Look at south-east England

Overview

England’s south-east has the highest population of all the regions (8.2 million people forecast to grow to over 8.9 million by 2021). It is among the richest parts of the UK, although parts of the region, notably several coastal towns, suffer significant social and economic deprivation. Almost 90% of residents say they are satisfied with their area as a place to live. Mortality rates are below the English average, with both men and women living around one year longer than elsewhere. The population is increasing as migration across the UK from north to south continues.

Its workforce of 4.3 million contributes to a growing economy, with an output (gross value added (GVA)) estimated at £177 billion, making the economy roughly the same size as that of Austria, Sweden and Norway. This translates to a GVA per capita of £20,400 compared to £17,700 for the UK as a whole. Its economy grew at a rate of 3.7% in 2007, and is forecast to continue to grow faster than the national average. It is the largest exporter in the UK, and more than 5,100 foreign-owned companies are located in the region. Around 729,500 enterprises operate in the region, of which around 307,000 are VAT registered, more than in any other UK region outside London. Nearly half of the region’s businesses with fewer than 250 employees report turnover growth, and many anticipate increasing their workforce. Small to medium-sized enterprises account for 60% of employment and 46% of turnover.

The economic activity rate, measuring the labour force as a percentage of all persons of working age, was 82% in 2007, compared to a UK rate of 76%. Approximately 181,000 people are unemployed, while 46% of people are employed in managerial, professional and technical occupations. Just 8.8 working days are lost due to sickness per year, lower than in any other UK region; union membership averages around 21%, the lowest regional membership rate in the UK, and five working days per 1,000 employees are lost per year due to labour disputes, compared to the UK average of 28.

Its economy can be categorised as advanced, high cost, high income, broadly based and service orientated, with its main employment sectors being: agriculture; energy and water; manufacturing; construction; distribution; hotels and restaurants; transport and communications; banking, finance and insurance; public administration; public health; public education; other services.

Key technology sectors are well established and have the critical mass that is essential for profitability. The south-east is home to many of the prime contractors in each industry, which underpin the strength of the supply chain. The region provides the skilled workforce and research and development to support sectors including: electronics; high-tech engineering; computer hardware and software; telecommunications; e-commerce; pharmaceuticals; biotechnology; marine technologies; automotive and avionics.

The commercial environment supports many indigenous and foreign-owned businesses, and boasts one of the highest business survival rates of any other English region. The economy is mainly dominated by service-sector industries, although there is also a strong manufacturing base providing the highest output (GVA of £18.5 billion) in the country.

The south-east’s economy enjoys the benefit of its close proximity to London, and in many cases offers lower overheads than the capital. The ThamesValley contributes to the UK’s ICT industry and has the highest concentration of computer services activity in Europe.

The south-east’s 19,000 square kilometres stretch around London, from Thanet in the south-east to the New Forest in the south-west, and to Aylesbury Vale and Milton Keynes in the north-west. While it is without a dominant urban centre, the region has two cities with populations of around 250,000 (Medway, and Brighton and Hove) and five cities with populations of more than 100,000. It contains three million households.

The major south-coast ports (including Dover, Portsmouth and Southampton) and the Channel Tunnel make the region the natural access point to continental Europe. Gatwick and Heathrow airports (the latter immediately adjacent to the regional boundary) also place it at the hub of the UK’s international travel links. The south-east contains 22% of England’s motorway network and 14% of its A-road network. Congestion, however, is a growing problem. Goods worth £34 billion are moved through these ports annually, more than in any other region, and the south-east has 13,800 exporters, 17.5% of the UK total.

There are 24 universities and higher education institutes, with nearly 200,000 students, supplying 73,000 graduates a year. There are also 71 further education colleges. The region has a strong research presence, including both public- and private-sector establishments. A quarter of all expenditure on research and development in the UK takes place in the region. Although well over half a million adults lack basic literacy/numeracy skills, the workforce is generally well educated, with nearly 88% of the working-age population holding some qualification. Some 28% of economically active people hold a Level 4 qualification, and more than 50% hold one at Level 3 or higher.

The region is environmentally attractive, with 6,500 square kilometres designated as Areas of Outstanding Natural Beauty (a third of the total area of such designations for England); the New Forest was recently designated a National Park and the South Downs have been proposed for National Park status; 40% of the area has protective designation and more than 80% is rural. The region also has a strong cultural heritage, with music and theatre (including Glyndebourne and Chichester), two of the UK’s nine sports institutes and some renowned architecture.