Economic Strategy 2024 to 2034: action plan update

Published: 9 August 2024

This update covers quarter 1 (April to June) for 2024 to 2025.

Executive summary

Introduction

Our new economic strategy was adopted in January 2024 and sets out our 10-year vision for the Bracknell Forest.

By 2034, we will be a growing and resilient economy that matches the best in Berkshire. We will:

  • support, attract and retain high-quality businesses
  • promote sustainable growth in clean and green, knowledge-based industries
  • provide economic opportunity with good, secure jobs for our people who have the skills to succeed

We have a detailed action plan that accompanies our strategy documentation this details the identified priorities and the recommended actions to achieve our vision.

We will measure our progress and success of the action plan against 24 key metrics. It is essential that we set out clear targets for the metrics we will be tracking, this starts with reporting the current baseline figures. Many of the targets will be achieved over the next 10 years or in 10 years, so where necessary we have set interim targets to track progress.

Purpose

This report sets out an overview of the economic strategy and action plan delivery.

The purpose is to provide a clear picture to the council, stakeholders and partners of the successful outcomes and the areas that require attention and action. As performance is tracked over time, residents, businesses and partners will be able to see where actions that are being taken as part of the economic strategy are having an effect.

The report will be provided on a quarterly basis, presented to the council and shared with the Bracknell Forest Economic Partnership (BFEP) to focus discussion, inform decisions and prioritise action.

Reports will include a headline summary of the current position, exception reports where outputs are below forecast or target as well as spotlights on certain areas to aid discussion and decision making. Spotlight topics will focus on the metrics that will have the most impact on the delivery of the action plan but can also be requested by the BFEP.

In addition, an appendix containing trend analysis and benchmark data (where applicable) is also provided.

It is acknowledged that are several metrics included in the report that will be updated annually, that can only be reported on a retrospective basis and some that the BFEP have limited influence over. There are also some metrics where data is currently not available to report. Where this is the case, commentary is provided to give a view on progress in this area.

However, it is important to regularly monitor and review progress against the action plan to maximise impact and deliver the vision set for Bracknell Forest in 2034.

Highlights and challenges

The first quarter has focused on the initial set up and implementation of the action plan building on the existing economic development activities, including:

  • the UK Shared Prosperity Fund
  • support for start-up and high growth businesses 
  • the transition to the new Bracknell Forest Economic Partnership

Clear progress has been made with the Healthy Workplace Alliance, Climate Change Businesses engagement and the preparation of a Berkshire wide Local Visitor Economic Partnership.

At a regional level, the Berkshire Prosperity Board has formally met for the first time and has initiated the preparation of a Berkshire Economic Strategy.

Following the 2024 general election and the formation of a new government will need to be understood and responded to in terms of Bracknell Forest’s economic opportunities. A period of uncertainty until the next spending review and budget will be a potential risk.

Operating environment

Bracknell Forest’s economy forms part of a wider functional economic area within Berkshire and the Thames Valley. The borough’s business composition includes a range of established smaller or local enterprises making up 82% of all businesses together with medium sized and larger national and international companies.

The growth of the economy is influenced by the strategies and delivery mechanisms some of which are listed below:

Current position

Key measures

Under each of the 4 themes in the Economic Strategy there is one key metric that shows the current position of Bracknell Forest. 

These will be kept under review by the council’s economic development team and the Bracknell Forest Economic Partnership. Provisional indicators are set out below.

Economic performance

UK Competitiveness index position
35(2023)

The UK Competitiveness Index measures the long term potential of a location to generate economic growth and well paid employment. These are then ranked. Bracknell is currently at position 35 of 362.

Business competitiveness

Business growth rate2.68%(2023)

People, work and wellbeing

GDHI (gross domestic household income) compared to inflation3.30%(2021)

Place, climate change, infrastructure and connectivity

Full fibre connectivity98.8%(April 2024)

As the strategy is now in place the indicators and performance measures establish a base position with a broadly positive outlook. 

The main area of concern relates to business growth and the scope to encourage new inward investment at a local and international level.

Work is underway to identify barriers to investment at a local and regional level.

Headline charts

The following charts show the current status of the 24 key metrics under the priority themes identified in the Bracknell Forest Economic Strategy 2024 to 2034.

They provide an overview of the current position versus target as a red, amber or green (RAG) status, plus the direction of travel of latest data against previous results.  

Where results are unavailable and to be confirmed (TBC), commentary is provided in the appendix.

Performance against target or forecast

This data in the charts below shows us that the status of the local economy is reasonably strong and has clear potential to grow.

Red (5, 21%), Amber (13, 54%), Green (3, 12%), TBC (3,13%)
Economic Strategy action plan indicators: RAG status summary at quarter 1, 2024 to 2025
Economic performance (TBC 1, Red 1, Amber 2), Business competitiveness (TBC 1, Red 3, Amber 3), People work and wellbeing (Red 1, Amber 4, Green 2), Place, climate change, infrastructure and connectivity (TBC 1, Amber 4, Green 1)
Economic Strategy action plan indicators: RAG status by theme at quarter 1, 2024 to 2025

This data in the charts below shows us that in some instances the targets are yet to be achieved but the generally trajectory is positive. 

Similarity by comparison to other local economies, the rate of decline is less steep indicating a degree of resilience.

Significantly worse (1, 4%), No change or better (11,46%), Slightly worse (8, 33%), TBC (4, 17%)
Economic performance - Slightly worse (3), TBC (1); Business competitiveness - No change or better (1), Slightly worse (3), Significantly worse (1), TBC (2); People, work and wellbeing - No change or better (5), Slightly worse (2); Place, climate change, infrastructure and connectivity - No change or better (5), TBC (1)
Economic Strategy action plan indicators: Performance trend by theme at quarter 1, 2024 to 2025

Action plan performance update overview

The information in this document summarises the performance and trend for all 24 metrics in the Economic Strategy action plan.

Exception commentary

Where the current performance status is ‘red’, more than 10% off target or forecast, commentary is provided below.

Economic performance

Percentage of knowledge economy businesses

17.29% at 30 June 2024 vs. target of 22.99%

Regionally the number of knowledge-based businesses has been growing at a slower rate however the position for Bracknell first is on a upward trajectory.

Business competitiveness

Business growth rate

-2.68% at 30 June 2024 vs. 2024/25 target of -2.00%
(based on aspiration to improve growth rate in first year of action plan delivery)

Business growth is starting to show positive signs of improvement and is closing the gap on the best in Berkshire comparator.

Business births per 10,000 working age population (WAP)

51% at 30 June 2024 vs. target of 77.7%
(based on latest best in the Functional Economic Area)

This indicator is a concern currently but the birth rate for businesses is anticipated to improve by the end of the year.

Percentage of ICT businesses

12.67% at 30 June 2024 vs. target of 19.26% 
(based on latest best in the Functional Economic Area)

The business composition in Bracknell Forest is changing and will be kept under review.

People, work and wellbeing

Percentage of those in lowest 3 occupational groups

13.6% at 30 June 2024 vs. 2024/25 target of 12%

Whilst showing as red, this indicator is moving in the right direction and is expected to compare positively to the comparator location within the next 2 to 3 years.

Spotlight on business competitiveness

Following the general election and the change in government, opportunities to drive competitiveness are awaited. 

Locally, focus will be on developing a prospectus and position to promote Bracknell Forest and to develop skills and training to support productivity.