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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

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