Local Growth Plan

Executive summary

Devon and Torbay is a growing, £26bn economy, home to over 900,000 people and 43,000 businesses. Our innovative firms, university departments and research institutions play a vital role in tackling national and global opportunities and challenges; including one of the highest concentrations of climate change scientists in the world, clean energy generation, high tech agriculture and nature restoration to our defence, technology and professional services. Over 1 in 20 of our 420,000 jobs are in high-tech industries, addressing some of the UK’s most complex problems. We are renowned for breathtaking
landscapes, world class food and drink, and cultural offer that together attracts 30 million visitors a year and an inflow of skilled people, drawn by the fact that in Devon and Torbay we are both a great place to live and a strong economy, full of opportunities.

Our vision for local growth

Devon and Torbay is an exemplar modern, dynamic, rural and urban economy, highly networked across the area and to global markets. Growth in clean energy, defence, marine, advanced manufacturing and agri-food, combined with our outstanding creative, cultural and natural assets, delivers lasting benefits for our residents and the UK, including stronger transport links and the type of housing local people need.

Growth with a purpose

Devon and Torbay’s economy has grown faster than the UK overall since 2019, with GVA increasing by 5.7% to £25.9bn (2023) and is a bigger economy than Bristol or Tyneside and similar in size to Cambridge and Cambridgeshire. Despite this, our productivity and wages are below comparable areas in the South West and the country overall. Partners in Devon and Torbay are committed to growth, not for its own sake, but because business growth and productivity gains are fundamental to raising wages, improving living standards, and protecting and renewing our renowned natural environment.

We are an economy of networked and dispersed concentrations of talent and strengths. Our towns and rural areas are home to a wide network of science and business parks, innovation hubs and workspaces, with high value jobs in towns from Barnstaple and Bideford in the north, Honiton and Axminster in the East, Okehampton to the West, Tiverton and the English Riviera towns of Paignton and Torquay in the south. Exeter is also one of the most successful small cities in the UK.

Devon and Torbay has seen strong growth since 2020 however – like many other mixed rural and polycentric geographies in the UK – economic performance and the opportunities brought forward by growth are not spread equally, with higher concentrations of deprivation in some of our places. We are targeting growth and productivity gains focused on the different characteristics of our places, and the digital and transport networks that underpin our strengths as a place to live, study, visit, and do business. Through this plan and other strategies such as the Local Transport Plan and our forthcoming skills strategy, we will work to deliver more inclusive growth. This means supporting thriving places across Devon and Torbay, planning more housing that meets local needs, and supporting all residents to access opportunity, starting with better advice and guidance about the opportunities available in Devon and Torbay and use of the devolved Adult Skills Fund.

Climate change presents a significant constraint for inclusive growth in Devon and Torbay; it exacerbates existing environmental challenges and threatens the area’s natural and economic assets. The fragmentation of habitats, pollution, invasive species, and climate-induced changes have led to substantial losses in wildlife and habitats. Additionally, the vulnerability of over 40,000 properties to surface water flooding and the risks of tidal flooding and coastal erosion due to Devon’s unique dual coastlines further complicate sustainable and well-situated development. The ongoing impacts of climate change, such as high-intensity rainfall, hotter summers, warmer winters, and rising sea levels, strain the
region’s infrastructure and ecological resilience. Our outcomes reflect the importance we place on nature and why we measure nature recovery as part of the local growth plan, as well as action around natural capital innovation, eco-tourism, clean energy, regenerative agriculture, and the Innovation Spine, which is home to many green businesses.

This is our plan to deliver the potential of our communities and enterprises so that all our places benefit. We will make a significant contribution to the national growth mission and the future success of the UK, whilst delivering first for the residents of Devon and Torbay and supporting nature to thrive and regenerate. Proud of our culture, land, and history, and using our strengths to secure the future.

Five priorities

The Combined County Authority (CCA) is a partnership of all the local authorities in Devon and Torbay. This plan sets out the priorities we have agreed to pursue together to drive economic growth that benefits all our residents and places. It is a ten-year growth plan, a framework that sets out opportunities for all Devon and Torbay, from young people and small businesses to local places and major innovation assets. It is based around five priorities which have been developed with partners across Devon and Torbay. It is one of a suite of CCA documents that will set out our shared goals and the actions we are taking together.

Our five priorities are:

• Thriving Places – our city, towns, coastal, and rural areas have different strengths and challenges. We will work together through the Combined County Authority to support Local Authorities to deliver the mix of housing that local people need, unlock employment and innovation spaces to meet growing demand, and create lasting opportunities for young people. We will make the case for investment in transport and wider infrastructure improvements, recognising the distinctive challenges faced by rural and urban areas, aligning with the Local Transport Plan.
• Maximising assets for sustainable growth – our existing and emerging strengths in clean energy and digital technology, defence, marine and transport advanced manufacturing, professional services and creative industries are core to the UK’s national industrial strategy and identified by the Government as national priorities. We will continue to support growth, productivity improvements, and investment in these sectors and the clusters of expertise and supply chain firms that exist in our towns and rural areas.
• Successful bedrock sectors – the visitor economy, agri-food, health & social care, construction, education, and retail are the essential bedrock sectors of our economy, providing 212,000 jobs, 47% of all employment in Devon and Torbay and contributing £8.7 billion in GVA each year. We will support the growth of these industries to drive productivity and new markets, so that they provide good quality jobs and career options alongside critical services and goods to households, communities and other businesses.
• Supporting our entrepreneurial, networked region – We have a unique offer to business. We combine green and blue natural capital, recognised by UNESCO as globally significant, with the right mix of capability and skills needed for mission-critical UK sectors. We will support start-up, micro, and scaling businesses across growth and bedrock sectors, delivered in a way that recognises we are a large, outward looking area, where businesses connect across land and digital networks to face a range of national and international markets. This is a modern rural economy, with high knowledge, high value firms operating across our geography, linked to but not dependent on traditional agglomeration, as part of much wider supply chains and value chains. This networked growth is a priority for us to foster and grow.
• Building the skills and the talent pipeline – Devon and Torbay is committed to retaining and growing its talented, working age population, meeting the changing needs of the labour market around ageing demographics and projections of a stable workforce. We need to ensure that our young people can access the opportunities that exist both here and nationally and are supported to do so. No one should have to leave for a house or a job. We will set out detailed actions to deliver this priority through our Get Britain Working Plan and Skills and Future Workforce Plan, including the devolved Adult Skills Fund. These are an important part of ensuring that growth here is inclusive and that local people are supported and enabled to benefit from new opportunities. Other actions in this plan are also key to talent and skills development and retention, including providing the right housing mix and supporting our cultural offer and high-quality environment.

The actions we take to develop these priorities will work together as an integrated package to maximise the strengths that make Devon and Torbay unique. These include the examples below.

Defence

Devon and Torbay is a key asset for UK defence and a major priority for the national Industrial Strategy. We are situated at the centre of a wider globally significant cluster of installations and prime manufacturers in the South West, including delivering critical bow sections for the Royal Fleet Auxiliary’s next-generation support ships from Appledore Shipyard, and Plymouth Devonport Royal Dockyard, operated by Babcock International and the support centre for the UK’s nuclear deterrent and sole facility for the refuelling and refitting of nuclear submarines. Over £4.4bn has been earmarked for investment in
HM Devonport with major impacts for the wider region and our firms are carrying out some of the most complex engineering and infrastructure programmes in the country, supplying a range of products and services that will be mission critical to the UK’s planned increases to defence spending by £13.4bn by 2027.

Future Farming and Fishing – Powered by agritech innovation

Home to around 30% of the UK’s dairy industry, and one of England’s largest fishing ports at Brixham by value of catch, Devon and Torbay is famous as an agricultural and food production hub. The sector is growing its output by 3.6% year on year (GVA). The skills and knowledge of our producers and researchers, from new agritech to approaches to regenerative agriculture and new forms of low-carbon production, provides a vital platform for the UK to continue to improve national competitiveness, biodiversity, food security and resilience, and provide high quality careers and business growth opportunities locally. The North Wyke Farm Platform ‘farm lab’, for example, is a large-scale research facility to study the complete flow of nutrients from soil to food, with the clear and distinct aim of making farming a more sustainable endeavour.

Tackling Climate Change = Clean Energy and Nature Recovery

Our communities and businesses have long worked with the natural environment, as stewards of the seas, coastline, farmland and inland habitats including Dartmoor and globally significant coastal and heathland habitats. People here deploy their talents and expertise every day to tackle the challenges of adapting to climate change protecting and restoring our natural capital. Major opportunities include the £1.5bn floating offshore wind development in the Celtic Sea, with potential opportunities for North Devon, including Ilfracombe, with other opportunity areas off the south coast, and the development of hydrogen fuel for road transport at Langage, and at Exeter Airport for aerospace. We offer a diverse array of innovation assets, including the Clean Maritime Innovation Centre in Appledore, the world’s second-largest Tungsten deposit, the University of Exeter’s Clean Mobility Centre, and Exeter Science Park – home to many green economy businesses. Additionally, the Met Office headquarters provides supercomputing capabilities for environmental modelling. These assets support significant low-carbon opportunities in hydrogen, renewable energy, and floating offshore wind (FLOW). Links to the National Centre for Maritime Autonomy in Plymouth will enable Devon and Torbay to deliver new clean, low carbon technologies that drive good jobs and careers locally alongside national priorities.

The South West Innovation Spine – A UK-leading capability for national resilience and sustainability

The South West Innovation Spine is a nationally-significant concentration of science and technology enterprises and assets across Devon and Torbay – connecting businesses, research institutes, leading technical facilities and science parks, with Exeter airport, the M5 growth corridor and a 2-hour rail connection to London. The area contains significant expertise across environmental sustainability and technologies, electronics and photonics, data and digital, and advanced manufacturing. Together, these sectors have grown by 8% year on year, with productivity increasing faster at 11%, unlocking new, well-paid jobs. Major institutions and firms located in the area are linked to our wider network of centres of innovation and growing businesses in the North and West of Devon and to stimulate innovation in our towns and rural areas.

Sustainable Tourism for 30million Visitors Per Year

Over 30 million visitors come to Devon and Torbay every year. Tourism, and the unique offer of the landscape, climate, and local cultural heritage, is central to the identity of our region. In addition to its social importance, the sector – from accommodation to travel and hospitality – employs over 31,000 people, generating £740 million a year for the regional economy. There is a real opportunity to extend the season, building on our strong creative and cultural offer and nature-based tourism offer alongside business tourism, providing more secure jobs and business growth. The award of Local Visitor Economy Partnership (LVEP) status provides us more strategic tools and partnerships to grow. Through collaboration between Visit England and both the CCA and operators, we will provide strong local leadership and governance as our historic destination continues to evolve.

Next Steps and Measuring Success

This is a ten-year strategy that will be flexible to evolve as economic need changes. Devon and Torbay currently benefits from a range of powers and funding as a County Combined Authority. We are ambitious as to how this can grow to draw more investment into the area and deliver inclusive, green growth. Fiscal devolution, for example, would allow Devon and Torbay more control over our finances to invest in local growth and service priorities. This is something we will continue to explore in our corporate plan to deliver, in partnership, the tools that will help Devon and Torbay thrive.

The next step will be to develop 2-year action plans for each priority. We will set measures against which we will monitor success which link to our outcomes around inclusive growth, nature recovery, and economic growth performance, including growth of specific sectors, inward investment, and housing delivery. These will be drawn from the Corporate Plan smarter metrics. The actions in this plan will be delivered by a wide range of partners, including the CCA, Local Authorities, businesses, our skills providers and local communities. The Business and Skills and Employment Advisory Groups will work alongside the CCA to prioritise activity and monitor progress.

Activity	Owner
Work with defence primes and others to ensure that Devon and Torbay’s businesses are a strong part of the South West’s defence offer.	CCA with business group and LAs
Work with the Crown Estate on the next stages of FLOW, planning to deliver high energy behind-the-meter industrial applications where power is on shored creating a strong offer for inward investment and new entrants to the region.	CCA and LAs
Finalise the skills strategy and prepare for 2026/27 devolved adult skills funding and the Get Britain Working Plan to complement this Growth Plan to further drive inclusive growth.	CCA, with skills and employability providers
Development of the Innovation Spine proposition hub and spoke model, with an early opportunity to secure UKRI Local Innovation Partnerships Fund.	CCA and LAs, with universities and business
Begin the process of establishing a regional spatial development plan, working with Local Planning Authorities, recognising the importance of enabling infrastructure to deliver developments and the complementary role of the Local Transport Plan.	CCA and LAs
Build and deliver the joint strategic housing pipeline with Homes England, using CCA access to land assembly and compulsory purchase powers as necessary.	CCA and LAs
Review existing business support offer to ensure it is easy for businesses in all parts of Devon and Torbay to access the information, advice and support they need to thrive.	CCA and LAs
Work with local businesses to build an investment portfolio of scale-up opportunities and success stories.	CCA and LAs
Collaboration with Visit England and Local Visitor Economy Partnership to enhance the visitor economy and grow domestic and international visitor spend via sustainable tourism and our regional visitor economy strategy.	CCA and LAs

Devon and Torbay Today: Unique Opportunities and Challenges

Devon and Torbay is a crucial part of the UK’s economy. Output in 2023 was £25.9bn (GVA), comparable to Glasgow (£26.8bn), Cambridgeshire (£24.1bn), and Tyneside (£23.5bn). Growth rates largely mirrored the overall national trend between 1998 and 2020, with Devon and Torbay’s GVA growth being within 1.1% of the UK’s GVA growth rate.

Since 2020 Devon and Torbay’s economy has grown faster than the country as a whole, driven by a rapid post pandemic recovery that saw growth rates in Devon of 6.8% and Torbay of 4% between 2019 and 2023, compared to Plymouth’s 2.4% and the UK’s 2.6%. This growth in both Devon and Torbay has been driven by significant output growth in advanced manufacturing, construction, information and communications, and professional services.

Our competitive advantage and strengths

Devon and Torbay is a modern, networked rural economy, with dispersed concentrations of talent, enterprise and strengths. Digital networks and new ways of working mean that our rurality, market and coastal towns with large catchment areas is a major strength and draw for businesses and talented individuals. Our towns and rural areas are home to a wide network of science and business parks, innovation hubs and workspaces, with high value jobs in towns from Barnstaple and Bideford in the north, Honiton and Axminster in the East, Okehampton to the West, Tiverton and the English Riviera towns of Paignton and Torquay in the south. Exeter is one of the most successful small cities in the UK. The opportunities for growth that are prioritised in this plan reflect that distributed economy and business base. Devon and Torbay is a highly desirable place to live and do business. The region’s natural assets, including its beaches, moorlands and river valleys offer an unparalleled standard of living. This liveability attracts skilled people, supporting a net migration inflow across all age demographics except for 20 to 24 year olds.

Our natural capital has also shaped the development of the business base. Devon and Torbay’s blue and green infrastructure significantly contributes to the area’s thriving visitor economy, supporting nearly 33,000 jobs. The natural environment has created substantial opportunities in industries such as agriculture, maritime, defence, and energy. Devon’s coastline and river estuaries support ports and a robust maritime sector, integrally linked to the Plymouth maritime and defence cluster, which are essential for supply chains and the micro and Small and Medium Sized enterprises (SME) manufacturers in the region. We are also well positioned to develop substantial clean energy and carbon capture supporting businesses.

Our economy is based on a combination of bedrock sectors that provide large numbers of jobs and the services and goods on which our communities and visitors depend and those transformational sectors that offer existing and emerging growth opportunities. All our growth sectors have been identified as priorities by the UK’s national industrial strategy.

Inclusive growth

Devon and Torbay has seen strong growth since 2020 however, as with many other mixed rural, polycentric geographies in the UK, economic performance and the opportunities generated by growth are not spread equally. Devon and Torbay level economic data masks disparities at local level, and stark differences for residents. Exeter city is the largest part of our economy, reflecting its regional role in driving growth that draws in commuters from the wider area. Some of our more rural districts, including South Hams, Mid Devon, Torridge, and West Devon have much smaller populations and less business activity overall, together with important bedrock sectors, rural businesses and remote working opportunities. This diversity and networked economy requires a nuanced approach that supports places and people to reach their potential; what we do, where and how we do it matters.

Inclusive growth means supporting all our people and places to contribute to and benefit from growth and prosperity. How we do that will require area wide and local interventions across housing, transport, skills, and business support, ensuring that we support growth in local areas as well as the digital and transport infrastructure to support residents in more rural areas to have excellent quality of life and access jobs in our employment centres, including the city of Exeter. Our places and people face too many barriers. Our proposals around housing will support local housing development that reflects local need; our place based careers advice will support young people and those re / upskilling to understand the opportunities in the area; and our priority for successful bedrock sectors will support skills pathways and growth in our foundational economy.

Employment growth from 2015 to 2022 was 6% and has been led by East Devon and Exeter, which have increased jobs by 13% and 7%, respectively. Other districts have between 2% and 4.5% growth in the same period. Jobs are spread across the network of towns, with clustering of higher job density around Exeter and east of the city (5,000+ per lower super output area. This geography is over an hour’s drive from most parts of North Devon, Torridge and West Devon, which limits the accessibility of opportunity for these communities – either within employment clusters or from specific anchor institutions such as the University and South Devon, Exeter and Bicton Colleges. While digital connectivity is generally good and can enhance access, both South Hams (54%) and Mid Devon (55%) have gigabit coverage only slightly above the Rural England average, which may result in isolated areas with limited service.

Accessing post-16 education is a priority for retaining younger generations and establishing strong career paths. Devon and Torbay compare well to national average attainment levels; 16% have no qualifications (18% in England), and 39% reach and attain level 2, 3 or Apprenticeships (35% in England), with a small drop off in level 4 (32% vs 34%). Breaking down the regional picture, Torbay and Torridge currently have less access to skills with over 30% of population in both local authorities having not progressed past a level 1 qualification. Level 4 qualifications are also lower here and, along with North Devon, are the three areas in the region where less than 30% of people have undergraduate or equivalent qualifications.

Data on unemployment and claimant rates in each local authority highlights the combination of place-based factors that affect individual outcomes. North Devon, Torbay, and Torridge show a higher percentage of claimants than the regional average (2.1%) – each of these areas are below the national average (4.4%) but remain a challenge for growth across the region and for individual communities. These statistics link to health levels within communities, with nearly 7.5% of Torbay’s population rating their health as ‘bad’ or ‘very bad’, with North Devon and Torridge just below these levels at 5.7% and 6% respectively. Ilfracombe’s central ward is one of the most 5% deprived wards in England with a healthy life expectancy of 59 yrs – the lowest of any rural town in England.

Growing, high value sectors

• Professional Business Services is the biggest contributor to the economy overall, with expertise in finance, insurance, and consultancy contributing over £5 billion in GVA annually and employing 25,000 people in firms located across our towns and rural areas, alongside an important regional cluster in Exeter.12 The sector has the highestproductivity levels in the area, reflecting a strong talent pool and ongoing innovation and continues to grow, reflecting both the scope for remote working and lifestyle available in our rural areas and towns, alongside the success of Exeter as a major regional city. This high productivity supports higher wages and a strong investment in technology, workforce training, and expansion, providing real platform for future growth.
• Advanced Manufacturing, including digital and electronics, employs over 15,000 people in over 1700 businesses. Between 2017 and 2023 it saw a 3.7% annual growth in GVA, faster than the sector nationally. Our advanced manufacturing firms are widely dispersed, with concentrations in the innovation spine, but also important pharmaceutical manufacturing in North Devon, benefits from a strong pipeline of engineering talent, supported by key research and innovation hubs in Exeter and Plymouth, including the Centre for Future Clean Mobility and the Clean Maritime Innovation Centre. Our strengths are closely aligned with the UK’s Industrial Strategy, together with our emerging strengths in advanced materials and quantum technologies make Devon and Torbay a key player in the national drive for a high-tech, sustainable economy.
• Our digital technology firms span advanced manufacturing, creative and professional services. They include the leading photonics cluster focused in Torbay and have experienced rapid growth in Gross Value Added (GVA) and productivity, with an annual growth of 16.8%. Torbay is home to the Electronics and Photonics Innovation Centre (EPIC), at the heart of the area’s advanced manufacturing and technology growth. Exeter is a focal point for the region’s thriving FinTech sector, which benefits from the University of Exeter’s dedicated MSc in Financial Technology; in 2023, the sector generated £91.8 million in GVA and provided employment for 1627 people. This expertise is important and provides a major opportunity in using the diffusion of digital technologies to drive growth and success in other sectors.
• Devon and Torbay is an asset for UK defence, another major priority for the national Industrial Strategy. We are situated at the centre of a wider globally significant cluster of installations and prime manufacturers in the South West, including North Devon’s Appledore shipyard and Plymouth Devonport Royal Dockyard, the support centre for the UK’s nuclear deterrent and sole facility for the refuelling and refitting of nuclear submarines.
• Clean energy and environmental technology. Our communities and businesses have long worked with the natural environment, as stewards of the seas, coastline, farmland and habitats including Dartmoor and globally significant coastal and heathland habitats. Our environmental technology firms employ over 8000 people, with a strong talent pipeline and a skills ecosystem in our colleges and University that is well aligned with local employer requirements. We have a range of unique innovation assets – from the Clean Maritime Innovation Centre at Appledore, the second largest global Tungsten deposit, the University of Exeter’s Clean Mobility Centre, and Exeter Science Park, to the Met Office’s headquarters and supercomputer power for environmental modelling. Links to the National Centre for Maritime Autonomy in Plymouth will enable Devon and Torbay to deliver new clean, low carbon technologies that drive good jobs and careers locally alongside national priorities. Major opportunities include the £1.5bn floating offshore wind development in the Celtic Sea, with potential opportunities for North Devon, including the port of Ilfracombe, with other opportunity areas off the south coast, and the development of hydrogen fuel for road transport at Langage, and at Exeter Airport for aerospace.
• Our creative sector is growing fast and is well linked to major clusters in Bristol, Birmingham and London as well as global markets. Torbay Council’s 2024 report ‘Creative Torbay’ highlighted the role of creative business like Aturn films, Digital Puppets, and Quay Media in shaping the region’s creative identity, showcasing innovation in film, animation, and media production. Meanwhile, Exeter stands out as a national leader in the creative industries, boasting a high concentration of Arts Council-funded organisations, Cultural Compact status, and global recognition as a UNESCO City of Literature. Together, these strengths position culture as a cornerstone of our local visitor economy, enriching the area’s appeal and offering a vibrant, distinctive experience for both residents and visitors.

Bedrock sectors

Health & Social Care, Construction, Agri-food, Education, and Retail are the essential bedrock of our economy, providing critical services and goods to households, communities and other businesses. Together these sectors provide 212,000 jobs, or 47% of all employment in Devon and Torbay and contribute £8.7 billion in GVA each year.

• Agri-food, powered by our innovative technologies. Home to around 30% of the UK’s dairy industry, and one of England’s largest fishing ports at Brixham by value of catch, Devon and Torbay is famous as an agricultural and food production hub. The sector is growing output by 3.6% year on year (GVA), with key businesses including Arla, Danone, Dunbia, and Mole Valley Farmers. The skills and knowledge of our producers and researchers, from new agritech to approaches to regenerative agriculture and new forms of low-carbon production, provides a vital platform for the UK to continue to improve national competitiveness, food security and resilience and provide high quality careers and business growth opportunities locally. The North Wyke Farm Platform ‘farm lab’, for example, is a large-scale research facility to study the complete flow of nutrients from soil to food, with the clear and distinct aim of making farming a more sustainable endeavour.
• Visitor economy. Over 30 million visitors come to Devon and Torbay every year. Tourism, particularly nature tourism based on our unique offer of the landscape, climate, and local cultural heritage, is central to the identity of our region. Key assets such as the UNESCO English Riviera Geopark draws international attention, boosting the region’s visitor economy through its unique geological heritage and appeal. The sector – from accommodation to travel and hospitality – employs over 31,000 people, generating £740 million a year for the regional economy. There is a real opportunity to extend the season, building on our strong creative and cultural offer and nature based tourism offer, and grow business tourism, providing more secure jobs and business growth. The award of Local Visitor Economy Partnership (LVEP) status provides us more strategic tools and partnerships to grow.
• World class skills providers, working with employers. All our sectors are closely linked to and supported by Devon and Torbay and neighbouring universities and colleges, including the University of Exeter, University of Plymouth, Marjon University, and Arts University Plymouth. Together, they employ over 11,000 staff and educate more than 60,000 students.17 Our technical education at Exeter, South Devon, Petroc, Bicton Colleges and Rothamsted Research are highly regarded as innovative providers and play a crucial role for young people entering local and wider labour markets.

Advanced manufacturing	12,600 employees across 13,000 businesses £50m Centre for Clean Mobility providing innovation support across AI and autonomous systems
Clean energy industries	Environmental and energy knowledge amongst growth scientific and technical services sector
Creative industries	£480m contributor to regional economy South Devon College providing dedicated qualification in Digital Creative media
Digital technologies	77% employment growth since 2017 Exeter Science Park as a key hub for high-growth business looking to advance digital and AI driven innovations
Defence	Local expertise in materials for demanding environments, technical services, advanced manufacturing, and digital innovation contributes over £2bn annually to the local economy
Financial services Life science Professional business services	£5bn sector with highly productive workers (£195,000 per employee) Critical enabler of growth in Exeter and other urban areas
A distinctive Visitor Economy with 30m visitors per year looking to experience Devon and Torbay’s diverse offer. Supporting 33,000 jobs for local people	Highly Specialised Agri-Food sector 2.6x higher concentration of agricultural businesses than England. Producing over £1bn worth of livestock and almost £200m of crops annually

Challenges and constraints

Taking our opportunities and delivering the benefits we want for our residents and communities means that we need to tackle the constraints and the barriers that exist for local people. Addressing these constraints in the right ways will support a more inclusive, fairer economy and help ensure the sustainability of our national environment and mitigate the future impacts of climate change.

Productivity

Despite recent growth, Devon and Torbay is less productive than both the national average and comparator neighbouring areas in the South West. Productivity (as measured by GVA per hour worked) for Devon and Torbay overall in 2022 was £34. In Torbay itself it was lower at £27.1 per hour. This means that an hour’s worth of labour in the region is £7 less productive than the England average, £1 less than neighbouring Dorset and Somerset, and £3 less than the wider South West region. Cornwall and the Isles of Scilly are less productive than Devon and Torbay, delivering £31.7 GVA per hour worked, reflecting the wider productivity challenge faced in the peninsula.

There is a direct impact on the lived experience of residents – because the productivity gap underpins disparities in earnings. In 2024 median weekly pay in Devon and Torbay stood at £678, below both the national average of £732 and the South West average of £700, with Devon and Torbay in the middle relative to other parts of the South West.18 There are pay disparities within the region, with East Devon seeing faster wage growth and higher resident and workplace earnings, driven by the mix of sectors
and the presence of Exeter.

We face a number of constraints to improving productivity and economic growth, many are common to other parts of the UK, but with specific local characteristics. These are explored below.

Labour Supply

Devon and Torbay is experiencing a tight labour market and an ageing population and is forecast to continue to do so. These are national changes, but they are more pronounced here. The natural assets of Devon and Torbay play a pivotal role in retaining and attracting people to the area, supporting a net migration inflow, however the broader housing, jobs, town and cultural offer is important to retaining talent.

The number of people under 39 is not growing and residents aged 65+ will become the largest group by 2033, overtaking those aged 40-64.19 By 2043 the Old Age Dependency ratio for Devon will reach almost 530 over 65 year olds per 1,000 residents, and 585 over 65s for Torbay, significantly higher than the wider South West forecast of 445 over 65s per 1,000 residents. This shift presents a challenge for Devon and Torbay’s economy. A declining workforce will make it harder for us to adapt to evolving economic demands and compete in increasingly dynamic, technological markets.

On current forecasts over 65s will become the largest population group in Devon and Torbay by 2033.

Housing

The availability of housing of the right tenure mix and affordability to meet the needs of local residents and attract and retain new talent and young people is a core constraint and a particular issue for Devon and Torbay. Limited supply of appropriate housing stock has contributed to increased affordability challenges over time, with areas like South Hams, Torridge, East Devon, and Teignbridge demonstrating particularly high disparities between income levels and the costs of housing. As recognised by the Devon Housing Commission, these pressures are compounded by the loss of social housing through Right to Buy, the conversion of long-term rentals into short-term holiday lets, and under-occupation of family sized homes by smaller households.

The affordability ratio in Devon and Torbay across all districts has grown between 90x up to 180x between 1997 and 2023.

Under the updated National Planning Policy Framework the housing target for Devon and Torbay is set to increase by 53%.22 Whilst there are parts of the region in which geography and The affordability ratio in Devon & Torbay across all districts has grown between 90x up to 180x between 1997 and 2023 topography create additional pressures on viability and deliverability, ensuring an adequate supply of well-designed housing that meets local needs and is climate resilient is critical.

Transport

Transport connectivity, particularly using public transport, is a very mixed experience in Devon and Torbay, where areas see specific rural and urban challenges. Mid and North Devon face significant transport challenges due to limited strategic road links and sparse public transport coverage, as highlighted in the Local Transport Plan. At the same time, Exeter, Torbay, and the broader southern corridor see stronger car accessibility, where most locations are reachable within a 30–45-minute
drive. Congestion at peak times and during holiday periods is a growing problem for Exeter and
immediate surroundings.

Public transport is largely concentrated in urban centres and along main corridors, leaving many rural communities without viable alternatives to car travel. This limits access to employment, education, and services, particularly in more remote areas.

Addressing these gaps through targeted investment in thriving employment centres alongside rural public transport services, including improvements to rail and bus services, mobility hubs, and active travel infrastructure will be essential to widen the labour market catchment, reduce car dependency, and support inclusive economic growth.

Environment and climate change

Climate change presents a significant constraint on inclusive growth in Devon and Torbay; it exacerbates existing environmental challenges and threatens the area’s natural and economic assets. The fragmentation of habitats, pollution, invasive species, and climate-induced changes have led to substantial losses in wildlife and habitats. Additionally, the vulnerability of over 40,000 properties to surface water flooding and the risks of tidal flooding and coastal erosion due to Devon’s unique dual coastlines further complicate sustainable development and where we can plan for housing and employment land growth.24 The ongoing 10% of energy consumption in Devon is provided by renewable
sources within the area impacts of climate change, such as high-intensity rainfall, hotter summers, warmer winters, and rising sea levels, strain the region’s infrastructure and ecological resilience.

10% of energy consumption in Devon is provided by renewable sources within the area.

While efforts to reduce greenhouse gas emissions have seen some progress, the pace is insufficient to meet national targets, particularly in the rural north and west where emissions remain high. By integrating robust climate adaptation and mitigation strategies into growth and development plans, the region can foster a resilient and sustainable economy. These efforts will safeguard the environment and create new opportunities for green jobs, stimulate innovation, and improve the quality of life for residents. In doing so, Devon and Torbay can establish themselves as leaders in sustainable development, ensuring a prosperous and inclusive future for all.

Exports

Exports in Devon and Torbay represent just over 7% of regional Gross Value Added (GVA), which is lower than both the national average and the performance of regional comparators like Dorset and Somerset.25 There is significant potential for growth in overseas trade, particularly given the region’s strong defence, agri-food and advanced manufacturing sectors and port infrastructure. Many of our supply chain firms in these sectors are currently focussed on local customers. In part this is due to the successful visitor economy and strong local food economy, with many producers looking to local and adjacent UK markets, which also has sustainability benefits.

33% of Devon’s and 31% of Torbay’s workforce is linked to exporting businesses.

Investment and Innovation

Whilst the Devon and Torbay business base exhibit higher levels of internal capital investment than seen nationally, we invest less than our neighbours in the wider South West.26 The share of businesses reporting they are innovation active is above the national average. However, research and development investment is lower than national averages when weighted to the number of businesses in the region. Business expenditure on R&D was £159.5m in 2019, equating to 0.61% of national total. Devon and Torbay has 1.6% of total businesses in England.

Strong capital investment in the financial services industry has created the positive conditions for further growth in professional services, but relatively lower investment in sectors like 33% of Devon’s and 31% of Torbay’s workforce is linked to exporting businesses manufacturing has been a constraint on the region’s ability to improve productivity and dynamism within the advanced manufacturing industry. The UK Industrial Strategy and planned increases in defence expenditure, investment in clean energy and house building are all opportunities for Devon and Torbay to drive up investment levels, focussing on innovation and higher value job creation in future focussed industry.

Commercial space

Between 2015 and 2019 Devon and Torbay experienced strong demand for commercial space, with high net absorption and low vacancy rates indicating a tight market. Post pandemic, and particularly since 2023, more space has been vacated than leased, with commercial space vacancies at 3%, suggesting a need to consider the quality and mix of employment space available to meet business needs. Demand is currently stronger for industrial space than office space, reflecting the strength of aspects of advanced
manufacturing and food production and increased home and remote working the professional services. This shift presents an opportunity provided we adapt our approach to spatial planning, land assembly, and the use of existing built environment stock; by doing so, we can meet the growing demand for employment spaces in towns and rural areas, take a creative approach to repurposing existing employment space, focus on climate adaption, and enable people to work closer to where they live and want to stay.

Vacancy rates for commercial space in the region has average at 3% over the last 10 years.

Digital connectivity

Devon and Torbay sees high levels of gigabit broadband availability, with coverage close to the national average of 83%; which is significantly higher than the 52% average availability for rural areas in England. Similarly for 5G coverage overall we outperform the national average coverage of 76% of the geography, with the more urban Exeter and Torbay experiencing 92% and 86% coverage respectively. However, rural North, East and West Devon experience significant pockets of low coverage. Given the importance to these areas of Devon and Torbay’s large and dispersed professional services sector and increasing export markets for food and manufacturing businesses in rural areas, there is a compelling case for continuing to focus on digital connectivity to combine remote working with rural living.

Unleashing our potential – our plan and priorities

This Local Growth Plan for Devon and Torbay has been developed by Local Authorities and their partners working together through the new Combined County Authority. It sets out the priorities we have agreed to pursue together to deliver growth and realise lasting benefits for our residents and communities.

Our vision for local growth

Devon and Torbay is an exemplar modern, dynamic, rural and urban economy, highly networked across the area and to global markets. Growth in clean energy, defence, marine and advanced manufacturing and agri-food, combined with our outstanding creative, cultural and natural assets delivers lasting benefits for our residents and the UK, including stronger transport links and the housing local people need.

We have agreed five priorities.

Thriving places

Our city, towns and rural areas have different strengths and challenges. We will work together, through the Combined County Authority, to support Local Authorities to deliver the mix of housing that local people need, unlock employment and innovation spaces to meet growing demand, and create lasting opportunities for young people. We will make the case for investment in transport and wider infrastructure improvements, recognising the distinctive challenges faced by rural and urban areas, aligning with the Local Transport Plan.

Maximising assets for sustainable growth

Our existing and emerging strengths in clean energy and digital technology, defence, marine and transport advanced manufacturing, professional services and creative industries are core to the UK’s National Industrial Strategy and identified by the Government as national priorities. We will continue to support growth, productivity improvements and investment in these sectors and the clusters of expertise and supply chain firms that exist in our towns and rural areas, including capitalising on key local assets from the PASD Freeport, FLOW Celtic sea, external investment interest, and large defence industry.

Thriving bedrock sectors

The visitor economy, agri-food, health & social care, construction, education, and retail are the essential bedrock sectors of our economy, providing 212,000 jobs, 47% of all employment in Devon and Torbay and contributing £8.7 billion in GVA each year. We will support these industries to grow and to drive productivity and new markets, so that they provide good quality jobs and career options alongside critical services and goods to households, communities and other businesses.

Supporting our entrepreneurial, networked region

We have a unique offer to business. We combine green and blue natural capital, recognised by UNESCO as globally significant, with the right mix of capability and skills needed for mission-critical UK sectors. We will support start-up and scaling business across growth and bedrock sectors, delivered in a way that recognises that we are a large, outward looking area, where businesses connect across land and digital networks to face a range of national and international markets. We will need to accelerate the number of start and scale-ups – targeting intervention where it is needed, working with the Department for Business and Trade (DBT), Department for Science, Innovation, and Technology (DSIT), and institutional investors – starting with a plan for start-up, grow-on and scale-up space and support and
to increase the number of young entrepreneurs. This is a modern rural economy, with high knowledge, high value firms operating across our geography, linked to but not dependent on traditional agglomeration, as part of much wider supply chains and value chains. This networked growth is a priority for us to foster and grow.

Building the skills and the talent pipeline

Devon and Torbay is committed to retaining and growing its talented, working age population, meeting the challenges of an ageing and population and projections of a stable workforce. We need to ensure that our young people can access the opportunities that exist both here and nationally and are supported to do so. No one should have to leave for a house or a job. We have strong assets in our schools, University of Exeter, Exeter, South Devon, Petroc, and Bicton Colleges, and Rothamsted Research, and strong links to Plymouth University and city college. Developing our current and future workforce, aligned to the needs of existing and emerging sectors, is vital to both unlocking opportunities for local residents and driving up business productivity.

Delivering additional investment and powers through devolution

As we make progress with devolution, with greater local decision making and devolved powers and funding, this plan makes the case for investment and action to support businesses and communities across Devon and Torbay. It is guided by a comprehensive evidence base, which includes statistics and case studies on the region’s economic positioning, sectoral and industrial strengths, and critical barriers to growth in our predominantly rural but highly networked area.

The plan is a tool to engage with national government and private sector partners, identifying why and where we should act to support Devon and Torbay, and how this can benefit our local communities as well as the critical national industries and technology development in which our region plays a leading role.

Priority 1: Thriving places

Devon and Torbay is a culture and economy of large rural areas and communities with a vital network of towns providing employment and education centres, services and industrial and innovation spaces for businesses. Our highly successful creative and cultural sectors, professional services and advanced manufacturing all reflect this economic geography and vibrancy, with important clusters across the network of towns from Barnstaple and Bideford in the north to, Paignton, Torquay, Totnes and Newton Abbot in the south. Exeter will continue to develop within a wide functional economic area, with its university and investment zone to the east, adding more residential in the centre and growing as a dynamic city and cultural centre. The airport is a national and international gateway to the region and an important centre for innovation in sustainable aviation.

Invest in vibrant towns and a successful city

It is critical that we continue to develop the offer in our towns and cities, providing a town and nature offer for young people as well as families to move to, stay in and grow their lives here. Housing by itself is not
enough, Devon and Torbay need strategic planning of the enabling physical and social infrastructure to build the workforce’s homes and communities of the future.

Expansion of employment space and residential – such as the new town at Cranbrook and the growing
Enterprise Zone in Exeter and East Devon – is vital, alongside regeneration of our culturally significant centres and local service, nature, and cultural offers. We can redefine the purpose of local assets in modern communities, building on the example of Libraries Unlimited, and support new co-working spaces like Node in Barnstaple, to ensure that there are community and enterprise hubs across Devon and Torbay.

Town planning and place making is led by local authorities, with local plans and master plans setting out future priorities. Partnerships such as that in Torbay, where the regeneration partnership is delivering over £300 million of development including new healthcare facilities on the high street, residential, and high quality public spaces, or in Torridge, where the district council received over £20 million in government funding as part of the Community Regeneration Partnership to be spent across transformative regeneration projects to boost the local economy and improve the lives of residents.

Local areas like East Devon have developed Cultural Strategies to strengthen, promote and grow arts and culture. Culture is important as a sector and as part of the enabling infrastructure that supports thriving places. In the next priority we talk about how we will support the creative industries, however culture must be incorporated in the infrastructure planning for new housing and town developments and built into the CCA’s approach to strategic spatial development.

As a Combined Authority we will work together to support places and play a co-ordinating role work with local places to support development. Major investments are already underway and planned, including £300m in regeneration projects, plus Cullompton transport upgrades, Newton Abbot & Kingsteignton garden community, Culm Garden village, and Barnstaple’s future high street funding. Local leaders and partners have identified where investment is needed and will work with communities, government and the private sector to secure the investment and move to delivery.

Future High Streets Fund	£6.5m funding in 2021 to invest in Barnstaple town centre
Torridge Community Regeneration Partnership	£20m funding award to develop innovative approach to regeneration
Future High Streets Fund	£9m to invest in Newton Abbot regeneration
Sherford Housing Development	When complete, Sherford will have 5,500 quality homes in three district neighbourhoods with schools and employment space
Newton Abbot & Kingsteignton Garden Community	3600 homes plus link roads & new local centre planned. Has the potential to help Newton Abbot reach its aim of being ‘the business, educational, leisure and retail centre for South Devon’
Torbay Plan for Neighbourhoods	2025 funding award of £20m to support the development of community interventions to restore pride in place and boost growth
Paignton Future High Streets Fund	£13.36m from Future High Streets Fund for the regeneration of Paignton Town Centre
Torbay Levelling Up Partnership	£20m of funding to support regeneration projects inc. Brixham Harbourside, Station sq in Paignton, and housing development. Plus £21.9m in Towns Fund in 2020
Culm Garden Village	Up to 5,000 sustainable homes in a country park landscape, with jobs, community facilities and transport, all integrated with Cullompton itself
Cullompton Transport Upgrades	To support future growth for over 4,000 dwellings and almost 70,000sqm of employment floorspace
Liveable Exeter	Neighbourhood development delivering 12,000 homes on brownfield land
North Devon UNESCO Biosphere	Area recognised by the United Nations since 1976 for its incredible landscapes, wildlife, and way of life
North Devon World Surfing Reserve	Community-led organisation that protects local surf breaks and their related ecosystems
Exmoor National Park	7,610 ha National Park with 55 miles of sea cliff coastline
Dartmoor National Park	National Park covering 368 sq miles, protected since 1951
Cranbrook Housing Development	1435 homes, alongside a new primary school, SEND school, neighbourhood centre and place of worship
Second East Devon New Community	New community development delivering up to 10,000 homes, located south of Exeter Airport
Ilfracombe Harbour	Functioning port since the 12th century, now predominately serving leisure and tourism
UNESCO English Riviera Geopark	Area of globally recognised, unique geological interest designated by UNESCO

The Combined County Authority will use its convening powers and its ability to coordinate spatial development strategy across Devon and Torbay with partner authorities, to provide confidence to investors and partners. It will look at the development and use of land to accelerate growth, balanced with mitigation and adaption to climate change and nature recovery. This proactive, regional approach to developing a pipeline of investable propositions will result in greater investment in communities, high streets, culture, and the amenities and infrastructure which support growth.

Early actions include:

• We will work to support new investment models – working together with institutional investors, the region’s planners, government and industry – to create real incentives for new development, particularly in locations challenged by higher costs and lower yields (without government support).
• Begin the process of establishing a spatial development strategy, working with Local Planning Authorities and building on the findings of the Devon Housing Commission.
• Deliver the Local Transport Plan to support greater places for people, considering the strategic roles of places across Devon and Torbay and the connectivity required to address challenges and opportunities.
• Explore further acceleration of the digital connectivity through Project Gigabit to those places that are underserved.

Tackling the housing challenge – delivering new homes that meet current and future needs

By implementing the recommendations of the Devon Housing Commission, we are developing a new approach to meeting our housing challenge. Housing availability and affordability are one of the biggest priorities for local people and absolutely core to attracting and retaining the talent that our businesses and institutions need for the future.

Rising costs and viability pressures combined with availability of skills and funding create real challenges with delivering the homes people need. Devon and Torbay partners have a long record of driving housing growth and new settlements. We need to collaborate with partners to bring forward the right mix of tenures and affordability to meet identified local needs and deliver the right mix of schemes, including new settlements.

Housing must also be resilient to climate change; our devolution deal made provision for support the development of a small sites Green Homes investment programme. This is an opportunity to fast track the development of relevant high quality, green homes across the Devon and Torbay area.

Working together as local leaders, we will use the Combined County Authority’s strategic position and convening powers to unlock housing sites and investment, and develop a CCA Housing Plan, including working with planning authorities on provision of social and affordable housing in the areas that need it, connecting jobs and housing growth in particular for younger residents.

We recognise that to deliver housing requires investment in adequate infrastructure. The Devon and Torbay Local Transport Plan 4 sets out the priorities for transport, including objectives around decarbonisation, easier travel, and greater places for people, as well as a focus on unlocking strategic developments. This will be delivered alongside this plan.

We will take up the role identified by the Housing Commission, with the CCA representing an important opportunity to coordinate Local Plans (prepared by local authorities) across the County, covering transport and infrastructure alongside housing provision.

We will work with Homes England and central Government, as well as relevant organisations covering utilities such as water and energy, to secure the funding and support needed to deliver the housing ambitions of Devon and Torbay.

2024 Devon Housing Commission

The Devon Housing Commission was established by the Devon Housing Taskforce and comprises all Devon local authorities and was hosted by the University of Exeter as part of the University’s Civic University Agreement with Devon County Council. Many people and organisations submitted evidence to the Commission, including 509 individual responses to the online call for evidence. It found that factors contributing to the Housing Crisis in Devon include:

• Becoming a homeowner in Devon is particularly difficult because house prices are inflated by those moving from in more expensive areas, principally from London and the South East. This creates difficulty recruiting to vacancies across Devon and means key workers cannot afford to live near their place of work.
• The availability of affordable rented housing is more constrained in Devon than most places. The amount of social housing available from councils and housing associations is proportionately half as much as for England. Historically, Devon has not built enough affordable homes, and current trends show that the position is getting worse.
• In some areas, the amount of privately rented housing has declined by substantially more than elsewhere, partly because long-term lettings for locals have been switched to short-term Airbnb style lettings for tourists.
• Devon has an older population profile and more family-size properties are occupied by one or two people: the phenomenon of under-occupation is an even bigger issue than for England as a whole.
• Rurality and the physical aspects of Devon make new building problematic in many places. The geography and topography of the county restrict opportunities. Narrow country roads and steep hillsides make construction more difficult. In addition, more of Devon than of most counties is protected by designations of National Parks, National Landscapes, and Sites of Special Scientific Interest.
• Devon also contains many coastal towns which bring their own challenges. Properties designed for a tourist market of yesteryear can attract landlords who let sub-standard properties to those on Housing Benefit. The fashions for holiday destinations have changed, leaving a legacy that requires investment in regeneration.
• Devon is now unusual in terms of local government structures and Local Government Reform and Devolution offers an opportunity to drive delivery.

Early actions include:

• Build on the joint strategic housing pipeline with Homes England, developing a delivery plan and exploring how the CCA can use its access to land assembly and compulsory purchase powers as necessary.
• Work with central government, Homes England, housing authorities and housing providers to develop a CCA-wide housing strategy to ensure that new housing delivery is both affordable and appropriate – providing homes for those historically priced out of the region – including young people – rather than only new stock at market rate.
• Development of initiatives such as a small sites Green Homes investment programme business case, as set out in the devolution deal.

Explore through the new strategic housing pipeline and schemes already being developed, innovative responses to our housing challenge including new models for delivery of the right housing mix, considering how best to deliver viable, high quality housing schemes in a variety of locations.

Ensure Devon and Torbay is at the forefront of natural capital innovation

Our natural assets are essential for growth – they underpin sectors such as agriculture, clean energy, maritime, and the visitor economy, support health and wellbeing, and attract people to Devon and Torbay. Growth in Devon and Torbay means delivering nature and biodiversity gains, and delivering to the statutory obligation of our local authorities to achieve net zero by 2050 alongside economic growth. We have a special built and natural environment: the North Devon UNESCO Biosphere, UNESCO English Riviera Geopark, World Heritage Site of the Jurassic Coast, the two National Parks, World Surf Reserve, and the five National Landscapes.

Elsewhere in this plan we highlight the opportunity of agri-innovation and clean energy. Here we want to focus on the role of natural capital innovation. We want Devon and Torbay to be the national leader in investment, trialling and scaling of nature-based innovation and natural capital projects. From the North Devon UNESCO Biosphere as a pioneer within Natural Capital to the Apricot Centre as a sustainable diverse farm and wellbeing service for children and families, Devon and Torbay is leading the way in support nature to recover, protect the environment, in balance with local economic growth and prosperity. The company Algapelago, for example, has a sustainable, scalable seaweed forest farm in North Devon, collaborating with R&D experts, Portsmouth University, University of Exeter and international companies.

Early actions include:

• Explore strengthening the partnership between CCA /LA, natural capital businesses and our universities and colleges, showcasing careers, business growth and supply chain opportunities.
• Promote Devon and Torbay’s natural capital projects and opportunities as part of our visitor economy offer.
• Developing a CCA wide approach to impact investing, collating a portfolio of natural capital projects for investment.
• Establish a climate and nature action group to develop actions and climate and nature metrics to monitor progress.

Priority 2: Maximising assets for sustainable growth

The region’s offer to businesses combines green and blue natural capital, alongside a mix of capability and skills aligned to mission-critical engineering, sustainable technologies and an innovation base engine powered by the university and innovation assets. This is a solid foundation for productive growth, capitalising on our natural, business, and knowledge assets to shape the latest technologies for a range of industry, and Devon and Torbay’s innovation ecosystem. For growth to be sustainable it must be resilient, inclusive and green; apprenticeships and jobs will be showcased to local young people through the area-based careers service, and we will focus on the area’s clean energy strengths and the role of the innovation spine in green technologies.

Capitalise on the South West’s Defence strengths and the PASD Freeport to support local business growth

Devon and Torbay is a strategically important area for UK defence, situated close to defence agencies and Prime manufacturers in the South West, and supplying a range of products and services that enable our national land, sea and air capability. The resilience and innovation of defence suppliers is critical as the UK increases defence spending, with the government spending £7bn in the South West in 2023/24 and £4.5bn earmarked for HM Devonport Naval Base in Plymouth.

The north coast of Devon is a strategic asset, with the opportunities offered by the acquisition of Appledore Shipyard by the major Spanish shipbuilding firm Navantia, who plan significant development of the shipyard for defence, maritime, and green energy sectors. This is part of the Fleet Solid Support programme, comprising three ships for the Royal Fleet Auxiliary to support the UK Carrier Strike Group. These vessels will be built at the Belfast and Appledore facilities alongside Navantia’s facilities in Spain.

Devon and Torbay’s strengths in advanced materials and composites for demanding environments, scientific and technical services, and advanced manufacturing and digital are fundamental to national security and future defence technologies. These broad specialisms represent over £2bn of GVA for Devon and Torbay, with the region committed to defence as well as capitalising on civil applications of new technologies developed in the region.

Industry is supported by University of Exeter’s leadership of the Defence Data Research Centre, welcoming new techniques and approaches to the data-driven development of autonomous systems for land, sea and air. The Exeter Defence, Security and Resilience Network brings together over 200 University of Exeter academics from across all disciplines, institutes and research centres. Reflecting current trends and customer demand, the network is expanding its work in cyber and AI, particularly at the convergence of the scientific and technological, social science, legal and ethical aspects.

Early actions include:

• Showcase the opportunities in the defence sector to prospective regional suppliers, including ‘meet the buyer’ events to meet and connect, working with Defence Primes, businesses and the PASD Freeport to support supply chain.
• Explore a defence technical college of excellence to support future skills development.

Accelerate investment in clean energy

We have a track record of collaboration with government and the Department of Energy Security and Net Zero to bring forward new opportunities through funding and partnership. Our concentration of marine sector businesses and advanced manufacturing provides local industry test cases and engineering expertise. We are seeing investment and have plans for growth, for example the 2024 North Devon and Torridge Clean Maritime Growth Vision sets out a vision for an innovative maritime future for North Devon and Torridge, anchored by the Appledore Clean Maritime Innovation Centre.

The Crown Estate’s recent commitment to lease seabed space in the Celtic Sea for 4.5 gigawatts (GW) of floating offshore wind (FLOW) projects by 2035 presents a major opportunity for Devon. These large-scale floating wind farms, each around 1 GW in size, will be among the biggest in the world, delivering up to 8% of the UK’s peak demand for electricity. Devon and Torbay will play a central role in the construction and servicing of these offshore wind farms, with Appledore on the North Devon coast ideally placed for access to the Celtic arrays, and Ilfracombe Harbour could be used for launching for maintenance vessel, with local training facilities in sea-faring activity.

As developers establish long-term operational hubs, we will work to coordinate investment, infrastructure
development, engineering and servicing, and training opportunities to support our growing green economy. The Combined Authority’s own research identifies over 100 businesses that could support the FLOW supply chain, from testing to building and servicing, and local universities are collaborating with the public and private sector to enable the FLOW development in the Celtic Sea, ensuring Devon and Torbay fully participates in and benefits from the opportunity. The Appledore Clean Maritime Innovation Centre, a National Centre of Excellence for the National Shipbuilding Office, will provide the only north coast industrial space between Porlock and Hayle, a major opportunity to channel future R&D activity at the gateway to the Celtic Sea. Floating Offshore Wind and future Operations and Maintenance activities have the potential for an immediate and 30 year span impact.

This will create skilled jobs in areas such as engineering, environmental science, operations and maintenance, logistics, supporting legal services, and project management. There is an opportunity to present Devon and Torbay as the premier host to green energy with enormous future industrial decarbonisation potential from colocation, with North Devon an optimal location for proposed energy cabling from FLOW to X-Links. Industry expertise is networked across Devon and Torbay, with a cluster of knowledge intensive firms around Exeter complemented by the Met Office and University of Exeter
as a leader in environmental sciences. The Centre for Future Clean Mobility at University of Exeter drives innovation in clean energy, developing low-emission powertrains for aerospace, automotive, marine, and rail. A standout recent project is their collaboration with Supacat, a leading defence vehicle manufacturer, where they created an all-electric, all-terrain defence mobility platform.

Other renewables such as onshore wind and solar are also opportunities. There are likely onshore wind opportunities, for example the A30 corridor, north of Dartmoor. Green tech companies have identified Devon as an optimal location to connect renewable energy generated to the national grid – and Carlton Power – delivering hydrogen hub projects in Devon and Cornwall – highlight demand for the region’s energy expertise, natural capital and strategic location.

Universities in and adjacent to the CCA are delivering expertise in offshore wind, nuclear, hydrogen, and energy storage. With the Met Office and University of Exeter, Devon and Torbay contains the world’s largest cluster of scientists analysing the challenge of climate change and we are powering the transition to clean energy through innovation and skills.

Highlights include:

• Exeter is home to more than four times as many clean energy scientists as any other city in the UK.
• Plymouth University’s ORE facilities include installation simulations, hydrodynamic testing and cyber-secure, “secure-by-design” energy infrastructure solutions; the University has also been granted Marine Autonomy Centre of Excellence status.
• Exeter Energy brings together over 140 researchers from across all disciplines at the University of Exeter to collectively understand and facilitate transformation to sustainable energy systems.
• Cutting-edge projects like SeaCURE, an innovative ocean-based CO₂ removal technology, and the Floating Offshore Wind Farm (FLOW) Accelerator, which advances the potential of wind energy.

Together, this mix is an attractive offer for new investment and innovation, with startups and new entrants being able to draw on a unique range of partners, research and technical capability.

Early actions include:

• Pursue floating offshore wind in the Celtic Sea and clean energy infrastructure. Work with the Crown Estate on the next stages of FLOW, planning to deliver high energy behind-the-meter industrial applications where power is on shored creating a strong offer for inward investment and new entrants to the region.
• Continue collaboration with South West Net Zero Hub and UK Infrastructure Bank to identify and scale local clean growth projects and integrate with Great British Energy on future supply and investment opportunities.
• Consolidate Devon and Torbay’s role at the heart of maritime innovation, building on the Clean Maritime Innovation Centre at Appledore, which will establish research and development space and opportunities for collaboration on sustainable maritime initiatives including green propulsion.
• Demonstrate early delivery of clean hydrogen at scale to decarbonise hard-to-abate sectors, working with the Exeter H2 Hub consortium and the Langage Green Hydrogen facility.
• Support low carbon mobility testing and sustainable aviation and maritime initiatives, including Exeter Airport’s pioneering decarbonised ground equipment for aviation.

Promote the South West Innovation Spine as a UK-leading capability for national resilience and sustainability

The South West Innovation Spine provides growth opportunities, with several interconnected sector strengths supporting the UK’s industrial strategy themes and more broadly several applications in energy, defence, and high-tech supply chains. It looks outwards to a range of national and global markets and supply chains and is linked to a network of innovation, science and business assets across the wider area and up the M5 growth corridor.

It brings together a nationally-significant concentration of science and technology enterprises and assets along the southern road and rail corridor – connecting businesses, research institutes, leading technical facilities and science parks, including University of Exeter, and infrastructure like Exeter’s transport hub, 2 hours by rail from London. Reaching south from the M5 and Exeter and East Devon Enterprise Zone and west from Torbay, EPIC and its digital cluster, towards the PASD Freeport, the Arc contains significant expertise across environmental sustainability and net zero technologies, electronics and photonics, data and AI skills, and advanced manufacturing.

This approach recognises that the innovation eco-system here is driven by networks that function across a wide geographic area. The spine links to ‘spokes’ across the region, including to a concentration of innovation assets and businesses focused on advanced manufacturing, agritech, maritime, defence, and energy in the north. For example, the North Devon UNESCO Biosphere creates a Living Lab that should be further capitalised upon both by the private sector and research bodies – complementing the Innovation Spine.

It draws from the region’s universities, who lead in fields ranging from digital and creative industries to marine and environmental sciences, bringing research, innovation and education together to power the future growth. Through the strategy there is a desire to harness this collective expertise, fostering a resilient, innovative, and growing region that is strengthening industries vital to regional and national prosperity, advancing research and skills in clean energy and leading safer, healthier communities. Researchers in Exeter, for example, have been selected to host MetaHUB, which will develop new forms of engineered materials – designed at the nanoscale – for use in everything from medical sensors to healthier food colourings. MetaHub will be supported by £19.6 million in public and private backing, announced by Science Minister Lord Vallance on a visit to the University of Exeter’s Streatham Campus.

Early actions will include:

• Deliver a strategy for the Spine which focuses on ecosystem development via inter- and intra-region collaboration, including greater knowledge sharing between the triple helix of government, business and universities, and linking innovation asset spokes across the region – including the significant activity in the north – to the spine’s anchor institutions and activity.
• Showcase Devon and Torbay innovation assets and potential to secure a Local Innovation Partnerships Fund.
• Work with trade, regional and UK government bodies to promote inward investment and exporting opportunities supported by the Innovation Spine – with the region being recognised as a significant national asset.

A vibrant and growing creative sector, rooted in local place and culture

Our cultural and creative strengths are a major driver of our economy and future growth, both in terms of direct economic activity and our quality of life and offer to businesses and residents. Cultural capital and expertise will drive value in investment opportunities, regeneration and place-based offers – such as the exemplar public realm and mixed use development in Torbay across Paignton and Torquay, bringing food and drink and maritime heritage to the fore. In return, the impact of delivering growth in our bedrock sectors and tech-led opportunities should be felt by communities across the region, through re- investment into local infrastructure and facilities, alongside the benefits of job creation and higher wages.

Between 2019 and 2022, the Great South West (GSW) region, including Devon and Torbay, experienced the joint fastest growth in creative industries employment across the UK, with a compound annual growth rate of 4.1%. This growth has been enabled in part by the quality of educational assets in the region, such as the University of Exeter Film School. Over the longer term (2015–2022), the region’s growth rate of 2.8% closely approached London’s 3.5%, underscoring its emergence as a national creative hub. Creative industries contribute over £400 million to the GSW economy.

Recent data indicates that Devon has approximately double the number of creative businesses compared to Cornwall. This disparity highlights Devon’s robust creative economy and its role as a leading centre for creative enterprises in the South West. The creative industries in the Great South West (including Devon and Torbay) employ more than 10,000 people in 3305 Creative Industry businesses. A high concentration of creative businesses, ranging from design and digital to performing arts and publishing, reflects a diverse and growing sector across Devon and Torbay. Torbay ranks in the top 10 UK locations for immersive and creative tech jobs per capita. This includes roles in virtual reality, digital animation, and creative software development, marking it as a national hotspot for creative technology talent.

Early actions include:

• Develop a place narrative for Devon and Torbay which aligns to our Local Growth Plan.
• Exploratory partnerships with Department for Culture, Media and Sport Arm’s Length Bodies over six months.
• Establish an advisory group for culture and creative industries to support local sector growth.

Priority 3: Successful bedrock sectors

Whilst the national Industrial Strategy highlights eight growth sectors these only represent part of the economy. Our economy is built on the bedrock sectors – they support many jobs and provide some of the key services needed to underpin our growth opportunities. We have identified four bedrock sectors which require specific interventions in this plan: farming, visitor economy, health, and construction. These are set out below.

Regenerative agriculture and innovation in farming and sustainable fishing

Home to around 30% of the UK’s dairy industry, and one of England and Wales’ largest fishing ports at Brixham (by value of catch), the sector is growing output by 3.6% year on year (GVA), with key businesses including Arla, Danone, Dunbia, Riverford Organics and Mole Valley Farmers. The landscapes and coastal areas of Devon and Torbay – from Dartmoor’s nearly 1000km2 of grazed moorland, part of Lyme Bay’s Marine Protected Area, to the UNESCO North Devon Biosphere and its unique dunes and ecosystem – present a range of environmental stewardship challenges and opportunities to learn and trial new regenerative and sustainable agricultural techniques.

With an established and innovative networks of smaller farms, fishing businesses and food producers complementing multi-national firms in the region, we provide a test bed for these new approaches and are ready to develop this offer alongside producers and in partnership with the Department for Environment, Food & Rural Affairs (Defra) and central government. Our region already hosts a wide range of active collaborative groups, working towards a shared goal of farm and fisheries management in synergy with nature and the national goals on aspects like nature recovery and carbon reduction. Groups like the Central Dartmoor Farm Cluster, with a history of working alongside Defra and the Duchy of Cornwall on issues like landscape recovery and natural flood management.

The knowledge within the region – amongst producers and researchers – from new agritech to approaches to regenerative agriculture and new forms of low-carbon production, provides a platform to continue to support the food security of the UK from future shocks. The Rothamsted North Wyke Farm Platform is home to international collaborators for new solutions to sustainable farm productivity, and already links real world challenges of food security to innovation in land management technologies. By working together to develop and promote high productivity, we can deliver for workers in the sector via their pay packets, as well as putting quality produce on shelves all year round and delivering for the environment. We have a strong track record in Devon and Torbay and now have the opportunity to take this forward and share the knowledge in national and global markets.

Water is a critical sector that underpins agriculture, farming and industry. The CCA will look to work with Defra and relevant agencies around water management to ensure that we build flood resilience and water management into growth plans, working with the area’s experts. The Centre for Resilience in Environment, Water and Waste (CREWW33) was established with a grant from Research England and co-investment by South West Water and the University of Exeter. CREWW is a specialist laboratory facility for water, waste, soil and vegetation analysis and a space to facilitate collaboration between industry, policy makers and our academics. CREWW contributes to research that is part of delivering the
Industrial Strategy and Defra’s 25 year Environmental Plan. As an example, the Ground Truth Project integrates AI with sensor technologies to monitor and maintain water systems, bringing predictive insight to infrastructure management.

Early actions include:

• Raise awareness of the UK’s first Agritech Advanced Engineering Centre, a state-of-the-art training facility at Bicton, highlights our region’s leadership on new technologies and techniques in the sector.
• Continue the annual South West Agritech Showcase, providing a rallying point for the sector across the broader region to meet and to drive innovation.
• Maintain the supply of land-based skills and training centred around Bicton College and other specialised providers, such as the Apricot Centre.
• Continue to work with partners to seek to influence Defra and secure Government commitment and support for growth in agritech, aquaculture, and regenerative farming, including on national regulation and funding to support local regenerative farming, net zero land management and aquaculture, and approaches to climate health and resilience.

Construction skills

With rising housing targets, it is imperative that we have the skilled construction labour Devon and Torbay needs. Construction employs over 25,000 workers in the region. Worth £1.7bn annually, it is important for jobs and productivity, but also to relieving the growth constraint that is the higher costs of construction in the peninsula, with costs rising over 30% for projects, and access to specialist skills posing challenges to specific development. In addition, this is a sector which will likely see additional skills needs around modern methods of construction and sustainable housing, as well as climate adaptation and water management.

We are home to key multinational operators like Norbord Europe, providing flooring and roofing, and regional bases for large developers like Kier Group, alongside a rich network of micro and SME contractors. We have excellent further education and vocational provision for construction, with over 3,000 students trained each year, including the Exeter College construction skills academy. Devon and Torbay local authorities are already helping shape the future construction workforce through programmes like Building Greater Exeter, however there is more to do.

The unique pressures on the sector– including the competition for skilled and specialist labour – often adds complexity, cost and time lag to development, as expertise needs to be sourced from around the UK. The Chancellor has committed to train up to 60,000 more construction workers by 2029 – and supported by national investment and our local skills provision will address shortages and cost premiums for labour, and encourage confidence and investment into local and regional construction and regeneration.

Early actions include:

• Grow the construction technical excellence training offer for Devon and Torbay focusing on sector and place-based skill shortages and specialisms.
• Explore a new green construction skills offer, including short courses for existing workers who wish to upskill.

A resilient and sustainable visitor economy

We want to protect and grow the visitor economy in Devon and Torbay, showcasing the offer and sdopting new strategies to manage the demand on our infrastructure and local communities at peak times, bridge the gaps of low season that impact people’s livelihoods, and creating a sustainable tourism that meets the changing expectations of visitors. Business tourism is a growth opportunity, using our venues and scenery to attract a wide array of events year-round. This can be linked to the growth sectors and innovation spine, with a purposeful strategy to attract conferences and events that will draw in stakeholders and investors.

As we continue to invest in some of the key locations – from the English Riviera across the Torbay coastline to the Tarka Trail traversing North Devon and Exmoor – we must work with the sector to make the most of the assets at the heart of Devon and Torbay’s visitor offer, understanding the network of businesses and how we can raise productivity above the current level (around £23,000 per employee). We know that many businesses are keen to adopt new techniques, from digitising their business and customer experience to taking on new skills and staff that can help evolve their offer.

The award of Local Visitor Economy Partnership (LVEP) provides us strategic tools and partnerships to grow. Through collaboration between Visit England, the CCA and operators, we will provide strong local leadership and governance as our historic destination evolves. This means greater ability to support and advocate for those within the visitor sector, understanding and addressing their priorities, while positioning for greater visibility with national and international visitors.

Early actions include:

• Collaboration with Visit England and Local Visitor Economy Partnership to enhance the visitor economy and grow domestic and international visitor spend via sustainable tourism and our regional visitor economy strategy.
• A focus on measurement and impact will be delivered through these strategic partnerships and our LVEP action plan, enabling us to pinpoint where investment should be prioritised.

Innovating health and care delivery

Devon and Torbay is a knowledge centre for the UK in health and social care, delivering a supply of talent into health professions and advancing research on resource-intensive practices and treatments in the NHS, such as musculoskeletal health, ageing, and mental health and wellbeing. Over 17,000 health-related graduates leave our higher education and further education every year, making Devon and Torbay a critical node in the UK’s ability to drive healthcare productivity and effectiveness. Our universities and colleges train health and care professionals across the full breadth of disciplines and in cutting-edge fields, attracting and retaining essential skills to the region, and ensuring the NHS can deliver vital services.

Over 55,000 people are employed in Devon and Torbay in health and care, many facing the same national challenges and opportunities of supporting an ageing population and delivering new clinical and management approaches to meet the demands of the population. North Devon also have particularly strengths in advanced pharmaceuticals, with global company Accord Healthcare basing their UK headquarters in Barnstaple and acting as a North Devon Biosphere business partner.34 This is an opportunity; innovation to deliver better care, keep people healthy for longer, and reduce economic inactivity due to ill health. We are leading on new diagnostics, therapeutics, and digital health innovations developed with people and communities to ensure research and innovation drive real-world health improvements and are home to the Exeter Genomics Laboratory delivers high quality genetic and genomic testing.

Our research delivers groundbreaking advances in tackling some of the most challenging medical conditions. We have a strong record of delivering health innovation and drawing in funding and support for new research and clinical collaboration, such as the recent funding for ADHD engagement and treatment, and for the recent £6.5m award to tackle the carbon footprint of the health service and reduce costs. The Biomedical Research Centre is revolutionising healthcare through breakthroughs in personalised medicine, genomics, and disease prevention. The University of Exeter is supporting partnerships between leading researchers, clinicians and industry, using advanced tools like gene editing, disease-relevant cell models and AI to explore how genetic changes contribute to disease.

The CCA will work with our local trusts and Integrated Care Board to deepen this collaboration between health and care providers, government and research and innovation assets, to help address the long-term sustainability of the bedrock sector. We will also work closely with the Health Innovation South West Partnership, which connects NHS, academia, local authorities, the third sector, industry and citizens, using expertise to find, test, scale and implement innovation in health and care.

Early actions include:

• Establish strong partnership working between the CCA and the NHS Devon Integrated Care Board, ensuring that we can raise the profile of key healthcare challenges and support required in the region.
• Ensure that the Devon and Torbay Skills Strategy considers persistent recruitment and skills gaps in health and care in the region, working in collaboration with education providers.
• Work with Health Innovation South West to champion Devon and Torbay existing businesses and strengths, and as a testbed for health and care innovation, advocating for further funding and support, including to deliver pilot programmes that address challenges relating to rural health and wellbeing and to healthy ageing.

Priority 4: Supporting our entrepreneurial, networked region

Devon and Torbay is home to numerous small, successful businesses across a wide breadth of sectors spread across the region, as well as high value innovative businesses. The South West also has the highest concentration of B corps outside of London and we attract successful entrepreneurs from outside the region, either to establish a new enterprise here, or to manage business interests from our well-connected region. We are home to numerous business networks, where people share ideas and advice, alongside their passion for their local area. Whilst much of this happens organically, it’s an attribute of our economy that we want to support and grow. Fostering a networked region of entrepreneurs is needed to support growth across Devon and Torbay, and doing so starts with ensuring that we have a profile of investment and opportunity that stretches beyond our borders. Achieving success on this priority will mean that we see a rise in business formation levels and investment, rising firm level productivity, and – at the business and individual level – a supportive region in which to grow.

Appledore Clean Maritime Innovation Centre	£15m of sustainable maritime investment in facilities that will support innovation across a range of marine applications – opens 2026.
Node Co-work	Flexible coworking space for entrepreneurs, freelancers, startups and growing businesses.
Plymouth and South Devon Freeport	A government backed free trade zone, boosting investment in advanced manufacturing, marine, and logistics industries.
Torbay Business and Technology Park	A high-tech business hub specialising in photonics, electronics, and precision engineering, support global innovation.
Met Office	World-leading weather and climate research centre driving innovation in meteorology, AI, and data science.
NIHR Exeter Clinical Research Facility	Collaboration between university and NHS, that bring together academics and clinicians to translate lab-based scientific breakthroughs into new treatments, diagnostics and medical technologies.
Exeter Technologies Group	Range of innovation and manufacturing facilities on polymers, composites, supply chain components.
Exeter Science Park	A hub for high-growth STEM businesses fostering innovation in digital, environmental and life sciences.
Centre for Future Clean Mobility	Innovation support for propulsion, AI, and autonomous systems – with £50m of funding historically, across marine, aero and land applications.
Exeter Airport	Nationally significant testing hub for air travel decarbonisation through the UK Civil Aviation Authority’s Hydrogen Challenge.
Centre of Technology and Innovation Excellence (COTIE)	Shared-use laboratories housing the very latest 3D printing and design facilities.
Holsworthy Agri-business Centre	Purpose built units for farming-related businesses.
Rothamsted Research	Research hubs for net zero, bioeconomy and agri-food innovations.
Devonport Dockyard	Biggest naval base in Western Europe and home to the Royal Navy since 1691.

A startup and scale-up targeted strategy, prioritising employment space and
young entrepreneurs

Devon and Torbay provides a canvas of knowledge intensive, high tech assets and expertise from which we can drive forward growth in bedrock industries and across our South West Innovation Spine. At present the business birth rate is less than half that of the UK average (36 vs 84 per 10,000 businesses) and exports fall below the South West as a whole. In 2020, levels of business investment as a proportion of economic output were lower in Devon than for the wider South West; therefore we also need to address firm level innovation ensuring that businesses have the support they need at the right time to adopt new processes, invest in new equipment and skills, and build new plans for growth and exporting. There are three opportunities we will focus on, mindful of the CCA’s role and opportunity for co-ordination with local planning authorities who lead on local plans.

First, we know that we need new businesses and entrepreneurs to drive growth, and that suitable spaces and tailored support to establish and build a business is a challenge to our future potential. Part of addressing this challenge is delivering affordable and flexible spaces for business growth – from start-up and micro businesses onward. That means in Exeter and across our network of towns, coastal, and rural areas, allowing links to be forged with established clusters in the area – such as advanced manufacturing and materials in Barnstaple, and creative and digital in Torbay – and providing visible opportunity across our communities. Some sites, such as EPIC, are full, and Torbay has received government funding for a technology park to support business growth from within EPIC. Employment space, in particular light industrial units, are in higher demand and providing a pipeline of new spaces aimed across start and scale-up will enable greater business formation and mean that successful firms don’t have to leave to continue their growth journey.

Second, in addition to our place narrative, we will promote the opportunity to start and grow business here with young people and entrepreneurs. Latest migration figures (2023) show over 7000 net inflow, however young people leave with net outflows in graduate age groups outnumbering net inflows from university entry. Like many areas, we see younger populations growing more slowly than older demographics, as many move away for study or work.

Part of addressing this challenge is ensuring that young people have the right advice and guidance on the opportunities here. More broadly, we must attract young entrepreneurs and build the profile of their successes, as well as the many benefits of building a career in Devon and Torbay. The strong track record and performance of colleges and University of Exeter in developing talent provides a starting point for this work, but we must coordinate our offer to young people looking to start and grow businesses.

Finally, we want Devon and Torbay to be at the forefront of the AI revolution. Many of our employers are already embracing new ways of working and redefining job roles to take account of the innovation and productivity gains AI brings. Our clean energy generation will draw in the power that data centres demand; we want to showcase this opportunity to all our businesses, entrepreneurs and public sector employers.

Early actions include:

• Play a convening and demand assessment role to support the distributed network of digital and innovation hubs across the region, including identifying where private investment is not meeting demand and seeking to remove barriers to investment and viability, building on examples such as the Node enterprise hub.
• Review existing business support offer to ensure it is easy for businesses in all parts of Devon and Torbay to access one-stop information, advice and support they need to thrive and work with the Growth Hub to ensure that Devon and Torbay’s priorities are reflected in its delivery plans.
• Build a regional vision for AI adoption that draws on the area’s expertise, ensuring that rural small and medium sized businesses, manufacturers and public services can adapt to and benefit from emerging technologies.
• Work with the University of Exeter, our colleges, and through relevant regional strategies (e.g. skills; place narrative; spatial development), to build a coordinated and compelling offer for young entrepreneurs to stay and grow in Devon and Torbay.

Showcase regional potential to investors, prioritising high value scale-ups and pipeline

The Combined County Authority – drawing on this plan and other investment-aligned strategies – will use its platform and convening powers to attract new businesses and funding (including access to finance for existing businesses and foreign direct investment). We will play a role in understanding and surfacing the many investment opportunities in Devon and Torbay, including capital investment in new regeneration and place-based strategies. This includes promotion of established success stories such as the East Devon enterprise zone, Torbay’s Hi-Tech Cluster, and links to the new PASD Freeport, where there is opportunity to expand and build on these successes through new investment and/or development. The Freeport gateway sectors closely link to our strengths, including marine, defence, advanced manufacturing/engineering and net zero tech, alongside a property offer with tax and customs benefits; the two largest tax sites are in Devon.

As champions of innovation-led growth, the Combined County Authority will engage and advocate for high value scale-up businesses in the region, which have an opportunity to attract investment and speed up their development. We will work to create this investment opportunity pipeline, working with partners and interfacing with institutional and angel investors at regional and national level. This will help us to achieve scale and visibility, as well as linking the business base to national funding opportunities and support from government aligned to the National Industrial Strategy.

Early actions include:

• Work together with universities and businesses, including through the South West Business Council, Devon Chamber, and Made in the South West and potentially a new business innovation network, to help make the case nationally for Devon and Torbay’s innovation eco- system and associated investment opportunities, linked to commercialisation of research and the UK’s Industrial Strategy.
• Explore opportunities with the Scale Up Institute to understand how best to address the barriers to growth for the local scale-ups and pipeline identified in their 2024 report.
• Promote entrepreneurial scale-ups both regionally and nationally to gain interest from institutional capital and investors – with a focus on supporting growth and investment readiness through accessing regional support and Industrial Strategy alignment.

Amplifying business networks and the role of universities and further education through collaboration

Working across the large geography that makes up Devon and Torbay requires solid networks, allowing businesses to interact, innovate, and support each other. Our local universities and colleges are fuelling the growth-driving sectors identified in the Industrial Strategy 2025 – attracting national and international investment and talent. They support growth by collaborating with business to provide our expertise in R&D and our facilities, developing new spinouts and start-ups and attracting investment capital into our region. Local graduates and apprentices provide the economy with the talent it needs to prosper, and we work to tailor local education offers to match current and future business need.

Working alongside education and research institutions and our Business and Skills Advisory Groups, we will proactively connect a network of our knowledge engine, established businesses, and entrepreneurs. Our local universities have dedicated knowledge exchange expertise, delivered through programmes such as SETsquared Exeter, Green Futures Solutions, The Bridge at Plymouth University, and dedicated
Business Schools.

We will learn from successful scale-ups and venture capital deployment in the region such as Additive Earth, which is pioneering a range of projects for aquaculture, environmental monitoring, and sustainable energy. The SETSquared partnership (across six universities) has supported 5,000 entrepreneurs to raise £5bn investment since 2002, providing a strong base from which we can build collaborative networks with university research and facilities, matching these with real business challenge and growth
opportunities right across our region.

The University of Exeter offers support for business acceleration, research commercialisation, student entrepreneurship and business support, including the Exeter Innovation Accelerator programme and through the Student Startups team. In 2023/24 University of Exeter spinouts generated over £12m of external investment, over the last 3 years they have created 300 jobs and have a survival rate of over 90%.

These networks and existing programmes will share learning, ideas and related technologies, moving from a collection of effective assets to an innovation ecosystem with distributed leadership and a greater capacity to generate and grow new ventures and products. The CCA will encourage this by developing business support and mentoring that reflects the unique needs of high growth sectors and businesses.

Early actions include:

• Build a strong independent local business voice to work with the CCA.
• Work with Department for Business and Trade on support for businesses, and with Department for Science, Innovation and Technology, and UK Research and Innovation to explore opportunities for collaboration in strengthening research and innovation capacity.
• Work with sector and business representative bodies to support local existing businesses to stay and grow in Devon and Torbay, starting with Made Smarter South West.

Recognising the role of the VCSE sector

The Combined County Authority welcomes the early and constructive engagement from the Devon, Plymouth and Torbay VCSE Assembly. We recognise the VCSE sector as a significant economic and social contributor, employing over 30,000 people, engaging tens of thousands of volunteers, and generating nearly £1.5 billion in economic activity annually. The sector’s reach into communities, particularly those often underrepresented in traditional consultation processes, is invaluable.

The CCA will work with the VCSE Assembly to ensure the sector is actively involved in the implementation of this Growth Plan. This includes supporting its role in community engagement, data gathering, and communication of the Plan’s aims. We also acknowledge the importance of social enterprises and will explore opportunities to develop targeted support programmes to help them grow and thrive.

Early actions include:

• Establish a formal partnership with the VCSE Assembly to support community engagement and consultation, particularly with underrepresented and harder-to-reach groups, as part of the Growth Plan’s implementation.
• Include VCSE representation in relevant governance and delivery structures, such as advisory groups or implementation boards, to ensure the sector’s voice is embedded in decision-making and delivery.

Priority 5: Building the skills and talent pipeline

Devon and Torbay is committed to retaining and growing its talented, working age population, meeting the challenges of an ageing and population and projections of a stable workforce. This will require action across the skills and employment system, with providers and employers working together. As we set out above, action on housing, transport and the offer we make to our young people is key. Developing our current and future workforce, aligned to the needs of existing and emerging sectors, and cognisant of our rurality, is vital to both unlocking opportunities for local residents and driving up business productivity. The actions in this plan link to other council and CCA plans – early years, skills, and employment plans for example.

University of Exeter	Russell Group University with over 25,000 students from 130 countries
Exeter College	Ofsted ‘Outstanding’ tertiary college offering A-levels, T-levels, BTECs, Apprenticeships, Higher Technical Educations and adult learning courses
South Devon College	Torbay based college with 9 campuses including the Hi Tech & Digital Centre, Marine Academy, Animal Unit and Sports Centre
Petroc College	Two campus college situated in Mid and North Devon, proving a wide range of courses, including degrees and vocational courses
Bicton College	Specialist land-based college located in East Devon, offering dedicated courses in agriculture, animal care, and conservation, as well as qualifications in military, trades and engineering
Rothamsted Research	Research hubs for net zero, bioeconomy and agri-food innovations

Technical and digital education

Aligning technical and digital skills provision to the needs of local industry will help to realise the growth opportunities identified in this plan. We know from the region’s current development of an integrated skills strategy, that manufacturing employers are more likely to report skills gaps within their workforce (21%) than any other sector apart from health and care.

We have strong assets in our schools, University of Exeter, Exeter, South Devon, Petroc, Bicton Colleges, Rothamsted Research and strong links to Plymouth University and city college. We have a solid foundation in apprenticeships, for example, Petroc College delivers apprenticeships across 300+ local employers, with specialisms in engineering, construction, care, business, and digital. We will take a strategic view of post 16 skills provision to understand where there are gaps and work with providers to understand how best to deliver an inclusive place-based skills system.

We will take action on engagement in STEM subjects in schools and colleges, emphasising the importance of these subjects which underpin growth sector employment across the region. Amongst the 19 year olds in the region who do achieve level 3 qualifications and above (81.6% vs national average of 86.1%), there are proportionately fewer entering for STEM subjects than the national average. We will work with employers, young people, and schools to increase the number of apprenticeships in the area’s employers, including raising awareness of the support available to smaller businesses.

We will also prioritise foundational digital skills, equipping those who are out of work or underemployed with workplace knowledge that can support the region’s productivity push, and specific technologies and roles, such as Torbay’s Hi-Tech Cluster and the advanced manufacturing supply chain. This will form part of our Get Britain Working plan. There are also certain groups who we will prioritise for support, this will be agreed in the Get Britain Working plan and could include those not in education, employment or training (NEETs) and care experienced young people.

The Combined County Authority will work to support local providers and employers to ensure that flexible and vocational training is funded and available, responding to the needs of growing sectors and the matching the aspirations of the region’s young people and those returning to work. There is already a template for this provision, but more needs to be done to scale and ensure that we react to increasing demand.

Early actions include:

• Publication of a skills strategy and establishing CCA partnerships for skills delivery that responds to local business and industry needs and sets out how we can further reform the system so that it delivers to local need.
• Deliver the Get Britain Working plan, including exploring new pathways into a range of employment for young people – including those not in education or employment, care experienced young people, and those keen to build employability and life skills.
• Implement the devolution of core Adult Skills Funding from 2026/27.

Place-based support, advice and guidance

Access to career opportunities and development varies across our geography and is influenced by a range of place-based factors, such as individual health, local demand for labour, and connectivity – either by transport or online. Not all areas have local access to further and higher education provision. The proportion of those without any qualifications is over 5% higher in Torbay (19.8%) and in Torridge (18.8%), than it is in Exeter (13.5%).

To improve outcomes for individuals and to strengthen the talent pipeline, it is important that we target support to those groups at risk of leaving or not entering employment, education or training and those who are underemployed. This means delivering effective advice and guidance, so that those in more rural areas or greater distance from education and training providers have as good access as those based close to the centre of Exeter.

We are starting from a good foundation, and we propose to add to this with more co-ordinated business engagement in schools. Regional universities collaborate with secondary and further education and local government partners in the Devon, Plymouth and Torbay Education Alliance, which leverages the expertise and resources of universities to mentor and support young people in primary and secondary schools.

In addition to focusing on development opportunities that can provide the skills employers need, advice and guidance should also communicate the range of opportunities in Devon and Torbay to develop a career, whether than be via technical or higher education, and Apprenticeship, or in-work training.

Next steps include:

• Deliver place-based careers education aligned with adult education budget activities, working through our skills strategy, and in partnership with LAs, business, and providers across Devon and Torbay.
• Through the Get Britain Working plan (above) bring together health and employment support and work closely with Department for Work and Pensions to ensure the CCA has the powers and flexibility needed to deliver change.

Moving to implementation and delivery

Measuring success

We have identified three outcomes which have guided the priorities and areas of focus in this plan. The delivery plans and corporate strategy we will agree SMART measures to monitor progress.

Sustain Devon and Torbay’s recent growth trajectory

he conditions for innovation and sector growth, investing in the enabling infra-structure to encourage business investment and young people to stay.

More inclusive growth

dressing poor skills and work outcomes at a local level, connecting people to jobs, investing in thriving places and the local housing need.

Nature recovery

Ensuring that economic growth is in partnership with nature restoration and increased biodiversity, including through natural capital innovation, regeneration farming and green technologies.

Implementation

he new CCA will be responsible for this plan, working with local partners and government to unlock to resources needed to deliver it. This is a ten year plan, and we will need to prioritise what we do in years one and two. The next step will be to develop delivery plans linked to each of the priorities and a monitoring framework. Each will be overseen by officers and will report quarterly to the CCA and Business and Skills Advisory Groups.

We are ambitious of Devon and Torbay and see this document as a framework that will evolve over time. As partners we will look to grow Devon and Torbay’s devolved powers and funding as is needed to deliver inclusive, green growth and draw in more investment to deliver our priorities. This will include exploring fiscal devolution.

The Business and Skills Advisory Groups provides advice and support to the CCA on business and economy matters. They have been closely involved in the development of this plan. Whilst they have no formal decision-making powers, they will work alongside the CCA to prioritise activity and monitor progress.

Some of the activity in this plan is new and some represents an opportunity to accelerate existing activity. In year one we will prioritise the following activity:

Activity	Owner
Work with defence primes and others to ensure that Devon and Torbay’s businesses are a strong part of the South West’s defence offer	CCA with business group and LAs
Work with the Crown Estate on the next stages of FLOW, planning to deliver high energy behind-the-meter industrial applications where power is on shored creating a strong offer for inward investment and new entrants to the region	CCA and LAs
Finalise the skills strategy and prepare for 2026/27 devolved adult skills funding and the Get Britain Working Plan to complement this Growth Plan and employability to further drive inclusive growth	CCA, with skills and employability providers
Development of the Innovation Spine proposition hub and spoke model, with an early opportunity to secure UKRI Local Innovation Partnerships Fund	CCA and LAs, with universities and business
Begin the process of establishing a regional spatial development plan, working with Local Planning Authorities, recognising the importance of enabling infrastructure to deliver developments and the complementary role of the Local Transport Plan	CCA and LAs
Build and deliver the joint strategic housing pipeline with Homes England, using CCA access to land assembly and compulsory purchase powers as necessary	CCA and LAs
Review existing business support offer to ensure it is easy for businesses in all parts of Devon and Torbay to access the information, advice and support they need to thrive	CCA and LAs
Work with local businesses to build an investment portfolio of scale-up opportunities and success stories	CCA and LAs
Collaboration with Visit England and Local Visitor Economy Partnership to enhance the visitor economy and grow domestic and international visitor spend via sustainable tourism and our regional visitor economy strategy.	CCA and LAs