A 2009 overview of Colchester was conducted under the auspices of Essex County Council’s (ECC) review process to re-examine and refresh Essex’s Sustainable Community Strategy (http://www.essexpartnership.org/vip8/com/Community/content/binaries/documents/Colchester_Submission.pdf). This overview describes Colchester’s economy in well-established ways, primarily in terms of paid employment. For example, it states that Colchester’s economy relies on a strong SME base.  (SME stands for small to medium sized enterprises, usually defined as a function of workforce and turnover size.) The main employment sectors are listed as ‘tourism, creative industries, construction, manufacturing, retail, public administration, health and education, finance IT and other business activities’, with tourism considered to be worth £185 to the borough economy. Its economic strategy is thus geared primarily toward increasing economic growth, as measured in monetary terms. This entails monitoring trends in population growth, demographic makeup, levels of education and nature of skill sets, in order to establish how these trends affect the percentage of the population that is economically active now and in the future. It states for example that ‘81.8% of the working population is economically active compared with 81.2% for the East of England and 78.8% for the UK.’

Colchester Borough Council (CBC) echoes this particular perspective on the economy (http://www.colchester.gov.uk/Info_page_two_pic_2_det.asp?art_id=1980&sec_id=646). It understands economic development primarily to be about enabling ‘existing businesses to thrive and new business ventures to succeed’ and appears to see its broad base as a key strength: the fact that the local economy is not over-dependent on any particular sector (listed as financial services, printing and publishing, retail and leisure, electronics and defence) means that it is less vulnerable to shocks affecting only particular sectors. This means that CBC seeks to ensure that a wide range of skill sets ‘are available locally to serve existing and potential businesses.’ This view provides a supportive environment for non-government agencies, such as the not-for-profit Colchester Business Enterprise Agency (COLBEA), whose ‘sole aim is to see the economic prosperity of the region improve through new business development’ (http://www.colchesterbusinesscentre.co.uk/). 

Colchester 2020 is our Local Strategic Parntership and is the main instrument through which the Sustainable Community Strategy for Colchester is being forged (http://www.colchester2020.com/). This body is made up of 17 people representing private, public, community, and voluntary sectors and involves the public through one major annual assembly, and a range of mini assemblies structured around its priority issues. Colchester 2020 describes the first of its five key priorities to be ‘promoting business, increasing employment opportunities and improving educational and skills attainment’ and lists as its main aims to ‘stimulate business expansion’ and instill ‘higher educational attainment and skills levels in the adult population’. Interestingly, the relevant forum is entitled ‘Business and Carbon Mini Assembly’, stating Colchester 2020’s challenge to CBC to cut its carbon emissions by 30% by 2020 (http://www.colchester2020.com/content_4.asp?level2ID=20&level3ID=116&level4ID=4). On a national level, the business and carbon challenge matrix has recently produced the Industry Taskforce on Peak Oil & Energy Security (ITPOES), which seeks to systematically identify the risks and opportunities that peak oil presents for business (http://peakoiltaskforce.net/). (Thanks to Peter Chisnall for sending this link.)

I am interested in exploring whether the challenges posed by peak oil, climate change, and economic instability demands that we think more ambitiously about our economic prioritites and indeed about what we should understand to be the economy in the first place.

Some people, for example, have expressed doubts about whether the economy should be understood predominantly in market or monetary terms, an understanding that tends to reinforce paid employment and growth as the most valued ideals of an economy (see also links posted earlier by Robert Parkes). Even if we accept that paid employment should have an important role to play in an economy, we might still argue that this ideal is often presented as the ‘golden standard’ in terms of which economic development should be measured. The worry is that many other aspects of life that are important to our livelihood get marginalized and are consequently undervalued.

The New Economics Foundation (NEF) (http://www.neweconomics.org/), for example, emphasizes the centrality of the CORE economy, rather than the MONETARY or MARKET economy (http://www.neweconomics.org/projects/core-economy). In this view, unpaid labour and time take centre stage when thinking about the economy -- in fact these are seen as undergirding the operation of the market economy itself. The principles of co-production and economic democracy are also seen as central ingredients in a suitably revamped understanding of the economy (see, for example, http://www.neweconomics.org/sites/neweconomics.org/files/Co-production_1.pdf).

These alternative perspectives raise questions about what other aspects of life we should see as central to our economy and thus promote. What sort of economy would be resilient enough to mitigate and withstand the shocks of peak oil, climate change, and financial instability?

Transition towns have sought to enhance the resilience of their local communities and environment in many ways. One way is through local currencies (http://en.wikipedia.org/wiki/Local_currency). The introduction and promotion of local currencies have been seen as a means to resist ‘clone town’ tendencies, but they have also formed part of a broader energy descent strategy. The most recently launched local currency in the UK was the ‘Brixton Pound’, introduced in 2009 in the London Borough of Brixton (http://brixtonpound.org/). Other Transition Town local currencies include the Totness pound, the Stroud pound, and the Lewes pound. Local currencies are a great way to raise community consciousness about its area and its resources. Not everyone agrees with the idea or practice of local currencies of course, but it certainly succeeds in putting on the public agenda the local economy and the question of ‘resilience’ and potential ‘transition’, generating publicity and debate.

Other local currencies in the UK include Local Exchange Trading Schemes or LETS  (http://www.letslinkuk.net/) and timebanking (http://www.timebanking.org/) and Colchester has experience with both (see for example http://www.volunteercentrecolchester.org.uk/?q=node/16). Engaging with people involved in these initiatives may prove to be an excellent starting point in exploring the option of alternative currencies as part of a more general energy descent strategy for Colchester. Though LETS Colchester is no longer active, there are probably lessons that can be learned (especially from our very own Mervyn Carter). And there is a small but growing timebanking community in Colchester which I’m sure would be willing to share thoughts with us on this.

OFFICIAL CHARACTERIZATION OF COLCHESTER’S ECONOMY

Selection of official sources:

CBC (2007) Colchester’s Economic Prosperity Strategy 2007-10 (http://www.colchester.gov.uk/servedoc.asp?filename=EB122_CBC_Economic_Prosperity_Strategy_20 07.pdf)

CBC (2008) Economic Development in Colchester (http://www.colchester.gov.uk/Info_page_two_pic_2_det.asp?art_id=1980&sec_id=646)

CBC (2009) Summary Budget for Colchester Borough Council (http://www.colchester.gov.uk/servedoc.asp?filename=SUMMARY_BUDGET_BOOK.pdf)

CBC (2009) Colchster Borough Council Tax Guide (http://www.colchester.gov.uk/servedoc.asp?filename=Colchester_Tax_Guide_200910.pdf)

ECC, Essex Strategy Review Document (2009) -- http://www.essexpartnership.org/vip8/com/Community/content/binaries/documents/ESR_Document_-_Sept_09.pdf

ECC, Essex Strategy Review -- Colchester Case Study (http://www.essexpartnership.org/vip8/com/Community/content/binaries/documents/Colchester_Submission.pdf)

Other relevant documents & links:

CBC (2008) Public Priorities for Colchster -- An IPSOS MORI Analysis of Colchester Public Opinion (http://www.colchester.gov.uk/servedoc.asp?filename=Public_priorities_for_Colchester.pdf)

CBC (2009) Colchester Borough Council Strategic Plan 2009-2012 (http://www.colchester.gov.uk/Info_page_two_pic_2_det.asp?art_id=8081&sec_id=439)

I’ve used some of these documents to start putting some figures together, but I suspect there are others out there who could do this better! Please do post amendments/comments/etc.

PRIVATE SECTOR (size in terms of spending per annum on salaries, pensions, capital projects, etc.: £17 billion) 

85% of all employee jobs in Colchester are in service area.

Key Sectors in Colchester (CBC 2007 Colchester’s Economic Prosperity Strategy 2007-10):

• Manufacturing (6,300 jobs in 480 firms)
• Construction (1,057 firms)
• Retail (10,900 jobs in 780 firms)
• Finance, IT, and other business activities (12,400 jobs)
• Public Admin, education, health (21,000 jobs)
• Tourism (5,400 jobs)

The strengths of Colchester’s economy are linked to DIVERSITY and CAPACITY to support diversity:

1. DIVERSITY OF SECTORS IN ECONOMY. ‘Colchester as a buoyant, broad based economy. While sectors such as financial services, printing and publishing, retail and leisure, electronics and defence feature strongly in Colchester, the local economy is not over-dependent on any particular sector. The Army Garrison continues to play an important role in teh town as does the University of Essex.’ (CBC 2008 ‘Economic Development in Colchester’, web document)
2. CAPACITY TO GENERATE AND SUPPORT DIVERSITY (BY MAKING IT POSSIBLE FOR NEW JOBS TO COME ON-LINE AND AND FOR SKILLED WORKFORCE TO BE GROWN AND DRAWN IN). ‘Economic development is also concerned with ensuring that a wide variety of jobs are available in the borough, including skilled employment, to allow people to work locally. Conversely, it is important that people with the right skills are available locally to serve existing and potential businesses.’ (CBC 2008 ‘Economic Development in Colchester’, web document)

PUBLIC SECTOR

COLCHESTER

Colchester Borough Council Income (£24.432 million for 2009-10)

Council Taxpapers via Council Tax (excluding parishes) (42% -- £10.225 million)

Government Grant (including NNDR - Business Rates) (52% -- £ 12.681 million)

Use of Balances/Reserves (6% -- £1.526 million)

Council Tax Breakdown (who receives what):

Colchester Borough Council - 12%

Essex County Council - 74%

Essex Police Authority - 9%

Essex Fire Authority - 4%

Parishes - 1%

Colchester Borough Council NET Expenditure (£24.432 million for 2009-10)

(only main service net expenditure listed)

Environmental and Protective Services (£4.9 million)

        Planning Services, Building Control, Environmental Control, Food & Safety, Curatorial Services, Visitor & Gallery Services, Ipswich Museums (!)

Life Opportunities (£8.5 million)

        Community and Voluntary Sector, Home Improvement, Accommodation, Parks & Recreation, Allotments, Country Side Recreation, Landscape Management, Sports & Playing Fields, Joint Use Sports Centres, Colchester Leisure World

Resource Management (£4.2 million)

        Local taxation management, concessionary fares, benefits

Strategic Policy and Regeneration (£3 million)

        Spatial Policy, Renaissance Programme, Economic Develpment and Tourism, Arts

Street Services (£6.6 million)

        Waste Policy, Waste Collections, Street Care, Engineering, Helpline & CCTV, Community Street Wardens

ESSEX

Essex County Council Income (£2,127 million for 2009-10)

Council Tax (26% -- £564 million)

Other Income, especially charges for Public Services (11% -- £228 million)

General Government Grants (3% -- £58 million)

Dedicated Schools Grant from National Government (37% - £786 million)

Other Specific National Government Grants (12% -- £252 million)

National Business Rates (9% -- £194 million)

Revenue Support Grant (2% -- £45 million)

Essex County Council Public Sector Spending (£2,127 million for 2009-10)

EssexWorks Priorities set via consultation with residents and stakeholders (via surveys, interviews, etc)

Day-to-Day Revenue Budget (£855 million -- made up primarily of council tax & other income)

Supporting Vulnerable People (59.6% -- £510 million)

Increasing Educational Achievement and Skills (19.8% -- £169 million)

Improving Transport (11.1% -- £95 million)

Reducing and Recycling Waste (6.2% -- £53 million)

Making Communities Safer (1.4% -- £12 million)

Protecting the Environment (0.7% -- £6 million)

Promoting Sustainable Economic Growth (0.6% -- £5 million)

Promoting Health and Leisure (0.5% -- £4 million)

Community Leadership and Delivering Value for Money (0.1% -- £1 million)

Other Day-to-Day Revenue Budget (made up primarily of dedicated grants, eg., education)

Capital Investment Budget (£303 million)

Improving assets such as school buildings and roads -- £303 million

THIRD SECTOR

Essex Strategy documents regarding Third Sector can be found at http://www.essexpartnership.org/vip8/com/Community/dis/content.jsp?channelOid=19054.

Still need to add more information on Third Sector, as well as activities which appear to straddle the strict division between the sectors (private, public, third). Would also be useful to secure information on more specific Essex or Colchester initiatives, such as the Essex Bank or various responses to credit crunch/recession.