business focus EY: join the debate on the
Thames Valley’s future growth Professional services firm EY has combined publication of its new study The Thames Valley – a Framework for Growth with a call for business leaders to come together and provide joined-up thinking on the region’s priorities
The Thames Valley needs a clear voice, says EY, which has taken on the challenge of driving debate on how to achieve sustained medium and long- term economic growth.
Historically, such a voice was perhaps unnecessary. After all, the Thames Valley has enjoyed decades of prosperity. That upward trajectory should continue, for now at least. EY predicts that the Thames Valley is due to be the UK’s fastest-growing region over the next three years, with growth of 2.3%. This compares with 2.2% for London, 2.0% for the broader South East, and the UK average of 1.8%. But EY’s study raises a note of caution.
“What we are trying to do is act as a catalyst and offer a framework for a debate about whether an integrated plan of action would help drive economic growth for the benefit of business and communities in the Thames Valley,” said Richard Baker, EY managing partner, Thames Valley and south. “Feedback so far from business leaders is that what the study has done is bring together a set of messages that everyone has been feeling, but no one has articulated yet in a joined-up way.”
EY’s concern is that doing nothing is no longer an option. The study looks at the main threats to the region’s economy of cost and congestion, along with the risk of complacency. It outlines three key enablers for economic growth of productivity, innovation and competitiveness, and links these to five dimensions (see chart).
“Our view is that unless the Thames Valley starts behaving more like an economic region, with more action taken to move forward on a region- wide basis, then we are not going to deliver the growth we are capable of,” said Baker.
There is a positive mood by businesses to act, according to David Rutherford, EY’s head of growth markets, Thames Valley. He said: “When we started our research and discussions with businesses one thing that came
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UK average for the number of school and further education students, and more people aged 30-45. However, EY noted that the region has a lower than expected proportion of people in their 20-30s. That means the Thames Valley is light on millennials, the digital natives driving the Fourth Industrial Revolution.
“This was a surprise,” said Baker. “Part of the reason could be cost, particularly housing. It is creating the challenge of a shortage of talent, especially given the low levels of unemployment in the region.”
Richard Baker
out very clearly was how much the community cares about the region. Without care, we won’t see action, and without action progress can’t be made.”
A sense of identity
The lack of a plan covering all of the Thames Valley makes it difficult for central government to assess what support it should provide to the region. And that could be to the detriment of the UK, noted Baker: “Given the broader context of global macro- economic drivers and Brexit, the Thames Valley is a really important portal for the UK’s success. Our region has a multiplier effect.”
With no recent history of the Thames Valley under-performing, it is hard to know what might happen if the region faltered. Rutherford said: “Quite rightly, the Government focuses on supporting economic growth in key parts of the UK. We are saying it should not be banking on the Thames Valley’s performance – it needs to allocate some of its capital here to sustain growth.”
Unexpected demographic trends
The study identified some interesting demographic trends. For example, the Thames Valley has more than the
David Rutherford THE BUSINESS MAGAZINE – MAY/JUNE 2018
Another unexpected trend was that while the Thames Valley has plenty of entrepreneurial talent, the age demographic is towards older, more experienced people – the ‘grey entrepreneurs’. Typically, they have had successful careers and are now seeking other ventures.
Education underpins success
The study brings out the important role universities play in the region’s economic success. “We have a heady mix of corporations, entrepreneurs and universities. We need to find ways of making much more of these linkages and collaborations,” said Baker.
For example, while Oxford has a global reputation for research, the university’s world ranking in terms of the number
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