ONE YEAR ON: - Kent County Council
ONE YEAR ON: - Kent County Council
ONE YEAR ON: - Kent County Council
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Final Report of the Sandwich Economic Development Task Force<br />
to HM Government<br />
<strong><strong>ON</strong>E</strong> <strong>YEAR</strong> <strong>ON</strong>:<br />
Building a new future for Discovery<br />
Park and East <strong>Kent</strong>
Foreword<br />
By Paul Carter<br />
Chairman of the Sandwich Economic Development Task Force<br />
In February last year, the outlook for<br />
the East <strong>Kent</strong> economy looked bleak,<br />
following Pfizer’s decision to exit its<br />
Sandwich research and development<br />
facility.<br />
East <strong>Kent</strong> –and the UK as a whole –<br />
was faced with the loss of world‐class<br />
facilities and one of the country’s<br />
most highly skilled workforces, with<br />
businesses in the supply chain also at<br />
risk .<br />
Science Minister David Willetts asked<br />
me to chair a Task Force to lead the<br />
recovery. There was no time to wait:<br />
people’s jobs and livelihoods were at<br />
stake.<br />
This report plots the activity and<br />
substantial progress made in the past<br />
year, and sets out our ambitious<br />
plans for the future.<br />
There are excellent opportunities for<br />
the future of the site as a global<br />
centre for scientific research. Pfizer<br />
has entered into a period of<br />
exclusivity for the sale of Discovery<br />
Park as an R&D‐led multiple use<br />
campus. Over 800 jobs have been<br />
retained or created at Discovery<br />
Park, with Pfizer retaining a core<br />
pharmaceutical science presence. A<br />
£24 million package of flood<br />
defences has been secured,<br />
protecting both Sandwich town and<br />
Discovery Park, with substantial<br />
contributions from KCC, DEFRA and<br />
Pfizer themselves.<br />
We have secured a £35 million<br />
package from the Regional Growth<br />
Fund to support growth in the East<br />
<strong>Kent</strong> economy – providing finance<br />
direct to businesses with the appetite<br />
for expansion and job creation. A<br />
further £5 million in RGF investment<br />
will cut journey times to Thanet on<br />
High Speed One to within an hour.<br />
2
Foreword<br />
We have also secured a<br />
comprehensive package of support<br />
for business on the site. From April<br />
this year, businesses locating at<br />
Discovery Park will benefit from<br />
Enterprise Zone status, with business<br />
rate discounts and planning<br />
flexibilities. New research‐intensive<br />
start‐ups are also already benefiting<br />
from top‐quality premises, access to<br />
finance and business development<br />
advice.<br />
So despite challenging economic<br />
times, I am confident that we have<br />
made a quantum leap forward in<br />
achieving our core objective:<br />
ensuring a bright future ahead for<br />
Sandwich and the East <strong>Kent</strong><br />
economy. Yet none of this could have<br />
been achieved without the<br />
commitment and resolve of national<br />
and local government and Pfizer,<br />
with substantial input from local<br />
MPs, universities and expert advisors<br />
working collaboratively to develop<br />
solutions to the challenges we faced.<br />
The foundations for a new economic<br />
future have been laid in East <strong>Kent</strong>.<br />
Paul Carter<br />
Leader, <strong>Kent</strong> <strong>County</strong> <strong>Council</strong><br />
Chairman, Sandwich Economic<br />
Development Task Force<br />
I am enormously grateful to all those<br />
who have given their time and<br />
creative energy in support of the<br />
Task Force and who have helped to<br />
deliver such positive results.<br />
3
1. Challenges to opportunities<br />
Subject to the sale of Discovery Park, this is the final report by the Sandwich Economic<br />
Development Task Force to Government. One year on from the creation of the Task Force, it<br />
sets out the progress that has been made in supporting Pfizer staff and contractors and in<br />
establishing a new future for the newly‐named Discovery Park site and the wider East <strong>Kent</strong><br />
and national economies.<br />
This first section sets out how the Task Force responded to the challenge of Pfizer’s decision<br />
to exit Sandwich. Section 2 highlights the progress we have made and the key achievements<br />
of the past year. Section 3 outlines Discovery Park’s exciting future and sets out the work<br />
that will be taken forward to ensure that the potential of Discovery Park is fully realised.<br />
Finally, Section 4 highlights the lessons we have learned from the Task Force experience in<br />
the hope that they may be helpful to other places faced with major economic challenges.<br />
Facing the challenge<br />
Pfizer has had a presence in East <strong>Kent</strong><br />
since the 1950s. By the start of 2011, its<br />
Sandwich site employed around 2,400<br />
people, all supporting research and<br />
development activity and making it the<br />
largest private sector employer in East<br />
<strong>Kent</strong>. So when Pfizer announced on 1<br />
February 2011 that it intended to exit<br />
Sandwich, we were presented with a<br />
major challenge.<br />
The exit decision came at a difficult time<br />
for East <strong>Kent</strong>, coinciding with significant<br />
anticipated public sector job losses and<br />
other industrial closures. Independent<br />
analysis estimated that there would be a<br />
total of 7,800 combined job losses<br />
across East <strong>Kent</strong> to the end of 2011,<br />
rising to 12,200 by 2018. Those directly<br />
affected included some of East <strong>Kent</strong>’s<br />
most highly skilled staff, reflecting<br />
Pfizer’s unique importance within the<br />
local economy.<br />
Pfizer’s exit decision reflected long<br />
term changes in the global structure of<br />
the pharmaceutical industry. Large<br />
pharmaceutical firms such as Pfizer,<br />
AstraZeneca and GSK are all spreading<br />
their risk, reducing the amount of<br />
research and development activity<br />
undertaken in‐house and changing the<br />
R&D model. This is continuing to affect<br />
large, high‐value R&D facilities<br />
throughout Europe and North America:<br />
most recently, AstraZeneca announced<br />
R&D job cuts at its Alderley Park facility<br />
in Cheshire<br />
The challenge presented by Pfizer’s exit<br />
was therefore both national and local.<br />
4
1. Challenges to opportunities<br />
Nationally, global change in the<br />
pharmaceutical industry puts at risk the<br />
UK’s long‐standing comparative<br />
advantage in the sector: so adapting to<br />
change while retaining talent is clearly<br />
in the national interest. Locally, the<br />
potential loss of Pfizer threatened the<br />
core of the East <strong>Kent</strong> economy,<br />
impacting on direct employment, the<br />
supply chain, skills base and the future<br />
of a world‐class site.<br />
Seizing the opportunities<br />
Although Pfizer’s decision to exit<br />
presented an economic challenge, it<br />
also created new opportunities.<br />
Discovery Park is a unique site, well<br />
connected to significantly improved<br />
transport infrastructure and with over 3<br />
million sq ft of high‐quality, modern<br />
stock of business accommodation. East<br />
<strong>Kent</strong> as a whole also offers an excellent<br />
quality of life, with competitive<br />
residential prices, a high quality<br />
environment, while the area’s schools,<br />
colleges and cluster of universities are<br />
of excellent standard. East <strong>Kent</strong> is an<br />
attractive place to live, work and invest.<br />
There have also been examples of<br />
former large scale research and<br />
development facilities that have found<br />
new futures after industrial<br />
restructuring. The regeneration of<br />
research facilities as diverse modern<br />
incubator centres and science parks in<br />
the UK, Europe and the United States<br />
gave early cause for optimism.<br />
Understanding the challenge<br />
During our first month, the Task<br />
Force visited The Heath at Runcorn,<br />
a large former single‐occupancy R&D<br />
facility once owned by chemicals<br />
giant ICI. More than ten years<br />
following ICI’s exit from the site, The<br />
Heath now employs 2,000 people<br />
within 160 businesses and competes<br />
successfully as an entirely privately<br />
financed facility with other science<br />
parks in the local area.<br />
It took courage from former facilities<br />
management staff and several years<br />
of hard work and commitment for<br />
The Heath to rebuild to its current<br />
scale – but it showed us what could<br />
be achieved with a long term vision<br />
and a pragmatic approach focused<br />
not just on a property transaction,<br />
but on developing a co‐ordinated<br />
R&D‐focused offer.<br />
Reasons for optimism<br />
“In East <strong>Kent</strong>, we already have a strong<br />
knowledge base… and excellent<br />
infrastructure, educational and quality<br />
of life assets. The Task Force believes<br />
that Pfizer’s exit from the Sandwich site<br />
gives us a unique opportunity to build<br />
on these to generate a new economic<br />
future”<br />
Sandwich Economic Development Task<br />
Force<br />
First Report, March 2011<br />
5
1. Challenges to opportunities<br />
Task Force members also worked<br />
together and with Pfizer to understand<br />
the impact on staff and the community,<br />
with the Chairman and Laura Sandys<br />
MP meeting with staff and contractors.<br />
We also met with venture capitalists<br />
and industry experts to understand<br />
what could be done to support new<br />
business growth.<br />
Making it happen<br />
The Task Force aimed to:<br />
• Support those affected by Pfizer’s<br />
exit in finding new employment<br />
• Retain the local skills base<br />
• Establish a new future for the<br />
Sandwich site; and<br />
• Stimulate wider economic<br />
opportunities in East <strong>Kent</strong><br />
The Task Force recognised from the<br />
start that managing the impact of the<br />
exit and developing a new economic<br />
future for East <strong>Kent</strong> would be a five to<br />
ten year journey. Immediately, there<br />
was a need to focus on supporting<br />
Pfizer staff, contractors and the local<br />
community –making sure that support<br />
offered through the public sector was<br />
joined up with that provided by Pfizer.<br />
We were also faced with the immediate<br />
issue of ensuring the viability of the site,<br />
faced with an urgent need to improve<br />
flood defences to ensure that it retained<br />
investment potential.<br />
The Task Force: Members<br />
Paul Carter, <strong>Kent</strong> <strong>County</strong> <strong>Council</strong><br />
(Chairman)<br />
Rob Bennett, BBP Regeneration<br />
Dr Annette Doherty, Pfizer<br />
Mark Florman, British Venture Capital<br />
Association<br />
Prof Dame Julia Goodfellow, University<br />
of <strong>Kent</strong><br />
Sir Brandon Gough, Locate in <strong>Kent</strong><br />
Laura Sandys, MP<br />
Paul Watkins, Leader of Dover District<br />
<strong>Council</strong><br />
With support from BIS, DCLG, Jobcentre<br />
Plus and the Task Force member<br />
organisations<br />
But from the start, the Task Force also<br />
needed to consider the longer term<br />
future of the Sandwich site and the<br />
wider economy, recognising the urgent<br />
need to retain the skills base and<br />
attract quality investment into the site<br />
6
“When we established the Task Force, we were clear that we<br />
had to retain the skills of Pfizer staff, create a new future for<br />
the Discovery Park site and secure investment in the<br />
infrastructure and business support needed to spur economic<br />
growth…<br />
After a year of joint working, we can report real achievements,<br />
on which we must build”<br />
7
2. Progress so far<br />
Since the Task Force was established, we can report strong progress in delivering our<br />
objectives. This section sets out the Task Force’s key achievements and the progress that we<br />
have made in securing new investment and job creation at Discovery Park and throughout<br />
East <strong>Kent</strong>.<br />
Retaining and creating jobs<br />
To date, over 800 jobs have been<br />
retained or created at Discovery Park.<br />
A major step forward was made in June<br />
2011, with Pfizer’s decision to retain<br />
part of its pharmaceutical science<br />
operation at Sandwich, preserving<br />
around 350 jobs to support the<br />
development of products in Pfizer’s mid<br />
and late stage pipeline.<br />
Since then, Pfizer have announced the<br />
retention of a further 350 jobs in<br />
Medical Regulatory and Safety, Clinical<br />
Pharmacology, Pharmacometrics,<br />
Global Supply Quality Assurance,<br />
Commercial Business Units and<br />
Business Support Functions. This<br />
decision by Pfizer to continue activity at<br />
Discovery Park retains a strong<br />
scientific core at the site. Overall, 650<br />
jobs have been retained by Pfizer at<br />
Discovery Park<br />
• Mylan, the world’s third largest<br />
generics company, has signed a<br />
licensing agreement with Pfizer and is<br />
establishing a Respiratory Centre of<br />
Excellence at Discovery Park;<br />
• Peakdale, who provide synthetic<br />
chemistry services, are to retain an<br />
existing presence on site, sustaining<br />
around 50 jobs;<br />
• Unilabs, a subsidiary of York<br />
Bioanalytical Solutions, are also locating<br />
a satellite company on site.<br />
Building on this retained presence, a<br />
number of other science businesses<br />
have also announced that they will be<br />
located at Discovery Park:<br />
8
2. Progress so far<br />
Pfizer has consolidated its presence<br />
on site into three buildings, including<br />
a science and technology building<br />
with state of the art laboratories, a<br />
pilot plant and a solid and liquid dose<br />
manufacturing facilities.<br />
The science and technology building<br />
is a multi‐occupancy building with<br />
Pfizer occupying space on the ground<br />
and first floors, with space allocated<br />
for Peakdale, Unilabs and Mylan.<br />
Space for colleague‐led start‐up and<br />
spin‐out companies on the second<br />
and third floors. In total, over 800<br />
jobs have been retained at Discovery<br />
Park to date.<br />
Establishing new businesses<br />
The skills of Pfizer’s workforce are a<br />
key asset to Discovery Park and East<br />
<strong>Kent</strong> –and harnessing them to<br />
develop new businesses is essential<br />
in developing a more diverse,<br />
research‐intensive business mix.<br />
Pfizer put in place support for staff<br />
seeking to establish their own<br />
businesses, with events run by the<br />
British Venture Capital Association<br />
and the Pfizer Venture Group<br />
offering advice to staff in accessing<br />
start‐up finance alongside the<br />
support in accessing new<br />
employment offered by Pfizer and<br />
Jobcentre Plus.<br />
In addition, High Growth <strong>Kent</strong>, a KCCfunded<br />
business coaching service for<br />
companies with the potential for rapid<br />
growth now has a permanent presence at<br />
Discovery Park and is supporting a<br />
number of new spin‐out proposals.<br />
Improving opportunities for life<br />
science: The Government’s role<br />
The UK is a world leader in life sciences.<br />
Combined, the pharmaceuticals,<br />
medical biotechnology and medical<br />
technology sectors have an annual UK<br />
turnover of over £50 billion, and<br />
employ around 165,000 staff.<br />
With the life sciences sector<br />
experiencing rapid global change, the<br />
Government launched the Strategy for<br />
UK Life Sciences in December 2011,<br />
setting out new measures to make it<br />
easier to commercialise academic<br />
research, promote the UK as a place to<br />
invest, attract talent and incentivise<br />
investment in R&D. Last year’s Budget<br />
also improved the tax environment for<br />
research and development, increasing<br />
the R&D tax allowance for small and<br />
medium enterprises to 225% from<br />
2012.<br />
This could have a positive impact on<br />
R&D business starts emerging from<br />
Pfizer, and making the UK an<br />
increasingly competitive location for<br />
life science investment will help<br />
Discovery Park reach its potential as a<br />
major contributor to the national<br />
economy.<br />
9
2. Progress so far<br />
At present, over a dozen companies<br />
have been established or are in the<br />
process of being established by<br />
entrepreneurs emerging from Pfizer<br />
and are seeking venture capital and<br />
other forms of initial finance. The first<br />
few months will be critical in enabling<br />
new ventures to get off the ground and<br />
Pfizer has made dedicated space<br />
available for new starts at Discovery<br />
Park. In addition, <strong>Kent</strong> <strong>County</strong> <strong>Council</strong><br />
established an Accelerator Grant<br />
scheme for businesses at Discovery<br />
Park, offering grants of up to £20,000<br />
for new research‐intensive companies,<br />
linked with extra support from the High<br />
Growth <strong>Kent</strong> team jointly funded by<br />
KCC and Jobcentre Plus. With the<br />
scheme opened to applications in<br />
January, the first grants will be awarded<br />
in March.<br />
Incentives for growth<br />
In our first report to Government,<br />
submitted in March 2011, the Task<br />
Force proposed the creation of a<br />
‘research, technology and enterprise<br />
zone’, offering a combination of tax<br />
incentives and financial support to<br />
attract new investment at Discovery<br />
Park.<br />
Coming into effect from April 2012,<br />
the Discovery Park Enterprise Zone<br />
means that all businesses locating on<br />
the site will be eligible for business<br />
rate discounts of up to £55,000 per<br />
year for five years. In addition, the<br />
Enterprise Zone will offer a simplified<br />
planning regime to new investors,<br />
and Dover District <strong>Council</strong> is currently<br />
working as quickly as possible to put<br />
in place a Local Development Order<br />
to enable this.<br />
A major financial incentive package<br />
has also been secured with the<br />
award of £35 million from the<br />
Government’s Regional Growth<br />
Fund to establish Expansion East<br />
<strong>Kent</strong>, a programme of finance<br />
support to business. The programme<br />
will be launched in April, and will<br />
provide part‐funding to businesses<br />
seeking to invest in East <strong>Kent</strong> to<br />
create new jobs, including inward<br />
investors. The programme aims to<br />
unlock private sector finance,<br />
stimulating over £300 million in<br />
associated investment over the<br />
course of the next three years and<br />
creating a major boost for the East<br />
<strong>Kent</strong> economy.<br />
When the Government launched its<br />
own Enterprise Zone scheme in May,<br />
the Task Force applied for Discovery<br />
Park to be designated as a Zone. <strong>Kent</strong><br />
<strong>County</strong> <strong>Council</strong> and Dover District<br />
<strong>Council</strong> played a major role in ensuring<br />
that the South East Local Enterprise<br />
Partnership recognised Discovery Park<br />
as its top Enterprise Zone priority and<br />
EZ status was granted in the summer.<br />
10
2. Progress so far<br />
New investment for business: Expansion East <strong>Kent</strong><br />
Finance through the £35 million Expansion East <strong>Kent</strong> scheme will be available to business<br />
throughout the districts of Canterbury, Dover, Shepway and Thanet – including businesses<br />
based at Discovery Park. Businesses in most sectors of the economy are eligible to apply,<br />
but all proposals must:<br />
• Directly deliver a specific investment project<br />
• Clearly lead to additional job creation<br />
• Bring forward private sector funding (Expansion East <strong>Kent</strong> will generally cover no more<br />
than 35% of project costs, and less in some cases)<br />
Recognising the importance to the East <strong>Kent</strong> economy of its existing strengths in life<br />
sciences and environmental and renewable energy technologies –and the prospects for<br />
future growth ‐ applications to Expansion East <strong>Kent</strong> are especially encouraged. The<br />
programme will be open to applications shortly –see www.kent.gov.uk/businessgrants for<br />
more details.<br />
Protecting Sandwich<br />
Securing a flood defence scheme for<br />
Sandwich town and Discovery Park<br />
had been a priority prior to the<br />
announcement of Pfizer’s exit..<br />
Protecting the site against flooding<br />
was critical to the future of Discovery<br />
Park. It was therefore a testament to<br />
joint working and shared objectives<br />
when in summer 2011, the<br />
Environment Agency, Pfizer and <strong>Kent</strong><br />
<strong>County</strong> <strong>Council</strong> agreed to a funding<br />
package worth £24 million which will<br />
offer 1 in 200 year flood protection<br />
to Discovery Park and Sandwich<br />
town. Work will begin in 2013,<br />
providing security both to the<br />
community and future owners and<br />
occupiers of the site.<br />
Bringing East <strong>Kent</strong> closer to<br />
London<br />
The past year has also seen<br />
improvements to transport<br />
infrastructure which have built on<br />
major investment in recent years and<br />
improved accessibility to Discovery<br />
Park.<br />
The £117 million East <strong>Kent</strong> Access<br />
road scheme was completed in late<br />
2011, providing a direct dual<br />
carriageway link from Discovery Park<br />
to the motorway network.<br />
Rail connections have been<br />
improved, with direct trains from<br />
London St Pancras to Sandwich and<br />
Deal starting in September 2011,<br />
bringing Discovery Park to within 90<br />
minutes of central London.<br />
11
Current journey times<br />
Improved line speed<br />
“Rail connections have been improved, with direct trains from<br />
London St Pancras to Sandwich, bringing Discovery Park within<br />
90 minutes of central London – and £10 million investment to<br />
improve journey times on High Speed One”<br />
12
2. Progress so far<br />
Most recently, following a proposal<br />
by the Task Force to the<br />
Government’s Regional Growth Fund,<br />
£5 million of investment (matched<br />
with a further £5 million from<br />
Network Rail) has been secured to<br />
improve the rail line between<br />
Ashford and Ramsgate to enhance<br />
the speed of High Speed One trains<br />
using the route and cutting journey<br />
times to within an hour.<br />
Supporting staff and the<br />
community<br />
Immediately, the Task Force needed<br />
to work closely with Pfizer to support<br />
staff into alternative employment.<br />
Pfizer provided a comprehensive<br />
outplacement service managed by<br />
the transition company DBM,<br />
offering a range of programmes to<br />
support staff on site. Pfizer also<br />
delivered a series of other support<br />
measures, including additional<br />
training, workshops, speaker sessions<br />
and two highly successful<br />
recruitment fairs. The recruitment<br />
fairs held on site welcomed over 140<br />
companies to the site to enable<br />
colleagues to find out about<br />
employment opportunities.<br />
Communicating with the community<br />
Pfizer's announcement in<br />
February caused shock waves across<br />
the whole community. Not only was<br />
Pfizer the biggest high‐skill employer<br />
locally, its use of local businesses and<br />
its support of local schools and<br />
community groups over many years<br />
had made it a massively valued<br />
corporate neighbour.<br />
Good communication locally was<br />
always going to be vital ‐ to employees,<br />
contractors and to the local<br />
community. In addition to Pfizer's own<br />
communications, this was assisted<br />
greatly by Laura Sandys and fellow East<br />
<strong>Kent</strong> MPs including local meetings in<br />
Sandwich with Task Force Chairman<br />
Paul Carter.<br />
On site, outplacement consultants<br />
DBM and Job Centre Plus were quickly<br />
established, job fairs for employees and<br />
contractors were attended in huge<br />
numbers and regular communications<br />
and comprehensive tracking ‐ including<br />
via Linked‐in and other social networks<br />
‐ were quickly established by Pfizer. At<br />
the same time, the local community<br />
welcomed Pfizer's ongoing<br />
commitment to local organisations .<br />
As local MP, Laura Sandys has remained<br />
an important bridge between company<br />
and community, championing local<br />
interests. Equally, the Task Force has<br />
tried to represent the interests of all<br />
those impacted by the job losses in its<br />
support of new employment and<br />
business growth opportunities.<br />
.<br />
13
2. Progress so far<br />
To supplement Pfizer’s support of its<br />
colleagues, Jobcentre Plus’s Rapid<br />
Response Service has had a base on<br />
site, offering careers, selfemployment<br />
and training advice and<br />
advice in accessing benefits and<br />
Jobcentre Plus services. Jobcentre<br />
Plus have been a key part of the Task<br />
Force from the start, ensuring that<br />
public sector support was fully joined<br />
up with that offered by Pfizer.<br />
While many staff have sought new<br />
employment opportunities in the<br />
commercial world or are establishing<br />
new businesses, opportunities in the<br />
higher education sector have also<br />
been successfully promoted, linking<br />
commercial scientific skills with<br />
academic research. To ensure that<br />
skills training provision matched the<br />
needs of staff, contractors and those<br />
in the wider East <strong>Kent</strong> supply chain<br />
impacted by Pfizer’s exit, the Task<br />
Force quickly established a Skills Sub‐<br />
Group, bringing together Pfizer, the<br />
local authorities, local Chambers of<br />
Commerce, business support<br />
organisations and the public sector.<br />
Much achieved<br />
When we established the Task Force, we<br />
were clear that we had to retain the skills<br />
of Pfizer staff, create a new future for the<br />
Discovery Park site and secure investment<br />
in the infrastructure and business support<br />
needed to spur economic growth. But in<br />
difficult economic times, and with the<br />
anticipated loss of East <strong>Kent</strong>’s largest<br />
private employer and its skills base and<br />
facilities, the prospects for success were<br />
very uncertain. After a year of joint<br />
working, we can report real<br />
achievements, on which we must build.<br />
The Sub‐Group has co‐ordinated<br />
information to thousands of local<br />
businesses to signpost them to<br />
sources of advice and support. It has<br />
also been successful in securing<br />
additional funds through the<br />
European Social Fund to provide<br />
retraining and up‐skilling support<br />
through Canterbury College,<br />
K College and Thanet College.<br />
14<br />
.
Launching the Discovery Park Enterprise Zone, August 2011<br />
Left to right: Rt Hon David Willetts MP (Minister of State for Universities and Science); Rt Hon Greg Clark<br />
MP (Minister of State for Decentralisation and Cities); Dr Annette Doherty (Pfizer), Paul Carter (Leader,<br />
<strong>Kent</strong> <strong>County</strong> <strong>Council</strong>), Rt Hon George Osborne MP (Chancellor of the Exchequer), Laura Sandys MP,<br />
Charlie Elphicke MP<br />
“With current employment at Discovery Park exceeding our<br />
original expectations, Pfizer maintaining a core presence and<br />
with a number of new businesses already locating and starting<br />
up on the site, the prospects for Discovery Park under new<br />
ownership are strong”<br />
15
3. An exciting future<br />
The Task Force has met and exceeded its original goals. Much has been achieved in the past<br />
year and the foundations have been laid for Discovery Park to reach its full potential. This<br />
section considers the next phase of transition from a single‐use site to a more diverse,<br />
research‐focused future focused on the opportunities of life sciences and environmental<br />
technologies<br />
Towards new ownership<br />
Earlier this year, Pfizer announced that it<br />
had entered a period of legal exclusivity<br />
with London and Metropolitan, for the<br />
sale of Discovery Park. This follows<br />
global marketing of the site and strong<br />
interest from a number of potential<br />
investors, and is evidence of the<br />
potential that the private sector sees in<br />
the high quality facility.<br />
Task Force members are working to<br />
understand and anticipate the key issues<br />
for Discovery Park, including the<br />
preparation of a Local Development<br />
Order and establishing how the package<br />
of Enterprise Zone and other incentives<br />
can best support high‐value, researchintensive<br />
business growth on the site.<br />
With current employment at Discovery<br />
Park exceeding our original expectations,<br />
Pfizer retaining a core presence and with<br />
a number of new businesses already<br />
locating and starting up on the site, the<br />
prospects for Discovery Park under a<br />
new owner are strong .<br />
Sustaining Discovery Park<br />
through the transition<br />
With world‐class research and business<br />
premises in a modern campus,<br />
Discovery Park is a unique location.<br />
Over time, as start‐ups expand and new<br />
businesses are attracted, it has the<br />
potential to become a major centre of<br />
employment once again, focused on life<br />
science and other R&D.<br />
However, with 3 million sq ft of high<br />
quality R&D business space, part of<br />
Discovery Park will be empty over the<br />
short to medium term. As empty<br />
properties are currently liable for<br />
business rates, there will be a<br />
substantial cost ‐ which could provide a<br />
negative incentive to demolish some<br />
buildings, even though they will be<br />
valuable in the longer term.<br />
16
3. An exciting future<br />
There is a strong case for reducing<br />
(or eliminating altogether) business<br />
rates on empty properties given the<br />
perverse incentives that they<br />
provide. Many organisations,<br />
including the CBI, are arguing<br />
persuasively for this. However, any<br />
decision to change the business rates<br />
regime will obviously need to be<br />
taken nationally by Treasury. In the<br />
shorter term, the Task Force urges<br />
Government and its agencies to take<br />
as pragmatic approach as possible<br />
within the constraints of the current<br />
system, to ensure that the future<br />
potential of Discovery Park –which<br />
we all recognise –is not diminished.<br />
The transition from a single‐use site<br />
to an R&D‐led multiple‐use campus<br />
could also be assisted through<br />
enhanced capital allowances on<br />
plant and machinery. Some<br />
Enterprise Zones have been offered<br />
enhanced capital allowances by<br />
Government, where it is clear that<br />
they will make a real difference in<br />
attracting major investors.<br />
Government has already indicated<br />
that it is willing to consider a<br />
proposal for enhanced capital<br />
allowances to benefit Discovery Park,<br />
and Task Force members will<br />
continue to work with the new<br />
owners to take this forward.<br />
Actively marketing the East<br />
<strong>Kent</strong> offer<br />
With a substantial package of financial<br />
support to business through Expansion<br />
East <strong>Kent</strong>, considerable opportunities<br />
for growth in the life science, energy,<br />
environmental technology, tourism,<br />
food science, land management and<br />
higher education sectors and<br />
continued investment in transport<br />
infrastructure, the appeal of East <strong>Kent</strong><br />
as an investment location is<br />
compelling.<br />
However, we need to ensure that East<br />
<strong>Kent</strong> offer is effectively promoted. In<br />
particular, the quality and scale of<br />
Discovery Park is of global significance,<br />
and it will be competing for<br />
investment in an international market.<br />
Locate in <strong>Kent</strong> is already highly<br />
successful in attracting inward<br />
investment to East <strong>Kent</strong> , securing<br />
over £125 million in investment over<br />
the past five years generating over<br />
3,800 jobs, and has worked closely<br />
with Pfizer and its agents in marketing<br />
Discovery Park –and will continue to<br />
work with Pfizer’s successors. But in a<br />
highly competitive investment<br />
environment, it is crucial that<br />
Discovery Park’s unique appeal –<br />
linked with the opportunities at<br />
Manston and elsewhere in East <strong>Kent</strong> ‐<br />
is actively and ruthlessly promoted<br />
globally through UK Trade and<br />
Investment as part of an integrated<br />
East <strong>Kent</strong> offer.<br />
17
3. An exciting future<br />
A positive future for East <strong>Kent</strong><br />
With improved rail infrastructure,<br />
Thanet and Dover will be as close to<br />
London as Oxford and Cambridge –and<br />
with competitive residential and<br />
commercial prices, a high quality<br />
coastline, heritage, rural environment,<br />
flourishing cultural scene and a superb<br />
knowledge base, East <strong>Kent</strong> has great<br />
potential for future economic growth.<br />
Much is being done to unlock this<br />
potential. The Turner Contemporary<br />
opened in Margate in 2011, a<br />
nationally‐ renowned symbol of the<br />
town’s creative renaissance. Enjoying<br />
300,000 visitors in its first nine months,<br />
Turner Contemporary has already<br />
helped to support 52 new businesses in<br />
Thanet. Increasingly, East <strong>Kent</strong> is<br />
proving to be a magnet for new<br />
creative businesses, attracted by the<br />
area’s dynamism, competitive pricing<br />
and quality of life.<br />
East <strong>Kent</strong>’s university cluster is a<br />
further key asset as the economy<br />
demands ever higher skill levels. With<br />
over 30,000 students, Canterbury has<br />
one of the UK’s highest concentrations<br />
of higher education activity –creating a<br />
pool of talent, innovation and<br />
creativity.<br />
Working together with KCC and its<br />
investment promotion arm Locate in<br />
<strong>Kent</strong> and other partners, Damian<br />
Collins MP together with the other<br />
East <strong>Kent</strong> MPs is working to develop<br />
a marketing approach for the area to<br />
maximise its potential.<br />
Backing innovation.<br />
Discovery Park has a sixty year track<br />
record of groundbreaking innovation,<br />
with many of Pfizer’s top<br />
pharmaceutical products originating<br />
at Sandwich. With businesses keen to<br />
stay at Discovery Park, a cluster of<br />
universities at Canterbury and an<br />
increasingly business‐focused schools<br />
offer, we are optimistic that this<br />
innovative spirit can be retained and<br />
grown in East <strong>Kent</strong>.<br />
However, we do not yet have in East<br />
<strong>Kent</strong> the concentration of highgrowth<br />
businesses and high‐value<br />
employment that the UK’s most<br />
innovative places enjoy.<br />
The Task Force has demonstrated<br />
that through a practical partnership<br />
between local government leaders,<br />
the private sector and higher<br />
education, much can be achieved.<br />
We need to build on this ‐ making the<br />
most of our university presence,<br />
securing higher education<br />
involvement from beyond <strong>Kent</strong> and<br />
ensuring that public sector financial<br />
support backs growing businesses to<br />
realise the innovative potential of<br />
Discovery Park.<br />
18
Clockwise from top left: Sandwich; University of <strong>Kent</strong> at Canterbury; Turner Contemporary at Margate;<br />
Port of Dover.<br />
“The appeal of East <strong>Kent</strong> as an investment location is<br />
compelling… It is crucial that Discovery Park’s unique appeal is<br />
actively promoted globally as part of an integrated offer for<br />
the rest of East <strong>Kent</strong>”<br />
19
4. Key lessons<br />
Industrial change is an inevitable part of a dynamic economy. So it is important that local<br />
economies are able to adapt, plan for new futures and support the community. What can<br />
other parts of the country affected by major economic shocks learn from our experience at<br />
Sandwich? This section sets out the lessons that we have learnt and can share with others.<br />
Task Forces: A response to<br />
economic change<br />
The Sandwich Task Force is not unique.<br />
Many multi‐agency task forces have<br />
been set up by places affected by<br />
immediate economic shocks, often with<br />
Government support, both to coordinate<br />
a response to the people and<br />
businesses immediately affected by<br />
change and to plan for the future of the<br />
local economy. So establishing a task<br />
force at Sandwich was a natural<br />
response .<br />
However, some task forces are more<br />
successful than others. What worked at<br />
Sandwich? We have identified seven<br />
lessons for the future.<br />
Lesson 1: We had clear political<br />
leadership to galvanise action<br />
The Sandwich Task Force benefited from<br />
clear political leadership from the start,<br />
under the chairmanship of the Leader of<br />
<strong>Kent</strong> <strong>County</strong> <strong>Council</strong> and with very active<br />
involvement by David Willetts, the<br />
Leader of Dover District <strong>Council</strong> and the<br />
local Member of Parliament.<br />
This demonstrated the importance that<br />
local and national government attached<br />
to the Task Force and its role –<br />
responding to the challenges and<br />
opportunities of Discovery Park was a<br />
top priority from the start, and this was<br />
reflected in the focus that the Task<br />
Force retained over the course of the<br />
year .<br />
Lesson 2: We engaged with all<br />
the key partners<br />
The Sandwich Task Force was not just a<br />
government construct –and it would<br />
not have worked if it had been. Pfizer<br />
was a key member of the Task Force<br />
right from the start. This proved<br />
enormously important in ensuring that<br />
public sector actions to support staff<br />
and the wider community were coordinated<br />
with Pfizer’s; in ensuring that<br />
all partners had accurate information;<br />
and in achieving a joined‐up approach<br />
to the marketing of the site. All of the<br />
Task Force partners had a role in taking<br />
forward actions arising from the Task<br />
Force .<br />
20
4. Key lessons<br />
Support from Ministers and<br />
Government<br />
Critical to the Task Force’s success has<br />
been its excellent relationship with<br />
Government. Cross‐departmental<br />
support and the personal commitment<br />
of Ministers and MPs to assist has been<br />
pivotal in maintaining momentum and<br />
overcoming issues that threatened the<br />
Task Force’s progress.<br />
Spearheaded by Laura Sandys in<br />
Westminster and by Paul Carter in<br />
Whitehall, this began in parliamentary<br />
debate and select committee evidence<br />
and progressed through numerous<br />
Ministerial . offices, with BIS, DCLG, DfT,<br />
DEFRA, DECC, DWP and the Treasury all<br />
closely involved and highly supportive.<br />
Securing such support required ongoing<br />
communication .<br />
and contact in<br />
Westminster in the relentless pursuit of<br />
Task Force objectives. No opportunity<br />
was lost by Laura Sandys, Paul Carter,<br />
Task Force members and East <strong>Kent</strong> MPs<br />
to press the case for Discovery Park and<br />
for business growth in East <strong>Kent</strong>.<br />
At an early stage, the Task Force<br />
considered the likely phases of the<br />
transition, moving from an<br />
immediate focus on supporting<br />
existing staff, through attracting new<br />
investment, to developing a broader<br />
strategy for the economy of East<br />
<strong>Kent</strong>. Supported by an independent<br />
analysis of the economic impact of<br />
Pfizer’s exit decision, this helped to<br />
focus the work of the Task Force.<br />
Lesson 4: We set clear<br />
deadlines to maintain<br />
momentum.<br />
The Task Force was asked by the<br />
Secretary of State to report after one<br />
month with recommendations for<br />
action. We met this deadline, and<br />
reported again on progress after<br />
three and six months<br />
This regular reporting was helpful in<br />
clarifying the Task Force’s key actions<br />
and ensuring that progress was being<br />
made. It also helped the Task Force<br />
to test new ideas –for example, our<br />
proposal in our first report for a<br />
‘research, innovation and technology<br />
zone’ informed the later successful<br />
bid for Enterprise Zone designation.<br />
Lesson 3: We worked out the<br />
right actions to take<br />
Naturally, there is pressure to take<br />
urgent action in the immediate<br />
aftermath of a major economic<br />
shock. But it can take time to<br />
understand where to focus action.<br />
21
4. Key lessons<br />
.<br />
Working together: Resolving flood risk<br />
issues<br />
The risk of flooding presented a major<br />
challenge to Discovery Park’s future<br />
viability. Working across Government<br />
(involving BIS, DEFRA and the<br />
Environment Agency) together with<br />
<strong>Kent</strong> <strong>County</strong> <strong>Council</strong> and Pfizer, the<br />
Task Force attracted a £24 million<br />
package protecting Sandwich town and<br />
the site.<br />
Lesson 5: We made major<br />
investments – but minimised<br />
development costs<br />
Most of the preparatory work<br />
supported by the Task Force –<br />
including the preparation of major<br />
funding proposals, reports to<br />
Government and the development of<br />
the Local Development Order –has<br />
been carried out with internal local<br />
resources. The Task Force kept<br />
external consultancy support to a<br />
focused minimum, reducing costs<br />
and ensuring joint ownership<br />
Lesson 6: We had a common<br />
vision<br />
Although the Task Force was set up<br />
as a response to Pfizer’s planned exit,<br />
we were clear that we needed to<br />
take a broader view of the challenges<br />
and opportunities for East <strong>Kent</strong>. The<br />
mature partnership that exists across<br />
the East <strong>Kent</strong> local authorities<br />
ensured that the Task Force saw<br />
Discovery Park as an integral part of<br />
the East <strong>Kent</strong> investment offer.<br />
Lesson 7: We had strong<br />
strategic support from the<br />
private sector<br />
The broader private sector in East<br />
<strong>Kent</strong> was also important in<br />
supporting the work of the Task<br />
Force. In particular, the Task Force’s<br />
successful bid to the Government’s<br />
Regional Growth Fund for the<br />
Expansion East <strong>Kent</strong> programme and<br />
line speed enhancement was greatly<br />
reinforced by extensive consultation<br />
with ‐ and endorsement by –the<br />
business community.<br />
The business‐led Local Enterprise<br />
Partnership backed our bid for<br />
Enterprise Zone status. As the work<br />
of the Task Force is continued<br />
through the Enterprise Zone Board<br />
and the Expansion East <strong>Kent</strong> Board,<br />
this strong business role will become<br />
especially important.<br />
Forward with optimism<br />
Finally, the Task Force owes a debt of<br />
gratitude to all its members –and<br />
central Government ‐ who have<br />
driven forward progress over the<br />
past year. There is a long road ahead<br />
to fully achieve Discovery Park’s<br />
potential –and the employment and<br />
growth that East <strong>Kent</strong> needs. But we<br />
have laid solid foundations, and with<br />
a joint commitment to the future of<br />
East <strong>Kent</strong>, the Task Force ends a year<br />
of challenge and progress with<br />
optimism.<br />
22
“There is a long road ahead to fully achieve Discovery Park’s<br />
potential. But we have laid solid foundations and the Task<br />
Force ends a year of challenge and progress with optimism”<br />
23
Summary: Challenges to opportunities<br />
The challenge we faced<br />
•Potential loss of East <strong>Kent</strong>’s largest –and highest‐value employer<br />
• 2,400 jobs potentially lost and over 12,000 jobs impacted across East<br />
<strong>Kent</strong><br />
•Nearly £700 million potentially lost to the East <strong>Kent</strong> economy<br />
•UK’s position as a leading innovator in life sciences threatened<br />
•3 million sq ft of top quality lab space at risk<br />
Achievements: 12 months on<br />
•Over 800 jobs retained or created on site – including Pfizer’s<br />
pharmaceutical science operation and employment at Mylan,<br />
Peakdale and Unilabs<br />
• £35 million package of financial support for business secured through<br />
Regional Growth Fund –a direct boost to jobs and business<br />
• Coordinated programme of employment advice and start‐up support –<br />
linking support from Pfizer with support from government<br />
• £24 million flood defence package secured for Discovery Park and<br />
Sandwich town –protecting jobs and stimulating the economy<br />
• Discovery Park declared an Enterprise Zone –with tax incentives for<br />
new businesses and support from Government<br />
• £10 million scheme in place to deliver High Speed rail to Sandwich and<br />
East <strong>Kent</strong> – cutting journey times to London to within an hour<br />
•Direct rail connections from London to Sandwich running since<br />
September 2011<br />
•12 new start‐up companies in development on site –and package of<br />
Accelerator Grant support in place<br />
24
Summary Challenges to opportunities<br />
Our ambitions for the future<br />
• Supporting the ambitions of preferred bidder London and<br />
Metropolitan, transforming Discovery Park into a world‐class science<br />
and technology park<br />
• Marketing and promoting East <strong>Kent</strong>’s potential to the world<br />
• Maximising the impact of the Regional Growth Fund – delivering<br />
excellent support to East <strong>Kent</strong> businesses and investors<br />
•Working with higher education in East <strong>Kent</strong> and beyond to support<br />
innovation and growth<br />
• Putting life sciences at the heart of UK Government economic policy –<br />
and at the centre of East <strong>Kent</strong>’s future<br />
A long‐term vision<br />
•A R&D‐led multiple‐use campus<br />
•Over 2,600 jobs on site –with potential for future expansion<br />
• Connected to the world with excellent road, rail and air links<br />
•At the heart of an innovative and growing East <strong>Kent</strong> economy<br />
•Growing world‐class skills, world‐class research and world‐class jobs<br />
25
The Sandwich Economic Development Task Force:<br />
Paul Carter, Leader of <strong>Kent</strong> <strong>County</strong> <strong>Council</strong> (Chairman)<br />
Rob Bennett, BBP Regeneration<br />
Dr Annette Doherty, Pfizer<br />
Mark Florman, British Venture Capital Association<br />
Prof Dame Julia Goodfellow, University of <strong>Kent</strong><br />
Sir Brandon Gough, Locate in <strong>Kent</strong><br />
Laura Sandys, MP<br />
Paul Watkins, Leader of Dover District <strong>Council</strong><br />
Supported by BIS, DCLG, Jobcentre Plus and the<br />
Task Force member organisations