects and programmes developed to meet funding criteria. Based on £ 20, 000 -£ 30, 000 public investment per net additional job, some £ 220 million - £ 330 million will be required over 15 years (£ 15 million - £ 22 million per annum) • Maximise leverage of private sector resources (joint ventures, packaging of projects, use of public sector assets. . . ) • Communication strategy – Investment Prospectus (building on, for example, the Residential Development and Town Centre Documents) Scope Challenges and opportunities Vision and objectives Investment framework Making it happen 41