Tay Cities Prospectus for Regional Growth (2025-2035) and Perth and Kinross Economic Action Plan (2025-2030)
Perth and Kinross Council · 5 February 2025
Back to Economy and Infrastructure Committee — 5 February 2025 and its agenda
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Perth and Kinross Council Economy and Infrastructure Committee 5 February 2025 Tay Cities Prospectus for Regional Growth (2025-2035) and Perth and Kinross Economic Action Plan (2025-2030) Report by Strategic Lead – Economy, Development and Planning (Report No. 25/27) 1. Purpose of Report 1.1 The purpose of this report is to provide information on the Tay Cities Prospectus for Regional Growth (2025-2035) and to endorse the draft Perth and Kinross Economic Action Plan (2025-2030) developed by the Perth and Kinross Economic Partnership before it goes out for public consultation. 2. Recommendations 2.1 It is recommended that the Committee: (i) Note the Tay Cities Prospectus for Regional Growth (ii) Endorse the draft Perth and Kinross Economic Action Plan developed by Perth and Kinross Economic Partnership (iii) Note that the Strategic Lead - Economy, Development & Planning will carry out a public consultation on behalf of Perth and Kinross Economic Partnership, and following consultation, to finalise the Action Plan with Perth and Kinross Economic Partnership for delivery from 1st April 2025. (iv) Request that officers bring back annual progress reports to this Committee for consideration. 3. Structure of Report Introduction Section 4: Background/Context Section 5: Tay Cities Prospectus for Regional Growth Section 6: Draft Perth and Kinross Economic Action Plan Conclusion 4. Background/Context 4.1 The Tay Cities Regional Economic Strategy (2019-2039) was approved by the Tay Cities Joint Committee in September 2019. The priorities identified in the Strategy provided the basis for the Tay Cities Deal (2019-2030) which was signed on 17 December 2020. The Tay Cities Deal has provided £300m to support 26 programmes and projects across the region. 4.2 In March 2021, a Perth and Kinross Economic Wellbeing Plan (2020-2028) was approved by the Council (Report 21/37) to address the challenges arising from the economic and social impacts of the Covid-19 pandemic and identified
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a range of interventions required to ensure recovery of the local economy. A progress report was provided to Council on 27 April 2022 (Report 22/105 refers). 4.3 A current review of the 83 projects listed in the Economic Wellbeing Plan highlights that as of January 2025; 33% have been completed; 39% are on- going projects or currently in delivery; 7% have been delayed; and 21% were not taken forward/failed to secure funding. Appendix 3 highlights a summary of several key projects within the Plan which have been delivered or are ongoing, which have created significant outcomes for individuals, businesses and places. 4.4 Since 2019, there have been several major changes to the economic and social context at a local, national and international level. These include recovery from the Covid-19 pandemic, war in Ukraine, cost of living crisis, a new National Strategy for Economic Transformation, Fair Work legislation, Community Wealth Building ambitions, Scotland green industrial strategy, proposals for a new UK Industrial Strategy from the new UK Government, and the need for a Just Transition to Net Zero. 4.5 In 2024, there was an agreement at regional level to review the Tay Cities Regional Economic Strategy, which concluded that there was a need to focus on fewer and more transformational opportunities to deliver regional economic growth from 2025. To that end, a Tay Cities Prospectus for Regional Growth (2025-2035) was approved by the Tay Cities Joint Committee in December 2024. 4.6 In 2024, the Perth and Kinross Economic Partnership agreed that a new Economic Action Plan was needed to ensure that local actions remained relevant and were in line with the regional transformation opportunities outlined in the Prospectus. During the summer/autumn of 2024, a series of design led thinking workshops were held to support the development of the new Economic Action Plan. 5. Tay Cities Prospectus for Regional Growth (2025-2035) 5.1 Within the context of the Scotland's National Strategy for Economic Transformation, the economic mission for the Tay Cities Region is unchanged - we want to be one of the most productive knowledge-led economies, whilst ensuring that we become smarter, greener and fairer. To do this we will work to: • Attract investment for innovation and infrastructure • Develop, retain and attract talented people • Improve physical and digital connectivity to, from and around the region • Increase economic participation and reduce inequalities 5.2 The Prospectus for Regional Growth (2025-2030) has been developed to attract external investment into the Tay Cities region, focussing on four key priority opportunities: • Clean growth for smarter and sustainable places
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• Life sciences, health and agri-tech • Tourism and culture • Creative, digital, cyber and games economy 5.3 Continued investment in skills and talent and connectivity – both digital and physical - will underpin these opportunities. 5.4 The Committee is asked to note the Tay Cities Prospectus for Regional Growth (2025-2035). Appendix 1 provides more detailed information. 6. Perth and Kinross Economic Action Plan (2025-2030) 6.1 The draft Perth and Kinross Economic Action Plan 2025-2030 (Appendix 2) has been developed through a collective effort of the Perth and Kinross Economic Partnership who will be responsible for its implementation and monitoring. 6.2 The Perth and Kinross Economic Partnership partners are: • Department for Work and Pensions • GrowBiz • Elevator (including Business Gateway) • Scottish Enterprise • Skills Development Scotland • Perthshire Tourism Partnership • VisitScotland • Perth and Kinross Association of Voluntary Services • UHI Perth • Perthshire Chamber of Commerce • Federation of Small Businesses • Perth and Kinross Business Partnership • Perth and Kinross Council 6.3 The Action Plan sets out the approach Perth and Kinross Economic Partnership will take over the next five years (2025-2030) to grow a stronger, greener, fairer and more sustainable economy for Perth and Kinross. The Action Plan has been developed through research of the evidence base, stakeholder engagement, and a deep understanding of our unique strengths and needs. 6.4 It outlines the context and the actions that we need to deliver to address the challenges we face. It will guide the Partnership to deliver economic development actions collectively and help the Partnership to focus and prioritise resources and galvanise support around both public and private investment in Perth & Kinross. 6.5 The key objectives include: • Supporting our local businesses to grow, attract jobs and investment • Tackling inequalities • Supporting the transition to net zero.
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6.6 In addition to the key objectives, the Action Plan aims to: • Capture and lead on regional opportunities. • Strengthen Perth and Kinross Economic Partnership around enterprising, customer-focused and shared resources. 6.7 The Action plan supports the delivery of Perth and Kinross Council’s Corporate Plan’s seven priorities, focusing predominately on the following two: • Developing a resilient, stronger and greener local economy by promoting business creation and growth, skills development and job creation. • Tackling poverty by promoting access to training and jobs to people experiencing, or at risk of, experiencing poverty. 6.8 The Action plan works alongside key Perth and Kinross place-based strategies: • Local Development Plan linking to the National Planning Framework 4 • Local Housing Strategy linking to the National Housing Strategy – Housing to 2040 • Mobility Strategy linking to Regional and National Transport Strategies 6.9 Together, the Action Plan and place-based strategies support essential local strategies listed below: • Anti-Poverty Strategy for Perth and Kinross 2024-2030 • Employability Strategy and Action Plan • Perth 2040 linking to Perth City Development and Design Framework • Climate Change Strategy & Action Plan • Perth and Kinross Council Local Area Energy Plan 2024-2045 • Perthshire Tourism Strategy and Action Plan runs until 2025. • Perth and Kinross Culture Strategy 2023-2028 • Raising Attainment Strategy 2024-2027 • Carers Strategy 2023 to 2026 • Perth and Kinross Physical Activity and Sports Strategy 2023-2028 • Community Learning and Development Plan 2024-2027 • Mental Health and Wellbeing Action Plan 6.10 The Action Plan emphasise the advantages that Perth and Kinross has for its strategic location and excellent transport links; its rich heritage; vibrant arts scene; world class environment and quality of life. Overall, our economy has good foundations to grow and is a proven world-class leader in food & drink, tourism and finance sectors. It can build on its strong business creation and survival performance to strengthen business growth in key sectors. However, the Plan also emphasises that not everybody is benefiting from these positive economic opportunities, and further efforts need to be made for household experiencing or be at risk of poverty. 6.11 The Action Plan highlights that if we are to create a place where everyone can truly live life well, we must focus our collective effort to address several grand challenges. These grand challenges are:
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• Economic Growth - Our economy experiences and will experience a slow and fragile growth with some of our sectors more exposed to external events and need to grow our micro, small and medium businesses. However, there are sectoral growth opportunities and a strong enterprise base. Perth and Kinross have recently been named as the top UK area for having the strongest growth potential opportunities amongst its businesses (Growth Flag, 2025). • Technological Change - Our economy experiences technological change from automation and digital transformation and some of our jobs are more exposed and at risk (estimated 33,000 jobs). However, there are also growth opportunities in the digital, AI and fintech industries that we need to attract more of, particularly when applied to other sectors. • The Transition to a Net-zero Carbon Economy - Our economy needs to transform to net zero and some of our sectors are at risk of lagging behind due to costs, new norms or skills shortage. However, there are also growth opportunities and for Perth and Kinross to become a leader in this field. Perth and Kinross have already been identified as one of top UK areas which stand out with particularly high concentrations of Net Zero GVA at 13%. (Ref. CBI Economics and The Data City 2024). • Tackling Inequalities - Our local economy does not offer the same positive economic opportunities for everyone with significant earnings disparities and people experiencing or at risk of poverty due to insecure or low paid employment. However, there are skill shortages and job opportunities in some growth sectors that could be the route to more well- paid and secure jobs. 6.12 For each grand challenge, the Partnership has identified the evidence it has and what it means in terms of actions. The Partnership has then identified what it will be focusing on, what it is aiming for and what actions it will deliver. 6.13 Appendix 2 provides more detailed information on each action. It is important to note that the action plan does not list all the actions that each partner organisation is delivering individually but focuses on actions which would bring added-value or addresses where partnership working, and delivery, will really make a difference. 6.14 For each action, costs and funding sources have been estimated or in some cases will have to be confirmed. Existing budgets will be optimised as much as possible, and external funding sought to support each action when relevant. 6.15 The Committee is therefore asked to endorse the draft Perth and Kinross Economic Action Plan developed by Perth and Kinross Economic Partnership in advance of public consultation. 6.16 Perth and Kinross Economic Partnership intends to carry out a public consultation in February/March 2025 with residents, businesses and communities. The Council will organise the consultation on behalf of the Partnership.
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6.17 Following consultation, the Partnership will finalise the Action Plan and the delivery would start from 1 April 2025. 6.18 The Partnership will review the progress of the Action Plan annually and it is proposed that annual progress reports are submitted to this Committee for consideration. 7. Conclusion 7.1 The Perth and Kinross Economic Action Plan sets out the Council and its economic development partners’ proposed response to the challenges facing our local economy. Within the context of Scotland's National Strategy for Economic Transformation, the actions set out in the Action Plan will contribute to the delivery of the Tay Cities Regional Economic Strategy (2019-2039), the priority opportunity themes, and the regional-scale projects identified in the Tay Cities Region Prospectus for Regional Growth (2025-2035). The Action Plan will require best use of existing budgets and seeking additional revenue and capital resources from external funding sources. 7.2 Following consideration by the Committee, a public consultation will take place and following consultation, the Action Plan will be finalised, and the delivery will start from 1 April 2025. Annual progress reports will be submitted to this Committee. Authors Name Designation Contact Details Steve MacDonald Economic Development Manager – Business, Place and Investment EPLCommitteeReports@pkc.gov.uk (01738) 475000 Alison Seggie Economic Development Manager – People, Partnerships and Funding Authorised Name Designation Contact Details Serge Merone Strategic Lead – Economy, Development & Planning 29 January 2025 APPENDICES Appendix 1 – Tay Cities Prospectus for Regional Growth Appendix 2 – Draft Perth and Kinross Economic Action Plan Appendix 3 - Examples of Projects and Outcomes Delivered via the previous Economic Wellbeing Plan
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ANNEX 1. Implications, Assessments, Consultation and Communication Strategic Implications Yes/None Community Plan/Single Outcome Agreement Yes Corporate Plan Yes Resource Implications Financial Yes Workforce No Asset Management (land, property, IST) No Assessments Equality Impact Assessment Yes Strategic Environmental Assessment Yes Sustainability (community, economic, environmental) Yes Legal and Governance Yes Risk Yes Consultation Internal Yes External Yes Communication Communications Plan Yes 1. Strategic Implications Community Plan/Single Outcome Agreement 1.1 This section sets out how the proposals relate to the delivery of the Perth and Kinross Community Plan/Single Outcome Agreement in terms of the following priorities: (i) Giving every child the best start in life; (ii) Developing educated, responsible and informed citizens; (iii) Promoting a prosperous, inclusive and sustainable economy; (iv) Supporting people to lead independent, healthy and active lives; and (v) Creating a safe and sustainable place for future generations. This report relates to Objectives (iii). Corporate Plan 1.2 This section sets out how the proposals relate to the achievement of the Council’s Corporate Plan Objectives: (i) Giving every child the best start in life; (ii) Developing educated, responsible and informed citizens; (iii) Promoting a prosperous, inclusive and sustainable economy; (iv) Supporting people to lead independent, healthy and active lives; and (v) Creating a safe and sustainable place for future generations. This report relates to Objective (iii).
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2. Resource Implications Financial 2.1 The recommendations in this report do have financial implications. For each action, specific funding sources have already being identified in existing budgets. When funding sources have not been identified, these will be identified from existing budgets or considered during the budget setting process in future years or from external funding sources Workforce 2.2 The recommendations in this report do not have any direct implications for the Council’s workforce. However, it is likely that some staff may be required to undertake different duties to allow implementation of the Economic Action Plan. Asset Management (land, property, IT) 2.3 There are no direct Asset Management implications arising from this report. However, some potential actions in the plan could have implications for Council assets. 3. Assessments Equality Impact Assessment 3.1 Under the Equality Act 2010, the Council is required to eliminate discrimination, advance equality of opportunity, and foster good relations between equality groups. Carrying out Equality Impact Assessments for plans and policies allows the Council to demonstrate that it is meeting these duties. An Equality Impact Assessment will be carried out on the final version of the plan following public consulation. One of the main focus of the Action Plan is on tackling inequalities and officers will ensure that implementation can benefit all groups in society and reduce barriers to participation. Strategic Environmental Assessment 3.2 The Environmental Assessment (Scotland) Act 2005 places a duty on the Council to identify and assess the environmental consequences of its proposals. An Environmental Impact Assessment has been undertaken for the Tay Cities Regional Economic Strategy of which the Perth and Kinross Economic Action Plan is a sub-set/workstream, and as such should not require its own Assessment. However, some actions in the Action Plan could require an Environmental Impact Assessment which would be carried out as needed. Sustainability 3.3 Under the provisions of the Local Government in Scotland Act 2003, the Council has to discharge its duties in a way which contributes to the achievement of sustainable development. Under the Climate Change
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(Scotland) Act 2009, the Council also has a duty relating to climate change and, in exercising its functions must act: • in the way best calculated to delivery of the Act’s emissions reduction targets; • in the way best calculated to deliver any statutory adaptation programmes; and • in a way that it considers most sustainable. Legal and Governance 3.4 The Strategic Lead, Legal and Governance has been consulted on this report. The recommendations in this report do not have any direct legal implications. The Perth and Kinross Economic Partnership owns the delivery of the Action Plan and Perth and Kinross Council is one of the partners. However, some actions in the Action Plan may have legal implications and assessments would be carried out as needed. Risk 3.5 The development of the Perth and Kinross Economic Action Plan is a significant piece of work, which will cover a 5 year period of time and effect what the Council and its partners do. There will be some risks associated with this work and these will be identified and managed using recognised risk management approaches. 4. Consultation Internal 4.1 All members of the Council’s Strategic Leadership Team have been consulted in the preparation of this report. External 4.2 The draft Economic Action Plan was subject to an in-depth engagement with all partners for the Perth and Kinross Economic Partnership using a Design Thinking approach. This collaborative, creative problem-solving approach places people at the heart of its solutions, ensuring that the plan addresses real needs effectively. This approach has also helped to strengthen relationships among partners, enhancing their ability to work cohesively toward shared actions. A public consultation will be carried out with the wider business community, and the general public during February/March 2025. 5. Communication 5.1 The communication arrangements will be developed through a Communication Plan which has still to be drafted and approved by Perth and Kinross Economic Partnership.
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2. BACKGROUND PAPERS 2.1 N/A.