Cumbria Economic Summit - arresting decline and sustaining development

Cumbria Economic Summit

Arresting economic decline and delivering sustainable development were the key themes of a TUC Cumbria Economic Summit held at Bassenthwaite on Monday 16^th May 2005. Speakers included: Steve Broomhead, Chief Executive of the North West Development Agency (NWDA); Professor Frank Peck, Centre for Regional Economic Development, University of Central Lancashire; Mick Farley, Executive Director, Cumbria Learning and Skills Council (LSC); and Ralph Howard, Corporate Director, Cumbria County Council.

Cumbria is confronted by a series of acute challenges. While the County may be getting wealthier in absolute terms, it is also becoming relatively poorer. Between 1995 and 2002, Cumbria was the slowest growing UK sub-region in terms of Gross Value-Added (GVA) growth.

Cumbria has experienced steep industrial decline on its western coastal strip, leaving a residue of industrial dereliction and poor housing. Despite falling unemployment, many people remain economically inactive. In West Cumbria, a high proportion of people are permanently sick or disabled.

The decline of traditional industry has been countered at times by growth in newer industries, such as chemicals, pharmaceuticals, nuclear power and food processing. However, these sectors have also been affected by economic restructuring. Large parts of the County are heavily dependent on a relatively small number of major employers. Manufacturing matters, with employment one and half times more significant to Cumbria than it is nationally. At the same time, Cumbria is vulnerable to overseas competition, which has been illustrated by a spate of recent redundancies. Although net loss of manufacturing jobs has been offset by growth in distribution, tourism, hotels, catering and the public sector, the recent strong employment performance has not compensated for the job losses in the 1990s.

Cumbria struggles to attract investment due to its peripheral nature. Economic growth is constrained by poor transport, housing and employment sites. The absence of fast road links and effective public transport capacity impedes growth and fuels social exclusion.

Cumbria has a balance of skills that is skewed towards lower level qualifications. The County has no major university to attract high volumes of students, and most young people leave the area to enter HE. Many do not return due to a lack of graduate jobs. An ongoing review is taking place to assess how best to secure quality HE provision in Cumbria.

The population of Cumbria is expected to remain static over the next 20 years. The County has a relatively high proportion of people aged 50+ and a disproportionate number aged 15 to 34. Demographic projections provide little evidence to suggest that economic growth could emerge from an influx of highly skilled labour or from the additional purchasing power of a rising population.

In an attempt to provide a strategic framework to support the North West economy - including Cumbria - the NWDA is reviewing the current North West Regional Economic Strategy (RES). A draft of the revised Strategy will be out for public consultation from June for a 12-week period. Speaking at the Summit, Steve Broomhead, NWDA Chief Executive, invited trade unions to work with the Agency to help develop a North West RES that reflected the needs and aspirations of Cumbria, a process that will be taken forward by the Northern TUC Cumbria Forum.

Footnote: At the start of the Summit, Northern TUC Regional Secretary, Kevin Rowan, presented Jim McLean from Allerdale Trades Council with the TUC Silver Badge in recognition of his 25 years dedication and service to the trades councils.

For further information, please contact Peter O’Brien, Northern TUC Policy Officer on 0191 232 3175 or e-mail po’brien@tuc.org.uk