Common use of The Region Clause in Contracts

The Region. North Wales is known for its beautiful landscapes, its history, heritage, culture and it has the highest proportion of Welsh speakers in Wales at an estimated 41.9%1. North Wales is home to nearly 700,000 residents and contributes £14.2 billion to the UK economy each year,2 representing 22% of the Welsh economy.3 In North Wales, the population is projected to increase by 2.1 per cent in the 2018-2028 period, and 3.1 per cent in the 2018-2038 period. North Wales has an ageing population. Between 1998 and 2018, the proportion of the population aged 65 and over has increased from 18.5 per cent to 23 per cent, while the proportion of the population aged 15 and under has fallen from 19.8 per cent to 17.8 per cent4. The profile of young people in the region aged 14-18 has remained flat for a decade but is projected to increase from 2020, meaning the region must consider the skills and employment opportunities to service this growing demographic. Economic performance has been resilient following the financial crisis and during the period of austerity, with real5 GVA increasing by 20% since 2009. This is compared to 14.9% increase in the Swansea Bay City Region and 12.6% increase in the Mid-Wales Growth Deal area. The total GVA in North Wales in 2018 was £14,239million, up 4.1 percent over the previous year, which accounted for 21.9 percent of Wales total GVA (£65,089million) and 0.8 percent of UK total GVA (£1,892,681million) in that year.6 Within North Wales there are wide variations in GVA per capita, with particularly weak productivity in the Isle of Anglesey (53% of the UK average) but stronger performance in Flintshire and Wrexham (both of which are 81% of the UK average).7 This is also reflected in average earnings, which lag behind the UK average. Indeed, some local authorities in the West have the lowest earnings in Wales and the UK. For the year ending ▇▇ ▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇ had the highest employment rate and lowest unemployment and 1 Welsh Government – Summary Statistics for Welsh economic regions: North Wales, May2020 2 Measured by Gross Value Added (GVA). Source: ONS, 2018 data. 3 ▇▇▇▇▇://▇▇▇▇▇▇▇▇▇▇.▇▇▇.▇▇▇▇▇/Catalogue/Business-Economy-and-Labour-Market/Regional-Accounts/Gross- Value-Added-GDP/gva-by-measure-welsheconomicregion-year 4 Welsh Government – Summary Statistics for Welsh economic regions: North Wales, May2020 5 i.e. inflation-adjusted. 6 ▇▇▇▇▇://▇▇▇▇▇▇▇▇▇▇.▇▇▇.▇▇▇▇▇/Catalogue/Business-Economy-and-Labour-Market/Regional-Accounts/Gross- Value-Added-GDP/gva-by-measure-welsheconomicregion-year 7 ▇▇▇▇▇://▇▇▇▇▇▇▇▇▇▇.▇▇▇.▇▇▇▇▇/Catalogue/Business-Economy-and-Labour-Market/Regional-Accounts/Gross- Value-Added-GDP/gvaperhead-by-area-year economic inactivity rates of the Welsh regions8. However, there is a greater need in the region for high value employment opportunities. North Wales has a number of areas that are within the top 10% most deprived areas in Wales. Many of the most deprived areas are based in rural communities. North Wales has a diverse economy with key sectors being manufacturing, energy and tourism as well as public sector jobs. The public sector accounts for nearly a quarter (24.7%) of the region’s GVA. A fifth (20.3%) of the economy is accounted for by manufacturing, which is significantly more important in North Wales than in Wales as a whole (where it accounts for 17% of GVA). Wholesale and retail, transport, hotels and food sector accounts for 17% of the economy of North Wales. The chart below shows the breakdown of industry contribution to 2018 GVA in North Wales. 9 A portion of the productivity gap is accounted for by the sectoral structure of the North Wales economy, with some areas particularly reliant on relatively low paid sectors including tourism and retail. At the same time, there are areas of strength, with 64,000 people employed in high value sectors, defined as manufacturing; information and communication; and professional, scientific and technical activities. There is an ageing population in the region and a net outward migration of talent from the region. Whilst the population of North Wales is expected to increase to 722,317 by 2039, the share of the population aged 65 or above is expected to increase from 23.6% to 29.8%. This 8 Welsh Government – Summary Statistics for Welsh economic regions: ▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇ 9 Source: ONS.

The Region. North Wales is known for its beautiful landscapes, its history, heritage, culture and it has the highest proportion of Welsh speakers in Wales at an estimated 41.9%1. North Wales is home to nearly 700,000 residents and contributes £14.2 billion to the UK economy each year,2 representing 22% of the Welsh economy.3 In North Wales, the population is projected to increase by 2.1 per cent in the 2018-2028 period, and 3.1 per cent in the 2018-2038 period. North Wales has an ageing population. Between 1998 and 2018, the proportion of the population aged 65 and over has increased from 18.5 per cent to 23 per cent, while the proportion of the population aged 15 and under has fallen from 19.8 per cent to 17.8 per cent4. The profile of young people in the region aged 14-18 has remained flat for a decade but is projected to increase from 2020, meaning the region must consider the skills and employment opportunities to service this growing demographic. Economic performance has been resilient following the financial crisis and during the period of austerity, with real5 GVA increasing by 20% since 2009. This is compared to 14.9% increase in the Swansea Bay City Region and 12.6% increase in the Mid-Wales Growth Deal area. The total GVA in North Wales in 2018 was £14,239million, up 4.1 percent over the previous year, which accounted for 21.9 percent of Wales total GVA (£65,089million) and 0.8 percent of UK total GVA (£1,892,681million) in that year.6 Within North Wales there are wide variations in GVA per capita, with particularly weak productivity in the Isle of Anglesey (53% of the UK average) but stronger performance in Flintshire and Wrexham (both of which are 81% of the UK average).7 This is also reflected in average earnings, which lag behind the UK average. Indeed, some local authorities in the West have the lowest earnings in Wales and the UK. For the year ending ▇▇ ▇▇▇▇ ▇▇▇▇30 June 2018, ▇▇▇▇▇ ▇▇▇▇▇ North Wales had the highest employment rate and lowest unemployment and 1 Welsh Government – Summary Statistics for Welsh economic regions: North Wales, May2020 2 Measured by Gross Value Added (GVA). Source: ONS, 2018 data. 3 ▇▇▇▇▇://▇▇▇▇▇▇▇▇▇▇.▇▇▇.▇▇▇▇▇/Catalogue/Business-Economy-and-Labour-Market/Regional-Accounts/Gross- Value-Added-GDP/gva-by-measure-welsheconomicregion-year 4 Welsh Government – Summary Statistics for Welsh economic regions: North Wales, May2020 5 i.e. inflation-adjusted. 6 ▇▇▇▇▇://▇▇▇▇▇▇▇▇▇▇.▇▇▇.▇▇▇▇▇/Catalogue/Business-Economy-and-Labour-Market/Regional-Accounts/Gross- Value-Added-GDP/gva-by-measure-welsheconomicregion-year 7 ▇▇▇▇▇://▇▇▇▇▇▇▇▇▇▇.▇▇▇.▇▇▇▇▇/Catalogue/Business-Economy-and-Labour-Market/Regional-Accounts/Gross- Value-Added-GDP/gvaperhead-by-area-year economic inactivity rates of the Welsh regions8. However, there is a greater need in the region for high value employment opportunities. North Wales has a number of areas that are within the top 10% most deprived areas in Wales. Many of the most deprived areas are based in rural communities. North Wales has a diverse economy with key sectors being manufacturing, energy and tourism as well as public sector jobs. The public sector accounts for nearly a quarter (24.7%) of the region’s GVA. A fifth (20.3%) of the economy is accounted for by manufacturing, which is significantly more important in North Wales than in Wales as a whole (where it accounts for 17% of GVA). Wholesale and retail, transport, hotels and food sector accounts for 17% of the economy of North Wales. The chart below shows the breakdown of industry contribution to 2018 GVA in North Wales. 9 A portion of the productivity gap is accounted for by the sectoral structure of the North Wales economy, with some areas particularly reliant on relatively low paid sectors including tourism and retail. At the same time, there are areas of strength, with 64,000 people employed in high value sectors, defined as manufacturing; information and communication; and professional, scientific and technical activities. There is an ageing population in the region and a net outward migration of talent from the region. Whilst the population of North Wales is expected to increase to 722,317 by 2039, the share of the population aged 65 or above is expected to increase from 23.6% to 29.8%. This 8 Welsh Government – Summary Statistics for Welsh economic regions: ▇▇▇▇▇ ▇▇▇▇▇North Wales, ▇▇▇▇▇▇▇ May2020 9 Source: ONS.