Responding to Recession

responding to recession an innovation & good practice guide Contents Foreword What’s in this guide 10 quick wins 1 Keeping down council tax and other charges 2 Establishing corporate task forces 3 Speedy payment for small & medium enterprises (SMEs) 4 Extra resources for financial advice 5 Promoting rate relief for SMEs 6 7 8 9 10 Increasing procurement through SMEs Changing rent payment periods Recession leadership through LSPs Promoting benefit take-up Publicity for recession support 3 4 5 5 5 6 6 6 7 8 8 8 10 12 12 17 20 26 29 29 32 33 34 35 Specific initiatives Help for those without work Help with housing and living costs Keeping our high streets alive Advice and support for businesses Work in progress Woodberry Down South Kilburn Aylesbury estate Westminster development co. Resources 2 Foreword In recent months, as the recession has increasingly begun to affect local communities and businesses, councils across London have been putting in place packages of action and interventions that they believe can have an immediate impact for those most at risk. As community leaders, local service providers and strategic partners, London’s authorities are also responding to the longer-term impacts the recession is having and supporting people and families in their communities. Throughout these changing conditions, authorities are keen to share information about what can be done to most effectively assist those in difficulty. An initial event was organised by the Capital Ambition Policy Officers Network to learn about what each authority was doing. This revealed a wide canvas of innovative activity and a strong desire to quickly capture the range of initiatives underway for wider dissemination. That is the backdrop to this booklet. It aims to present a snapshot in time of how authorities in London have responded to date. As councils gain a deeper understanding of the recession’s impacts in their local areas, their ambition will be to continue to monitor and respond with appropriate actions – moving beyond these more immediate actions to those which may call on more innovative ideas and partnerships. The Policy Officers Network, working with the support of Capital Ambition, will continue to share the actions their authorities are pursuing. Our ambition is to deepen our understanding of recessionary impacts and continue to lead London in upholding its prosperous world-class status. Cllr Michael White Deputy chairman, London Councils and lead member for improvement 3 What’s in this guide? This booklet showcases the actions London’s local councils are taking to help their areas through the recession, providing a quick reference resource for councillors and officers looking for further inspiration and ideas. We start with summarising the top ten actions that most councils are already putting in place. These have been relatively easy and quick initiatives to implement, and demonstrate a swift response to the immediate impacts of the recession. We then highlight some examples of specific initiatives being developed across London’s varied places and communities. We have grouped these under: I help for those without work I help with housing and living costs I keeping our high streets alive I advice and support for businesses. For the final section of this booklet we showcase a few of the initiatives underway which aim to sustain major regeneration and house building schemes in London. At the back of this booklet you will find some signposts for where to find further useful information on how councils are responding to recession. 4 10 quick wins rapid response actions 1 Keeping down council tax and other charges “The £50 dividend has three great merits: it pays the same to all residents liable for council tax, thereby giving proportionately more help to those on the lowest incomes; it focuses the help in April, when it might be most needed; and it can provide a stimulus to the local economy if, as we would hope, those who spend it will do so locally.” Londoners are expected to receive one of the lowest council tax rises across England. Nearly half London’s local authorities have announced a total freeze on increases (with a corresponding freeze on precept charges announced by the Greater London Authority). Kensington & Chelsea, using its wellbeing powers, has paid a one-off £50 efficiency dividend to Cllr Merrick Cockell, leader of all resident council taxpayers. Kensington & Chelsea council Hammersmith & Fulham has reduced its charges for the third consecutive year, making residents £175 better off at a time when many are struggling with the cost of living. London councils are also keeping down the costs of access to leisure facilities with nearly 80 per cent setting leisure charges below or in-line with inflation. 2 Establishing corporate task forces Sutton’s approach illustrates the way many London councils are recognising the need to both monitor and manage effective responses to the downturn. Sutton has established an Economic Support Task Force with a remit of generating ideas and pushing forward appropriate responses as the local situation develops. It comprises various local partners, including business and voluntary sector members, the two local MPs and is chaired by the leader of the council. Waltham Forest has similarly established an ‘Economic Downturn Group’, meeting monthly and reporting directly to their leadership team. Barnet’s cabinet resources committee are monitoring recession tracking indicators every quarter, and the leader is running a series of ‘Leader Listens’ events with local business aimed at increasing understanding of the needs and concerns of the business community during the recession. Barnet has also sent out a survey to 1,000 residents who sit on its Citizens Panel to find out what impact the recession is having on individuals and communities. Results are expected in August 2009 and will be reported to the Local Strategic Partnership (LSP). 5 3 Speedy payment for small & medium enterprises (SMEs) Recognising the increased pressures on cash flow during the recession, especially for smaller firms, several councils have moved quickly to speed up invoice payments to their local suppliers, usually from 30 to 10 days. Lambeth, who are implementing this Back to Business, BCC & LGA January 2009 approach for SMEs with whom the council has an annual spend of up to £25,000, estimate the total value of contracts that will benefit to be £7 million. Some boroughs, such as Croydon, are also promoting this approach among its public sector partners through the Local Strategic Partnership (LSP). In Hillingdon, 230 local SMEs will receive invoice payments immediately, rather than the default 30 days. 4 Extra resources for financial advice As both providers and commissioners of advice services, many councils have increased resources for these services as part of their response to the recession. Camden has provided some £300,000 additional funding for debt and advice services, including CAB outreaching provision to accessible venues like supermarkets. Following discussion with their LSP, Hillingdon set aside £150,000 to help local advice agencies support clients during the downturn, supported by an additional £75,000 from a local charitable funder. Sutton, as part of a 10-point economic recovery plan, has seconded a council officer to its local CAB to help with administrative tasks and free-up the time of advisers. The secondment will also aid information sharing on the impact of the downturn locally. Sutton has also agreed to pay their third sector organisations in advance rather than in arrears. See a useful briefing from AdviceUK January 2009 for more information: ‘Weather the Storm: Councils reaching out to the advice sector during the recession’ at www.adviceuk.org.uk 5 Promoting rate relief for SMEs Across the capital local authorities are encouraging small businesses to claim the rate relief they are entitled to (a national scheme – see box over page). Westminster wrote to its small businesses encouraging them to apply and has seen 1,000 additional firms benefiting from the scheme with a total reduction in bills of over £265,000. Kingston also promoted the scheme in conjunction with 6 “For smaller firms in a time of recession, prompt payment of a contract with their local authority could make the difference between whether their company goes to the wall or not.” its Chamber of Commerce and has seen an 18 per cent increase as a result. Southwark is taking similar action, tying letters in with reminder notices, and is also planning to increase refunds of overpaid credits on business rate accounts, either off-setting credits against existing rate liabilities or refunding them to businesses. Southwark is also keen to offer support to businesses facing enforcement action on non-payment of rates, contacting them before the instruction of bailiffs. Business Rate Relief Since April 2005 SMEs in a non-domestic property with a rateable value of below £15,000 a year (or less than £21,500 in Greater London) can claim up to half of their business rates back. Eligible businesses with rateable values of below £5,000 get 50 per cent rate relief on their liability. This relief decreases on a sliding scale by 1 per cent for every £100 of rateable value over £5,000, up to £10,000. 6 Increasing procurement through SMEs Also widespread across London are efforts to encourage SME involvement in the delivery of council contracts, either directly or with prime contractors through the supply chain. Sutton, for example, provides comprehensive information to potential contractors on its website and, in common with many other boroughs, holds ‘Meet the Buyer’ events to help smaller contractors build relationships with larger companies. Sutton’s approach is particularly interesting because the event focuses on a live contract and the main contractors who are shortlisted are mandated to attend as part of the tendering process. Points in the tendering process are awarded for sustainability, which equates to the employment of local products, services and labour. Merton has set a local procurement target of double the current level (from a baseline of 5 per cent) and is encouraging partners through the LSP to introduce similar targets. Partners are also invited to participate in the local procurement seminars which are being planned by the council over the next two years. The City of London sees support for local purchasing as critical to its responsibilities for promoting the economies of the boroughs which surround it. It has developed a ‘Local Procurement Project’ to encourage competitive procurement from SMEs from the boroughs immediately adjacent to the ‘Square Mile’, both through its own contracting arrangements and by encouraging city firms to adopt local procurement as part of their social responsibility and business competiveness objectives. 7 7 Changing rent payment periods Southwark is implementing a temporary concession arrangement for tenants of all properties which are within the voluntary sector portfolio and for tenants of low and medium value shops within the commercial portfolio. It will allow rent that is normally billed quarterly in advance to be paid calendar monthly in advance instead. Hounslow is also allowing monthly rather than quarterly payments and, in common with several other London authorities, is allowing rent and council tax payments for their commercial tenants to be spread over 12 months instead of 10 for those that pay by direct debit. In Hillingdon, proposed rent increases for local authority tenants have been halved from 6.2 per cent to 3.1 per cent. 8 Recession leadership through LSPs Lambeth is one of several authorities to have championed its leadership responsibilities for recession through coordinated work with its LSP, starting with commissioned analysis through a Credit Crunch Taskforce. The resultant Economic Recovery Plan proposes a wide range of initiatives, including the reallocation of resources from the Working Neighbourhoods Fund to target support to existing local businesses and promote employment services to their most vulnerable citizens. Richmond has similarly worked on the development of its recession response through the LSP, intending to update the Community Plan with an additional chapter specifically on the local economy. Hounslow has established an LSP Recession Task Force with multiple partner involvement which is working to a list of recession performance indicators to help identify refocused, high impact initiatives across the partnership. Merton’s LSP is developing an action plan in response to the recession, aiming to mitigate the impact for the local community and prepare for recovery by working to a specific range of indicators to monitor progress. 9 Promoting benefit take-up Lambeth is working in partnership with NHS Lambeth and local advice agencies to deliver the ‘Every Pound Counts’ campaign, running outreach services (for example in GP surgeries) to reach key target groups. This programme has already delivered some impressive results: on average each Lambeth resident that has been assisted through the programme (some 2,000 people to date) has received an additional £3,500 of income. Lambeth is also committed, through its Debt Collection Charter, to working with debt/money advice services to support people through financial difficulties and ensure all benefits available are being utilised. Further work is underway around debt mapping to increase preventative approaches to help residents avoid financial crises. 8 The extent and effectiveness of partnership in developing appropriate responses to the impacts of the economic slowdown on local areas will be a key issue within the new Comprehensive Area Assessment arrangements. Haringey has been involved in a joint initiative with the Haringey CAB, using the council’s Geographic Information Service to map child poverty, identify areas where it is high, and then implement additional services into these areas. This analysis of data is important in capturing areas of deprivation that are within relatively affluent wards. Islington is operating a credit crunch helpline - a free ‘phone line for residents to check on eligibility for benefits and tax credits and get help with personal finances, debt, housing costs and job seeking. Islington has also held a series of road shows in various locations, including the borough’s street markets. These have brought together a range of council and voluntary providers to provide on the spot advice and support for residents, and make referrals for more detailed advice where necessary. Bromley has produced a Debt and Money Advice booklet, which is widely available across the borough and on the website, and operates free drop-in advice events at various locations, including the civic centre. 9 10 Publicity for recession support Many authorities have taken immediate steps to ensure that their websites can effectively signpost key information and support services to both residents and local businesses. A good example is Westminster’s dedicated web-page (‘Beat the Recession’), which signposts sources of support for businesses, individuals and families. Rather than organising the page around themes or organisations, it is structured around questions directed at the reader; making it more accessible and avoiding the need for users to search extensively to find the service they need. Another comprehensive website signposting vital information on the recession for both local residents and local businesses has been developed by Croydon – see www.croydoncrunch.org The I&DEA has produced a useful guide called ‘Recession-proof your Website’ which can be accessed at www.idea.gov.uk A webpage, ‘Bright Ideas’, has been set up on Barnet council’s website to offer residents practical tips and help to confront the economic downturn. It includes signposting to benefits and legal advice, help with jobs and careers as well as tips and information on how residents can save money. Residents are also encouraged to share ideas and suggestions about how to beat the downturn via the council’s Facebook and Twitter pages. 10 Most councils are also making use of their magazines and newsletters, running special double-page spreads and other articles to provide specific advice to local people and signposting where to go for further information. For example, Redbridge council’s magazine has featured major coverage on the recession (linked to dedicated web pages) and Harrow issued a ‘Recession Survival Guide’ to every householder in the borough. Lambeth is one of many boroughs where there are major concerns about the activities of loan sharks. A new report from the New Local Government Network has estimated that some 200,000 people could be tempted to approach illegal money lenders as the economy gets worse. They ran a front page article on this in Lambeth Life, publicising safe local alternative lending sources, including the Lambeth Savings and Credit Union. 11 Specific initiatives Showcasing exemplar local interventions Help for those without work Many communities in London have been experiencing long term worklessness over many years, not just as a result of the current economic recession. Initiatives to help this client group are therefore well established among many of the innerLondon boroughs, and are being further boosted by current policies, including the Working Neighbourhoods Fund and the two Department for Work and Pensions (DWP) ‘City Strategy’ initiatives that fall within the capital. London’s Fire and Emergency Planning Authority (LFEPA) has a targeted youth engagement programme and its ‘LIFE’ project supports young people into work in a variety of ways. Barking and Dagenham’s borough commander, for example, conducts mock interviews for all final year students in the borough, to help them prepare for job interviews. On the following pages we highlight the work in Hackney, which is part of the East and South East London City Strategy, because of its innovation in partnership working with RSLs to engage hard to reach clients on housing estates; and also an initiative in Hillingdon, part of the West London Working City Strategy Pathfinder. We have also chosen to include the innovative approach for unemployed professionals being developed by Sutton – a borough with very different employment profile to Hackney’s, but which is responding to the rapidly rising rate of white collar unemployment evident in many parts of the capital. Finally, we focus on some of the initiatives being taken to boost the number of apprenticeship opportunities available within local authorities in London. This is a key commitment for London Councils which, with the support of Capital Ambition, is aiming to increase provision to over 2,000 new apprenticeship starts in London by 2012. Lewisham, for example, is working closely with Lewisham College to take on 100 apprentices by 2012. Both Barking and Dagenham and Ealing councils have established strong schemes, while Westminster is providing financial support to establish the new London Apprenticeship Company, which aims to train over 1,000 young people for SMEs in the capital. 12 Hackney ‘Ways into Work’ Hackney has established a coordinated outreach programme to engage with social housing tenants. The problem was that existing advice, guidance and job referral services were not reaching their most excluded and economically inactive residents, many of whom had never worked. The highest concentration of this client group was evident on housing estates, yet the housing providers in the borough were not proactively engaged in tackling employment issues. Using a single tender approach, nine housing organisations have been commissioned through Service Level Agreements to deliver outreach services to their tenants. They are tasked to make initial contact with clients and register them, and then refer them onto other appropriate providers, making use of existing specialist agencies as well as mainstream provision. Each housing organisation has taken its own approach to staffing and delivery. Some have engaged local residents to do outreach work, some have utilised community organisations, and others are using existing housing management staff. All personnel involved have been provided with training on how to register clients appropriately and make the right referrals. The LSP, Team Hackney, has been strengthened by bringing housing providers into the partnership as active players and deliverers. A fuller version of this case study can be found on the I&DEA Partnerships & Places Library (www.idea.gov.uk/idk/laa/home.do) 13 Hillingdon ‘Workmates’ Scheme Hillingdon has introduced the Workmates’ Scheme as part of the West London Working City Strategy Pathfinder, which will provide a helping hand for working parents during the first 52 weeks of starting employment until September 2010. Research has shown that, of the benefit claimants starting paid employment, only 37 per cent are still in employment after just four weeks. This could be avoided if more advice and support was available. The scheme will offer support with childcare arrangements, help and advice on a range of topics, from finance to coping skills, peer support networks, benefits guidance and help with gaining additional skills. To qualify, residents need to live in affordable housing, be low income parents and currently working, or planning to return to work for at least 16 hours a week. Sutton Support for Professionals Sutton was one of the first boroughs to initiate a comprehensive action plan to address local recession impacts, which included establishing an Economic Support Task Force. One of the initiatives taken forward through this group is the setting up of a series of special courses targeted at highly skilled executives and professionals. These have been developed in response to a marked rise in unemployment in the more affluent parts of the borough, organised through a partnership comprising the council, Jobcentre Plus, the Chamber of Commerce and the Citizens Advice Bureau. The free events, thought to be a national first, are aimed at professionals and executives, many from the financial and construction industries, who have lost their jobs in the recession. Over three sessions attendees get advice and tips on getting back into the workplace, training opportunities or starting their own firm. The courses take place in the Sutton Holiday Inn and more than 40 local people have participated to date, with further courses planned for September and October ‘09. 14 Barking & Dagenham Apprenticeship Scheme Barking and Dagenham has committed to delivering a minimum of 750 apprenticeships across the borough in the coming years, with real and varied local job opportunities within the council, its many partner organisations and in commercial companies in the borough. Leading from the front, the council has an ambition to take on at least 100 apprentices itself during 2009 in a range of disciplines and across all departments. It is doing this because, as the largest local employer, it has a genuine desire to actively help transform the lives of its residents, many of whom have been traditionally disadvantaged in the labour market and not been able to realise their full potential. The scheme generally runs over a 12 month period; offering four days learning in the work place, and one day at college or with another training provider. See: www.barking-dagenham.gov.uk/7-hr/apprenticeships/apprenticeships Ealing Apprenticeship Scheme Ealing’s scheme has been operational since 2007 and has to date employed 45 young people, mainly in the area of business administration, with a retention rate of 97 per cent. By working in partnership with other organisations, including Connexions and the Ealing Education Business Partnership, promotion of the scheme has been further strengthened and the council’s decision to include a brokerage role for the scheme has led to the employment of a further 22 apprentices by external businesses, including those within Ealing council’s supply chain. The aim is now for the scheme to become selfsustaining by 2010/11. See: www.ealing.gov.uk/services/jobs/ealing_apprenticeship_scheme Ealing councillors’ innovative use of Overview and Scrutiny to develop the scheme in the borough is showcased in Capital Improvement: Stories from the London Scrutiny Network available online at: www.londoncouncils.gov.uk/capitalambition/networks/scrutiny 15 London Apprenticeship Company (LAC) Westminster has supported the establishment of a new not-for-profit company dedicated to boosting the number of apprentices in small and medium sized companies in London. The scheme, modelled on an approach that has been operating for over 20 years in Australia, aims to make it easy, low cost and low risk for smaller companies to take on and train junior staff. The concept is very simple. Once a company has chosen an apprentice, from among those shortlisted for them by the LAC, they are employed directly by the LAC (at a wage rate set by the company themselves), provided with training appropriate to their sector and supported through structured supervision during the course of the apprenticeship (usually one year). Sectors covered include retail, creative media, plumbing, social care, business administration, hospitality, construction and leisure. Central London has more small businesses than any other part of the UK with around 80 per cent of companies employing less than five people. By funding the establishment of the LAC, Westminster is hoping to provide a significant boost for the sector. “We are facing tough economic times and apprenticeships are a highly effective way to ensure you have the right skills in place to survive the economic downturn but also prepare your business for when the economic climate improves.” (Brian Connell, Cabinet Member for Communities & Economic Development) See www.londonapprenticeship.co.uk for further information Westminster will also be negotiating apprenticeship and employment opportunities for local residents through the re-let of major contracts including waste management and parking enforcement. It also runs a scheme tackling unemployment, outreaching to housing estates with the highest concentrations of residents claiming out of work benefits. Westminster Works offers a single point of contact for job-seekers offering skills and needs assessments, training plans and access to work opportunities, supported by comprehensive monitoring to track client progression routes. The scheme aims to engage with employers to generate a range of opportunities for Westminster residents wishing to enter the job market, offering a range of initiatives including: work placements, job trials and work tasters, mock interviews and CV workshops. 16 Help with housing and living costs Several London councils have worked swiftly to facilitate easy access to the government’s Mortgage Rescue Scheme for residents in their boroughs. The scheme provides temporary financial help, through loans or shared equity, to those struggling with mortgage payments. However, many are looking to do more. Islington, for example, has approved funding of £5 million to extend the application of the national scheme to meet their specific local needs and circumstances. Lambeth is developing its approach through a service level agreement with the Centre 70 Advice Centre to act as a referral agency. The council is also having ongoing discussions with several of its RSL partners to purchase share/whole property for residents who have exhausted all the usual channels, such as going onto an interest only mortgage, in trying to keep their home. Lambeth is also seeking to provide additional support for leaseholders who are finding difficulty in paying monies for future major works. Options being considered include three, five, seven and 10 year plans for resident leaseholders to repay major works bills by direct debit where they are unable to raise loans elsewhere. Many London boroughs are piloting innovative projects to combat child poverty. For example, from September 2009 Newham will be providing free school meals to all children in the borough as part of a two year pilot scheme. This aims to help local families and ensure children are eating healthy, nutritious food. Another fairly widespread approach is to provide specific advice and assistance on ways to reduce energy costs, both in the home and the workplace; several of these initiatives are highlighted overleaf: 17 Richmond ‘Go Green’ Richmond is funding a range of free services to support local people, schools and local businesses to review their environmental performance and implement improvements. The Go Green initiative has a dedicated portal on the council’s website, with three main sections for those at work, business or at school. A variety of review services are also available for local businesses, including: I Energy reviews and support to identify saving opportunities through heating, cooling, lighting, equipment, and operations. Advice can be provided on changing staff behaviour and identifying renewable energy sources. I Waste reviews and support to help minimise waste production and packaging, and implement reuse and recycling. Advice can be provided on legal obligations through management of hazardous waste and storage, transportation and treatment of waste. I Water reviews and advice on water efficiency in supply and drainage, kitchens and toilets, cleaning operations and manufacturing processes. Advice can be provided on how to reduce the risk of polluting of waterways. I Travel reviews to help develop travel plans to reduce single occupancy car use. Advice can be provided on how to enable staff and visitors to use public transport and cycling facilities. I Purchasing reviews and advice on supply chain management to increase sourcing of sustainable products and services. Advice can be provided on managing procurement procedures to ensure timely purchasing to decrease waste, number of deliveries and distances travelled. A wide range of other services are also available for businesses, such as free environmental management courses, regular information and briefing events, and an awards scheme. See www.richmond.gov.uk/gogreen 18 Islington Energy Doctor In Islington, additional funding has been made available to promote energy efficiency advice with an ‘energy doctor’ able to visit venues around the borough giving face-to-face, in-depth advice on fuel poverty issues and to refer residents to the relevant schemes. It is anticipated that each household assisted will save about £60 per annum from the basic package that the energy doctor can recommend. Lambeth Home Visiting Energy Advice Service Lambeth is instigating a Home Visiting Energy Advice Service and doubling the size of its contribution to the Loans for All fund for residents to make home improvements on the basis of advice from the home visits. The targets are for more than 900 households to receive advice, and for the installation of energy efficiency measures to more than 300 households. Hillingdon grants for heating improvements Gas and electricity suppliers have raised prices dramatically over recent months. Hillingdon is part of the London Warm Zone, a scheme that has helped more than 1,600 people in the borough over the past year. Old, inefficient or broken heating systems can be replaced or repaired or, if a home has no heating system, it may be possible to have a new, energy efficient system installed free of charge. Grants are also available for the installation of loft and cavity wall insulation. For some people the work can be done for free, or homeowners may be eligible for a discount of up to 70 per cent. 19 Sutton partnership with B&Q Sutton has teamed up with DIY chain B&Q to offer residents five thousand rolls of cut price loft insulation to help reduce heating bills and energy consumption in the borough’s homes. The scheme allows residents to buy up to 30 rolls at just £1 each on a first come, first served basis and aims to encourage more people to adopt sustainable behaviour. Keeping our high streets alive Initiatives to maintain the vibrancy of town centres and high streets and provide support for local retailers figure prominently in nearly all the boroughs’ recession strategies. Reducing parking charges at key times is a popular option, helping small centres compete against large supermarkets with copious areas of free parking. For example, Tower Hamlets – a borough rich in street markets - has removed parking charges around its market areas at weekends. Sutton is considering an extension of free car parking days following the success of a similar initiative taken in the run up to Christmas. Hounslow is reducing parking charges in key shopping locations, and allowing free parking for the first hour in Brentford town centre. In a more general move, Newham has made the first resident parking permit free of charge for each household. Many boroughs are increasing resources for street cleaning and environmental services to ensure town centres are kept clean and inviting. Harrow, for example, has invested in 15 additional street sweepers as part of a new blitz team to clean the main shopping centres. Several boroughs are developing initiatives to boost local shopping, such as Camden’s ‘Love your High Street’ campaign (see www.camden.gov.uk/ccm/ themes/love-camden). Newham is one of several boroughs planning to introduce loyalty cards similar to ones already in operation in boroughs such as at Greenwich and in Havering. By using the ‘Haveringcard’, residents can access money savings, discounts and special offers on goods and services from more than 600 local businesses that have signed up to be part of the scheme. Haringey also has a loyalty card operating in Crouch End – see: www.thecrouchendproject.co.uk. 20 Lambeth is introducing the ‘Brixton Pound’, a local currency which will come into circulation in September 2009. Supported by local businesses and the credit union, residents will be able to use the currency in local participating shops and stores selling local produce. They hope that this will not only support the local economy, it will also support the concept of buying locally produced or sourced goods. Elsewhere action is focussing on strategies to reduce the impact of empty shops by finding temporary uses. Waltham Forest and Redbridge are making innovative use of empty stores for community arts, and Sutton is developing a strategic approach working with voluntary sector groups and managing agents of premises to secure short term lets for a variety of community uses. Waltham Forest High Street Arts This initiative aims to use empty commercial properties to house temporary arts installations, including visual and performance arts, engaging local community arts and local arts organisations. Each project supported will need to be accessible to the public and make a direct impact on brightening the high street and increasing visitor numbers. The first pilot project to be developed as part of this initiative is PicknMix – 60 artists exhibiting in the former Leytonstone Woolworths over four extended weekends in June/July. Each exhibiting artist has been invited to respond, re-interpret and revitalize the empty shell of the store. 21 Lewisham is working with a team of five town centre businesses that are offering support to struggling retailers, particularly small independent shops, while Bromley is working with its town centre managers to offer specialist local surgeries in partnership with Business Link. Many London boroughs are also striving hard to secure continued investment for improvements to their major retail areas, and ensuring that new investment benefits local people. Barking and Dagenham is working on an improvement programme for major shopping parades in the borough, while Enfield has worked in effective partnership with a major new store, and Jobcentre Plus, to secure job opportunities for local residents. Barking and Dagenham: shopping parades The council is investing £1 million in a programme designed to make five local parades more attractive places to shop, and improve trading conditions. Detailed consultation with shoppers and traders has taken place and improvements will include better paving and lighting, as well as enhanced parking facilities, shop front improvements, signage and identity measures and additional tree planting. A directory of Barking and Dagenham shopping parades will be produced in time for Christmas 2009 to promote local businesses and encourage people to visit the shops on their doorstep. Whether people need a new washing machine or groceries, the aim is to encourage them to consider businesses in their community that provide jobs to local people and keep their local parades alive. Barking and Dagenham is also expanding local retail associations across the borough to help give a voice and some support to struggling businesses in tough economic times. The associations are an ideal means of discussing and delivering the training and business support measures that local traders need. 22 Enfield: Regenerating Edmonton Green Constructed in the 1960s, the Edmonton Green Centre occupies an area of 11 hectares and comprises of 450,000 sq ft of lettable space including retail units, market stalls, community use and offices. Working in partnership with the new centre owners, St Modwen, the regeneration scheme has sought to improve both the commercial and social aspects of the centre. The first two phases of the regeneration programme, which saw some £100 million invested, was completed in December 2008 and included the following: I refurbished library I new bus station I new primary care centre I new leisure centre I opening of new Asda store I the creation of a new retail concourse with 22 units I 440 additional car parking spaces I 176 new residential apartments (100 per cent affordable/key worker) I refurbished multi storey car park, which won “Refurbished Car Park of the Year 2008” I new purpose built shop-mobility service I new public toilets in the market square. A key part of the project has been the Edmonton Jobsnet Shop which aimed to help ensure that as many jobs as possible in the new 66,000sq ft ASDA store went to local unemployed people. As part of the initiative (in partnership with Job Centre Plus and the council’s Job Brokerage service) a range of skills training courses has been set up to help people progress their employment plans, including the involvement of the council’s occupational therapy staff to help people strengthen their employment prospects by improving their health and fitness. 141 of 300 ASDA jobs went to Enfield residents. 23 Finally in this section, we showcase two initiatives – in Wandsworth and Richmond – which offer council grants to support town centre improvement schemes. Wandsworth: town centre improvement scheme This scheme provides loans and grants to businesses to refurbish and improve their premises. It is designed to make a difference to the business and add value to the property as well as improving the immediate local area. The scheme focuses on the the borough’s five town centres and also other significant shopping areas. It provides interest free loans and/or grants of up to a third of eligible costs from a minimum of £1,000 to maximum of £15,000 per eligible address. Any part of a project which is intended to have a green/environmental impact will be assessed at 50 per cent. The following are examples of eligible works: I restoring or replacing shop fronts in a style appropriate to the building as well as external works to the front of the building I bringing vacant or underused basement or upper floors back into use I structural, internal works to increase or enhance the business and / or the commercial space I providing access for people with disabilities I improving eyesore sites and buildings and improving shared rear access ways I improvements that benefit a number of businesses and premises in carrying out minor improvements to the external fabric of the area; such as signage, local advertising, banners, hanging baskets and other environmental improvements that would help improve the area and the businesses located there. 24 Richmond: opportunities for improving town centres Town centres across the borough are being invited to develop and submit plans for improving their trading environment, attract new investment and enhance the shopping experience for residents, encouraging them to shop locally and reduce the need to travel. Grants of up to 50 per cent are available to match locally generated funds and sponsorship. The intention is to give financial assistance to those schemes that show promise of becoming self-financing in a period of up to three years. Eligible schemes will be led by a town centre management board, trade or similar organisation or an appropriate steeringgroup. Proposals can include markets and other community events, ‘shop local’ schemes, research or marketing training, or initiatives that contribute to a cleaner and greener environment. Initiatives that help to address underlying issues, such as through research or marketing training, are also welcome. A light touch is taken to the application and monitoring process, so that groups are not discouraged from applying. 25 Advice and support for businesses A number of London boroughs have reconfigured or refreshed their economic development strategies in the light of the recession, particularly reviewing how best to provide access to advice and support for struggling businesses and enterprises. Most councils have provided comprehensive information for businesses looking for help on their websites, and many are organising business breakfast or other consultation and advice events to reach out to engage with their local business communities, and to learn more about how the economic downturn is impacting locally. Croydon provides a useful example, and also organised a financial summit with local banks. Croydon Support for Enterprise A new Enterprise Development Company (EDC) has been established to promote Croydon’s economic profile. The EDC is an independent ‘not for profit limited company' that will build on successful partnerships between the council and the business community to drive and deliver a coordinated economic strategy that creates an environment for local, national and international businesses to thrive. This represents a transformation in how Croydon promotes itself and provides a single voice to lobby for investment and growth. The EDC will have access to a broad range of sources of public and private sector funding, including a core grant from the Council, LEGI contracts, European Regional Development Fund income as well as sponsorships and other income from the private sector. A number of initiatives are underway in Croydon to support local businesses during the credit crunch (as set out in the council’s Economic Recovery Plan). These include a hotline ‘phone number for immediate access to advice, a Financial Summit held with local banks to ensure the promotion of lending opportunities, and specific advice pages for business at: www.croydoncrunch.org 26 Help for London's ‘Distressed’ Small Businesses A growing number of London councils are supporting and funding the Capital Enterprise initiative to provide ‘distressed’ small businesses that have been negatively affected by the recession with a specialist ‘Business Turnaround’ advisor. The service will provide small businesses with additional expertise and practical advice so that the business can make the necessary changes to give them a good chance of surviving the recession, saving jobs and returning to growth when an easier economic climate returns. So far, eight councils have provided funds to their local enterprise agency to deliver the programme, including the City of London, Camden, Islington, Kensington and Chelsea, Lambeth, Lewisham, Southwark and Westminster. More London councils are looking to follow suit. The Business Turnaround service was launched in most participating boroughs in June 2009 and has the support and backing of major banks, such HSBC and Barclays, and Business Link in London. See: www.capitalenterprise.org Bromley ‘Boost Your Business ‘ Events Bromley is organising a series of events across the borough bringing support agencies to businesses in specific geographical areas, working with Business Link, local colleges and other partners. The events include: I exhibitions by business support agencies, and opportunities to speak directly with advisers I opportunities to book follow-up sessions with Business Link I training sessions on hot business topics such as marketing on a budget, reducing costs and customer care I networking opportunities with other local businesses I opportunities to promote by taking an exhibition stand. Bromley has distributed a ‘Bromley Means Business’ leaflet to around 9,000 businesses promoting the events, including information on other support services available. 27 Bromley Business E-Bulletin Bromley has also launched a regular email bulletin for businesses based in the borough. The e-bulletin – which is sent out every two months to more than 2,000 businesses – allows the council to keep in regular contact with the local business community to ensure messages about support initiatives and events get straight to mailboxes. Many councils also recognise that access to loan finance is currently a key issue for their businesses. Kensington and Chelsea has set up a business recovery service backed by a £130,000 small-loan scheme and is planning further initiatives to help local business survive the downturn. Lambeth is also introducing an enhanced loan facility (see below). Lambeth Business Support Programme Lambeth First, the LSP, is expanding the support available to local businesses in the borough through the provision of a dedicated financial advice and loan service. This initiative will bring in additional resources to the council to provide dedicated specialist financial advice and business planning support for small businesses. The key outcomes are: I an increase of £400,000 of loan finance via a small business loan fund through an established London-wide provider of loan finance (GLE OneLondon) with a £100,000 investment from Lambeth levering in an additional £300,000 from GLE OneLondon I an enhanced business support and financial / business planning service building upon existing services for business in Lambeth I an enhanced Business Desk provision to include “front end” financial advice and signposting and referral to the two services outlined above. It is estimated that 100 businesses will receive initial business planning support in 2009/10 (compared to approximately 20 in 2008/09) and 12 to 15 businesses will be provided with specialist financial readiness support (compared to three in 2008/09). The £400,000 loan fund will support approximately 26 businesses (approx. £15,000 per business) and is not time limited – funds will be recycled as they are repaid by businesses. 28 Work in progress initiatives in development For the final section of this booklet we focus on responses to the impacts of the recession on major housing schemes. The capital faces a desperate shortage of affordable housing, with some 350,000 households on council waiting lists, 50,000 households in temporary accommodation and 27,000 families in unsuitable, severely overcrowded homes. A partnership approach is essential for maintaining development plans, especially working with the new Homes and Communities Agency (HCA). Showcase One London borough of Hackney Woodberry Down Regeneration Programme Woodberry Down Regeneration is one of the largest regeneration initiatives of its kind in Europe. The programme is an exemplar estate-based regeneration managed by the council’s partner ALMO, Hackney Homes. The initiative aims to comprehensively redevelop a failing and sprawling council estate into a vibrant, mixed community of choice. While the scheme is about much more than just bricks and mortar, and is driven by a community-led ethos, it is founded on an ambitious and challenging programme of development that releases the latent value of well-located land close to a tube station, increasing the number of homes from 1,980 to nearly 5,000. It is expected that most of 29 these new homes will be built on the core area currently owned by the council over the next 15-20 years, together with a new community centre, health centre, academy school, children’s centre, a training centre and landscape and leisure areas planned in for the early phases. The council and Hackney Homes have responded swiftly to the threats associated with the recession and declining housing market. The Masterplan had been carefully prepared over a two year period with flexibility to address housing market changes by adjusting the numbers and types of affordable housing. In addition, £16 million of government funding has been obtained from the HCA to broker the start of phase 1 of the development and access the substantive investment of the appointed partner Berkley Homes, who will build the first phase. An historic ground breaking event took place in March this year to begin construction work on 117 new social rented homes for existing residents is a real achievement. “The Woodberry Down scheme is not just about construction. It is about the communities that live here, and realising the benefits of these new homes for everyone, maintaining the area’s unique community spirit and pride and harnessing this with the opportunities the regeneration creates and enabling people to create opportunities for themselves.” Hackney Mayor Jules Pipe Hackney was one of the very first beneficiaries of this HCA funding to support the kick start of affordable housing development through the recession. Indeed, the HCA Kick Start programme is named after the Kick Start initiative pioneered at Woodberry Down. The procurement strategy for phases 2-5 of the development is based on a model that allows the options of: I stock transfer I continuing council/Hackney Homes-led development using a registered social landlord I developer partnership with flexibilities to tackle the changing economic climate over the next 15-20 years and residents appetite for stock transfer. 30 The intention is to maximize both government funding and private sector investment. The continuing development of the wider programme of regeneration focusing on the community’s social and economic needs also provides the foundation that will be needed to transform the current environment for existing residents into one of the best in London. For further information: Robin Smith, programme director, Hackney Homes Telephone: 020 8356 1713 E-mail: robin.smith@hackneyhomes.org.uk www.hackneyhomes.org.uk/hhs-woodberry-down 31 Showcase Two London borough of Brent South Kilburn regeneration programme South Kilburn is a New Deal for Communities area, awarded £50 million in 2001 to tackle deprivation and ‘to create a desirable place to live, learn and work’. Physical regeneration has been a top priority for the council to secure improvements to local housing and the estate’s built environment. South Kilburn has the largest remaining concentration of council-owned housing in the borough and is the last large housing estate in Brent that requires renewal. As part of the council’s plans to improve local housing, large scale voluntary stock transfer of housing was pursued with an RSL, but current market conditions meant this was no longer a viable solution. Given its ambitions for transforming homes in the area, Brent began to look at other options for delivery. For the longer term the potential of a local asset backed joint venture vehicle, which would bring together the council’s land with equity of an equivalent value from a private sector partner, is being explored. In the short term the council’s focus has been to pursue detailed planning consents for specific phase one sites with a view to generating decant capacity within South Kilburn for later sites to come forward. This proactive role taken by the council will continue to build the momentum for regeneration, while in the medium and long term safeguarding the council’s overall vision for South Kilburn. For further information: Andy Donald, assistant director regeneration Telephone: 020 8937 1049 Email: andrew.donald@brent.gov.uk 32 Showcase Three London borough of Southwark Aylesbury estate regeneration programme The regeneration of the Aylesbury estate aims to put residents at the heart of the decision making process. The estate encompasses 28.5 hectares and is home to more than 7,500 people. Since 1999, the Aylesbury New Deal for Communities (NDC) has been working in partnership with Southwark council to deliver a £56 million social programme on the estate. Benefits for residents have included more jobs, greater economic prosperity, improved educational results for young people on the estate and lower crime levels. To continue the transformation of the area, improvements to the physical environment were also needed. In 2005 Southwark made the decision to demolish the estate in stages over the next 15 to 20 years. The redevelopment plans will see the phased demolition of 2,700 homes and the creation of a vibrant sustainable community with 4,200 new mixed-tenure homes designed to an excellent standard, improved open spaces, better community facilities, safer streets, and improved accessibility to public transport cycling and walking. 33 The council and the HCA have formed a strategic partnership to find a way forward in the current economic crisis. The HCA approved a bid from London and Quadrant Housing Trust for a substantial ‘kick start’ grant to support the development of affordable housing in March. This allowed London and Quadrant to begin work on the first Aylesbury site and work is now well underway. This phase comprises 260 homes (134 of these being affordable) and a resource centre for adults with physical, neurological and sensory disabilities. Southwark is continuing to work closely with the HCA to discuss further funding options for the Aylesbury regeneration programme and other regeneration schemes operating across Southwark. For further information: Georgina Hackett, Aylesbury regeneration team Telephone: 020 7525 4947 Email: georgina.hackett@southwark.gov.uk Showcase Four London borough of Westminster A new housebuilding company A new limited company has been set up to take charge of Westminster’s housebuilding programme. Some 465 homes are scheduled to be built by the private firm which, the council says, will have more financial freedom than the local authority to fund the project. More than a quarter of the homes - 127 will be sold on the open market to fund the development, which has received a £36 million grant from the Homes & Communities Agency. The council has also set up a charity, Westminster Community Homes, to manage shared ownership and social rented properties once they are completed. The four-year project involves building homes on brownfield land and under-used sites on existing estates to ease overcrowding. Work is set to begin in August 2009 on the first homes: flats in the ground floor area of a tower block in the borough’s Westbourne ward and Queen’s Park. For further information: Steve Moore, deputy director of housing Telephone: 020 7641 3211 Email: spmoore@westminster.gov.uk 34 Resources Useful further information The I&DEA has a specific section of its website devoted to support for councils on dealing with the impact of the recession, including a series of ‘how to’ guides and a recession ‘check list’ of actions: www.idea.gov.uk Solace has produced a pamphlet of essays around coping with the recession at the local level: www.solace.org.uk/library The Local Government Association has produced two ‘Global Slowdown, Local Solutions’ publications that highlight some of the work councils are doing to help people and businesses during the recession: www.lga.gov.uk/lga/publications The Child Poverty Unit has produced ‘Take up the challenge’ about the role of local services in increasing take up of benefits and tax credits: www.dcsf.gov.uk/everychildmatters A joint report by LGA and NCVO called ‘Backing communities: local solutions’, highlights work that local authorities are doing with third sector partners to support local people through the recession: www.lga.gov.uk/lga/publications ‘Back to business: local solutions’ is a joint report by the LGA and the British Chambers of Commerce showcasing excellence in business and council engagement and promoting the principles that underpin that effective relationships: www.lga.gov.uk/lga/publications 35 Capital Ambition 59½ Southwark Street London SE1 0AL www.londoncouncils.gov.uk 020 7934 9956 capitalambitioninfo@londoncouncils.gov.uk design: pinsentdesign.com images: London boroughs/Philip Wolmuth/Third Avenue publication date: August 2009 Printed on NAPM accredited paper that uses 75% recycled fibre, manufactured in the UK at mills with ISO 14001 accreditation.