REGENERATION PROGRAMME - ISLE OF WIGHT COUNCIL
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APPENDIX A
ISLE OF WIGHT COUNCIL
REGENERATION PROGRAMME
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Contents
1 SCOPE ........................................................................................................................... 7
1.1 Document purpose ............................................................................................................. 7
1.2 Structure of the document .................................................................................................. 7
1.3 Scope .................................................................................................................................. 7
2 STRATEGIC CONTEXT .................................................................................................... 9
2.1 Isle of Wight today .............................................................................................................. 9
2.2 Global and UK trends affecting the Isle of Wight ............................................................... 10
2.3 Coastal town issues in the UK ........................................................................................... 11
2.4 UK policy affecting development finance .......................................................................... 12
2.4.1. Business rate retention .................................................................................................... 12
2.4.2. New Homes Bonus ........................................................................................................... 13
2.4.3 Devolution packages ......................................................................................................... 13
3 ISLAND AND COUNCIL CONTEXT: FOUNDATION FOR GROWTH ....................................14
3.1 The case for change: IoW Corporate Strategy and resources ............................................. 14
3.2 Economic Development .................................................................................................... 14
3.2.1 Economic performance ..................................................................................................... 14
3.2.2 Tourism, industry, construction and commercial investment market .............................. 15
3.2.3 Education, employment and skills ..................................................................................... 17
3.3 Transport and Infrastructure ............................................................................................. 18
3.3.1 Island connectivity ............................................................................................................. 18
3.3.2 The implications of growth on infrastructure ................................................................... 18
3.3.3 Issues and opportunities for improvement ....................................................................... 19
3.3.4 The Solent Strategic Transport Investment Plan ............................................................... 21
3.3.5 Infrastructure Transport Task Force .................................................................................. 22
3.3.5 Sustainable Transport Programme .................................................................................... 22
3.4 Housing............................................................................................................................. 23
3.4.1 Current housing market .................................................................................................... 23
3.4.2 Housing growth and demand ............................................................................................ 23
3.4.3 Housing delivery ................................................................................................................ 24
3.4.4 Specialist housing .............................................................................................................. 25
3.5 Land and assets ................................................................................................................. 26
3.4.1 Council owned land and assets ......................................................................................... 26
3.4.2 One Public Estate .............................................................................................................. 26
3.6 Financial strategy and funding sources .............................................................................. 27
3.6.1 Summary of financial pressures ........................................................................................ 27
3.6.2 Revised Medium Term Financial Strategy 2017/18 – 2020/2021 ..................................... 28
3.6.3 Access to central government funding .............................................................................. 29
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4 OPPORTUNITY AREAS ..................................................................................................30
4.1 Newport ........................................................................................................................... 30
4.1.1 Introduction to the Newport Opportunity Area ................................................................ 30
4.1.2 Opportunities and constraints........................................................................................... 30
4.1.3 Vision for the Newport area .............................................................................................. 32
4.1.4 Recommended regeneration strategy for Newport .......................................................... 32
4.1.5 Strategic development sites .............................................................................................. 33
4.2 Ryde ................................................................................................................................. 37
4.2.1 Introduction to the Ryde Opportunity Area ...................................................................... 37
4.2.2 Opportunities and constraints........................................................................................... 37
4.2.3 Vision for the Ryde area .................................................................................................... 39
4.2.4 Recommended regeneration strategy for Ryde ................................................................ 39
4.2.5 Strategic development sites .............................................................................................. 41
4.3 The Bay ............................................................................................................................. 44
4.3.1 Introduction to The Bay Opportunity Area........................................................................ 44
4.3.2 Opportunities and constraints........................................................................................... 45
4.3.3 Vision for The Bay area ...................................................................................................... 46
4.3.4 Recommended regeneration strategy for The Bay ........................................................... 46
4.3.5 Strategic development sites .............................................................................................. 47
5 SETTING UP THE REGENERATION PROGRAMME ..........................................................50
5.1 Intelligent client function .................................................................................................. 50
5.1.1 Partnership and stakeholder management ....................................................................... 51
5.1.2 Compelling vision and consensus ...................................................................................... 52
5.1.3 Guiding principles .............................................................................................................. 52
5.1.4 Creating value through design and product development................................................ 53
5.1.5 ‘Great Estates’ long-term approach to asset management .............................................. 53
5.1.6 Brand ................................................................................................................................. 54
5.1.7 Define the value each project will bring at an early stage ................................................ 54
5.2 Project controls (contract management, cost, time, risk) .................................................. 55
5.2.1 Evidence-based approach ................................................................................................. 55
5.2.2 Programme Management Office with a relentless focus on the progression of projects. 55
5.2.3 Developing Business Cases ................................................................................................ 56
6 REGENERATION PROGRAMME RESOURCE AND ACTION PLAN .....................................58
6.1 Next stage action plan ...................................................................................................... 58
6.1.1 Secure the mandate and evolve governance arrangements ............................................. 58
6.1.2 Set up the programme ...................................................................................................... 59
6.1.3 Initiate priority strategic projects ...................................................................................... 59
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Executive summary
In August 2016 Isle of Wight Council (IWC), with support from the Local Government
Association (LGA), commissioned Inner Circle Consulting (ICC) to help establish an
ambitious Regeneration Programme for the Island, focusing on the three key
opportunity areas of Newport, Ryde and The Bay.
During an initial eight-week commission, ICC has:
● set up a Programme Management Office (PMO) with associated systems,
documentation, templates, governance, a financial forecasting model and other
infrastructure in anticipation of the recruitment of a Regeneration Director and
team;
● conducted a data-dive exercise to understand the Island’s context,
opportunities and constraints;
● reviewed and mapped approximately 25 potential regeneration sites in three
opportunity areas;
● created a model to forecast the financial impact of development on these sites;
● evaluated the impact and deliverability of all sites, generating a shortlist of 11
priority projects (plus a number of potential enabling/linked projects) for
inclusion in the first wave of the Regeneration Programme;
● established a likely funding / investment route for each project, including
projects that can be submitted for LEP investment;
● undertaken a gap analysis for each priority project and the programme,
including an analysis of the likely project delivery resource requirements;
● established an indicative costed schedule of activities to develop the priority
projects to Outline Business Case and/or submission for LEP funding bids
(where appropriate); and
● supported IWC and its partners with the submission of a One Public Estate
expression of interest to central government.
The data dive revealed that the Isle of Wight has unique characteristics and strengths.
With the right strategy and resources, the Island’s outstanding natural environment,
heritage assets and strong marine and materials engineering industry could all be
leveraged to attract inward investment, increase value and generate growth.
However, the data-dive exercise also revealed that the Island has a number of barriers
to achieving growth. These are related in part to the ‘Island factors’ of separation from
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the mainland and high cost of delivering services, but also a sustained lack of
investment in its tourist offer, issues with the transport infrastructure and reduced
economic activity resulting from the ageing demographic and a working-age
population reliant on low-skilled, seasonal employment. Also of concern from a
commercial investor perspective is the political instability and recent planning refusals
for major inward investment projects. The Isle of Wight must understand these
barriers and put in place measures to address them in order to harness the unique
opportunities to deliver transformative regeneration and realise the value and benefits
that come with growth.
The lack of market investment means that the Isle of Wight Council (IWC) must lead
this regeneration activity with public and private sector stakeholders. In recent years
the Council has focussed too much on its duty to reduce public spending. The Council
now recognises that intelligent use of its land and assets offers an opportunity to drive
growth to ensure the long-term sustainability of Council services and the economic
prosperity of the Island.
Eleven priority projects have been identified in the three opportunity areas, which
focus on growth aligned to Council and community aspirations for the places and build
on the opportunity areas’ existing identities and strengths. In Newport there should be
a focus on growth of employment space for high-tech industry and housing growth
linked to new employment, as well as enhancements to the harbour to link in with the
established industrial uses. From Cowes to Newport, the Medina Valley should be seen
as a prime location to set up advanced manufacturing or high-tech marine business
and attract further inward investment.
In Ryde and The Bay, the focus should be primarily on improving the tourist and
leisure offer to enhance the experience for residents and visitors and diversify the
nature of the visitor market. Encouraging a shift in the tourist offer towards higher-
quality, ‘boutique’ accommodation and facilities will lead to longer-term value
generation in these areas. In addition, the interchange and seafront facilities at Ryde
must be transformed to create a fitting gateway to the Island. Better tourist experience
should go hand in hand with a shift in the perception of those making fresh life choices
as to what the Isle of Wight offers as a place to start a business or bring up a family.
In order to kick start a successful regeneration programme for the Isle of Wight, the 11
priority projects identified during this scoping stage must be adequately resourced and
managed effectively at both a project and programme level. It is important that the
Council takes an evidence-based approach to the use of its remaining land and assets
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to identify opportunities for further efficiencies (including through the colocation of
services with other public sector organisations) or increased revenue. Any successful
regeneration programme also needs a compelling vision and consistent leadership,
with a determination and focus on delivering that vision through ongoing partnership
working. The Council needs to be able to think entrepreneurially.
The following recommendations are considered essential for the delivery of a
successful Regeneration Programme for the Isle of Wight:
1. Develop a partnership approach to programme delivery and stakeholder
management.
2. Continue to develop a vision and 20-year growth plan for the Isle of Wight in
partnership with all stakeholders on the Island and in the wider Solent
conurbation.
3. Develop a set of principles that all can sign up to which will govern the
behaviour of all of those involved.
4. Adopt a ‘Great Estates’ approach to managing your real estate portfolio by
retaining assets, strategically investing to create the most value and maximising
your long-term return on investment.
5. Ensure each priority project has a clear value set that it is aiming to achieve
from the outset, and that these values (or benefits) are making a measurable
contribution to the Island Vision.
6. Commit to an evidence-based approach to decision-making and ensure
sufficient resources are made available for data gathering and analysis.
7. Adopt a consistent method of project progression, change control and
investment decision-making.
8. Establish a strong Programme Management Office with an appropriate blend of
skills, experience and tenacity to design, develop and implement the
regeneration projects.
9. Ensure all investment decisions are underpinned by a sound business case.
Develop all business cases commensurate with the Treasury Five Cases model
(Greenbook) taking them through an incremental process of development from
Strategic Outline Case, Outline Business Case to Full Business Case.
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The immediate next steps identified in order to set up the programme are as follows:
1. Initiate projects by identifying project leads, establishing budgets, agreeing the
scope, objectives and programme. Consider prioritising certain projects to meet
LEP bidding deadlines.
2. Appoint an experienced programme manager to procure programme-level
expertise, establish a programme delivery team (including internal IWC
resources), together with all relevant processes.
3. Secure a clear mandate for the Regeneration Strategy and Programme from
Members and establish suitable governance arrangements. This will include a
Regeneration Programme Board, and delegated authority to the Leader and/or
Lead Member for subsequent decisions relating to the programme, in order to
ensure timely decision-making.
By following the steps outlined above and throughout this report, we have estimated
that the Regeneration Programme could deliver a total of 12,000 new jobs, 1,700 new
homes and an increase in revenue income for Isle of Wight Council in the order of £15
million per annum over the period 2018–2027.
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1 SCOPE
1.1 Document purpose
This document sets out ICC’s findings and recommendations for the Council following
its initial eight-week commission from August to October 2016. This report will be used
by IWC as a basis for progressing focussed regeneration activity prior to the
appointment of a dedicated regeneration resource in early 2017 and possibly, beyond.
1.2 Structure of the document
This document begins with the findings of ICC’s data-dive exercise: a summary of the
Island’s unique context, opportunities and constraints. It goes on to provide details of
the 11 strategic projects identified within the three opportunity areas of Newport, Ryde
and The Bay, following evaluation of approximately 25 potential regeneration sites in
those areas. The report concludes by recommending next steps for progressing each
of these strategic sites over the next three to six months, as well as highlighting a
number of cross-cutting projects and programme-level activity essential in driving
forward a successful Regeneration Programme for the Island.
1.3 Scope
ICC’s scope for this initial stage of the programme was to:
● Establish a Programme Management Office (PMO) to provide momentum,
operational programme management, strategic leadership and robust
administrative infrastructure across all regeneration activity.
● Identify strategic development projects within each opportunity area,
particularly those that could be ‘bid-ready’ by March 2017 in order to secure
funding from the Solent LEP and other government funding sources.
● Undertake a gap and capacity analysis to identify additional information and
resources required to deliver growth from the prioritised strategic sites.
● Develop a work programme and costed resource plan for the next stages of the
programme (to March 2017).
Reviewing regeneration activity and potential development sites in areas beyond
Newport, Ryde and The Bay were outside of the scope of this commission, as was the
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development of any detailed communications and stakeholder engagement strategy,
which is currently being led by IWC.
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2 STRATEGIC CONTEXT
2.1 Isle of Wight today
The Isle of Wight is located off the south coast of England and is the second most
populous island with 139,400 inhabitants. It is considered part of the south coast
conurbation including Portsmouth and Southampton, and as such forms part of the
Solent Local Enterprise Partnership (LEP). The Island has over 70 miles of
uninterrupted coastline and half of the Island is an area of outstanding natural beauty
(AONB). The Island has a maritime and industrial tradition including boat building, sail
making, the manufacture of flying boats, the world's first hovercraft, and the testing
and development of Britain's space rockets.
Separated by the Solent from the mainland, the public transport links to the mainland
are to and from Southsea (Portsmouth) by hovercraft, and via five ferry shuttle services
across the Solent from Southampton, Lymington and Portsmouth.
Ryde, the island's largest town with a population of approximately 30,000, is in the
northeast of the Island. It is a Victorian town with the oldest seaside pier in England.
Newport, in the centre of the island, is the county town of the Isle of Wight and the
Island's main shopping area. Located next to the River Medina, Newport Quay was a
busy port until the mid-19th century.
The Bay area includes Sandown and Shanklin; popular seaside resorts with high
summer sunshine levels and sandy beaches.
Cowes is located on the estuary of the River Medina. It is the home of the record-
setting sailor Dame Ellen MacArthur. East Cowes is famous for Osborne House and as
the home of Saunders-Roe; the historic aircraft, flying boat, rocket and hovercraft
company. The company has left a legacy of innovation in the marine and aeronautical
industries.
The Isle of Wight needs growth and investment to address the long-term sustainability
of public services and the future economic prosperity of the Island. Whilst the Island
has long been one of the UK’s most popular holiday destinations, this comes with a
series of issues including over-reliance on seasonal, low paid jobs and a brain-drain of
young educated people. Due in part to its popularity as a retirement location, the
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chronic disease. This places additional demand and therefore costs on local public
services.
Whilst being an Island makes for a unique geography and beautiful environment, the
cost of transport is higher than reaching other parts of the UK and therefore the Island
is often overlooked when it comes to inward investment. The lack of inward
investment means growth in the tax base and private wealth does not keep up with
the cost of public service provision. However, there are many unique assets (many
land assets are publically owned) and opportunities on the Isle of Wight, which if
correctly leveraged, will help transform the economy of the Island and in doing so,
transform the health and wellbeing of those living, working and visiting.
IWC is fundamentally rethinking and reshaping the way it approaches public service
provision and sustainable economic growth. Central to this is an acknowledgment that
the Council must make better use of it assets: they can provide space to co-locate
services for greater coordination; they can be modernised to ensure ease of customer
access and quality of service provision. Surplus assets can be used to create
commercial return either through sale or generation of revenue streams that can be
reinvested in public services.
2.2 Global and UK trends affecting the Isle of Wight
There are a number of global macro trends that will play a prominent role in shaping
the future operating environment for businesses, governments, and citizens. Some of
these that need to be considered when designing a regeneration programme for the
Isle of Wight include the following:
● Geopolitical instability is increasing. Europe continues to grapple with internal
political challenges, violent extremism, and the migrant crisis.
● Climate change means extreme weather events become more frequent, the
economic costs of climate change continue to grow.
● Cities and city-regions will continue to act as centres of gravity for people and
business clustering.
● The IT revolution continues. Emerging technologies will blur the line between
real and virtual life and lead to growing personalisation of consumer goods and
retail experiences. Big data, predictive analytics and machine learning will
increase the level of personalisation in services.
10
C - 19● The increasing technological sophistication and expanding presence of smart
devices, unmanned systems, and robots will reshape cities, businesses and
households. This includes the rise of Smart Cities aimed at generating
efficiencies (such as transport mobility, waste management etc.), increasing
digital connectivity and transparency.
● As consumers, we now have more choices than ever before. In a world of
overwhelming possibilities, simplicity is making a comeback. However,
consumer expectations remain high of any service; public or private.
● People will continue to take health care back into their own hands through
greater knowledge and readily available applications.
In the UK there are several trends that create opportunities and barriers to growth on
the Isle of Wight, including:
● The UK choosing to leave Europe will result in economic instability and affect
inward investment decisions, but it will create new opportunities in the global
marketplace.
● Growing inequality of earnings is a social and political problem that needs to be
addressed.
● The constraints in public spending enhance the need to achieve private sector
growth across the country. It is the proceeds of growth – individual and national
– that can increase our standard of living to the levels to which we aspire.
These UK trends reinforce the need for transformational change in the way public
authorities think about their role, the sustainability of their finances, how they use
their assets and how they work collaboratively to harness the full power and resources
for the benefit of their area.
2.3 Coastal town issues in the UK
The Isle of Wight is not alone in the challenges it faces. The relatively recent coastal
town commission and associated research has identified a number of key
characteristics in coastal towns which are present in the Isle of Wight:
● By definition coastal towns are often not well connected in so far as they are
the ‘end of the line’. However, connectivity is a vitally important ingredient in
successful regeneration.
● Coastal towns often have a two-tier housing market (low value social rented
homes and high value holiday homes).
11
C - 20● Their economies are heavily reliant on tourism – but in the UK the market is
largely limited to UK consumers and is seasonal.
● Often vulnerable adults with multiple public service needs i.e. elderly and
disabled people are disproportionately represented.
● It is often hard to get things done because of a plethora of competing interest
groups.
Successful regeneration in coastal towns (and other towns) more often than not
includes the following factors:
● The prospect of improved connectivity
● Inspiration from investments or small change projects
● A sense that things can be achieved among the local community and those
looking to ‘invest’
● Civic leadership
● A strong cultural offer
2.4 UK policy affecting development finance
Over recent years the Government has put in place successive policies to reduce
mainstream grant and link local government finance to the stimulation of local housing
and economic growth. The Isle of Wight is already aware of the following policy
incentives:
2.4.1. Business rate retention
The proposals focus on devolving 100% of business rates retention to local councils by
2020. This is a move towards self-sufficiency and away from dependence on central
government, accompanied by a shift towards greater local accountability over funding
and the way devolved responsibilities are delivered. There will continue to be a level of
redistribution between authorities similar to the current system of tariffs and top-ups,
as well as protection to insulate authorities from shocks or significant reductions in
their income. The outcomes of the Fair Funding Review will establish the funding
baselines for the introduction of 100% business rates retention.
Councils will also have new powers to shape the operation of the business rates in
their area, with additional flexibilities around the operation of the multiplier. The new
powers that central government is proposing are:
● the ability to reduce the business rates tax rate (the multiplier); and
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C - 21● the ability for Combined Authority Mayors to levy a supplement on business
rates to fund new infrastructure projects, provided they have the support of the
business community through the Local Enterprise Partnership.
This fiscal devolution will place greater responsibility on councils to generate their own
revenue and provide communities with the financial independence, stability and
incentives to push for local growth.
2.4.2. New Homes Bonus
The Government’s proposed changes to the New Homes Bonus seek to better reflect
authorities’ delivery of new housing and reduce the number of years in which current
and future payments are made. The Government wishes to consider how the incentive
element of the Bonus could also be tightened alongside possible changes to respond
to the move towards full retention of business rates and the potential for further
devolution of powers and responsibilities to local authorities. The changes include:
● withholding new Bonus allocations in areas where no Local Plan has been
produced;
● reducing payments for homes built on appeal; and
● only making payments for delivery above a baseline representing deadweight.
2.4.3 Devolution packages
The Cities and Local Government Devolution Act 2016 provides a framework through
which combined authorities are able to negotiate devolution packages with central
government. The Solent authorities of Isle of Wight Council, Portsmouth City Council
and Southampton City Council, together with the Solent LEP are currently negotiating a
deal with government to establish a Solent Mayoral Combined Authority. This deal
would give the region £900 million over the next 30 years (including £30m per year in
new funding) to improve infrastructure, transport and housing, and provide training
and skills and support for business.
The deal would also involve the devolution of significant decision-making powers from
central government; bringing decision making and accountability closer to local
people; enabling funds to be spent on tackling local problems; and taking advantage of
local opportunities to improve economic growth.
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CONTEXT: FOUNDATION FOR
GROWTH
3.1 The case for change: IoW Corporate Strategy and
resources
Over many years, and at least from the date of its formation, IWC has been extremely
effective at removing costs from the organisation to successfully meet its financial
challenges. This has allowed the Council to set lawful and balanced budgets but has
required significant reductions in services over time. These reductions have been
achieved in the context of the ‘Island factors’, which add costs to the delivery of
services on the Island arising from its segregation from the mainland. However,
whereas cuts are finite, value creation is unlimited.
The Council has arguably cut further and deeper than its comparators in almost every
area of service. And by denying itself the capacity, skills and knowledge necessary to
develop schemes and bids that could bring financial growth to the Island, the Council
has been unable to tackle the other side of the funding equation: growth.
We fully support IWC’s recognition that only through proactive and effective
regeneration activity at scale can it attract inward investment and the development of
new homes and businesses on the Island, thereby growing the council tax base to
ensure long-term self-sufficiency.
3.2 Economic Development
3.2.1 Economic performance
The economic indicators from 2015 which were analysed as part of the Economic
Development Plan 2016/17–2018/19 show that the Island’s economy remains fragile,
with a weaker economic performance in relation to the South East (SE) region and
national averages in terms of:
14
C - 23● employment rate;
● average wages;
● annual GVA growth;
● business birth rate;
● productivity; and
● people with higher level qualifications.
The Isle of Wight economy is constrained by its island location and a lack of major
infrastructure connecting it to the mainland. This leads to a high degree of self-
containment in its job and labour market, which remains heavily reliant on tourism
and creates a seasonal imbalance of employment and economic activity. Economic
activity is also restricted by the Island’s ageing population and large numbers of retired
people.
However, the Isle of Wight has a number of distinct economic strengths, including a
strong, modern manufacturing sector in comparison with the SE region, as a result of
companies and local supply chains in marine industries, aerospace, and composite
material production; plus a healthy level of self-employment and micro-businesses,
many of which are attracted by the quality of place offered by the Island. These, allied
to the visitor economy and tourist offer, provide the opportunity for growth.
3.2.2 Tourism, industry, construction and commercial investment market
Tourism is one of the Island’s most important sectors, and growing the visitor economy
has been identified as a corporate priority. However, there has been a structural shift
in how people take their holidays over the last 30 years, which has resulted in a
gradual decline in the total number of visitors and a change in the demographics of
visitors, their length of stay and the time of year they visit. In addition, the average
spend per visitor is low and there remains significant seasonal variation in the number
of visitors.
The Isle of Wight Destination Management Plan produced by Visit Isle of Wight in 2015
states how the visitor economy is to be developed, and includes four key objectives to:
1. increase the value of tourism, by increasing the numbers of visitors (particularly
those staying overnight) and by increasing the spend per visitor.
2. encourage innovation and industry investments, through offering
accommodation ‘products’ and services which reflect changing demands. This
includes both attracting new providers and preparing existing businesses for
change (which may be challenging for long-established businesses).
15
C - 243. develop a year-round tourist economy, which means providing a year-round
offer with a wider demographic appeal than those who would traditionally visit
in the summer / school holiday peak times.
4. sustain and enhance the Island’s landscape, through the protection and
enhancement of its natural assets, plus ‘placemaking’ investment to improve
the quality of place in towns and villages, the public realms and transport,
movement and connectivity.
Visit Isle of Wight has established a Business Improvement District (BID) funded by a
levy and will agree a five-year plan for spending the levy in order to deliver this plan.
In terms of industry, the Isle of Wight has a strong, modern manufacturing base with
particular strengths in a number of sectors, including aerospace, renewable energy,
composite materials, marine and defence electronics. The Island benefits from the
presence of a number of companies of international recognition (e.g. BAE Systems,
GKN Aerospace) which have strong local supply networks, made up mainly of SMEs.
The Employment Land Study (2015) indicates that the market for employment space is
relatively small, mainly caters for the local market and is largely self-contained to the
Island. The main sources of demand are for industrial commercial property from
advanced manufacturing (especially in Newport), plus more ‘local’ industries such as
mechanics, storage and distribution. There is stronger demand for space with direct
waterfront access (a typology of employment space not available in competing areas)
and smaller, low cost office space. However, there has been a lack of speculative
development of new employment space because rental values make development
unviable. The exception to this is in Newport (where rents are higher) and elsewhere
on the Island where there is a proactive public sector role to unlock or de-risk
development.
The office market is generally localised and small-scale. It is particularly focused on
Newport and the needs of SMEs, with the majority of the demand coming from local
firms wishing to expand. A high percentage of the stock is secondhand and poor
quality. Like industrial space, new build development is unviable due to the rents that
can be achieved. The Employment Land Study suggests that the forecast need for
employment land can be met through the existing allocations in the Core Strategy but
that there is a misalignment in locations, with an oversupply in Newport and
undersupply in Ryde.
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C - 25Developing strategic sectors and clusters of marine, aerospace, defence, advanced
manufacturing, engineering and low carbon businesses is vital to economic growth on
the Isle of Wight. Growth also requires action to stimulate and nurture an
entrepreneurial culture on the Island, with business support products for key strategic
sectors.
3.2.3 Education, employment and skills
The island has a significant skills deficit with a less qualified population in terms of
higher-level qualifications when compared to the mainland. However, this gap is
closing, with the proportion of the population achieving a Level 4 qualification each
year increasing at a faster rate than the regional and national averages. Although GCSE
attainment has increased over the last three years, the proportion of students
achieving five GCSEs or above is lower than that of the SE region and the UK.
Furthermore, fewer students go on to enter higher education when compared to those
in the SE region or nationally.
Enhancing skills levels and improving educational attainment is necessary to provide
an appropriately skilled workforce to both attract higher-value inward investment and
ensure existing businesses remain competitive. Many industries and occupations face
the combined effects of higher skill needs and an ageing workforce. A key objective of
relevant stakeholders is therefore to develop a workforce with the qualifications and
skills which meet the demand from strategically important sectors, such as advanced
manufacturing and engineering, marine industries and renewables. In addition,
organisations such as the Isle of Wight Destination BID will be working with existing
businesses in the visitor sector to develop appropriate skills for the development and
growth of the visitor sector into new markets.
An important part of the business support strategy is to establish stronger university
links with the Island, including R&D facilities and possibly a higher education presence.
The aim is to stimulate local businesses and help provide a higher-level skills base for
potential incoming firms. The LEP is to work with nearby universities and research
centres to create a world-class research facility that can enhance development and
expertise in key sectors, such as renewable energies.
A key project which demonstrates a number of these themes is the Isle of Wight
College’s Centre for Excellence for Composites and Advanced Manufacturing, which is
to be located on the Island Technology Park in East Cowes. This is being led by GKN
Aerospace and is due for completion in 2017/18.
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3.3.1 Island connectivity
The Isle of Wight is connected to the Solent mainland by six passenger services and
three ferry car services: from Lymington to Yarmouth (Wightlink); Southampton to East
and West Cowes (Red Funnel, Red Jet); Portsmouth to Fishbourne (Wightlink) and Ryde
(FastCat); and from Southsea to Ryde (Hovertravel).
The Island has 489 miles of roadway and 520 miles of public rights of way, including an
extensive network of byways, bridleways, footpaths and cycle tracks. The lighter traffic,
quieter roads and slower speeds are one of the reasons the Isle of Wight has remained
attractive to tourists from the busier mainland.
Internal connections by public transport rely significantly on bus services. Southern
Vectis have maintained a monopoly on bus transport on the Island, with the most
regular services running between the larger towns such as Ryde and Cowes. There are
three bus stations on the Island, located at Newport, Ryde and Yarmouth respectively
and one Park and Ride site at Cowes.
In the 1950s and 1960s the Island boasted a comprehensive railway network
connecting Ryde, Newport, Cowes, Sandown and Ventnor. Today much of the old rail
network has been converted to cycle ways, with the main remaining railway line – the
Island Line – running from Ryde Pier Head to Shanklin. Services are provided by Island
Line Trains, using former London Underground rolling stock. The Island also has a
steam-operated heritage railway, the Isle of Wight Steam Railway, which used to be
part of the former Ryde to Newport line. Today, the steam railway connects with the
Island Line at Smallbrook Junction and runs up to Wootton.
The Island also has two small airfields for general aviation: Isle of Wight Airport at
Sandown and Bembridge Airport. These are busy with day-trippers in the summer.
Flights going from the Island to London have also been trialled, however these proved
unpopular and so were discontinued.
3.3.2 The implications of growth on infrastructure
Based on an analysis of past and recent trends, there is an ongoing growth of
population and increase in number of internal journeys in several districts within the
Solent, including the Isle of Wight, which are expected to increasingly affect the
18
C - 27economic performance of the transport network (source: Solent Strategic Transport
Investment Plan, May 2016).
Over the period 1981–2014 the Isle of Wight population has increased by 18%; an
equivalent of 600 people per year (source: ONS, AECOM analysis). In 2011, 86% of
people residing in one of the Solent’s twelve constituent districts also had their
workplace in one of these districts, showing a high level of employment self-
containment within the Solent area. Evidence from the 2001 and 2011 Census suggests
that there are high levels of internal movement for work and other journey purposes,
contributing to traffic issues on the local and strategic networks in most of the Solent’s
districts, including the Isle of Wight. The Island’s vehicle traffic also emanates from the
mainland, comprising mostly tourists and therefore peaks in the summer when the
island’s population almost doubles.
3.3.3 Issues and opportunities for improvement
Local traffic issues and support for active modes schemes form a key part of the local
transport initiative for the Isle of Wight. There is a need for transport schemes that will
unlock housing, economic growth and regeneration, modernise the current services
and tackle the existing issues. The main transport issues and relevant schemes and
opportunities are as follows:
● Connectivity between the Isle of Wight and the mainland relies significantly on
ferry services. These services can be costly and there is space for improvement
of the quality of travel experience they offer. The case for an Isle of Wight fixed
link bridge or tunnel is weak due to the very high cost (unjustified on the basis
of current and future activity and development prospects), alignment feasibility
and environmental constraints, as well as resistance by both Island residents
and tourists. A proposal in 2008 for a new tramway linking Ryde to Gosport,
connecting with existing rail networks on both sides, was met with more
support from Island residents. The plans would also include a new harbour at
Ryde, with berthing facilities for more ferries and container ships. However, this
proposal has not been taken forward.
● There is space for improvement of the cross-Solent connections through better
interchanges. The Ryde Interchange from ferry to rail services is poor due to
badly integrated ticketing services and outdated facilities. Pedestrian
connectivity and wayfinding in Ryde are also poor, especially between the
Interchange and the town centre, while Ryde’s bus station is inadequate due to
lack of space for buses to circulate efficiently. A 2006 proposal to redesign the
19
C - 28Interchange facilities and surrounding esplanade area, was not taken forward.
Better integration of modes between ferries and other public transport offers
potential to have an impact on the economy, as well as to support the increased
use of public transport.
● There is a general increase of localised congestion and barriers to movement
on the Island. There is significant traffic congestion in and around Newport,
especially at peak times. Newport Highway Improvements are needed by 2020
to accommodate predicted growth and unlock new development at Coppins
Bridge gyratory, St Mary’s roundabout, Medina Way and Hunnyhill / Hunnycross
& Riverway junction. Due to forecast increased journey times, the floating
bridge in East Cowes is also scheduled to be replaced. As per the recent Solent
Strategic Transport Investment Plan (May 2016), there is an opportunity to
develop priority measures and sections of busway which would offer ‘Bus Rapid
Transit (BRT) Lite’ links between Ryde, Newport and Cowes, as part of an
integrated transit network via ferry connections to the rest of the Solent area
and beyond. Studies and delivery plans for infrastructure improvements in
Newport, as well as potential improvements in Ryde and The Bay, have recently
been commissioned by the Council. The Council is aiming for this work to be
used as the basis for an Infrastructure Delivery Plan to be developed by late
2017.
● There is need for capital investment in the 1960s Island Line train, electricity
supply, pier and track. The line provides important services for passengers, but
currently runs at a financial loss and requires significant investment for
upgrades to maintain the integrity of the infrastructure and rolling stock. The
operational future of the Island Line rail service is also uncertain. The Island
Line forms part of the South Western Franchise, but operates under a separate
lease agreement with Network Rail. Responsibility for infrastructure
maintenance and renewals is shared between the operator and Network Rail
under this lease, which is due to expire in 2019. In approaching the re-letting of
the South Western franchise, a key objective is to secure an appropriate,
financially sustainable long term future for the Island Line.
● Internal public transport connections rely significantly on bus services, with
larger towns such as Newport using buses as the only means of public
transport to connect with the rest of the Island. The Southern Vectis monopoly
and the fact that they are not subsidised make buses a costly way to travel.
Alternative, cheaper and more flexible transport modes, that exploit the Island’s
electricity surplus and manufacturing industry, such as electric bikes and hire
20
C - 29cars, might contribute to a greater variety of options for residents and visitors,
enhance the quality of travel and generate economic profits.
Case Studies: An electric car sharing
scheme was launched in February 2016
and aims to put nearly 3,000 electric cars
on the streets of London by 2019. The
Bluecity service will emulate the ‘Boris
Bike’ system.
Source: www.ft.com (link)
Toyota is planning to implement an
electric mini-car sharing system in
different cities around the world, and has
been testing the system in Grenoble since
October 2014, The system is expected to
expand to other cities and regions from
2016.
Source image: ecomento.com (link)
Bus Rapid Transit (BRT) has proven to be
an affordable, sustainable, and highly
effective solution. A wide range of electric
and hybrid BRT systems can be found in
the market.
Images: Birmingham is looking at Barcelona to
implement a similar BRT system.
Source: birminghampost.co.uk
3.3.4 The Solent Strategic Transport Investment Plan
In 2014, as part of the process to agree the Solent ’s Local Growth Deal with central
government, the Solent Local Enterprise Partnership (LEP) produced a Strategic
Economic Plan (SEP) to outline a transformative vision for the future growth of the
local economy. Central to this vision is the need for a modern and resilient transport
network that can enable the region to fulfil its economic potential by providing the
conditions that enable businesses and people to thrive and productivity to increase.
Therefore, the LEP has worked in partnership with AECOM to produce a Strategic
Transport Investment Plan (May 2016) for the next 25 years.
The key recommendation of the Investment Plan is for the Solent to focus on the
development of an integrated and expanded public transport network - Solent Transit
21
C - 30– covering new and existing bus, rapid bus, ferries, park and ride and rail/light rail
modes across the increasingly integrated area. This will allow improved connectivity
and accessibility across the Solent, link communities and opportunities and support
sustainable economic growth. The component parts would complement existing or
modified strategic rail services and passenger ferries to and from the Isle of Wight,
including a potential extended rapid bus on the Island, with integration and
interchange as a key objective.
3.3.5 Infrastructure Transport Task Force
The Infrastructure Transport Task Force is a transport working group that comprises
senior representatives from the Department for Transport, Isle of Wight Council,
Solent LEP, Isle of Wight Chamber of Commerce and Tourism and from various
business stakeholders.
The Task Force’s main role is to assist the Council in preparing an integrated Island-
wide Transport Infrastructure and Services Development Plan, in accordance with the
Strategic Transport Investment Plan and aligned with the Island’s vision and objectives:
delivering a multi modal transport system for the Isle of Wight that is safe, secure,
accessible and affordable; and which promotes economic development and underpins
the social, and environmental wellbeing of the Island community. The Transport
Infrastructure Plan is currently being tendered for infrastructure delivery projects, to
bid for Growth Fund Phase 3.
3.3.5 Sustainable Transport Programme
The Isle of Wight Council is one of only 18 local authorities to secure three consecutive
rounds of DfT sustainable transport funding since 2012, and (at the time of drafting) is
currently awaiting the outcome of its bid to the next round of DfT funding – the Access
Fund – which, if successful, will secure £1.35m revenue funding for the next three
financial years. Thus far the programme has generated a range of successful
sustainable transport capital projects from Car Clubs to ‘smart’ cycle routes.
22
C - 313.4 Housing
3.4.1 Current housing market
As of 2011 it is estimated that there are 61,111 households living on the Isle of Wight,
of which an estimated 11% are living within the affordable sector and 89% in the
market sector.
When comparing entry-level house prices to local incomes, housing affordability is
better on the Isle of Wight than many parts of the SE region. However, there is
evidence that younger households working locally have found it difficult to get on the
housing ladder; during the decade 2001–2011 the number of households living in
private rented accommodation increased by around 63%. There is also understood to
be wide variation in house prices between sub-market areas on the Island, for example
between affluent rural areas such as Bembridge and Seaview, and less affluent urban
areas such as Newport and Ryde.
The Council’s policy position is that it expects new housing developments (of 15+ units
in Key Regeneration Areas and 10+ elsewhere) to provide 35% of the development as
on-site affordable housing. Financial contributions towards affordable housing are
sought from smaller developments, with an overall target tenure mix of 70%
affordable/social rented and 30% intermediate within affordable housing
developments.
3.4.2 Housing growth and demand
It is important to understand that housing markets are influenced by macroeconomic
factors, as well as the housing market conditions at a regional and local level. However,
demographic changes are expected to be a key long-term driver of change on the Isle
of Wight, particularly in light of the changing age structure of the Island’s population.
With population growth there is expected to be a significant ageing of the population;
particularly the population aged 85+, which is projected to increase by 139% during the
period 2011–2036. These demographic changes will result in not only household
growth but also a change in household types, with virtually all (95%) of the growth
being accounted for by one person households.
The Council’s most recent Strategic Housing Market Assessment (SHMA) was
completed in August 2014 and confirmed that affordable housing represents 58% of
the overall housing requirement from 2011–2036. Projections suggest that during this
period, around 76% of the affordable housing requirement will be for homes with one
23
C - 32or two-bedrooms and 24% for larger homes with three or more bedrooms. However,
as a result of the local authority’s statutory duties towards homeless families with
children, a weighting towards affordable housing with two or more bedrooms was
applied in the SHMA.
In terms of market housing, the SHMA predicted relatively stronger demand for larger
family homes over the short-term and a continuing market for family homes over the
25-year projection period. Existing stock is expected to make a significant contribution
to meeting this demand as older households downsize and release larger family
homes back onto the market.
The SHMA also identified a number of housing challenges for the Isle of Wight, namely:
● Balancing the fact that 58% of the overall housing requirement are households
who require some form of affordable housing, when the Council is only
planning for 35%.
● Household projections show that the Island is expected to see a substantial
increase in the older population with the total number of people aged 55 and
over expected to increase by 40% from 2011–2036. In particular, a large rise is
projected in the number of people with dementia (123% increase) along with an
88% increase in the number of people with mobility problems.
● Analysis of younger person households shows a high reliance on rented
housing. Younger age cohorts may therefore be forced into private rented
(including shared) housing as the only means of meeting their housing needs,
aside from residing with parents.
3.4.3 Housing delivery
The Council does not own its own housing stock therefore the affordable housing is
owned and managed by the main housing associations operating on the Island:
Southern Housing Group, Spectrum and Vectis. The private residential developer
market on the Island is limited, with Barratt Homes being the only major housebuilder
currently developing market housing at scale. However, recent Barratts developments
have been sensitive to market conditions and arguably do not offer the design quality
expected by the Council.
The 2014 SHMA identified a need to deliver 589 additional homes per annum to 2036
in order to meet objectively-assessed needs. This includes a net requirement for 304
affordable homes per year over the plan period to enable households in need of
affordable housing to access an affordable home. To date delivery has fallen slightly
24
C - 33behind this target, although there is capacity to develop more homes on the Island,
predominantly in the Medina Valley and Ryde.
The market for self and custom-build housing on the Island could be developed to
appeal to young families seeking more innovative solutions to owning their own home,
particularly those attracted by the quality of place and new employment opportunities
on the island. Overall, the development of different market housing typologies should
be linked to the Island’s economic development plan and appeal to those skilled young
people who are likely to be attracted to live and work on the Island as a result of a
focus on the primary sectors, particularly high-tech industry.
3.4.4 Specialist housing
Due to the high proportion of older people on the island and the ageing demographic
profile, together with the known oversupply of residential care homes and
undersupply of extra care housing, there is a pressing need for the Council to consider
how it can facilitate the delivery of specialist housing for older people. Doing so will
help reduce revenue costs for social services while also releasing under-occupied
family homes in the affordable and market sectors. This is a huge opportunity for the
Council and could lead to double bottom line improvements: income and revenue
savings.
An extra care housing strategy is currently in development by IWC and targeted for
approval during December 2016. Given that in 2001 approximately 80% of older
people on the Island were living in a home they owned, this strategy must consider
how the Council can facilitate the development of extra care housing for private
sale/rent and shared ownership, in addition to social rented provision. It should also
explore opportunities for further integration of health and social care services through
the provision of collocated extra care and step-down/rehabilitation facilities, in order
to improve hospital discharge rates and prevent re-admissions to higher forms of care.
Although the initial focus of the extra care strategy will be on older people, the
specialist housing needs of adults with learning disabilities should also be considered
using a similar strategic market-shaping approach, together with direct delivery where
necessary.
25
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