In the latest instalment of our ‘Hidden Gems’ series, where we spotlight regions brimming with untapped investment potential, we turn our focus to the Heart of the South West. We’re excited to have David Ralph, Chief Executive Officer at Heart of the South West Local Enterprise Partnership, share insights into what makes this region a RHS (Red-Hot-Spot) for investors and developers.

UKREiiF: David, can you introduce us to the Heart of the South West and its significance in the investment sector?

David Ralph: I’m David Ralph, CEO of the Heart of the South West Local Enterprise Partnership. We cover Somerset, Devon, Plymouth, and Torbay and are also part of the Great South West, which also covers Cornwall and Dorset, home in total to about 3.8 million people and 140,000 businesses. This year, we’re exhibiting at UKREiiF in a pavilion representing the Great South West, which is a prime opportunity to highlight our region’s potential to investors who might not have considered us before.

UKREiiF: What makes the Southwest a compelling destination for investors?

David Ralph: The Southwest, traditionally overlooked, is an area of tremendous and increasing opportunity. It’s always been a beloved place for holidays, but beyond that, it’s a fantastic location for living and, particularly post-pandemic, investing. Our quality of life is unequalled, but our region offers affordability, numerous planning permissions for housing, and substantial natural capital like land, geology, and sea, crucial for our clean growth economy and increasingly important for new energy technologies. Imagine the M% from south of Bristol all the way down to Cornwall as the UK’s clean growth corridor. I can point to major developments at almost every junction as you journey south-west.

UKREiiF: Could you delve into the Southwest’s role in energy provision and technology?

David Ralph: Absolutely. The South West is transitioning from providing less than 2% to over 11% of the UK’s energy, all clean, low-carbon energy. The Southwest has unique geological assets that allow for the extraction of resources like tungsten, lithium, and geothermal energy. Additionally, our involvement in projects like solar, hydrogen, the emerging floating offshore wind round, and the anticipated development of a Gigafactory in Somerset highlights our region’s growing importance to these new technologies.

UKREiiF: How does the Southwest balance business opportunities with quality of life?

David Ralph: One of the Southwest’s greatest appeals is its quality of life, which consistently ranks high in surveys. Post-COVID, there’s a recognition that proximity to major cities won’t be as crucial with workers becoming more mobile. This is a game-changer for our region, making it an entirely different investment proposition and an ideal place for locating businesses and headquarters, particularly those requiring access to clean and reliable energy.

UKREiiF: Can you speak about the Southwest’s focus on sustainable energy and its current initiatives?

David Ralph: For many years, it has been our natural assets that have driven our economy—farming, tourism, defence, for example. It’s those same natural assets—our landscapes, our sea—our natural capital—that means we are deeply committed to sustainable energy, clean mobility, environmental science, and the circular economy—all major issues driving future business competitiveness.

However, these initiatives aren’t just future-focused; they’re happening now. This includes significant research and innovation in new energy sectors like floating offshore wind and hydrogen; the first new nuclear facility for 40 years; and a significant photonics cluster supporting autonomy and mining of lithium and other critical minerals. Our Freeport at Plymouth is focused on innovation and servicing our high-value manufacturing sector, and the significant investment in sectors like marine and defence are examples of our commitment to high-quality, high-spec, high-value design industries.

UKREiiF: With the expected rise in energy contribution, is the infrastructure in place to support this growth?

David Ralph: The availability and reliability of clean energy have become top considerations for investment decisions, and we’re actively enhancing our infrastructure to support this growth. The Hinckley Point C nuclear power station is a key part of our strategy, providing energy certainty. We’re also developing infrastructure for offshore wind and working on interconnectors from both Morocco and France. These developments are crucial for businesses that prioritise clean energy and will provide a local dividend to businesses and communities in our area.

UKREiiF: How does the Southwest ensure a skilled workforce for these emerging industries?

David Ralph: Our region boasts excellent colleges and apprenticeship schemes closely aligned with industry needs. Through Hinley and our Institute of Technology, we have a track record that demonstrates confidence in our ability to respond agilely to the needs of future employers across various sectors, including high-value defence and photonics.

UKREiiF: Can you discuss collaboration within the region, especially concerning investment sites?

David Ralph: Collaboration is essential. We’re producing a single investment prospectus at UKREiiF to showcase key sites across Cornwall, Devon, Somerset, and Dorset. Last year, for example, Torbay actively sought partners for key sites, leading to a partnership with Wilmot Dixon for around £100 million worth of development. We have agreed that, as a region, we will only market our best genuinely investable propositions, and we showed last year how we can work with partners to turn them into real partnerships.

UKREiiF: Finally, what’s your pitch to prospective investors and developers?

David Ralph: The Southwest is at the forefront of emerging clean growth technologies, with available land and a proven track record of working with developers and investors. In the past, the south west has often been overlooked, but it’s an exciting time for the region, and we’re ready for investment, offering a blend of opportunity, innovation, and quality of life allied to early mover advantage.

UKREiiF: So we’ll see you in Leeds in May 2024.

David Ralph: Can’t wait…We’ve got some spectacular announcements planned for UKREiiF!

David Ralph, Chief Executive Officer, Heart of the South West Local Enterprise Partnership