13. Socio-economics

13.1. Introduction

  1. This chapter of the Onshore Environmental Impact Assessment (EIA) Report presents the assessment of the likely significant effects (as per the “EIA Regulations”) of the Berwick Bank Wind Farm onshore infrastructure which is the subject of this application (hereafter referred to as “the Proposed Development”) on socio-economics receptors. Specifically, this chapter considers the potential impacts of the Proposed Development landward of Mean Low Water Springs (MLWS) during the construction, operation and maintenance, and decommissioning phases.
  2. “Likely Significant Effect (LSE)” is a term used in both the “EIA Regulations” and the Habitat Regulations. Reference to LSE in this Onshore EIA Report refers to “LSE” as used by the “EIA Regulations”.
  3. In the case of a socio-economics EIA, there is a complexity with the impacts associated with offshore and intertidal activities primarily manifesting onshore. This chapter is focused on the ‘source’ of the impact, rather than the ultimate location of the physical infrastructure. This is consistent with the broader approach to separating onshore and offshore effects:
  • onshore: if physical infrastructure and civil works are located onshore, any resulting impacts are categorised as onshore; and
  • offshore: if physical infrastructure and civil works are located offshore, any resulting impacts are categorised as offshore.
    1. The potential impacts from the construction, operation and maintenance, and decommissioning of the offshore components of the Project on socio-economics and tourism receptors are considered as part of the Offshore EIA Report. The potential impacts of both the onshore and offshore components on socio-economic receptors are considered cumulatively as part of the Tier 1 cumulative effects assessment (CEA) (section 13.12).
    2. This chapter summarises information contained within Volume 4, Appendix 13.1, Appendix 13.2 (BVG Associates, 2021), Appendix 13.3, and Appendix 13.4.

13.2. Purpose of this Chapter

  1. The primary purpose of the Onshore EIA Report is outlined in Volume 1, Chapter 1. It is intended that the Onshore EIA Report will provide East Lothian Council (ELC), statutory and non-statutory stakeholders, with sufficient information to determine the likely significant effects of the Proposed Development on socio-economics receptors.
  2. In particular, this socio-economics Onshore EIA Report chapter:
  • presents existing socio-economics baseline conditions established from desk studies, and consultation with stakeholders;
  • identifies any assumptions and limitations encountered in compiling the environmental information;
  • presents the likely significant impacts on socio-economics receptors arising from the Proposed Development and reaches a conclusion on the likely significant effects on socio-economics, based on the information gathered and the analysis and assessments undertaken; and
  • highlights any necessary monitoring and/or mitigation measures recommended to prevent, minimise, reduce or offset the likely significant adverse effects of the Proposed Development on socio-economics receptors.

13.3. Socio-economics Local and National Study Areas

  1. The identification of the study areas for the socio-economics impact analysis has taken account of the spatial scale at which impacts upon different receptors are likely to materialise. This is likely to vary across receptors and will therefore require a localised study area and a larger national study area. Impacts upon different receptors are likely to materialise at both local and national levels.

13.3.1.              Socio-economics Local Study Area

  1. It is necessary that the socio-economics local study area is linked primarily to the onshore project activities including onshore substation and onshore cables. These activities, and their socio-economic catchment areas are anticipated to form epicentres of impact on socio-economic receptors.
  2. Therefore, the socio-economics local study area associated with these activities has been derived from labour catchments[1] by using a 60 minute drive time catchment as a proxy[2].
  3. The associated direct, indirect, and induced supply chain activities associated with the construction, operation and maintenance, and decommissioning of the Proposed Development can be assessed based on a focused local authority area definition. Adopting a methodology which defines the socio-economics local study area on the basis of local authority areas is necessary given that government data sources are structured to reflect conditions at local authority level. Below this level of governance, data becomes increasingly scarce and can be less reliable when dealing with survey based data, for example.
  4. Therefore, a 60 minute drive time catchment based on the epicentre of onshore activity – Skateraw – has been converted to a best fit local authority area. Inclusion of local authority areas in the socio-economics local study area is based on an analysis of the share of the local authority area population within the bounds of the 60 minute drive time catchment. Local authorities with more than 50% of their population falling within the 60 minute drive time catchment of a facility has been included in the socio-economics local study area. The results of this analysis are shown in Volume 4, Appendix 13.1.
  5. Professional judgement has also been used to qualify the socio-economics local study area. Results have also been corroborated through comparison with 2011 Travel to Work Areas (TTWA).
  6. The socio-economics local study area consists of the following local authorities (along with a justification for inclusion):
  • East Lothian

–           Proposed Development is located within the local authority boundary; and

–           meets 50% population threshold.

  • Scottish Borders

–           Proposed Development will be located in close proximity to the local authority boundary;

–           Proposed Development will be located in close proximity to the Berwick 2011 TTWA, which falls within the Scottish Borders local authority;

–           stakeholder consultations indicated there are heritage labour market links between existing industrial infrastructure in the vicinity of the Proposed Development (e.g. Torness Power Station) and settlements along the A1 to the south of the Proposed Development;

–           does not meet 50% population threshold (23%) due to large geographical size of Scottish Borders local authority area; and

–           taking the above evidence into consideration – and despite not meeting the 50% population threshold – inclusion is considered merited.

  • City of Edinburgh

–           Proposed Development is located within the Edinburgh 2011 TTWA. This suggests it is reasonable to assume that Edinburgh will form a key part of the labour pool that contributes to the delivery of the Proposed Development;

–           does not meet 50% population threshold (44%). Firstly, the small margin does not present sufficient grounds on which to exclude the City of Edinburgh local authority. Secondly, 44% of the City of Edinburgh’s population accounts for almost a quarter of a million people, which would be a significant omission; and

–           taking the above evidence into consideration – and despite not meeting the 50% population threshold – inclusion is considered merited.

  • Midlothian

–           Proposed Development is located within the Edinburgh 2011 TTWA, as is Midlothian local authority. This suggests it is reasonable to assume that Midlothian and East Lothian have a functional economic relationship in terms of labour markets; and

–           meets 50% population threshold.

  1. The socio-economics local study area is shown in Volume 2, Figure 13.1   Open ▸

13.3.2.              Socio-economics National Study Area

  1. A larger national socio-economics impact area is defined to reflect the wider reach of Gross Value Added (GVA) and employment impacts that are likely to materialise through the supply chain and provision of labour across Scotland. The socio-economics national study area is defined as Scotland.

13.4. Policy Context

  1. Policy in relation to socio-economics receptors, is set out in Table 13.1   Open ▸ . There is no legislation specifically in relation to socio-economics. Policy relating to socio-economics receptors is contained within a number of strategic planning contexts.
Table 13.1:
Summary of Policy Provisions Relevant to Socio-economics

Table 13.1:  Summary of Policy Provisions Relevant to Socio-economics 

13.5. Consultation

  1. There was broad consistency in the nature of comments received during relevant consultation activities to date. The approach and methodology were refined and enhanced based on consultation responses received.
  2. A range of key stakeholders were invited to participate in consultation to inform the socio-economics EIA Report. This included national and regional representative organisations as well as local authority officers and community council representatives within the socio-economics local study area. Invitations were issued to 12 organisations, listed in Volume 4, Appendix 13.3.
  3. A total of six consultation meetings were completed. The focus of each consultation was tailored to the areas of knowledge and expertise of the participants, structured around the baseline conditions for receptors, and information relevant to the assessment of socio-economics impacts.

13.5.1.              Community Engagement

  1. During the course of the project’s development thus far, the Applicant has conducted four community engagement events:
  • November 2020: Introductory public virtual exhibition event. Due to public health restrictions in place due to the Covid-19 pandemic, the exhibition was held virtually. The online platform was free to access and allowed for visitors to submit written feedback via forms, or ask questions to the project team via a live chat function in real time. The event was open for contributions between 16 November – 7 December 2020. The virtual exhibition received 641 page views during the three week period. Across the four ‘live chat’ sessions the project team were asked a total of 29 questions from 12 individual community members. Three feedback forms were submitted to the project inbox.
  • October 2021: Weeklong Community Roadshow between 25–29 October 2021 to provide information, introduce (or re-introduce) the project to the local community, and seek the views of members of the public and various stakeholder bodies. The format involved members of the project team visiting various locations across East Lothian to engage with members of the public. Across the week the team visited 17 different locations and engaged with approximately 200 community members during this period.
  • December 2021: Virtual and in-person public consultation event between 6–30 December 2021 to enable members of the public to speak directly with the project team via in-person public consultation and ‘live chat’ sessions. Purpose was to engage members of the community, and seek the views of the public and stakeholder bodies. A virtual exhibition remained live online between 6–30 December 2021, with two ‘live chat’ sessions on 8 December, and an in-person public consultations on 9 December 2021 at Innerwick Village Hall. Approximately 70 members of the community attended the in-person consultation event. A total of 25 feedback forms were submitted via the online platform, nine questions were received during live chat sessions, and the virtual exhibition received 463 views over the period.
  • March 2022: Virtual and in-person public consultation event between 7–31 March 2022 to enable members of the public to speak directly with the project team via in-person public consultation and ‘live chat’ sessions. This consultation event built on the information presented as part of the December 2021 consultation event (above), and confirmed to members of the public and stakeholders the proposals the Applicant wishes to submit for consenting purposes. A virtual exhibition remained live between 7–31 March 2022, with four ‘live chat’ sessions taking place on 9 and 10 March 2022. An in-person consultation event took place on 8 March 2022 at Innerwick Village Hall, attended by approximately 50 members of the community. At the request of the local Parish Council, the project team returned to Innerwick Village Hall on 29 March 2022 to host an open forum question and answer session with interested members of the community. The purpose of this session was to allow community members to ask further questions once they have had sufficient time to examine the information presented to date. Across the whole period, the virtual exhibition received 384 page views. Three feedback forms were submitted via the online platform, and a further eight questions were submitted during ‘live chat’ sessions.
    1. Pre-planning application public consultation events have been arranged by the Applicant to ensure community members firstly receive as much information as possible at each stage of the project’s development, and secondly have the opportunity to comment, provide feedback, ask questions, make suggestions, and help shape the project as it progresses. Consultation with key stakeholders and the local community will continue as the project progresses.
    1. A variety of issues were raised during the course of these community engagement events. Issues raised relating to onshore socio-economics have been considered within this chapter. The findings from these community engagement events are set out fully within the standalone Pre-Application Consultation (PAC) Report.
Table 13.2:
Summary of Key Consultation of Relevance to Socio-economics

Table 13.2: Summary of Key Consultation of Relevance to Socio-economics

13.6. Methodology to Inform Baseline

  1. This section sets out a summary of the methodology to inform analysis of the baseline environments of the socio-economics local study area and Scotland National (Scotland) study area.
  2. The summary of baseline conditions aligns with the socio-economics impacts set out in section 13.10, and therefore covers the receptors set out below, along with associated indicators:
  • Employment:

–           total employment in all industries (2019);

–           employment change in all industries (2015–2019);

–           total employment in impact industries (2019);

–           employment change in impact industries (2015–2019); and

–           total employment in the offshore wind sector (2019).

  • GVA

–           total GVA in all industries (2019);

–           GVA change in all industries (2015–2019);

–           total GVA in impact industries (2019);

–           GVA change in impact industries (2015–2019); and

–           total GVA in the offshore wind sector (2019).

  1. These indicators are analysed on the basis of publicly available desktop sources as set out in Table 13.3   Open ▸ .
  2. Use of baseline data covers the period 2015 to 2019. The year 2019 has been selected as the baseline year given the economic and labour market uncertainty resulting from Covid-19 pandemic.

13.6.1.              Industry Definitions

  1. Below are definitions of the industry terms utilised throughout this chapter:
  • All industries: this industry definition includes all Standard Industrial Classification 2007 (SIC07) codes and can be thought of as the ‘whole’ economy.
  • Impact industries: various permutations of impact industries are utilised, each defined in Volume 4, Appendix 13.4. These impact industries should not be seen as representing only activity that currently contributes to the offshore wind sector. Instead, these impact industries should be seen as representative activities in industries that can contribute either directly or indirectly to the construction, operation and maintenance, and decommissioning of offshore energy infrastructure.
  • Offshore wind: this industry definition represents activity that is currently supported by the offshore wind sector.

Impact industries

  1. There is no widely agreed and accepted definition of the offshore wind industry based on SIC07. Enterprises within many SIC07 sectors can be active within the offshore wind industry.
  2. ‘Impact industries’ have been defined to represent employment and GVA in industries directly and indirectly associated with the construction, operation and maintenance, and decommissioning of offshore energy infrastructure. These definitions can be found in Volume 4, Appendix 13.4.
  3. There is variance in the level of detail that employment and GVA data can be obtained via publicly available data sources:
  • employment data can be obtained via the Office for National Statistics (ONS) Business Register and Employment Survey (BRES). BRES reports data as detailed as SIC07 ‘subclasses’ (or five digit SIC07), which is the most detailed level of standardised industry classification available; and
  • GVA data can be obtained via Regional gross value added (balanced) by industry: Local authorities by International Territorial Level 1 (ITL1) region. This dataset reports data as detailed as SIC07 ‘divisions’ (or two digit SIC07), and in a number of instances aggregates a number of related divisions. This level of reporting is not as detailed as employment data available via BRES.
    1. Because of these differences in statistical reporting, a more detailed definition of impact industries using SIC07 subclasses has been adopted for employment analysis, with SIC07 divisions (some aggregated) used for GVA analysis. Respective impact industries definitions are set out at Volume 4, Appendix 13.4.

13.6.2.              Desktop Study

  1. Information on socio-economics receptors within the socio-economics local study area and Scotland was collected through a detailed desktop review of existing studies and datasets. These are summarised in Table 13.3   Open ▸ .

 

Table 13.3:
Summary of Key Desktop Studies and Datasets

Table 13.3: Summary of Key Desktop Studies and Datasets

 

13.6.3.              Site-Specific Surveys

  1. No site-specific surveys have been undertaken to inform the socio-economics assessment of effects. This is not necessarily due to the availability of existing socio-economics data for the identified impact areas.

13.7. Baseline Environment

13.7.1.              Overview of Baseline Environment

  1. This section sets out a summary of relevant baseline data for the socio-economics local study area and Scotland under the following headings:
  • employment; and
  • GVA.

Employment

  1. Employment is a measure obtained by adding the number of working owners (not paid via Pay as You Earn (PAYE)) to the number of employees (full and part time). This is a measure of persons and not measured in FTE.
  2. The definition of construction, operation and maintenance, and decommissioning employment impact industries on the basis of SIC07 classes/subclasses are set out in Volume 4, Appendix 13.4.
  3. All industries employment in the socio-economics local study area in 2019 was approximately 460,000 (Table 13.4). Between 2015–2019, employment in the socio-economics local study area increased by approximately 27,000. This equates to an average annual growth rate of 1.3%. All industries employment in Scotland in 2019 was approximately £2.6 m. Between 2015–2019, employment in Scotland increased by approximately 36,000. This equates to an average annual growth rate of 0.3%.

 

Table 13.4:
All Industries Employment Count and Change – by Socio-economics Local Study Area and Scotland

Table 13.4: All Industries Employment Count and Change – by Socio-economics Local Study Area and Scotland

 

  1. Construction impact industries employment in the socio-economics local study area in 2019 was approximately 4,000 (Table 13.5). Over the period 2015–2019, employment in construction impact industries increased by approximately 500. Operation and maintenance impact industries employment in the socio-economics local study area in 2019 was approximately 2,000. Over the period 2015–2019, employment in operation and maintenance impact industries increased by approximately 250. Decommissioning impact industries employment in the socio-economics local study area in 2019 was approximately 1,500. Over the period 2015–2019, employment in decommissioning impact industries increased by approximately 250 (ONS, 2022).
  2. Construction impact industries employment in Scotland in 2019 was approximately 40,000. Between 2015–2019, construction impact industries employment in Scotland increased by 1,000. Operation and maintenance impact industries employment in Scotland in 2019 was approximately 22,000. Between 2015–2019, operation and maintenance impact industries employment in Scotland increased by 1,000. Decommissioning impact industries employment in Scotland in 2019 was approximately 25,000. Between 2015–2019, decommissioning impact industries employment in Scotland increased by 2,000 (ONS, 2022).

 

Table 13.5:
Construction, Operation and Maintenance, and Decommissioning Impact Industries Employment Count and Change – by Socio-economics Local Study Area and Scotland

Table 13.5: Construction, Operation and Maintenance, and Decommissioning Impact Industries Employment Count and Change – by Socio-economics Local Study Area and Scotland

 

  1. Total direct, indirect and induced FTE employment supported by the offshore wind sector in Scotland in 2019 was 4,700 (Fraser of Allander Institute, 2021). No equivalent data is available for the socio-economics local study area. No equivalent data based on change from 2015–2019 is available at the time of writing.

GVA

  1. The definition of construction, operation and maintenance, and decommissioning GVA impact industries on the basis of SIC07 divisions are set out in Volume 4, Appendix 13.4.
  2. All industries GVA in the socio-economics local study area in 2019 was approximately £4.8bn. Between 2015–2019, GVA in the socio-economics local study area increased by approximately £300m. All industries GVA in Scotland in 2019 was approximately £147bn. Between 2015–2019, GVA in Scotland increased by £16bn (Table 13.6). This equates to an average annual growth of 2.2% (ONS, 2019).

 

Table 13.6:
All Industries GVA and Change – by Socio-economics Local Study Area and  Scotland

Table 13.6: All Industries GVA and Change – by Socio-economics Local Study Area and  Scotland

 

  1. Construction impact industries GVA in the socio-economics local study area in 2019 was approximately £2,200m (Table 13.7). Over the period 2015–2019, GVA in construction impact industries increased by £300m. Operation and maintenance impact industries GVA in the socio-economics local study area in 2019 was approximately £1,400m. Over the period 2015–2019, GVA in operation and maintenance impact industries increased by £100m. Decommissioning impact industries GVA in the socio-economics local study area in 2019 was approximately £1,500m. Over the period 2015–2019, GVA in decommissioning impact industries increased by £30m (ONS, 2019).
  2. Construction impact industries GVA in Scotland in 2019 was approximately £20bn. Over the period 2015–2019, GVA in construction impact industries increased by £7m. Operation and maintenance impact industries GVA in Scotland in 2019 was approximately £13bn. Over the period 2015–2019, GVA in operation and maintenance impact industries decreased by £280m. Decommissioning impact industries GVA in Scotland in 2019 was approximately £15bn. Over the period 2015–2019, GVA in decommissioning impact industries decreased by £140m (ONS, 2019).

 

Table 13.7:
Construction, Operation and Maintenance, and Decommissioning Impact Industries GVA and Change – by Socio-economics Local Study Area and  Scotland

Table 13.7: Construction, Operation and Maintenance, and Decommissioning Impact Industries GVA and Change – by Socio-economics Local Study Area and  Scotland

 

  1. Total direct, indirect and induced GVA supported by the offshore wind sector in Scotland in 2019 was £447m (Fraser of Allander Institute, 2021). No equivalent data is available for the socio-economics local study area.