Future Economy. Future Econo. Conditions for Growth. Conditions for Growth. Growth for Business. Growth for Business. Isles of Scilly.

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1 Isles of Scilly Evidence Base Future Economy Future Economy Conditions for Growth Conditions for Growth Growth for Business Growth for Business Future Econo

2 CONTENTS Introduction... 3 Economic Overview... 4 Businesses... 4 Businesses - local units Businesses - local units Workplace- based employment size... 5 Workplace-based employment size band... 5 Economic activity... 6 Economic activity Economic activity Employment... 7 Employment by sector Employment by sector change Travel to work... 9 Travel to work 2011 (16-74)... 9 Hours worked...10 Hours worked 16-74, Hours worked Hours worked - change...11 Qualifications...12 Qualifications (All usual residents aged 16 and over)...12 Qualifications (All usual residents aged 16-74)...12 Jobseekers Allowance (JSA) data...13 Job Seekers Allowance...13 Isles of Scilly Transport Connections - Summary...14 Isles of Scilly Connectivity...14 Mainland Links...14 Mainland Connections...14 St Mary s Airport Series of projects to achieve the following:...15 Grid Connection...15 St Mary s Harbour...15 On Island Transport...15 Inter Island Connectivity

3 Introduction The Isles of Scilly lie 28 miles of the mainland and incorporate 5 inhabited islands. The islands have a population of 2,203. Resident numbers are relatively stable but with a slight increase from the 2001 total of 2,136. The population is ageing. The Island s economy is heavily reliant upon tourism and agriculture. It is clear that tourism provides the bulk of the jobs but also the critical mass for services such as the airport, quays, inter island boat services and the ferry and planes. Business size is dominated by micro and small businesses. Other economic trends are: - High levels of self employment - treble that of the South West and rest of England - A higher percentage of people working at or from home than that of the South West and rest of England - Some local resident have a number of part-time or seasonal jobs, but there is also considerable underemployment, reflecting the limited career opportunities available and the seasonal nature of employment. - Incomes significantly lower than the national and regional average due to the preponderance of low paid, part time, and/or seasonal jobs. - High costs of living are associated with scarcity of accommodation and transportation of freight to the islands 1 1 Source: Porthcressa Masterplan (2009), Roger Tym and Partners, Council of the Isles of Scilly 3

4 Economic Overview Businesses A total of 240 units 2 in 2011, most of which 90% - are defined as micros. Main sectors Agriculture, forestry and fishing and Accommodation and food services with 50 each, followed by Transportation and storage 30 and Wholesale at 25. Businesses - local units 2011 Industry Total Micro (0 to 9) Small (10 to 49) A : Agriculture, forestry and fishing B : Mining and quarrying C : Manufacturing D : Electricity, gas, steam and air conditioning supply E : Water supply; sewerage, waste management and remediation activities F : Construction G : Wholesale and retail trade; repair of motor vehicles and motorcycles H : Transportation and storage I : Accommodation and food service activities J : Information and communication K : Financial and insurance activities L : Real estate activities M : Professional, scientific and technical activities N : Administrative and support service activities O : Public administration and defence; compulsory social security P : Education Q : Human health and social work activities R : Arts, entertainment and recreation S : Other service activities Column Total Source: ONS, UK Business Counts - Local units, A local unit consists of each site where economic activity takes place. An Enterprise is the smallest combination of legal units under common ownership. It may consist of one or more local units. 4

5 As would be expected the Isles of Scilly is a small business economy with no medium sized or large units. Businesses - local units 2011 IoS UK Sizeband No's No's Micro (0 to 9) 215 2,109,590 Small (10 to 49) ,840 Medium-sized (50 to 249) 0 75,740 Large (250+) 0 11,665 Total 240 2,547,835 Sizeband % % Micro (0 to 9) Small (10 to 49) Medium-sized (50 to 249) Large (250+) Total Source: ONS, UK Business Counts - Local units. Workplace- based employment size Reflecting the size distribution of businesses, employment in the Isles of Scilly is largely based in micro and small businesses. Data for 2011 shows that 75% of employees work in these businesses. In contrast, the share across Great Britain is 44%. Note: this information is sourced from ONS, BRES. It is known that the Isles of Scilly have two medium sized companies ( employees) operating on the Islands (Tresco and the Isles of Scilly Steamship Company) which do not appear within this data set. Workplace-based employment size band Isles of Scilly Employment Sizeband No's No's No's Micro (0 to 9) Small (10 to 49) Medium-sized (50 to 249) Large (250+) Total 1,000 1,100 1,200 Isles of Scilly Employment Sizeband % % % Micro (0 to 9) Small (10 to 49) Medium-sized (50 to 249) Large (250+) Total Employment Sizeband

6 Great Britain % % % Micro (0 to 9) Small (10 to 49) Medium-sized (50 to 249) Large (250+) Total Source: ONS, BRES. Economic activity Comparing the 2001 and 2011 census data shows that the number of people aged is down but economically active numbers up as are the numbers employed. Biggest change is in the number and hence percentage of employees up from 50% to 54%. Unemployed numbers down. Economic activity No's No's ALL PEOPLE 1,631 1,622 Economically Active : Total 1,299 1,331 Employed ,306 Employee Economically Active : Self-employed Economically Active : Unemployed Economically Active : Full- time Student 12 7 Economically Inactive : Total Economically Inactive : Retired Economically Inactive : Student Economically Inactive : Other Source: ONS, Census 2001 and Economic activity % % ALL PEOPLE Economically Active : Total Employed Employee Economically Active : Self-employed Economically Active : Unemployed 2 1 Economically Active : Full- time Student 1 0 Economically Inactive : Total Economically Inactive : Retired Economically Inactive : Student 1 1 Economically Inactive : Other 6 4 Source: ONS, Census 2001 and

7 Employment Main sectors for employment in 2011 Accommodation and food services (23.9%), Wholesale and retail (10.2%), and Transport and storage (10%). [The data indicates which sectors residents are employed in, not where they work]. Employment by sector 2011 Sector No's % A Agriculture, forestry and fishing B Mining and quarrying C Manufacturing D Electricity, gas, steam and air conditioning supply E Water supply; sewerage, waste management and remediation activities F Construction G Wholesale and retail trade; repair of motor vehicles and motor cycles H Transport and storage I Accommodation and food service activities J Information and communication K Financial and insurance activities L Real estate activities M Professional, scientific and technical activities N Administrative and support service activities O Public administration and defence; compulsory social security P Education Q Human health and social work activities R, S, T, U Other All categories: Industry 1, Source: ONS, Census

8 The total number employed rose slightly between 2001 and The largest increases were in Real estate, renting and business activities; Transport, storage and communications and Education. Biggest falls in Wholesale and retail, and Agriculture etc. Employment by sector change Year Sector No s % No s % A, B. Agriculture; hunting and forestry; fishing C, E. Mining and quarrying; electricity; gas and water supply D Manufacturing F Construction G Wholesale and retail trade; repairs H Hotels and restaurants I Transport storage and communications J. Financial Intermediation K. Real estate; renting and business activities L. Public administration and defence; social security M. Education N. Health and social work O; P; Q. Other Total 1, , Source: ONS, Census 2001 and Sectors altered to fit 2001 categories. Employee numbers by workplace are also available. These show a small increase over time, in line with the census changes. From 900 in 2001 to 1,200 in [A problem here in that most agricultural employment is excluded from 2009 to 2011, hence totals for these years are underestimates]. 8

9 Employee numbers - BRES 1,400 1,200 1,000 No's Year Source: ONS, Business Register and Employment Survey. Travel to work The data below is from the census (alternative) travel to work data. Percentages reflect all those in work. A third of those in the Isles of Scilly work mainly at or from home with a quarter getting to work by walking and one in seven by bicycle. All of these figures are higher than the average for England. In contrast less than one in five drive to work in a car or van compared to over half across England. Travel to work 2011 (16-74) Isles of England Scilly No's % No's % Work mainly at or from home 2,678, Underground, metro, light rail, tram 991, Train 1,292, Bus, minibus or coach 1,836, Taxi 120, Motorcycle, scooter or moped 199, Driving a car or van 13,515, Passenger in a car or van 1,228, Bicycle 719, On foot 2,456, Other method of travel to work 122, All 25,162, , Source: ONS, Census

10 Hours worked The census shows that in 2001 three-quarters of people worked full-time, one quarter part-time, very similar to the English average. Hours worked 16-74, 2001 Area Isles of Scilly England No's % No's % Part-time: Total ,531, Part-time: 15 hours or less worked ,866,211 8 Part-time: 16 to 30 hours worked ,664, Full-time: Total ,910, Full-time: 31 to 48 hours worked ,256, Full-time: 49 or more hours worked ,653, All categories: Hours worked 1, ,441, Source: ONS, Census, The census shows that in 2011 the Isles of Scilly situation was similar to that in 2001 with three-quarters of people working full-time, one quarter part-time, however, across England 29% worked part-time with 71% fulltime. Hours worked Area Isles of Scilly England No's % No's % Part-time: Total ,307, Part-time: 15 hours or less worked ,418, Part-time: 16 to 30 hours worked ,888, Full-time: Total ,855, Full-time: 31 to 48 hours worked ,502, Full-time: 49 or more hours worked ,352, All categories: Hours worked 1, ,162,

11 Interestingly between 2001 and 2011, the percentage working part and full-time changed marginally whereas across England there was a significant increase in part-time working and consequent decline in fulltime working. However, amongst those working full-time in the Isles of Scilly there was also a dramatic fall in the percentage working for 49 hours or more a week, down from 26% in 2001 to 19% in Hours worked - change 2001 Isles of Scilly England % % Part-time: Total Part-time: 15 hours or less worked 8 8 Part-time: 16 to 30 hours worked Full-time: Total Full-time: 31 to 48 hours worked Full-time: 49 or more hours worked All categories: Hours worked Isles of Scilly England % % Part-time: Total Part-time: 15 hours or less worked 7 10 Part-time: 16 to 30 hours worked Full-time: Total Full-time: 31 to 48 hours worked Full-time: 49 or more hours worked All categories: Hours worked & Change Isles of Scilly England % % Part-time: Total 1 18 Part-time: 15 hours or less worked Part-time: 16 to 30 hours worked Full-time: Total 0-6 Full-time: 31 to 48 hours worked 16-2 Full-time: 49 or more hours worked Source: ONS, Census 2001 and

12 Qualifications A higher percentage of residents are qualified to Level 4 and above than on average across England, while a lower percentage have no qualifications. Although comparisons with 2001 are difficult due to a change in the age group covered, the figures suggest a definite improvement in skills with a rise in those with Level 3 and Level 4 and above and a fall in those without qualifications. Qualifications (All usual residents aged 16 and over) Isles of Scilly England No's % % None Level Level Apprenticeship Level Level 4 and above Other All categories 1, Source: ONS, Census Qualifications (All usual residents aged 16-74) Isles of Scilly England No's % % No Level Level Level Level 4/ Other / level unknown All categories 1, Source: ONS, Census

13 Jobseekers Allowance (JSA) data JSA rates are well below those of the UK. The average for 2013 being 0.8% compared to 3.7% for the UK. The Isles of Scilly also displays a very seasonal trend with higher rates in the winter and lower in the summer. This is expected with due to the high level of dependence on tourism. JSA rate % IoS UK Month Source: NOMIS, Jobcentre Plus. JSA rates are now similar to those in the early noughties, though above the lows reached between 2005 and Job Seekers Allowance Year UK Isles of Scilly % No's % Source: NOMIS, Jobcentre Plus. 13

14 Data not available at an IoS level Earnings data is not available at an Isle of Scilly level. Isles of Scilly Transport Connections - Summary Transport connections to the Isles of Scilly have experienced very difficult challenges in There is a need to secure long term connectivity to the Isles and address inter island travel. Capital investment in this vital infrastructure makes the links commercially viable without revenue subsidy in the short to medium term. The Islands cannot sustain the cost of capital investment without the support. Isles of Scilly Connectivity Mainland Links The Isles of Scilly comprise over 190 rocky islets lying 28 miles to the west of Land s End with the five inhabited islands, with a permanent population of 2,200. Tourism accounts for approximately 83% of the economy with over 100,000 visitors per annum. There are currently two transport links from the mainland to the islands; The ferry that operates in the summer season only; Airlinks by fixed wing to St Mary s Airport The airport with sustainable and affordable air transport is vital to the islands so that they can have fast reliable and frequent connection to the mainland, for the movement of visitors to and from the islands and for the export of goods from the islands. In the winter the connection to the mainland is only available by air, and therefore St Mary s Airport is vital infrastructure for the islands. The main freight for the Islands and the summer passenger vessel enters St Mary s via the St Mary s Harbour this is owned by the Duchy of Cornwall (as is much of the Islands outside of Hugh Town), and has an 8m development plan this is hoped to be funded in the current programme Mainland Connections The Islands also need improved facilities in the mainland embarkation points to the Islands therefore we support investment in Harbours in Cornwall especially Penzance, and in the 2 Cornish Airport NQY and specifically Lands End which is wholly dedicated to the Islands and is owned and managed by the IOSSCo and carries the bulk of island bound air passengers. The IOSSCo also fly to Exeter which with NQY are important transit points. 14

15 The islands also support and require improved links through Cornwall especially the railways and A30 road improvements. St Mary s Airport Series of projects to achieve the following: Operate at improved efficiency and reliability; Support and assist with an increase in tourist activity; Provide an increased reliability to the mainland link for the general population; Improve customer service and experience Provide an improved cargo service for businesses Grid Connection The islands have mains electricity with a sub sea cable from the mainland, the Islands also have a small diesel power station for emergency use. WPD are looking at greening the Isles of Scilly and are trialling Smart Grid technology on the Islands. To ensure we can make the best use of the significant wave potential around the Islands, the islands electricity infrastructure will need to be reviewed. St Mary s Harbour Series of projects to improve passenger and freight handling on the Quay The Quay is operated by the Duchy of Cornwall, with the vessels being delivered by the Isles of Scilly Steamship Company (IOSSCo) The infrastructure needs improvement to give a greater draught to allow a wider choice of vessels, protection for freight and better passenger facilities for those waiting to Board the vessel. There is also a need to mitigate people and vehicle conflict on the quay as the quay is used by thousands of people a day in the summer not only from the Scillonian, but off island boats, visiting yachts and over 40 cruise ships a year. On Island Transport The Islands have a very small adopted road network but an increasing number of on island vehicles support is required for better, safer and more cycle routes (Scilly has one of the highest bicycle usages in the country). Improved pedestrian access and general road improvements will allow the Islands to work better and offer the tourists improved facilities. There are opportunities for testing and trialing electric vehicles this has already started with a electric dial a ride vehicle, freight vehicles and a roadworthy electric buggy hire centre on St Mary s. 15

16 Inter Island Connectivity The other inhabited islands are serviced by the Off Island Boat Services, St Agnes Boating, Bryher Boating and St Martin s Boating and in the summer visitors based on St Mary s are serviced by the St Mary s Boatmen s Association. The inter island transport is unsubsidised apart from a small freight subsidy provided by the Council of the Isles of Scilly, the system is also very expensive (a one mile journey for an individual can cost over 40 especially in winter). Pensioners are supported on the off islands with a number of concessionary fares funded by the Council of the Isles of Scilly. 16

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