14.12.07
Latest economic growth figures released

Revised figures released today (December 14) by the Office of National Statistics (ONS) show that in 2005 the economy of Cornwall and the Isles of Scilly continued to grow steadily.

The regional and local GVA figures – a way of measuring wealth in the workplace – reveal that growth in Cornwall and the Isles of Scilly between 2004 and 2005 (the most recent figures available) was 3.6%. Inner London, the wealth creating hub of the UK which contributes 12.3% to the UK economy, remained top of the table at 5.5% followed by the South East.

The readjusted, provisional figures also demonstrate that during the Objective One years the economic downturn (measured via GVA) has been reversed and steadied.

Commenting on the Government statistics, David Brewer, of Brewer and Bunney and chair of the Cornwall Chamber of Commerce and Industry, said: “In the private sector there is a sustained confidence in the Cornish economy. Figures may change over any accounting period, and to be looking back to statistics of nearly three years ago is helpful, but what matters is what is happening on the ground today.

“We must remember that the economy of Cornwall is increasingly diverse – some businesses have a purely domestic market which may fluctuate with local and national conditions – however a growing number of high value added and high skill based business have world markets, indeed are market leaders.

“The resurgence of the Cornish creative and inventive spirit that sees the world as its market place is I believe the true indicator of success. There has not been a time in the past 40 years when the creative and inventive sprit of Cornwall has been more alive than it is today.”

Carleen Kelemen, Director of the Objective One Partnership, said: “In 2005 the national economy had begun to slow down and this has been reflected in the revised regional and local ONS statistics.

“The economic regeneration of this region, which had previously been in long term decline, will be a long, continuous journey over more than a generation. For example the Objective One flagship project, the Combined Universities in Cornwall, has always based its economic regeneration estimates looking at 2021. To create a strong and sustainable economy from such a low starting point takes hard partnership work and courage to focus on key investments.

“The next stage of European investment in this journey will be the Convergence programmes which we expect to begin early in 2008. We must maintain our focus to invest in new types of higher value business activity and knowledge infrastructure whilst helping local businesses to improve their productivity and access to global markets. ‘Facts are stubborn things, but statistics are more pliable’ – anon. I am confident that in the future the Cornish economy continues to grow.”

Andrew Mitchell, Cornwall County Council economic portfolio holder, said: “The revised Government statistics up until 2005 confirm not only that the economic decline we were experiencing in the 1990s had been reversed but also underline the need for us to focus on driving economic ambition into all our investments including the new Convergence programmes.”

And Nigel Jump, chief economist for the South West Regional Development Agency added: “It is important to stress that this new detail is about 2005.  We know that 2005 was a relatively weak year for economic growth, nationally, regionally and sub-regionally and we also know that 2006/7 have been much stronger.  We believe Cornwall made further absolute and relative progress in the last two years.”

The Objective One Programme has invested in a whole raft of measures to strengthen the economy of Cornwall and the Isles of Scilly. Projects include creating top quality workspace and research and development facilities and better access via broadband and transport infrastructure (rail and air). Many projects support businesses by adding value through knowledge. This includes research and graduate support, marketing advice, training or diversification and expansion opportunities. Those out of work are encouraged to build confidence and take up training or retraining. Those in work are encouraged to aim higher.

By the end of 2005 many of the larger, long term investments had been running for less than two years. For instance, the flagship project Combined Universities in Cornwall (CUC) and the Knowledge Spa both opened in September 2004. Both encourage business development through incubation and research and development facilities, state of the art equipment and knowledge transfer via graduates. Equally both are long term devices to create a strong, sustainable economy. The first University of Exeter in Cornwall students and Peninsula Medical School students (who spent part of their course at the Knowledge Spa) have only this year (2007) graduated. CUC estimates that by 2011 there will be 1500 new graduates a year.

Unlocking Cornish Potential, which has received Objective One European Social Fund investment, is a CUC initiative run by Cornwall College that began in 2004. By the end of 2005, 125 graduates had been placed with businesses and offered support to help those businesses grow. In 2007, more than 220 have been placed. Since the project started 71% of the graduates have been offered permanent positions and have received a salary increase after the 12 month placements.

Working with Jobcentre Plus between 2003 and 2005 more than 3000 more people had been helped into work and training via Objective One. Since then another 3,500 people have been helped.

We are seeing the new shoots of our economic regeneration in areas including the growth of medical businesses associated with the Peninsula College of Medicine and Dentistry, media and graphic design businesses associated with University College Falmouth and environmental technologies associated with Camborne School of Mines at the University of Exeter at Tremough.

For further information please contact Clare Morgan, Media Relations Manager, the Partnership Office on 01872 223439/07973 813647 or email cmorgan@cornwall.gov.uk.

Editor's notes:

GVA (Gross Value Added) is a way of measuring a region’s wealth creation at the place of work. In broad terms it measures the creation of wealth within Cornwall and the Isles of Scilly. The more employees earn in a region, the higher the GVA.

Objective One in Cornwall and the Isles of Scilly is aimed at raising GVA by creating higher paid, quality jobs. Cornwall and the Isles of Scilly originally qualified for Objective One because of its low GDP. It qualified for Convergence for the same reason.

The revised ONS statistics for the GVA of Cornwall and the Isles of Scilly as a percentage of the UK’s GVA are:
1999 - 60
2000 – 62
2001 – 63
2002 – 64
2003 – 65
2004 - 65
2005 - 65

The Cornwall and Isles of Scilly GVA per head in pounds in 2005 was £11,510. In 2003 this was £10, 580 and, in 2004, £11,212.

For more detail see www.statistics.gov.uk

Clare Morgan
Media Relations Manager
The Partnership Office
Castle House
Pydar Street
Truro TR1 2UD
Mobile: 07973 813647
Telephone: 01872 223439

cmorgan@cornwall.gov.uk

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