Enterprise and Skills Review report on Phase 2: South of Scotland Enterprise Agency

Annex A: South of Scotland - Key Evidence

This annex outlines the evidence of the specific challenges facing the South of Scotland, including those related to demographics, rurality and connectivity, the business base, and wider economic performance.

Population

• The population density is 23 persons per square kilometre in Dumfries and Galloway and 24 in the Scottish Borders, compared to an average of 69 for Scotland as a whole. ^[1]
• The South of Scotland has a lower proportion of young and working age population relative to the Scottish average. 15% of the population in Dumfries and Galloway and 14% of the population in the Scottish Borders are aged 20 - 34, compared to 20% of the Scottish population overall. ^[2]
• The working age population is projected to decrease in South of Scotland by 2029. Specifically, in Dumfries and Galloway it is projected to decrease by 4.1%, it is projected to remain stable in Scottish Borders (0.0% change), while the total Scottish working age population is projected to increase by 4.4%. ^[3]

Sector Composition and Business Base

The South of Scotland is more reliant on Agriculture and Manufacturing and less reliant on Services (82% of employment in Dumfries and Galloway and 78% in the Scottish Borders, compared to 84% in Scotland overall) - specifically Business Administration, ICT and Financial and Insurance - than Scotland as whole. ^[4]

• 55% of employment in Dumfries and Galloway and 57% in the Scottish Borders is in small businesses, compared to 36% in Scotland overall. ^[5]
• A high proportion of people are employed in low-paid sectors. 30.7% of employees in Dumfries and Galloway and 23.9% in the Scottish Borders earn below the Living Wage, compared to 20.1% for Scotland overall. ^[6]

Economic Performance

• The business start-up rate in Dumfries and Galloway, at 31 per 10,000 resident adults, is the lowest amongst the 32 LAs in Scotland. The rate in Scottish Borders, at 39 per 10,000 resident adults, is also lower than the rate for Scotland, at 49. ^[7]
• Research and development expenditure per head is £33 in Dumfries and Galloway and £63 in Scottish Borders, considerably below the Scottish average of £162. ^[8]
• GVA per head was £18,720 in Dumfries and Galloway and £17,196 in the Scottish Borders in 2015, compared to £23,685 in Scotland overall. ^[9]

Connectivity

• Average drive times to main facilities ( i.e. petrol station, GP surgery, post office, primary/secondary schools and retail centre) are consistently above the averages for Scotland. ^[10]
• Workers commuting out of their home local authority is well below the Scottish average (6.4% in Dumfries & Galloway, 16.1% in Scottish Borders, and 30.5% in Scotland as a whole). ^[11]
• In 2015, 59% of people in Scottish Borders and 66% of people in Dumfries and Galloway were fairly or very satisfied with local public transport services, considerably lower than the proportion in Scotland as a whole, at 74%. ^[12]
• The proportion of households with home internet access is lower in South of Scotland than in Scotland as a whole. In 2015, 76% of households in Dumfries and Galloway and 79% in Scottish Borders had home internet access, compared to 80% in Scotland as a whole. ^[13]