Isles of Scilly Evidence Base Future Economy Future Economy Conditions for Growth Conditions for Growth Growth for Business Growth for Business Future Econo
CONTENTS Introduction... 3 Economic Overview... 4 Businesses... 4 Businesses - local units 2011... 4 Businesses - local units 2011... 5 Workplace- based employment size... 5 Workplace-based employment size band... 5 Economic activity... 6 Economic activity 16-74... 6 Economic activity 16-74... 6 Employment... 7 Employment by sector 2011... 7 Employment by sector change 2001-2011... 8 Travel to work... 9 Travel to work 2011 (16-74)... 9 Hours worked...10 Hours worked 16-74, 2001...10 Hours worked 16-74 2011...10 Hours worked - change...11 Qualifications...12 Qualifications - 2011 (All usual residents aged 16 and over)...12 Qualifications - 2001 (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...16 2
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
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 50 45 0 B : Mining and quarrying 0 0 0 C : Manufacturing 10 10 0 D : Electricity, gas, steam and air conditioning supply 0 0 0 E : Water supply; sewerage, waste management and remediation activities 0 0 0 F : Construction 20 20 0 G : Wholesale and retail trade; repair of motor vehicles and motorcycles 25 20 0 H : Transportation and storage 30 30 0 I : Accommodation and food service activities 50 40 5 J : Information and communication 0 0 0 K : Financial and insurance activities 0 0 0 L : Real estate activities 5 5 0 M : Professional, scientific and technical activities 5 5 0 N : Administrative and support service activities 5 0 0 O : Public administration and defence; compulsory social security 10 5 0 P : Education 5 5 0 Q : Human health and social work activities 10 5 0 R : Arts, entertainment and recreation 5 5 0 S : Other service activities 5 5 0 Column Total 240 215 25 Source: ONS, UK Business Counts - Local units, 2011 2 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
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) 25 350,840 Medium-sized (50 to 249) 0 75,740 Large (250+) 0 11,665 Total 240 2,547,835 Sizeband % % Micro (0 to 9) 89.6 82.8 Small (10 to 49) 10.4 13.8 Medium-sized (50 to 249) 0.0 3.0 Large (250+) 0.0 0.5 Total 100.0 100.0 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 (50-249 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 2009 2010 2011 Employment Sizeband No's No's No's Micro (0 to 9) 400 400 400 Small (10 to 49) 600 500 500 Medium-sized (50 to 249) 100 200 200 Large (250+) 0 0 0 Total 1,000 1,100 1,200 Isles of Scilly 2009 2010 2011 Employment Sizeband % % % Micro (0 to 9) 36 36 33 Small (10 to 49) 55 45 42 Medium-sized (50 to 249) 9 18 17 Large (250+) 0 0 0 Total 100 100 100 Employment Sizeband 2009 2010 2011 5
Great Britain % % % Micro (0 to 9) 16 16 16 Small (10 to 49) 28 28 28 Medium-sized (50 to 249) 28 28 28 Large (250+) 28 28 28 Total 100 100 100 Source: ONS, BRES. Economic activity Comparing the 2001 and 2011 census data shows that the number of people aged 16-74 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 16-74 2001 2011 No's No's ALL PEOPLE 1,631 1,622 Economically Active : Total 1,299 1,331 Employed 1262 1,306 Employee 815 873 Economically Active : Self-employed 447 433 Economically Active : Unemployed 25 18 Economically Active : Full- time Student 12 7 Economically Inactive : Total 332 291 Economically Inactive : Retired 218 209 Economically Inactive : Student 18 13 Economically Inactive : Other 96 69 Source: ONS, Census 2001 and 2011. Economic activity 16-74 2001 2011 % % ALL PEOPLE 100 100 Economically Active : Total 80 82 Employed 77 81 Employee 50 54 Economically Active : Self-employed 27 27 Economically Active : Unemployed 2 1 Economically Active : Full- time Student 1 0 Economically Inactive : Total 20 18 Economically Inactive : Retired 13 13 Economically Inactive : Student 1 1 Economically Inactive : Other 6 4 Source: ONS, Census 2001 and 2011. 6
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 75 5.7 B Mining and quarrying 5 0.4 C Manufacturing 40 3.1 D Electricity, gas, steam and air conditioning supply 6 0.5 E Water supply; sewerage, waste management and remediation activities 11 0.8 F Construction 95 7.2 G Wholesale and retail trade; repair of motor vehicles and motor cycles 134 10.2 H Transport and storage 131 10.0 I Accommodation and food service activities 313 23.9 J Information and communication 7 0.5 K Financial and insurance activities 13 1.0 L Real estate activities 28 2.1 M Professional, scientific and technical activities 22 1.7 N Administrative and support service activities 78 5.9 O Public administration and defence; compulsory social security 78 5.9 P Education 107 8.2 Q Human health and social work activities 105 8.0 R, S, T, U Other 63 4.8 All categories: Industry 1,311 100 Source: ONS, Census 2011. 7
The total number employed rose slightly between 2001 and 2011. 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 2001-2011 Year 2001 2011 Sector No s % No s % A, B. Agriculture; hunting and forestry; fishing 92 7.2 75 5.7 C, E. Mining and quarrying; electricity; gas and water supply 7 0.5 22 1.7 D Manufacturing 52 4.1 40 3.1 F Construction 70 5.5 95 7.2 G Wholesale and retail trade; repairs 183 14.3 134 10.2 H Hotels and restaurants 374 29.2 313 23.9 I Transport storage and communications 113 8.8 138 10.5 J. Financial Intermediation 13 1.0 13 1.0 K. Real estate; renting and business activities 84 6.6 128 9.8 L. Public administration and defence; social security 59 4.6 78 5.9 M. Education 67 5.2 107 8.2 N. Health and social work 99 7.7 105 8.0 O; P; Q. Other 68 5.3 63 4.8 Total 1,281 100.0 1,311 100.0 Source: ONS, Census 2001 and 2011. 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 2011. [A problem here in that most agricultural employment is excluded from 2009 to 2011, hence totals for these years are underestimates]. 8
Employee numbers - BRES 1,400 1,200 1,000 No's 800 600 400 200 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 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 2,678,426 10.6 433 33.0 Underground, metro, light rail, tram 991,990 3.9 0 0.0 Train 1,292,953 5.1 1 0.1 Bus, minibus or coach 1,836,494 7.3 8 0.6 Taxi 120,655 0.5 1 0.1 Motorcycle, scooter or moped 199,896 0.8 34 2.6 Driving a car or van 13,515,693 53.7 245 18.7 Passenger in a car or van 1,228,307 4.9 24 1.8 Bicycle 719,110 2.9 186 14.2 On foot 2,456,447 9.8 338 25.8 Other method of travel to work 122,750 0.5 41 3.1 All 25,162,721 100.0 1,311 100.0 Source: ONS, Census 2011. 9
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 311 24 5,531,210 25 Part-time: 15 hours or less worked 108 8 1,866,211 8 Part-time: 16 to 30 hours worked 203 16 3,664,999 16 Full-time: Total 964 76 16,910,288 75 Full-time: 31 to 48 hours worked 627 49 13,256,531 59 Full-time: 49 or more hours worked 337 26 3,653,757 16 All categories: Hours worked 1,275 100 22,441,498 100 Source: ONS, Census, 2001. 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 16-74 2011 Area Isles of Scilly England No's % No's % Part-time: Total 322 25 7,307,083 29 Part-time: 15 hours or less worked 93 7 2,418,518 10 Part-time: 16 to 30 hours worked 229 17 4,888,565 19 Full-time: Total 989 75 17,855,638 71 Full-time: 31 to 48 hours worked 745 57 14,502,713 58 Full-time: 49 or more hours worked 244 19 3,352,925 13 All categories: Hours worked 1,311 100 25,162,721 100 10
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 2011. Hours worked - change 2001 Isles of Scilly England % % Part-time: Total 24 25 Part-time: 15 hours or less worked 8 8 Part-time: 16 to 30 hours worked 16 16 Full-time: Total 76 75 Full-time: 31 to 48 hours worked 49 59 Full-time: 49 or more hours worked 26 16 All categories: Hours worked 100 100 2011 Isles of Scilly England % % Part-time: Total 25 29 Part-time: 15 hours or less worked 7 10 Part-time: 16 to 30 hours worked 17 19 Full-time: Total 75 71 Full-time: 31 to 48 hours worked 57 58 Full-time: 49 or more hours worked 19 13 All categories: Hours worked 100 100 & Change Isles of Scilly England % % Part-time: Total 1 18 Part-time: 15 hours or less worked -16 16 Part-time: 16 to 30 hours worked 10 19 Full-time: Total 0-6 Full-time: 31 to 48 hours worked 16-2 Full-time: 49 or more hours worked -30-18 Source: ONS, Census 2001 and 2011. 11
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 - 2011 (All usual residents aged 16 and over) Isles of Scilly England No's % % None 264 14.2 22.5 Level 1 201 10.8 13.3 Level 2 309 16.6 15.2 Apprenticeship 78 4.2 3.6 Level 3 304 16.4 12.4 Level 4 and above 613 33 27.4 Other 88 4.7 5.7 All categories 1,857 100 100 Source: ONS, Census 2011. Qualifications - 2001 (All usual residents aged 16-74) Isles of Scilly England No's % % No 302 18.7 28.9 Level 1 271 16.8 16.6 Level 2 427 26.5 19.4 Level 3 150 9.3 8.3 Level 4/5 345 21.4 19.9 Other / level unknown 118 7.3 6.9 All categories 1,613 100 100 Source: ONS, Census 2011. 12
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 4.5 4.0 3.5 3.0 % 2.5 2.0 IoS UK 1.5 1.0 0.5 0.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Month Source: NOMIS, Jobcentre Plus. JSA rates are now similar to those in the early noughties, though above the lows reached between 2005 and 2011. Job Seekers Allowance Year UK Isles of Scilly % No's % 2001 2.6 13 0.9 2002 2.5 11 0.8 2003 2.5 11 0.8 2004 2.2 9 0.6 2005 2.2 7 0.5 2006 2.4 9 0.6 2007 2.2 6 0.4 2008 2.3 4 0.3 2009 3.8 6 0.4 2010 3.7 6 0.4 2011 3.8 6 0.5 2012 3.9 8 0.6 2013 3.7 11 0.8 Source: NOMIS, Jobcentre Plus. 13
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 2012. 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
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
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