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					SUSTAINING SUCCESS
DEVELOPING LONDON’S ECONOMY ECONOMIC DEVELOPMENT STRATEGY

ABOUT THIS STRATEGY

This is London’s Economic Development Strategy, prepared by the London Development Agency (LDA) on behalf of the Mayor of London. It replaces the 2001 Strategy Success through Diversity and is part of a suite of Mayoral strategies. It sets out a plan for the sustainable, equitable and healthy growth and development of London’s economy to 2016. Many of the actions presented here will be completed before that. The Strategy will therefore be updated as and when appropriate. This is a Strategy for the whole of London. The LDA has a central role in facilitating delivering it. This will be done through a mixture of ideas, resources and partnership. More detail about LDA activity is available in the LDA Corporate Plan (available through its website www.lda.gov.uk), which should be read in conjunction with this Strategy. This document has two parts. Part 1 presents an analysis of the issues facing the London economy and details a high-level action plan to maintain and promote further growth and development. Part 2 gives a detailed assessment of the state of the London economy and is the underpinning evidence for Part 1.

A glossary of technical terms and acronyms used in this document can be found on page 90. A summary of the Strategy is available from the LDA as are versions in a range of community languages and accessible formats on request. About the London Development Agency The LDA is a functional body of the Greater London Authority (GLA), along with Transport for London, the Metropolitan Police Authority and the London Fire and Emergency Planning Authority. It is also one of the nine regional development agencies (RDAs) operating across England. The LDA’s mission is to support London’s sustainable economic growth and development. This will be achieved by: • promoting business growth and development across all sectors • promoting access to employment and skills enhancement • promoting London as a world city and a capital city • promoting economic inclusion and building on diversity • promoting sustainable development, regeneration of the urban fabric and development of the green economy.

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ABOUT THIS STRATEGY

The LDA supports the capital’s skills base and jobs, and improves the physical infrastructure and places needed for London’s success as a global city. It works towards London becoming an increasingly sustainable city, taking account of the major health and equalities issues currently facing Londoners. The LDA adds strategic value by: • bringing together the relevant agencies and partners to intervene where the market cannot, using its financial resources, land assets and leadership skills to secure strong partnerships • harnessing London’s resources, its world class knowledge and research base and supporting innovation to increase productivity and employment levels, skills and business growth • focussing its investment in areas of greatest need and greatest opportunity and maximising the opportunity for leveraging other invesment.

• developing an effective economic base that informs its development interventions and strategic priorities for London. The Government provides around £350 million per year to the LDA to invest in London’s economy. This is a small proportion of the total annual economic development and regeneration expenditure in London. Therefore, the objectives and actions contained in this Strategy will need to be supported by all organisations with an interest in the development of London’s economy. These include the London boroughs, the Learning and Skills Councils and Business Link for London. Partnership working across the public, private, voluntary and community sectors is critical to delivering this Strategy. The LDA will set out what it will do to deliver this Strategy in its annual Corporate Plans and other documents.

This document is the London Development Agency Strategy prepared and published under section 41(1)(a) of the Greater London Authority Act 1999 and section 7A(2) of the Regional Development Agencies Act 1998.

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ECONOMIC DEVELOPMENT STRATEGY

Borough Market, Southwark

CONTENTS

PART 1: FOREWORD KEN LIVINGSTONE, MAYOR OF LONDON FOREWORD MARY REILLY, LDA CHAIR CHAPTER 1 OVERVIEW CHAPTER 2 THE ROLE OF THE ECONOMIC DEVELOPMENT STRATEGY CHAPTER 3 INVESTMENT IN PLACES AND INFRASTRUCTURE CHAPTER 4 INVESTMENT IN PEOPLE CHAPTER 5 INVESTMENT IN ENTERPRISE CHAPTER 6 INVESTMENT IN MARKETING AND PROMOTION CHAPTER 7 IMPLEMENTATION AND ACTION PLAN APPENDIX 1 STATUTORY FRAMEWORK FOR THE PREPARATION OF THE STRATEGY APPENDIX 2 GLOSSARY 5 8 9 17 23 37 43 55 62 88 90

PART 2: EVIDENCE BASE 99

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FOREWORDS

KEN LIVINGSTONE, MAYOR OF LONDON A VISION FOR SUSTAINED SUCCESS
London is one of the most exciting, dynamic and diverse cities in the world. It has a role in the world economy rivalled only by New York and Tokyo1, which sets it aside from other cities and regions in the country. After losing people and jobs for fifty years, it now faces unparalleled growth in both over the next fifteen years. It is experiencing the benefits and the downsides of success. Many Londoners are increasingly well-off; many others face unacceptable problems of deprivation and discrimination. In short, large-scale, complex issues confront London; ensuring its sustained and sustainable success demands action by every organisation and individual concerned with our city’s future. To succeed, this action needs to be informed and shaped by a common understanding of the objectives to be sought and the kind of action to be taken to deliver them. That is the purpose of this Strategy, and I am pleased that public consultation on its preceding draft showed wide support for this approach and for the priorities set out here. Like my first Economic Development Strategy, published in July 2001, this document has at its heart my vision for London – to create a sustainable world city including strong long-term economic growth, social inclusion and environmental improvement. It translates this vision into policies and proposals to help ensure that looking forward to 2016, London is a city:

• where all share in the benefits of wealth created by a dynamic economy • where all Londoners can enjoy the highest sustainable quality of life, with goods, services and opportunities in easy reach, high standards of health and welfare, and a sense of safety and security • with efficient, safe and comfortable transport systems and ready access to affordable homes, good quality education and training, health, leisure and recreation opportunities • that builds on the incomparable wealth of its diversity, abolishing all forms of discrimination and making sure all Londoners have a say in their future • that makes efficient use of finite resources and energy, recognises and values the importance of the natural world and wildlife, minimises air, noise and other pollution and waste, and applies its immense resources of innovation and imagination to making the most of eco-friendly design and construction, recycling and the scope for development of green industries. In 2016 the success of this Strategy will be judged by whether London has an economy: • that generates the prosperity needed to support a good quality of life for all London’s people and communities, and for the United Kingdom as a whole • that provides jobs and other opportunities for everyone, addresses the historic problems of London’s high unemployment and low employment rates, and meets the needs, and makes the best, of a growing and increasingly diverse population and workforce

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Saskia Sassen, The Global City: London, New York, Tokyo (2001), Princeton.

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• that makes the most efficient possible use of the resources available to it, whether people, land and premises, energy or raw materials, and which drives improvement in its environment and those of other regions and countries • that makes the most of the growth areas in which it excels; finance and business, the creative industries and tourism for example, while harnessing innovation and imagination and making the most of London’s universities and knowledge sectors • enabling all Londoners to realise their talents and aspirations, and which nurtures enterprises of all kinds and sizes, particularly those led by those from black and minority ethnic communities, women, disabled people, older people and other equalities groups • supported by adequate, modern infrastructure, including transport and communications, housing, workspace, childcare, schools and hospitals, which are affordable, accessible and appropriate for all Londoners. Realising this ambitious vision demands investment well beyond that available to London government alone. Clear priorities have to be set and difficult choices made so that what is available is used as efficiently and effectively as possible. It means continuing to make the case for investment in London on which success relies. Without that investment the vision in this Strategy could not be realised; the city would rapidly become an increasingly unpleasant place to live and work; London would under perform its potential which would be to the lasting detriment of the whole country. That is why the need for investment is at the centre of this Strategy. This Strategy explains how London’s economy works (and in some cases, does not), and describes ways of sustaining success and addressing failure. It describes the trends that increasingly mean only the most productive economic sectors can thrive here, and explains how London has become one of the most expensive places in the world to do business. It shows that tackling these issues is essential,

in both economic and social terms. The fundamental conclusion is that to maintain success, and the benefits this brings to London, Londoners and the country as a whole, there is a need to invest in its: • places – throughout London, particularly those with the capacity to meet the challenge of growth set out in the London Plan • infrastructure – including transport and new homes • people – to tackle the problems that bar so many from realising their potential • enterprise – to help firms adapt to change, and to grow • marketing and promotion – at home and abroad, particularly by producing a world class bid for the 2012 Olympic Games. It has been suggested that there is a need for an alternative plan, in case this investment does not materialise. I do not share this view. One of the reasons for having a Strategy is to make sure there is clarity and certainty about policies; without this there simply is not the basis everyone in the public, private or voluntary sectors need to ground their own investments and decisions. Our attention should be focussed on making the best possible case for what London needs, highlighting the contribution our city makes – and can continue to make – to the wellbeing of the country as a whole, and on meeting national priorities like improving productivity, tackling social exclusion and promoting sustainable development. I asked the London Development Agency (LDA) to review the first Economic Development Strategy so it could address the developments affecting London’s economy since 2001 and take on board the framework set out in the London Plan. This Strategy moves on from managing the wind-down of the Single Regeneration Budget that was key to the first EDS, towards a more strategic London-wide agenda for action for London. This document is a plan for action, defining and explaining the most important activities for London across a range of delivery agencies. It highlights the vital importance of joint work and initiatives, mobilising assets and talents across the public,

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private and voluntary sectors. In a city where the public sector accounts for only 30% of the economy, no other approach will work. I see the role of the LDA – and the rest of the GLA Group – as providing leadership without stifling imagination and innovation, drawing on the knowledge and experience of all London’s stakeholders. This is not a strategy for growth for its own sake. The London Plan describes the growth trends facing us, and the reasons for them; there is no responsible option but to be ready to meet them in a sustainable manner. Equally, we cannot be content for the benefits of economic success to trickle down to benefit Londoners or to hope that environmental imperatives will address themselves. We must ensure policies are in place to make sure our economy develops in ways that meet these challenges. But there should be no doubt that without economic success, it will not be possible to address these other priorities. It is the role of this Strategy to make such links, to point out ways of moving forward so success in one area can support progress in others, and to show how each partner can bring their own knowledge and experience to make a real contribution to sustaining success. I have been encouraged by the enthusiasm and interest shown by a huge range of individuals and organisations during consultation on this Strategy. We must now move from analysis and discussion of aims, towards agreeing and implementing actions. We need to work together to deliver economic success, a high quality environment and high standards of health and quality of life for everyone who lives in, works in, studies in or visits our great city. This is an exciting time to be concerned with London’s future. I look forward to working with everyone with something to add to make sure it is a future we can all be proud of.
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Ken Livingstone Mayor of London

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FOREWORDS
The approach taken throughout this Strategy is consistent with the Government’s Allsop Review of Statistics for Economic Policymaking which reported in March 2004 and has highlighted the importance of enhancing evidence based policy making across the public sector.

Other strategies and initiatives

MARY REILLY, LDA CHAIR
London is a successful, dynamic and growing city. This document, ‘Sustaining Success’, sets out a strategy for the London economy, built on the Mayor’s vision for London, and embracing predicted growth for the capital over the next 12 years. The Strategy is consistent with the suite of Mayoral strategies prepared over the last four years. It has been prepared by the London Development Agency on the Mayor’s behalf, and sets out an agenda to aid creation of the necessary conditions for London’s success to be sustained, and for the benefits of that success to be felt across the capital. In preparing this Strategy we carefully considered the current economic conditions in London, trends that have resulted in the current situation and forecasts for future growth and development. The Strategy is therefore based on sound evidence Other strategies and initiatives (see box). At the same time, through our extensive public consultation exercise, we have listened to the views of residents, enterprises, organisations, communities and other stakeholders. The consultation on the draft Strategy provided us with significant feedback and many suggestions for change. While it has not been possible to make all of the changes suggested, those that have been incorporated have made a positive contribution to this final document. A full analysis of the consultation responses and our reaction to them is published alongside this Strategy. Generally consultation respondents endorsed the direction for the London economy proposed in the

Strategy. Most significantly, they identified implementation and action as the most important issue. This recognises that London’s growth and development is a collective endeavour, and that there is a clear need for the public, private and voluntary and community sectors to work together to achieve desired outcomes. When revising the Strategy in light of public consultation responses, one of our prime objectives has been to ensure that the action plan clearly shows the type of activities required to make progress against strategic objectives. At the same time we have continued our dialogue with London’s economic development community. This dialogue has confirmed to us that supporting this Strategy with robust methods for joint working is as important as the Strategy itself. The Strategy which we set before you must been seen as the start of a process, not an end in itself. It is, of necessity, a high level strategy. The LDA will be leading in its delivery. Our actions will be clearly outlined in our Corporate Plan. We look forward to working in partnership with those involved in developing the London economy to design the detailed initiatives, programmes and projects now needed to implement this Strategy. It will be by working in partnership so that we can ensure we are all focussed on ‘Sustaining Success’.

Mary Reilly LDA Chair

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CHAPTER 1: OVERVIEW

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London is one of the world’s great cities in every sense, enjoyed and prized as such by its inhabitants. It is also an irreplaceable economic asset for the whole country. London is Europe’s greatest financial centre and, to an important extent, a world leader rivalled only by New York and Tokyo. But London contains a higher proportion of internationally oriented firms than either New York or Tokyo and is uniquely internationalised. The health and competitive position of the entire UK economy is therefore bound up with that of London. A weakening of London’s competitive position in the international economy cannot be compensated for by other parts of the UK. This unique position creates substantial strains as well as opportunities. London’s growth in population and jobs is not matched by any other major European city – stretching the city’s infrastructure, putting upward pressure on costs and threatening environmental damage. Large parts of London’s businesses are directly linked to the international economy and are therefore under constant and strong pressure from competitors in other countries. The need for London to compete internationally – and its ability to do so – give it a highly productive economy, with average productivity per person around 20% higher than in the rest of the UK EVIDENCE BASE: CHART 1.8. This high productivity is aided by the physical closeness and density of many firms (what economists term ‘agglomeration’), producing benefits of clustering and economies of scale for many kinds of business. But this also pushes costs in the city higher, creating significant problems for firms that find it hard to compete for the same resources. At the same time, this kind of economic growth has failed to benefit a substantial proportion of the capital’s population. London has the highest rate of child poverty in Great Britain and only 71% of its working age population is in employment EVIDENCE BASE: CHARTS 3.12 & 3.30. This reflects distinctive features of the London labour market. Because the demand for labour is concentrated far more in higher skilled (and higher paid) occupations than in other parts of the UK, those with low qualifications face higher risks of exclusion from the labour market EVIDENCE BASE: CHARTS 3.10 & 3.11. High housing costs can erode gains from employment for lower-paid workers, leaving families in a ‘benefit trap’, where out-of-work benefits provide a higher income than available employment. Competition for limited numbers of lower paid jobs means wages are low by London standards, further reducing opportunities for those with dependents to support. These problems are compounded by barriers to employment affecting many groups in London, including discrimination, accessibility and lack of affordable childcare. In such an economic context, the strategy for London cannot (and should not) be one of competing by offering low value, low wage activities either against other parts of the UK or in increasingly globalised markets. The city’s overall economic development depends on investing in companies and people that can compete in a high productivity and high value environment. Indeed, the common feature of the most successful economic sectors and firms in the capital is that they are high productivity and high value added. London has maintained its traditional international competitiveness in financial services, where productivity is over 40% higher
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than in the rest of the UK EVIDENCE BASE: CHART 1.9. It has also strengthened its position as a global centre for the creative industries – including media and media related businesses, such as fashion, music, film and books, which now provide more jobs than do financial services. A wide range of activities throughout London are involved in providing business services – such as law, accountancy, management consultancy and IT. Moreover, although low value manufacturing in the city has declined significantly, high value manufacturing, often related to scientific, creative and design fields, remains one of London’s most important industries. The highly skilled and diverse population of the city has made it the greatest centre of leisure, cultural, retail and entertainment industries in the UK EVIDENCE BASE: CHART 4.5 . This has clearly added to its historic heritage, helping to sustain its position as the country’s premier tourist destination. While internationally oriented financial sectors remain concentrated in the centre of London these other high value added industries and firms are developing in a more dispersed pattern across the city. In many cases, global business and financial strength are built on the ability to provide local concentrations of activity, whether of lawyers around the Inns of Court, software support in Islington, or creative and leisure industries elsewhere across the city. The benefits of such concentration apply to all industries and include the ability to offer choice, to both workers and employers, to build specific markets and to generate ‘spill over’ opportunities for new knowledge and techniques. Such benefits apply just as much to those who provide sandwiches as to investment bankers and all the other industries inbetween.

One reason why cities have become major centres of investment and activity is because the economy is going through a period of renewed technological change with the incorporation of information and communication technology into more products and the higher design, creative and personalised presentation of services and products. This concentration of activity has bequeathed us another of London’s key resources – its knowledge infrastructure and networks, built around world-class higher education institutions (HEIs), libraries and museums, learned and professional bodies. Harnessing and coordinating these priceless resources, and maximising the benefit for London residents, employers and workers will be crucial to driving the constant innovation a high-productivity economy demands. Turning ideas into economic reality also requires helping firms find the investment they need and making the most of developing information and communications technology. A successful city, particularly one with the unique characteristics of London, can generate a mutually reinforcing growth in productivity and wages across a whole range of businesses. Firms within a particular industry will be more productive where they have to face up to competition from other businesses close by. This will also increase wages as firms compete for the skills they need. So concentration generates competition and produces innovation just as much as openness to international competitors. The resources generated not only create higher living standards but can also be ploughed back into environmental protection and improvement. This kind of mutually reinforcing growth is a key element in promoting productivity growth which the Government rightly sees as crucial to the UK’s future performance.

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But the strains produced by this economic environment in London – both now and in the future – must be confronted. Poor infrastructure and housing shortages have increased upward pressure on what is already a high cost environment. Past failures to invest sufficiently in infrastructure, skills, and facilities to allow people to work (such as affordable childcare, education and training accessible to all and a comprehensive and affordable public transport system) have contributed to severe unemployment and poverty in the capital EVIDENCE BASE: CHARTS 1.22 & 3.29. This deprives Londoners of real equality of opportunity and contributes to marked health inequalities. It is both socially unjust and economically inefficient. Poverty and under-investment in turn worsen environmental pressures in the city. Investment opportunity and economic success accompanied by appropriate public policy interventions will support improvements in environmental, social and economic well-being, and public health. In the competition for the resources needed to do businesses, it is only the most productive and creative firms that are likely to thrive. The pressure to improve productivity is constant, and the boundary between those likely to continue to thrive and those at risk is constantly moving upwards. The imperative is to invest effectively and continuously in every physical aspect of the city and in its people, and in an environmentally sustainable way. This is the central thrust of this Economic Development Strategy and all other Mayoral policies and strategies.

Infrastructure must be a priority Enabling the kind of mutually reinforcing growth mentioned earlier requires investment. Transport, environmental quality and essential services have all come under increasing pressure, both in terms of delivery and the ability to house key workers. London’s high cost base reflects its value to the highly productive firms that are located here. Its success has resulted in rapid population growth and an increase in overall employment over the last two decades, putting more pressure on London’s infrastructure, especially its transport systems and housing. Falling travel speeds, lack of sufficient capacity on public transport and shortages of living and workspace are bound to eat into London’s productivity. The failure of housing supply to keep up with demand is both causing and reinforcing patterns of social injustice. High prices are making it increasingly difficult for essential workers in the public and private sectors to live in London, and for people who depend on benefits to move into work. This is having a distorting effect on London’s economy. Growth has also exacerbated other problems impacting on the city’s economic success, for example, inaccessible transport systems and buildings, and barriers to economic engagement, such as lack of affordable childcare facilities. Policy makers are presented with a straight choice: either to allow London’s productivity to decline slowly over time, risking a permanent loss of competitiveness, or to invest in London and maintain its world-class status.

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Carefully targeted spending on London will make a substantial contribution to delivering national, as well as regional, priorities by: • contributing to the Chancellor’s objective of ensuring a high productivity, high employment economy • delivering sustainable communities • regenerating the Thames Gateway • identifying and seeking to minimise London’s environmental impact on the rest of the UK • achieving a balanced development of the South East of England • tackling problems of social exclusion, child poverty and health inequality • meeting environmental and sustainable development aims and targets. If this investment is not made the UK as a whole will suffer, for without a successful capital the country cannot compete effectively in a global economy. The deep-seated trends identified here present everyone concerned with London’s economic development with some stark choices, particularly in view of the limited scale of the resources available (described in more detail later in this Strategy) and of the powers to intervene in the market. The forces that are remaking the London economy are so strong and well-established that efforts to reverse them are unlikely to succeed. Instead, London must build on its strengths and use the resources generated to provide support where it is needed. Poverty and inequality in London Not everyone has benefited equally, or in some cases at all, from London’s success. London has the highest rate of unemployment among English regions, together with lower rates of employment and participation in the labour market than many other UK cities EVIDENCE BASE: CHARTS 1.22 & 3.12.
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Particular problems are faced by some black and minority ethnic groups, disabled people, older people, other equalities groups and by households with children, including (but not exclusively) lone parent households. This, in turn, contributes to high levels of poverty and deprivation. Indeed, after housing costs are taken into account, London has the highest proportion of children living in poverty in Great Britain EVIDENCE BASE: CHART 3.29 & 3.30. London also has a greater share of deprived wards than any other region, except the North East.2 There are also unacceptable inequalities in Londoners’ health, with male life expectancy in Kensington and Chelsea over five years longer than that in Newham.3 The existence of such deprivation alongside such wealth is not only a moral reproach; it is also a waste of resources that London and its economy just cannot afford. Experience proves that we cannot simply encourage growth and hope its benefits will trickle down. There is a need for a clear understanding of the causes of poverty and exclusion, building on the insights gained by work already carried out by the GLA and others. Positive policies to deal with these causes are also needed, again building on the work already undertaken by the GLA in this area. Key to addressing these issues is tackling the complex mix of issues that create barriers to the fuller participation of so many Londoners in the city’s work and life. London’s success depends on making the most of the full range of talents available, overcoming labour market disadvantages faced by women, black and minority ethnic, disabled workers or other equalities groups. Effective actions to overcome longstanding problems of social and economic exclusion and discrimination are also needed. These will include action to address

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Just over 37% in London compared with 49.7% in the North East, as measured by the Index of Multiple Deprivation (IMD). 3 Table A.26, page 144, ‘London Divided: Income inequality and poverty in the capital’ (2002), GLA.

issues such as: the lack of suitable and affordable child care; deficiencies in the benefits system that disadvantage some when they enter employment; the need to encourage greater diversity in all our workforces; ensuring Londoners have the training and skills required to compete; addressing the barriers preventing women, black and minority ethnic groups and other equalities groups from playing a full part in the economy, and providing them with the information and support they need. And where some economic sectors are being forced out, the people currently employed in them will need additional help to move into industries that are more likely to succeed in London’s evolving economy. The consequences of London’s growth also need to be addressed. A bigger, younger and more diverse population, and the pressures that changes in London’s economy will bring for individuals, will make new and distinctive demands for social infrastructure – like education, health and childcare. Unpaid workers – including those caring for their families – will need support. The increasing number of people in older age groups will have much to contribute, but will also have particular needs. Issues of this kind would be challenging anywhere, but in a city as large and complex as London, they are particularly acute. Spatial, environmental and resource implications If economic change has had varying results for London’s people, it has also impacted differently on the places where they live and work. While the more globally oriented sectors have tended to concentrate in central London, others have grown across the city as a whole, and places that have relied on less successful parts of the economy have continued to do less

well. The whole city is influenced by the global forces referred to earlier. For example, if finance and business service firms in central London do badly, local economies in other parts of the capital – which benefit from the wealth generated in central London – will suffer too. Although this Strategy focuses on trends and initiatives of London-wide or sub-regional importance, it also seeks to identify and help put in place policies that will nurture sustainable economic development at a more local level. London has to be seen as a complex whole, made up of distinct but interrelated areas, places and communities. Some of these will require support and investment to address the legacies of the past, including dereliction and contamination, and to help position and market themselves to compete. As we have seen, a major challenge will be to accommodate the population and employment growth forecast for London. The London Plan (and related supplementary guidance) sets out the spatial strategy required to do this, including regeneration of large areas of east London, the development of smaller areas of opportunity, a focus on where more intense development is appropriate across London as a whole, and support for the city’s network of town centres. It also outlines planning policies to address some of the fundamental issues raised here – reducing the cost base by ensuring an adequate supply of land for development, and delivering more (and especially affordable) homes. Making the most effective use of land and other scarce resources in delivering sustainable communities (by focussing development on brownfield sites, promoting mixed use and denser development and encouraging energy efficiency, for example) is a key theme of this Strategy.

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It is also important to consider London in its regional, national and global contexts. The way London uses resources, and many of the decisions taken here, will have major effects in other countries. London plays a key role in attracting international investment to the United Kingdom, and this brings economic benefits to other parts of the country, helping them to boost their competitiveness within the European Union. In particular, London powers and supports the economy of the wider southeast of England. The policies in this Strategy are intended to support these roles – helping to achieve the Government’s objectives of ensuring overall national prosperity and reducing regional economic growth disparities. They are also aimed at ensuring London’s growth is smart growth – minimising adverse environmental and economic impacts on the rest of the country by encouraging innovation and responsibility throughout the London economy, and enabling Londoners themselves to take up more of the opportunities presented by the success of their city. These steps will help reduce pressures on neighbouring regions. As the Government itself has recognised, holding some regions back does not mean others will necessarily benefit. London’s sustained success is in the overwhelming interest of the country as a whole. It is simply a myth that redirecting resources and investment from London will support either greater national prosperity or greater economic equality among regions – quite the opposite. A vital aspect of London’s continued success will be the quality of its environment. Economic growth is simply unsustainable in every sense of the word unless issues of environmental quality and the efficient use of resources are addressed alongside the social and economic dimensions

of sustainability. Not only is a good quality, sustainable environment a valuable asset to London’s success in its own right, but poor air quality, excessive noise and waste clearly also impact on health and quality of life. Over a longer timescale, climate change poses major challenges – both directly for London as a city (including the risks of flooding, water shortages and transport disruption), and indirectly as its worldwide impacts affect many of the financial, business services and other parts of the city’s economy. The high value-added sectors on which London relies will not thrive in places with dirty streets and a poorly maintained public domain, nor if the city’s open spaces, biodiversity and natural and built environment heritage are poorly maintained. High quality urban design will also be required. At the same time, ways will have to be found to reduce the impact of economic development, decoupling economic growth from environmental degradation. How London uses resources, and many of the decisions taken here, will have impacts across the world. There is also a growing environmental services sector that has potential to contribute to London’s competitive edge, helping it address some of the issues the city faces and providing a best practice model for other UK and world cities. Other businesses must also be encouraged to act in ways that help secure our city’s environmental integrity. As a key global innovator and leader in financial markets, London is well-placed to take the lead in establishing new environmental markets and instruments, such as carbon trading and processing of recycled materials. This document illustrates the principal actions that will be taken on these issues, driving improvements that will boost and support London’s economic success

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while also contributing to an accessible, safe and healthy environment for everyone living, working, studying in or visiting the city. Safety and security are key to ensuring a good environment for business. This requires taking the steps needed to protect the city from threats like terrorism, and robust measures to ensure its resilience. It also means taking effective steps to tackle problems of crime and anti-social behaviour, both as they affect businesses directly, and as their impact affects particular places and communities. These issues suggest the priorities for this Strategy The context described here not only shapes what we should do but also the ways in which we should do it. Resources are at a premium, and the powers of a Regional Development Agency and its partners are limited. A clear view of when intervention is sensible and effective, and the form it should take, needs to be articulated. In a number of places in this Strategy, therefore, we identify areas where economic development interventions in the past have not been successful in delivering desired outcomes. One reason for this is that services have not always been designed and delivered to meet the real needs of the intended beneficiaries. So an important theme of this Strategy is that, as far as possible, we should establish and be responsive to the needs of all London’s enterprises and people, and fashion our actions accordingly. The information we have about business concerns, for example, bears out this analysis. The European Cities Monitor suggests that the most important factors businesses take into account when deciding where to locate are availability of qualified staff, quality of

life considerations (which are increasingly important), communications and costs. London’s plan for action This Strategy is a plan for action for all those involved in London’s economy and concerned with its success. It sets out the directions in which the LDA and the GLA Group as a whole will seek to work with others in the public, private and voluntary sectors over the period covered by this Strategy. Its underlying principle is that progress in improving social equity and inclusiveness for all Londoners, in tackling problems of social exclusion, improving the environment and making the city a good place in which to live, work, play, study and visit are vital to the city’s continued economic success. While economic growth will not deliver these benefits by itself, they will simply be impossible without it. And sustained growth, in turn, will be impossible without addressing them. Making these linkages is where the need for economic development, and for this Strategy, comes in. This Strategy therefore seeks to: • build on London’s strengths – including its social diversity, the range and scale of its markets, its high income and high productivity focus • identify opportunities – such as the scope for marketing, building on success and ways of making best use of existing assets • address existing weaknesses – of high costs, social exclusion, poor environments and pressure on infrastructure • address looming threats – loss of competitiveness, poor liveability, declining overall welfare and increasing social polarisation.

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It sets out a programme for action and investment that will contribute to delivery of national and regional priorities. It also supports the overarching themes of the European Employment Strategy: full employment, quality and productivity at work and promoting inclusion by addressing disparities in access to labour markets.4 It also reflects the aspirations of the European Union and its member states to ensure Europe becomes the world’s most competitive and dynamic knowledge-based economy by 2010 (the “Lisbon Agenda”). As a world gateway and a major economic innovation and knowledge centre, London has a key role to play in delivering this ambition. Major investment themes In the light of the analysis set out in this section, and the evidence contained in Part 2, four major themes have been identified. Investment in London’s places and infrastructure: against the background of London’s growth, delivering new physical, social and environmental infrastructure accessible to all to reduce the city’s cost base; ensuring sustainable communities with adequate and affordable housing and the other services and facilities they require; reducing reliance on in-commuting from neighbouring regions; regenerating places that face problems of social and economic dislocation and deprivation. Investment in people: effective action to address economic and social exclusion and help people overcome the barriers that prevent them from playing a full part in, and benefiting from, London’s success; ensuring the city’s growing high value sectors have the skilled workforce they need to compete and grow.

Investment in enterprise: finding effective ways to help businesses and communities prosper and compete; building on the creativity and imagination of London, its people and its entrepreneurs and fostering a supportive environment for innovation. Investment in the marketing and promotion of London: to ensure that what the city can offer people and businesses is understood, supported and valued. Under these headings, we set out areas for action and intervention that can offer real levers for change between now and 2016. These are proposals that partners are asked to endorse, support and, crucially, help to resource and deliver. In this way, we can maximise the benefits that London’s economic success already brings to the UK economy, its businesses and people. The focus here is on issues of genuinely strategic importance, and on actions that will effect change at a city-wide level in ways that will make the most of London’s unique diversity. These include mounting an innovative, world-class bid to hold the Olympic Games in 2012; supporting the creative industries (the city’s second fastest-growing economic sector) EVIDENCE BASE: CHART 4.5; addressing the environmental issues that are so important to all London firms and people, and developing exciting plans for marketing and promoting London as a place to visit, study, do business and to live. Much of the detail about programmes and policies to deliver the strategic objectives set out here will be spelt out in action plans developed by the LDA (in particular its Corporate Plan), the rest of the GLA Group and partner organisations.

4

European Commission, “The future of the European Employment Strategy”, (2003)

16 LDA Sustaining Success – Developing London’s Economy

2

CHAPTER 2: THE ROLE OF THE ECONOMIC DEVELOPMENT STRATEGY

The Economic Development Strategy (EDS) is part of a suite of Mayoral strategies designed to deliver the Mayor’s vision for London, as set out in his foreword to this document. This is to develop London as an exemplary sustainable city based on three balanced and interlocking elements – strong and diverse economic growth, social inclusivity, and fundamental improvements in environmental management and use of resources. The Mayor works to deliver this vision through the eight strategies he is required to produce by law, as well as through his other policies and interventions. The issues covered by these strategies are: • spatial development • transport • culture • ambient noise • air quality • municipal waste management • biodiversity • economic development. The Mayor’s Spatial Development Strategy, known as the London Plan, provides the spatial policy framework for all of the strategies. It has six key objectives related to the EDS. 1 To accommodate London’s growth within its existing boundaries without encroaching on open spaces, making east London the priority area for new development, regeneration and investment, fostering sustainable and mutually beneficial relationships with neighbouring regions, prioritising areas for regeneration, improving suburban areas and protecting open spaces. 2 Making London a better place to live, including improving the quality of the urban environment; achieving targets for new

housing to address the needs of London’s existing and future population; addressing the needs of London’s diverse population and ensuring a cleaner, healthier and more attractive environment in all parts of London. 3 Making London a more prosperous city with strong and diverse economic growth, including ensuring an adequate infrastructural base, supporting a wide range of enterprises, providing training, transport accessibility and support to allow Londoners to compete successfully for jobs in London. 4 Promoting social inclusion and tackling deprivation and discrimination, including tackling unemployment by increasing access to good quality jobs through training, advice and other support, addressing concentrations of deprivation, tackling discrimination and ensuring local communities benefit from growth and are engaged in the development process. 5 Improving London’s accessibility, including improving and extending London’s public transport, integrating transport and development, improving London’s international, national and regional accessibility, tackling congestion, and improving sustainable freight movement. 6 Making London a more attractive, welldesigned and green city, including promoting actions to achieve the wider environmental sustainability of energy use, waste treatment, noise pollution, air quality and biodiversity, addressing the challenge of climate change and making the fullest and most sustainable use of resources. In addition to the statutory strategies, the Mayor has chosen to develop a range of other

ECONOMIC DEVELOPMENT STRATEGY
17

2 THE ROLE OF THE ECONOMIC DEVELOPMENT STRATEGY

policy initiatives covering tourism, children and young people, older people, childcare, energy, alcohol and drugs, rough sleepers, domestic violence and poverty. There is a legal requirement that the LDA and other GLA functional bodies should have regard to the Mayor’s statutory strategies in carrying out their work.

2.1 CONSISTENCY ACROSS MAYORAL STRATEGIES
The Mayor is required to consider the consistency between each of his statutory strategies and with national policies and international obligations. The London Plan takes as its starting point the projection that London will continue to grow significantly between now and 2016. For this growth to be adequately managed and accommodated, significant new investment will be needed in London’s infrastructure and public services. The EDS supports this message by focusing on the objectives and actions required to sustain London’s success and to ensure that London’s economy is able to accommodate this expected growth. In this way, all of London’s businesses, workers and residents will be able to benefit from more equitable and sustainable economic development. Other Mayoral strategies identify where the LDA has a specific role to facilitate their delivery. The LDA will achieve this through developing and implementing its own programmes. Detail on this will be found in the LDA’s Corporate Plan. Consequently,

this Strategy does not list the policies and proposals contained in other Mayoral strategies unless they directly relate to one of the EDS’s core objectives at a strategic level. It does, however, identify key connections between the EDS and other strategies. In the environmental field, for example, these connections include combating fuel poverty through insulation programmes geared towards low-income households, encouraging innovative ways of promoting energy and energy efficiency, improving London’s air quality, reducing unwelcome noise and encouraging recycling and reuse of materials.

2.2 LEGAL CONSIDERATIONS
This Strategy has to be consistent with the priorities and purposes set out in the legislation establishing the GLA (the Greater London Authority Act 1999), as well as that dealing with regional development agencies (the Regional Development Agencies Act 1998). Under the 1999 Act, the principal purposes of the GLA are to: • promote economic development and wealth creation in London • promote social development in London • promote the improvement of the environment in London. The legislation also sets out three cross-cutting themes that have to be taken into account in preparing and implementing all Mayoral strategies: • promoting the health of people in London • contributing to achieving sustainable development in the United Kingdom • securing equality of opportunity for all people.

18 LDA Sustaining Success – Developing London’s Economy

The statutory purposes of the LDA are to: • further the economic development and regeneration of London • promote business efficiency, investment and competitiveness in London • promote employment in London • enhance the development and application of skills relevant to employment in London • contribute to sustainable development in the United Kingdom, where relevant. RDAs, including the LDA, are required to produce and update a regional economic strategy to improve economic performance and enhance their region’s competitiveness. In London’s case, this is the EDS. The statutory framework for the production of the London EDS is detailed in Appendix 1.

2.3.1 SUSTAINABLE DEVELOPMENT
The LDA has been working to ensure that sustainable development is central to all of its activities. Its approach is based on mainstreaming sustainable development across all activities, encompassing the three basic dimensions of sustainability – economic, social and environmental development. The LDA takes account of how this approach impacts on sustainable development in neighbouring regions, and on the UK as a whole. According to the London Sustainable Development Commission: “We will achieve environmental, social and economic development simultaneously; the improvement of one will not be to the detriment of another. Where trade-offs between competing objectives are unavoidable, these will be transparent and minimised.” 5

ECONOMIC DEVELOPMENT STRATEGY

2.3 CROSS-CUTTING THEMES
Sustainability, equality and health (see box). Integrating the cross-cutting themes listed above has been a central focus. The approach has been to identify actions that will make a positive contribution to delivery of the cross-cutting themes. Some of the actions listed in the action plan are specifically targeted at achieving the environmental and social aspects of sustainable development, health and the needs of equality target groups – such as interventions to reduce youth unemployment or to regenerate deprived areas. Others directly address the economic aspects of sustainable development. In other cases, programmes of wider application will have disproportionate benefits for particular groups and issues. A series of impact assessments was carried out on this Strategy to check that its content and action plan pay appropriate attention to the cross-cutting themes, summarised in the following sections.

2.3.2 HEALTH
Income, employment and quality of life are key determinants of the health of individuals. Likewise, a healthy workforce contributes to a healthy economy. But as the World Health Organisation argues: “Health is a resource for everyday life, not the object of living. It is a positive concept emphasising social and personal resources as well as physical capabilities.” Research by the King’s Fund 6 highlights not only the huge purchasing power of the NHS – and therefore its potential role in driving economic development – but also the strong connection between health improvements and sustainable economic development.

For further information on the principles and benefits of sustainability, equalities and health impact assessments and how they relate to this Strategy’s implementation, see Implementation Chapter 7.

Sustainability, equality and health

5

A Sustainable Development Framework for London. 6 A. Coote (ed), Claiming the Health Dividend: Unlocking the benefits of NHS spending (2002) King’s Fund.

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LDA and other partners’ activities can impact on health and the health of Londoners in a number of ways and it will be important to continually assess this. The London Health Commission (LHC), the Mayor’s advisory body on health matters, has already funded the development of health impact methodologies and will work with partners to implement these.

2.3.4 EQUALITY OF OPPORTUNITY
London’s diversity is one of its greatest assets. It is vital that this is recognised and that there is equality of opportunity across the capital. The GLA Group has adopted a Group-wide vision to become an equalities champion and leader in: • promoting equality • challenging and eradicating discrimination • providing responsive and accessible services for London • ensuring its workforce reflects the diverse population of London. The Mayor’s Annual Equalities Report defines equality as: “… the vision or aims of creating a society free from discrimination where equality of opportunity is available to individuals and groups enabling them to live their lives free from discrimination and oppression.” Legislative changes, such as the Race Relations (Amendment) Act 2000 and Disability Discrimination Act 1995, as well as the new European Employment Directives (which include measures to tackle discrimination on the grounds of age, faith and sexual orientation), bring requirements for change in the public and private sectors. In addition, London’s economic partners and other stakeholders need to address institutional discrimination, ensure greater community
20 LDA Sustaining Success – Developing London’s Economy

cohesion and promote good race relations. The LDA is continuing to ensure that equality and diversity are addressed within its core activities. It has developed a Race Equality Scheme and introduced an Equalities Impact Assessment process for all of its programmes. This Strategy seeks to ensure that actions benefit all equality target groups in both mainstream programmes and in actions targeted at specific groups. Robust monitoring of outcomes for each equality target group is essential to achievement of equality and diversity goals. The LDA is committed to developing and implementing methods of achieving this for its own and its partners’ activities.

2.4 WHEN SHOULD THE PUBLIC SECTOR INTERVENE IN ECONOMIC DEVELOPMENT
The public sector should only intervene where it can show there is a need, and where intervention is likely to be effective. For example, where action is needed because the market will not deliver objectives unaided, or to ensure social equity. There are four areas in economic development where the market performs inefficiently and where a clear case can be made for public sector intervention. 1 Public goods – The public sector has a responsibility for the provision of what economists call public goods. Public goods are goods or services that can only be enjoyed by the community as a whole and where one person benefiting does not stop someone else doing so as well. Examples of public goods include street lighting and national defence. The public sector usually funds public goods, although increasingly the private sector is investing in them too.

2 Externalities – Economic development activity tends to have impacts that may not be planned or wider costs which are often not taken into account. For example, a factory closure may have many impacts on a community that have not been planned for or financed by the company that closes the factory. Economists call these impacts ‘externalities’ or ‘external costs’. It is important that the public sector encourages positive externalities and intervenes to lessen the impact of negative externalities. London’s economic success creates a range of external costs, such as traffic congestion and environmental pollution. London is leading the way in dealing with some of these external costs, for example, through the congestion-charging scheme. 3 Imperfect information – Markets can fail because businesses, residents or workers have insufficient or imperfect information to make good investment, development, training or career decisions. Examples include companies that may lack the information needed to bid for public sector contracts; individuals who do not have the necessary information to search effectively for a job; businesses lacking the management skills to develop products using university research, or banks without the information needed to determine the creditworthiness of a small business. The public sector can play a vital role by, for example, providing accessible information to those that need it. 4 Coordination – The public sector can aid economic development by assisting other sectors to coordinate their activities. This can include creating strong networks of organisations and businesses, and joint marketing and promotion. It can even include

the public sector buying a number of relatively small plots of land in a particular area so that a larger site is created, making the whole are a more attractive for developers – this is called ‘site assembly’. There can be a particular need for action to coordinate actions to tackle issues that straddle geographical, administrative or organisational boundaries. In terms of achieving social equity, the public sector may be required to tackle barriers that prevent individuals from fully participating in the market economy. London’s low employment rate and high child poverty are its two most pressing social problems. Causal factors include an inability to upgrade skills and qualifications or to access affordable childcare, and direct or indirect discrimination because employers recruit in ways that are not open to all. The public sector is also needed to provide security for those who are unable to derive an adequate income from the market: all households need an adequate level of income if they are to participate in society. The public sector may be required to intervene to ensure that economic activity is broadly spread or to create opportunities where the market itself either will not address the issue unprompted or would only do so over an unacceptably long timescale. The public sector may also be required: • to tackle barriers that prevent individuals from fully participating in the market economy • to provide security for those who are unable to derive an adequate income from the market • to ensure that economic activity is broadly spread, or to create opportunities where the market itself either will not address the issue unprompted or would only do so over an unacceptably long timescale.

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There are a range of public sector agencies that might intervene in the economy. In some cases, national interventions need to be made by central Government – using the tax system, for example, to deal with negative environmental impacts, or to alleviate child poverty. In others, actions can be taken at a London-wide or local level, such as congestion charging or helping parents into jobs. Regional economic development partners, such as the LDA, also have an important role to play in seeking to influence national Government. But public sector interventions can be counterproductive, or have unexpected impacts. The large number of public agencies working on economic development and regeneration in London can be a hindrance to healthy economic development whether their activities are targeted at, for instance employment, skills development or business support. No single agency has responsibility for these issues. It is rare that the range of agencies involved share formal objectives, common targets or working practices; these can result in negative impacts themselves. Like other sectors, the public sector can suffer from poor or inadequate knowledge. This can mean that it risks substituting itself for the market, planning outcomes that are best left to the market to determine. There is a danger of this occurring, for example when attempting to forecast and plan for skill shortages on anything but a highly strategic level. Similarly, when the public sector provides subsidised training and business support services or provides subsidised accommodation it is in danger of replacing market activity.

Finally, the style of public sector intervention is important. Although interventions that run counter to market trends can be justified, this is only the case where the resources and powers to act are sufficient to make a difference. With most of the strong and deep-seated trends identified in this Strategy, approaches that work with the grain of the market are most likely to be successful.

22 LDA Sustaining Success – Developing London’s Economy

3
Objectives

CHAPTER 3: INVESTMENT IN PLACES AND INFRASTRUCTURE

Mayoral strategy (see box)

• Support the delivery of the London Plan, to promote sustainable growth and economic development. • Deliver an improved and effective infrastructure to support London’s future growth and development. • Deliver healthy, sustainable, high quality communities and urban environments. This chapter deals with the investment in London’s places and infrastructure needed for the city to realise its economic development potential and deliver genuinely sustainable communities. We need investments that will: • meet the needs of all Londoners, existing and future • support a good and improving standard of health and quality of life • provide a range of opportunities and choices accessible to all. And we need to make these investments in ways that: • ensure efficient use is made of limited resources • protect and enhance the environment • boost economic success and prosperity • promote social inclusion for all parts of London, and for all its people. Chapter 1 has shown how vital investment of this kind is to support London’s continued economic success. The Mayor’s London Plan sets the strategic policy context for this investment. The Plan explains what has happened in London over the last 30 years to reverse historic trends of population decline, and to fundamentally alter the city’s economic base. It explains the scale

of expected growth to 2016, showing an expected increase in population of 800,000, with 636,000 new jobs projected. Against this background, the Plan sets out a land use strategy to manage and influence these market and demographic forces so growth can be accommodated in a sustainable way, without encroaching on the Green Belt or London’s open spaces. This means focusing development on places where it is most appropriate and needed – making the best use of the opportunities in east London, for example. It also requires making the best use of London’s scarce land resources, maximising the reuse of already developed land while protecting and enhancing the city’s heritage of open space. By targeting areas in need of regeneration, the Plan sets out a strategy to promote economic development of all parts of London. By making sure optimum use can be made of all the city’s resources, it will also support economic growth and resource efficiency. A good spatial understanding of the economic, social, environmental, infrastructural and other interconnections between the different areas and neighbourhoods in London is essential as a basis for effective action. This also applies as well to the links between London and its neighbouring regions, the rest of the United Kingdom and the world. This chapter therefore sets out the geographic framework for this Strategy. It then outlines the investments in London’s places and infrastructure that are needed to meet the challenges of population and employment growth, and in ways that can help ensure genuinely sustainable communities where the market alone cannot deliver. It does this at a strategic level. Local actions will be spelt out in more detail in development frameworks to be devised for each sub-regional area.

This chapter links to the London Plan, the Mayor’s Transport Strategy and his environmental strategies (ambient noise, air quality, municipal waste management and biodiversity).

ECONOMIC DEVELOPMENT STRATEGY

Mayoral strategy

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3 INVESTMENT IN PLACES AND INFRASTRUCTURE
The SWOT analysis gives further background: Strengths • Integrated transport and other networks (including world-leading telecommunications infrastructure), allowing movement of people, goods and knowledge. Real and virtual connectivity ensures London is central to growth in the UK and a major global hub. • Existing growth clusters close to areas of need. • World-class artistic, cultural, educational and professional institutions, and a rich heritage of open spaces and quality urban environments that improve the quality of London’s places, and represent significant economic development assets in their own right. Weaknesses • London is a victim of its own success, as well as long-standing under-investment and, until the creation of the GLA, an absence of effective citywide governance. Resulting imbalances between infrastructure supply and demand impact on economic performance, highlighted by increased journey times, congestion and the pricing out of key workers. • While London’s external transport links are perceived as being good by business, its internal system is less well regarded
EVIDENCE BASE: CHART 2.5.

Opportunities • Further integration of markets, particularly in the financial and professional services sectors, offers opportunities for London’s most productive industries. • Pressure on the city’s resources encourages the adoption of innovative solutions such as reclamation of major brown-field sites; introduction of congestion charging; integration of the management of London transport modes (including London Underground), and mounting a bid for the 2012 Olympic and Paralympic Games based on maximising the long-term legacy for the city. • Juxtaposition of deprivation and success offers the opportunity to better link areas of disadvantage with developments in areas of opportunity. Threats • Infrastructure bottlenecks persist due to a lack of skilled labour and funding. Investment by rivals (in telecommunications, for example) reduces London’s comparative advantage. • Weak institutional capacity and lack of funding threaten to undermine investment in areas of need. • The risk that out-migration escalates, resulting in a loss of mixed communities and regeneration opportunities EVIDENCE
BASE: CHART 3.4.

• London is the most polluted city in the UK and one of the most polluted in Europe
EVIDENCE BASE: CHART 2.22.

• Some communities excluded from active participation in the labour market by spatial factors, including inadequate public services and infrastructure, serving to compound other disadvantages.

• A high cost-base may impede employment growth and long-term competitiveness
EVIDENCE BASE: CHARTS 2.1 & 3.27.

24 LDA Sustaining Success – Developing London’s Economy

3.1 PLACES
The underlying spatial strategy of the London Plan, and of this document, is to manage London’s growth within its current boundaries, protecting green land and minimising negative impacts on neighbouring regions. This approach is based on recognition of the value that only London can bring to the rest of the country because of its global orientation and competitiveness. Seeking to redirect growth to other parts of the country is unlikely to be effective, resulting in a net loss of opportunity to the United Kingdom without addressing the real problems of economic disparity between regions. A key aim of this Strategy is to make sure London continues to contribute to the economic success and productivity of the UK as a whole, supporting the development of all its regions and counties. This means it is vital to ensure Londoners have the necessary skills, housing and other infrastructure to help them take up the new job opportunities the city’s economy will provide. This will help to slow growth in inward commuting from neighbouring regions, while reducing the development, environmental and economic pressures facing the East and South East regions. Partnership working with bodies in other regions is also needed to address development and regeneration priorities, needs and areas straddling regional boundaries. These include maximising the effectiveness of the Government’s Sustainable Communities Plan and the growth areas it identifies in London: the Thames Gateway and London-StanstedCambridge corridor. The particular issues posed by the development of the ‘western wedge’, extending from west London to the Thames Valley, and the area south from Croydon to Crawley/Gatwick and Brighton, will also need to be addressed. London is a complex patchwork of areas and neighbourhoods. Each has its own characteristics and needs, but each is also affected by, and plays a different part in, the economy of the city as a whole. While the direct effects of many of the trends described

in Chapter 1 are seen most dramatically in the centre of the city, their wider implications and indirect impacts affect all parts of London – inner and outer – in different ways. It is essential to understand these linkages, and their spatial impact across the whole Greater London area (and beyond) so that appropriate policies can be designed and implemented for different areas and types of places in the city. In some areas, there is an urgent need to tackle major problems of deprivation and social exclusion INVESTMENT THEME: PEOPLE, CHAPTER 4 , FOR FURTHER DETAIL ON THE CONCENTRATION OF DISADVANTAGES . The London Plan identifies a number of such places where there are opportunities for regeneration and development which can help to address these problems and contribute to meeting London’s wider need for new homes and workspace. These will be the priorities for the LDA and the rest of the GLA Group. But it is recognised that there are also local priority areas where local authorities and partnerships are coordinating similar action. To achieve the full regeneration potential of all these places, linkages between different levels of governance, adjoining authorities and development agencies will be vital, ensuring a coordinated approach that makes best use of resources, skills and knowledge and finding synergies between activities at local, sub-regional and regional levels.

ECONOMIC DEVELOPMENT STRATEGY

3.1.1 LONDON’S PLACES: THE SUB-REGIONAL FRAMEWORK
Mayoral strategy (see box) The London Plan examines each part of London, using the framework of the five Learning and Skills Council sub-regional areas (Central London, East London and the Thames Gateway, West London, North London and South London). It recognises, though, that their boundaries are not always relevant to economic development and that there will be issues and priorities that straddle them. They will be treated as being ‘permeable’ from the point of view of analysis and implementation.
London Plan, Chapter 5.

Mayoral strategy

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The Plan identifies six different types of place with particular importance to economic development and regeneration: • twenty-eight opportunity areas, capable of accommodating substantial numbers of new jobs (at least 5,000 in each case) or homes (at least 2,500 each), or a mix of the two • fourteen areas for intensification, which can support a greater density of employment or housing, but at a lesser scale than in opportunity areas • areas of regeneration, covering the most deprived 20% of wards in London with high levels of unemployment and social exclusion • London’s network of 1,400 town centres, covering centres of international importance (e.g. the West End), metropolitan centres (e.g. Croydon), major centres (e.g. Brixton), district centres (e.g. Acton) and local or neighbourhood centres • London’s suburbs, covering two-thirds of the capital’s total land area and providing a range of employment and other opportunities, plus opportunities for more intense development, particularly in and around town centres and for rejuvenation of local office markets • sixty-two strategic employment locations, which provide for London’s strategic industrial requirements and comprise locations for industry and warehousing. As described below, each sub-region has an essential and distinctive contribution to make to London’s economic and social development. Central London (Camden, Islington, Kensington and Chelsea, Lambeth, Southwark, Wandsworth and Westminster) This area covers part of the Central Activities Zone (which extends into east London and includes the City of London and parts of Tower Hamlets and Hackney) the home of many of

London’s most important economic sectors. The priorities here are to maintain the area’s role as a key driver for London’s economy; to support the intensification of uses to meet targets for homes and jobs; to maintain a diverse business base, and to ensure that residents from deprived areas are able to access current and future job opportunities here. This sub-region also includes the West End, which plays an important role in London’s retail and leisure sectors, as well as providing a vital part of the city’s international offer, and which will require coordinated action to support its longterm future as a premier shopping and entertainment quarter. There is scope for major new development on the fringes of the central area. Implementation of Crossrail will be important to help relieve transport capacity constraints and to support development of the sub-region’s opportunity and intensification areas. The London Plan envisages 107,000 more homes and 239,000 additional jobs here and identifies six opportunity areas (Waterloo, London Bridge, Elephant and Castle, Vauxhall/Nine Elms/Battersea, Kings Cross and Paddington), six areas for intensification (Farringdon/Smithfield, Holborn, Euston, Tottenham Court Road, Victoria, Arsenal/Holloway) and three strategic employment locations. East London and the Thames Gateway (City of London, Tower Hamlets, Hackney, Newham, Redbridge, Barking and Dagenham, Havering, Bexley, Greenwich and Lewisham) London’s largest and one of the most demographically diverse sub-regions, it demonstrates the effects of the forces

26 LDA Sustaining Success – Developing London’s Economy

described earlier in this Strategy at their starkest, containing as it does a growing concentration of finance and business services in the City and Canary Wharf, and London’s largest concentration of industrial land. East London has some of the most deprived wards in the UK, with communities facing particularly severe poverty and social exclusion EVIDENCE BASE: CHART 2.30, which infrastructure and regeneration projects must address. It also contains part of the Thames Gateway area (which extends eastwards to North Kent and South Essex), one of the growth areas identified in the Government’s Sustainable Communities Plan. The London Plan identifies east London as the Mayor’s priority area for regeneration, development and infrastructural investment and as the place where a substantial amount of London’s expected growth should be accommodated. However, meeting these objectives will require massive infrastructure investment, particularly in transport (including Crossrail, the Thames Gateway Bridge and proposed transit schemes), but also in utility services, environmental infrastructure to support development and help prevent flooding, and new homes and social infrastructure (including schools and health facilities) to serve the new communities. At the same time, it is important to maintain the competitiveness of the financial services industry, to support a world-class bid to hold the Olympic and Paralympic Games in 2012 and maximise the benefits and legacy for the local communities. Coordinated partnership working between all the authorities and organisations working in the area – including the new Urban Development Corporation for the Thames Gateway – will be essential, whether or not London is successful in bidding for the 2012 Olympics.

The London Plan envisages 104,000 new homes and 249,000 additional jobs here, identifying 14 opportunity areas (Bishopsgate/South Shoreditch, Whitechapel/Aldgate, Isle of Dogs, Stratford, Lower Lea Valley, Royal Docks, Barking Reach, London Riverside, Deptford Creek, Greenwich Riverside, Greenwich Peninsula, Belvedere/Erith, Thamesmead and Ilford), four areas for intensification (Beckton, Woolwich Town Centre, Royal Arsenal, and Kidbrooke) and 24 strategic employment locations. The Plan highlights the need to improve the quality and suitability for modern industrial requirements of the subregion’s strategic employment locations and indicates the importance of partnership action to address this issue. West London (Brent, Ealing, Hammersmith and Fulham, Harrow, Hillingdon and Hounslow) An area with a strong, dynamic economic base (particularly in media, ICT and business services, and industries associated with Heathrow airport), but also with significant areas of deprivation EVIDENCE BASE: CHART 2.30, forms part of the ‘western wedge’ that straddles the London boundary, taking in the greater Thames Valley. The priorities here are to help maintain the success of growth sectors – improving transport linkages, ensuring high quality commercial and residential property availability, improving public services and the natural environment, and supporting the provision of the skilled workforce that is increasingly required. Other priorities include linking areas of deprivation with employment opportunities through labour market and skills initiatives, and maximising the benefits to the surrounding local communities of the new national stadium at Wembley. There

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is also the opportunity to support and build on local strengths, such as Southall’s ethnic identity and the economic links to the Indian sub-continent. The London Plan envisages 45,000 new homes here and 86,000 additional jobs, five opportunity areas (Wembley, White City, Park Royal, Heathrow/Feltham/Bedfont Lakes/Hounslow Town Centre, Hayes/West Drayton/Southall/Stockley Business Park), one area for intensification (Willesden Junction) and 16 strategic employment areas. North London (Barnet, Enfield, Haringey and Waltham Forest) North London has had mixed economic success recently – with strong jobs growth in Barnet but decline in the manufacturing areas of the Upper Lea Valley. It sits at the southern end of the London-Stansted-Cambridge corridor, identified by the Government in its Sustainable Communities Plan as a key area for development to meet housing needs. This highlights the importance of addressing the regeneration and development of the Upper Lea Valley. The priorities here are to enable local residents to access and compete in the London labour market and to engage them in economic regeneration opportunities, to help develop sustainable homes and communities with adequate transport and other infrastructure, strengthen town centres and enhance strategic industrial sites in the area. The London Plan envisages 47,000 new homes and 26,000 additional jobs, identifying three opportunity areas (Upper Lea Valley, Tottenham Hale and Cricklewood/Brent Cross), three areas for intensification (Mill Hill East, Colindale and Haringey Heartlands/Wood Green) and 10 strategic employment areas.

South London (Bromley, Croydon, Kingston, Merton, Richmond and Sutton) A generally prosperous residential area with several successful town centres and high employment rates overall (linked to a high level of out-commuting to central London and Surrey). But there are also areas of deprivation in northern Croydon, Merton and elsewhere, including a number with concentrations of social housing in need of regeneration. A significant opportunity for sport and leisurebased regeneration exists at Crystal Palace. Priorities here are to maximise the capacity of the larger centres (including Croydon) to provide growth in homes and jobs, improving east-west transport links and focus approaches to tackling the problems of areas of deprivation to ensure all residents can benefit from the prosperity of the area. The London Plan envisages 42,000 new homes by 2016 and 36,000 additional jobs, one opportunity area (Croydon Town Centre), one area for intensification (South Wimbledon/Colliers Wood) and 10 strategic employment locations.

3.1.2 ROLE OF THE SUB-REGIONAL DEVELOPMENT FRAMEWORKS
For the potential in each sub-region to be realised, concerted action by partners at national, regional, local and community levels will be essential. How this will happen in each place will be set out and explained for each sub-region through the preparation of subregional development frameworks (SRDFs), which will coordinate implementation of the London Plan. The SRDFs will also clarify the respective roles to be played by the LDA and the rest of the GLA Group, sub-regional organisations and alliances, and local

28 LDA Sustaining Success – Developing London’s Economy

authorities, strategic and neighbourhood partnerships. Accompanying these will be separate sub-regional economic development documents, to be prepared by sub-regional partners in conjunction with the LDA. These will link with this EDS and identify within that context the sub-regional economic development priorities and the initiatives needed to address them in a sustainable way within the context set by the London Plan, this Strategy and the SRDFs.

3.1.3 AREA-BASED POLICIES AND INTERVENTION
INVESTMENT THEME: PEOPLE, CHAPTER 4 , FOR ADDRESSING THE IMPACT OF CONCENTRATIONS OF DISADVANTAGE.

• whether intervention would offer the potential to attract new investment and development on a regionally significant scale • whether opportunities are created to accommodate new business development in sectors of regional importance • the scope offered to support the creation of healthy and environmentally sustainable communities, provide affordable housing, good quality environments and access to transport • the potential for additional employment and other regeneration benefits to deprived communities • degree of integration achieved with existing and projected transport and other infrastructure developments • the existence of factors influencing the timing or phasing of development. This approach has been used to identify priority areas in the LDA’s Corporate Plan and these will remain the focus of it’s area programme over the current corporate planning period. Further thought will be needed, in consultation with partner organisations, to ensure that scarce resources are used in ways that maximise delivery of strategic policy objectives in this Strategy, both in the Mayor’s London Plan and Transport Strategy and other Mayoral policies and strategies. In already established locations with good accessibility, development is likely to be largely market-driven (most likely in the Central Activities Zone and, to an extent, in opportunity areas like Canary Wharf). In other areas that do not have sufficiently robust infrastructure and/or the critical mass of investment needed to drive a property development market, public sector intervention may be required. A number of locations will fall between these extremes, requiring some

ECONOMIC DEVELOPMENT STRATEGY

It is critical that there is a clear approach to prioritising areas for intervention. This will help avoid the problems associated with too many inadequately targeted regeneration initiatives. In the past, this has led to resources being applied in a ‘scattergun’ way and having little impact on the fundamental issues of reducing deprivation and improving London’s overall competitiveness. It is essential that interventions in future are coordinated on a scale sufficient to reach critical mass and to support and promote sustained improvement. Area priorities should be based on the three themes of regional significance, need and opportunity, and should be judged against the following criteria: • whether the intervention would provide regionally significant opportunities – as defined in the London Plan and this Strategy – within a tightly defined location • the scope for tackling patterns of inequality and discrimination

29

3 INVESTMENT IN PLACES AND INFRASTRUCTURE

London Plan, Chapter 3B, page 92.

Mayoral strategy

infrastructure investment and other steps to promote growing market interest. A particular aspect of place-based regeneration that has potential to support delivery of liveable places, sustainable communities and thriving local economies is based around enhancement and reuse of London’s built and natural heritage, including townscapes. There is considerable scope to marry heritage and innovation to tackle new problems and provide new facilities and attractions for Londoners and visitors.

3.1.4 STRATEGIC EMPLOYMENT LOCATIONS
Mayoral strategy (see box above) The strategic employment locations cover almost 60% of London’s 6,400 hectares of industrial land and fall into two categories. The largest preferred industrial locations are intended to accommodate firms that do not require the highest quality sites (some in the increasingly important environmental industry sector, for example). The remainder are industrial business parks, catering for firms needing better surroundings. Both vary in quality. Some have received recent investment while others have had little improvement, suffer from poor accessibility and are under pressure from other uses. Each will require an appropriate response in order to cater for London’s strategic employment needs, including innovative ways of improving the quality, efficiency of use and management of industrial estates and other locations.

land. This includes former offices in locations where the market is consolidating, as it is in much of outer London, and land released by changes in public services, such as former health service sites. This approach should be based on effective monitoring and release or enhancement of sites once used for employment. A realistic view will need to be taken of the likelihood of reuse, taking into account not only changes to economic structure, but also demand for other uses (including warehousing and logistics, on which London relies for provision of essential goods and services) and linkages to the needs of the surrounding communities. London’s land resources are finite, and must be used in the most effective way possible if sustainable economic development is to be possible. Although there will be a tension between particular uses of land, experience shows that other properly located uses, such as housing, are not necessarily the enemy of jobs and economic development. There is a clear link between some places becoming more residential and employment growth, particularly in town centres. It is also important to bear in mind the scope for including appropriate employment-generating uses as part of higher-density, mixed use developments.

3.1.6 TOWN CENTRES
Mayoral strategy (see box) London’s town centres have a central role to play in the future of London’s economy, providing poles for growth, particularly in outer London, and promoting the ‘polycentric’ pattern of development envisaged in the London Plan. They have seen an increasing concentration of jobs in recent years. Many have significant capacity for development
London Plan, Chapter 3D, page 132.

Mayoral strategy

3.1.5 FORMER EMPLOYMENT LAND
Outside these designated areas, there is a need for a strategic, planned and managed approach to protection or release of former employment

30 LDA Sustaining Success – Developing London’s Economy

and to provide a range of job and other opportunities in the future – particularly for local communities. This in turn will help reduce the pressure on central London and its infrastructure, and will help promote an environmentally sustainable pattern of development. Realising this potential will require: • coordinated and cooperative action by all the organisations with a stake in the health of particular centres, regional and local, and from the public, private and voluntary sectors • appropriate management at local level, including a proactive and strategic approach to monitoring the vitality of centres and identifying priorities for action, town centre management, environmental improvement and use of business improvement districts where appropriate • appropriate infrastructure, including sustainable transport options to improve accessibility to, and within, centres • planning policies promoting higher development densities and mixed uses.

opportunities for tourism, leisure and recreation and in appropriate cases for environmentally friendly passenger and freight access to the centre of London. It serves, too, as a powerful landmark that can be used to help support regeneration and other economic development initiatives. And it is an important wildlife site and natural landscape feature in its own right. Other waterways, such as the River Lea, have major parts to play in realising local and subregional regeneration priorities. The LDA will join with other parts of the GLA Group, relevant boroughs and other stakeholders to ensure the potential presented by the Thames and other waterways in the city is optimised. This will include, for example, seeking to retain freight interchanges on the Thames (while protecting its importance for conservation), exploring the scope for building sustainable new communities near waterways, and implementing the Blue Ribbon Network policies outlined in the London Plan.

ECONOMIC DEVELOPMENT STRATEGY

3.1.8 APPROACH TO DEVELOPMENT
The London Plan sets out an approach to development that is intended to make the most effective possible use of London’s scarce land resources, and this should be reflected in development and physical regeneration initiatives. This is based on denser, mixed use development, with tall buildings where appropriate, coordinated in time and place with the provision of transport, social and other infrastructure and focused on places with established public transport accessibility and capacity and other sustainable links. It also highlights the importance of high quality design and improvement of the public environment. This includes using the development process to secure improvements to the public realm (including open spaces)

3.1.7 OPEN SPACES AND WATERWAYS
Mayoral strategy (see box) London’s open spaces make an essential contribution to the quality of life and economic success. They should be protected and enhanced to ensure that they are accessible to all Londoners, with opportunities to extend or add to them through regeneration and development processes INVESTMENT THEME: MARKETING AND PROMOTION, CHAPTER 6 , FOR
FURTHER DETAIL ON PROMOTING LONDON AS A PLACE.

London Plan, Chapter 4C.

Mayoral strategy

The city’s network of rivers and waterways can also make a major contribution to London’s success. The Thames, in particular, is an important and underused asset. It provides

31

3 INVESTMENT IN PLACES AND INFRASTRUCTURE

and other community benefits, such as affordable housing. A masterplan-based approach is often the best way of ensuring all these benefits are secured. Finally, it is vital that development is carried out in ways that benefit local communities, with the full involvement of local people, and are implemented in ways that help tackle problems of exclusion and discrimination. Projects need to benefit proportionally the diverse make-up of the local communities.

3.2 INFRASTRUCTURE
As described in Chapter 1, the provision and maintenance of a high quality, modern physical infrastructure is vital if the ambitions for London’s economic development, and for development of the places mentioned earlier, are to be translated into reality. In some cases, this will mean providing major new items of infrastructure, like a railway or a bridge. In others, it means the best use of what already exists, ensuring it is properly maintained, finding ways of extending its use or effectiveness, or identifying ways of reusing buildings or facilities. There will be some instances, too, where commonsense steps can be taken to minimise the call on infrastructure, such as water and energy conservation. In all cases, the most effective and sustainable way of using resources should be considered and implemented. All the kinds of infrastructure described here need to be considered in an integrated way, so as to ensure complementary improvements are achieved.

3.1.9 IMPLEMENTATION
The LDA can acquire land and property for redevelopment; this can include using its compulsory purchase powers. This is expensive in time and money. But the LDA has an important role to play in bringing forward developments when the market alone would not. It can also influence the market to implement the types of development, and to use the approaches outlined in this chapter. LDA development activity will be prioritised in the same way as other forms of intervention. Its resources will be deployed primarily to support projects of London-wide importance, such as the 2012 Olympic/Paralympic bid and the regeneration of the Thames Gateway. LDA powers will also be used to support other objectives that may have more sub-regional or local importance, such as strengthening town centres and consolidating strategic employment locations. This will be as resources allow and in partnership with other public bodies that have land acquisition powers, as well as with the private and voluntary sectors, as appropriate. More widely, public sector property strategies have an important potential for regeneration and for supporting innovative public/private partnerships to deliver economic development benefits.

3.2.1 TRANSPORT
Mayoral strategy (see box) It is not possible to set out a comprehensive statement of transport policy in this Strategy (that is the purpose of the Mayor’s Transport Strategy). However, a transport network that has adequate capacity and is fully and readily accessible to all Londoners, wherever they live and whatever their special needs, is a particular priority for the city’s sustainable economic development. London’s economic success has combined with long-term under-investment, resulting in problems of congestion and poor reliability. The quality of transport in London has a major impact on its competitiveness
Mayor’s Transport Strategy and London Plan, Chapter 3C.

Mayoral strategy

32 LDA Sustaining Success – Developing London’s Economy

and its international image (including among potential investors and visitors). Poor accessibility can exacerbate social exclusion, making it harder for people to take advantage of employment and other opportunities, and it can hold back the development and regeneration of particular places in the ways described earlier. Transport also has a major effect on the quality of the environment, impacting both on the health and well-being of Londoners and on the city’s economic success. All of these factors impact on the city’s economic success and efficient use of its resources. Transport is therefore a key economic development issue for London, and involvement of Transport for London and others involved in transport planning and services in regeneration initiatives is essential. However, the link between new or improved transport infrastructure and economic development is not straightforward. Adequate transport infrastructure is often necessary, but not sufficient, for development and complementary policies and initiatives are needed to maximise benefits for particular places and communities. This Strategy supports a coordinated approach to maximise benefits. Realisation of this Strategy requires a comprehensive, accessible transport system for people and freight, enabling easy access to and from all parts of London. There is also a need to reduce reliance on private cars and road-based freight transport as far as possible. Schemes of particular importance to deliver economic development include Crossrail (which will help deliver a number of economic objectives, including relief of congestion in central London and improving capacity to Docklands, thereby supporting development

of key economic sectors in those places), the Channel Tunnel Rail Link (which will support regeneration of Stratford and the Lower Lea), the East London Line extensions (linking deprived communities in south London to areas of job creation in the City and east London) and the Thames Gateway Bridge (forming part of a network of schemes to support development of the Thames Gateway). These major schemes primarily support central and east London. There will, in addition, be a wide range of other transport improvements that will help support development and regeneration across London, including outer London. These will include continuing expansion and enhancement of the bus network, the major programme of improvements to the Underground, light transit and rail schemes (such as Docklands Light Railway extensions, tram and other transit schemes) and interchange improvements. It will also be important to ensure the most efficient and sustainable use is made of existing infrastructure. London’s economy depends on effective, reliable and sustainable arrangements for the delivery of goods and services. This will require maximising use of the least environmentally damaging modes, including rail freight, the Thames and other waterways. It is inevitable, however, that movement of freight by road will remain important over the life of this Strategy. But ways will have to be found of using more modern logistics methods to minimise the number and impact of freight movements. This is likely to include consideration of warehousing provision and appropriate forms of regulation of deliveries in the London area. London’s external transport links are vital. In particular, its twin roles as an international

ECONOMIC DEVELOPMENT STRATEGY
33

3 INVESTMENT IN PLACES AND INFRASTRUCTURE
The importance of these issues nationally is confirmed by the Government’s Barker Review of Housing Supply, “Delivering Stability: Securing out Future Housing”, which was published in March 2004, set out the principal housing challenges facing the UK and set out recommendations for improving availability and affordability).

Other strategies and initiatives

transport hub and gateway to the wider southeast region and rest of the UK EVIDENCE BASE: CHARTS 2.8 & 2.9 need to be supported and developed. Over the life of this Strategy this is likely to include ensuring adequate airport capacity, while ensuring that additional provision required to meet London’s needs is appropriately located (including the new capacity to support regeneration of the Thames Gateway) and that its environmental effects are acceptable.

total of at least 30,000 new homes from all sources annually to 2016, of which half should be affordable. • Social infrastructure (such as schools and colleges, health (and particularly primary health), play, sport, cultural and community facilities) – to support a growing and increasingly diverse city and the changing patterns of development set in the London Plan INVESTMENT THEME: PEOPLE CHAPTER 4,
FOR FURTHER DETAIL ON REDUCING DISPARITIES.

3.2.2 OTHER FORMS OF INFRASTRUCTURE
There are other forms of infrastructure essential to supporting London’s economic development. • A supply of appropriate homes in sufficient numbers to meet the needs of all Londoners – enabling those at every income level and with differing requirements to continue to live and work in the capital.8 The supply of housing has not kept up with increasing demand, and people on average incomes find it increasingly hard to afford either to buy or rent homes, affecting competitiveness, staff recruitment and retention EVIDENCE BASE: CHART 2.15 . Addressing this issue will involve both new house building and improvements to the existing stock, and coordinated work by national, regional and local bodies and stakeholders, including London’s extensive network of housing associations Other strategies and initiatives (see box). It will require imaginative and flexible use of planning powers and effective deployment of resources and powers to secure and prepare sites for development and ensure effective implementation and management of existing and new homes.9 The London Plan seeks to maximise additional housing, aiming for a

New jobs and housing need to be supported by sufficient, and appropriate, social infrastructure. It is also important to take account of the infrastructural needs of particular groups, such as the Asian community,10 the Irish community, disabled people or new migrant workers. • A wide and varied supply of workspace and other premises INVESTMENT THEME: ENTERPRISE, CHAPTER 5 , FOR FURTHER DETAIL ON WORKSPACE to meet the needs of London’s varied public, private and voluntary sector businesses at prices they can afford and in appropriate locations.11 This will include ensuring the continued provision of specialist workspace, such as markets – often relied upon by particular communities within London – and of the agricultural and horticultural facilities in parts of London that support local food production. Adequate provision of warehousing and other logistics infrastructure is also essential to provide the city’s people and businesses with the supplies and services they need. • Information and communications systems (including broadband) – to enhance connectivity throughout the city and provide all London residents and businesses with the opportunity to make the most of information and communications technologies. This will

8

Details of the housing targets are set out in Chapter 3A of the London Plan. 9 The economic impact of housing supply is dealt with in the “Review of Housing Supply – Delivering Stability: Securing our Future Housing Needs” (the Barker Report), HM Treasury and ODPM 2004. 10 The Pan-London Asian Advisory group has, for example, identified the need to develop cultural, community and economic facilities to support Asian communities and promote Asian business and investment in London. 11 The London Plan indicates that between 7 – 9.2 million square feet more floor space may be needed to accommodate some 463,000 extra office jobs by 2016.

34 LDA Sustaining Success – Developing London’s Economy

support the innovation vital to maintaining London’s high-productivity economy, the life-long learning Londoners will increasingly need to succeed, and London’s lead position as Europe’s best telecoms location. • Sustainable, safe and secure delivery of key utilities – to ensure that Londoners and London businesses have access to reliable and diverse sources of energy, water supply and wastewater services. The commercial and regulatory frameworks within which the utilities now function complicate both the long-term planning needed to ensure adequate modern infrastructure for essential utilities and also support for the development of key sites and areas. • High quality, accessible and safe parks, open spaces, waterways and other opportunities –to enhance the enjoyment of London’s natural and historic heritage, which is so important to the city’s social cohesion, quality of life and economic success INVESTMENT THEME: MARKETING AND PROMOTION, CHAPTER 6 , FOR FURTHER DETAIL
ON PROMOTING LONDON AS A PLACE.

• Environments, facilities and services accessible to all – to comply with the requirements of Part III of the Disability Discrimination Act 1995 by 2004. In virtually all these cases, the current reality is that London is suffering from years of under–investment. Indeed, the state of London’s transport system and shortage of affordable housing are regularly mentioned by businesses as major impediments to the city’s competitiveness. The type and timing of infrastructure provided, and the way it is delivered, can have important economic and social policy implications as well. It is therefore important to ensure:

• that London’s development and construction industries have the skilled workforce, technical and managerial capacity necessary to build the required infrastructure • environmentally sustainable design, procurement and construction practices, including local employment and training opportunities, to ensure accessibility for all and minimise negative impacts on the health and well-being of local communities • that adequate consideration is given to the potential threat of climate change along with other environmental factors • that infrastructure schemes genuinely contribute to the development of sustainable local communities, incorporating features and standards that optimise health, safety and other benefits, particularly to those facing exclusion and discrimination • adequate infrastructure to support both London’s bid for the 2012 Olympic/ Paralympic Games and, if successful, the holding of the event • that provision of infrastructure is supported by high quality public services • that infrastructure and other development initiatives are coordinated to help support growth, sustain and nurture London’s knowledge economy and ensure that residents and businesses have convenient access to the services and facilities they need.

ECONOMIC DEVELOPMENT STRATEGY

3.3 IMPLEMENTATION FOR SUSTAINABLE COMMUNITIES
London’s investment in infrastructure and places should ensure environmental sustainability of new developments through promotion of sustainable design and construction methods. This should include the use of green procurement, recycled and other sustainable materials, low carbon
35

3 INVESTMENT IN PLACES AND INFRASTRUCTURE
The Government’s Communities Plan “Sustainable Communities: Building for the Future”, which was published in February 2003, sets out a long term programme of action for delivering sustainable communities in both urban and rural areas. The plan aims to tackle housing supply issues in the South East, low demand in other parts of the country and the quality of public spaces.

Other strategies and initiatives

building design, use of renewable energy, waste water management and both energy and water conservation measures, and practices which minimise air and noise pollution. New developments should aim to protect, maintain and enhance biodiversity through the protection of important features, appropriate landscaping and greening of the built environment. Major infrastructure and development projects should also contribute to the creation of sustainable communities. They should incorporate best practice design standards that optimise health benefits, individual and community safety and the scope for wider community use, while improving the quality of the urban environment and the public realm. Maximum use should be made of recycled building materials, and sustainable options for waste. New developments should seek to maximise the positive impact on disadvantaged areas and address the needs of those facing discrimination, inequality and social exclusion. This is likely to require landowners, private developers and statutory bodies (such as local planning authorities and the Housing Corporation) to work together to improve standards. Specific mechanisms need to be adopted to achieve this, such as accreditation schemes and charters, development briefs and sustainability checklists. Appropriate London Plan policies and supplementary planning guidance should be applied and best practice disseminated. Finally, development should be implemented in ways that maximise the benefits for, and minimise any adverse impacts on, local communities and businesses. Properly planned and implemented, new infrastructure can make a major contribution to tackling problems of exclusion, inequality and

discrimination and imaginative approaches to investment and implementation will be required to make sure this potential is realised in the interests of all Londoners. This approach highlights the need for use of innovative, modern construction methods and for a sufficient supply of well-trained, skilled professionals both in the construction-related and built environment disciplines, and in the range of professions involved directly and indirectly in developing and regenerating London’s places and infrastructure. It is vital to bring together a range of organisations when developing and implementing major, complex infrastructure projects. The wide range of expectations raised by such projects can be confusing and even conflicting. In particular, the public sector’s role to identify and mediate between these expectations, for example from the private sector, the voluntary and community sector and communities themselves, must be further developed. Addressing the agenda outlined in this chapter depends on availability of people with skills, whether in the professions directly involved in the development process, or among decisionmakers and other stakeholders. This will require attention to the kinds of measures proposed in the review of skills needed to implement the Sustainable Communities Plan, led by Sir John Egan,12 including capacity building support for various organisations Other strategies and initiatives (see box).

12

Skills for Sustainable Communities: The Egan Review, Office of the Deputy Prime Minister (2004)

36 LDA Sustaining Success – Developing London’s Economy

CHAPTER 4: INVESTMENT IN PEOPLE

4
Mayoral strategy (see box) Objectives • Tackle barriers to employment. • Reduce disparities in labour market outcomes between groups. • Address the impacts of concentrations of disadvantage. London’s population is its most important economic asset. Long-term economic growth will only be sustainable by making best use of the energies and skills of the city’s diverse resident workforce. To achieve this, the capital must tackle entrenched labour market disadvantages that have led to one of the lowest employment rates of any region in Great Britain. These disadvantages have a disproportionate impact on specific groups within London’s population. This chapter details the objectives and actions required to increase employment and address social exclusion. Chapter 5, Investment in Enterprise, addresses in-work training, skills development and progression routes. A strategic approach to London’s labour market must start by recognising what makes London distinctive, including: • the openness of London’s labour market to domestic and international migration
EVIDENCE BASE: CHART 3.4

SWOT analysis Strengths • A highly skilled and diverse pool of labour. • Education services that are capable of delivering high quality education, from primary through to post graduate levels. Weaknesses • Exclusion of many from the labour market, with a disproportionate effect on some black and minority ethnic groups, on women with children and on other equalities groups EVIDENCE BASE: CHARTS 3.14, 3.23 & 3.24 . • The costs of working, including childcare, transport and the effects of the ‘benefit trap’, which appear to be more acute in London than elsewhere. Opportunities • Growing value placed on skills and knowledge – gives London a comparative advantage. Employment of a broader range of London’s residents will improve productivity. London’s diversity, including its many languages, becomes a more valuable asset as it increasingly engages with the world economy. • Potential to increase the number of residents accessing higher education and increasing the locally available pool of highly-skilled labour. • Improving in-work progression routes, freeing up employment opportunities at lower levels. Threats • Continuing polarisation of the labour market and concentration effects in inner London, which exacerbate deprivation.

London Plan, paragraphs 1.58 (page 31) – 1.67 (page 33) and Mayor’s Childcare Strategy

ECONOMIC DEVELOPMENT STRATEGY

Mayoral strategy

• diversity of the capital’s population • the distinctive profile of demand for labour in London EVIDENCE BASE: CHART 3.11 • the combination of strong economic growth with low levels of employment • wide disparities in economic outcomes between different groups within London’s population EVIDENCE BASE: CHART 3.32 • the existence of very large concentrations of economic disadvantage, particularly in the eastern areas of inner London EVIDENCE BASE: CHART 2.30 .

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4 INVESTMENT IN PEOPLE

4.1 KEY ISSUES FOR INVESTMENT IN PEOPLE
London’s working age population has grown by 7% since 1991, currently standing at 4.7 million. The GLA’s latest demographic projections suggest that, by 2016, the capital’s working age population will grow by over half a million. At the time of the 2001 Census there were just over three million London residents in employment, with an estimated 700,000 people commuting into London to work every day. The openness of London’s labour market to new arrivals and commuters is one of the capital’s most distinctive features. It is a key factor contributing both to its own and neighbouring regions’ economic success. Domestic and international migration patterns contribute to maintaining London’s relatively young age structure. People moving in tend to be younger than those moving out. The percentage of London’s total population aged between 20 and 44 years is much higher than the UK average EVIDENCE BASE: CHART 3.5, although older age groups will become more important in London over the next twenty years as the national population ages. These flows and shifts in population profiles allow London’s employers to draw on labour and skills from the rest of the UK and internationally. London is the most ethnically diverse city in the UK. Almost a third of the capital’s population (and over 40% of its children) belong to a black or minority ethnic group. And these groups are expected to account for well over threequarters of all the growth expected in London’s working age population by 2016.

The pattern of demand for labour in London is also distinctive. Higher skilled and higher paid jobs account for an increasing proportion of employment INVESTMENT THEME: ENTERPRISE, CHAPTER 5, FOR FURTHER DETAIL ON ACCESS TO SKILLS. In the early 1990s, 39% of those employed in London were in managerial, professional and technical occupations. By the end of the decade, these occupations accounted for 45% of all London’s jobs EVIDENCE BASE: CHART 3.11. This growth is expected to continue, as higher productivity, higher value adding activities expand. London is expensive and this reduces the commercial viability of some types of lower productivity industries and occupations. Activities that cannot relocate because they serve local markets, such as in retail and catering, often remain viable only on the basis of paying comparatively low wages. In addition to relatively low demand for certain types of labour, London’s labour market has low levels of part-time working, which has had a particular impact on women’s employment in the capital. These features explain the emphasis in this and the following chapter on removing particular barriers to employment for key groups in London’s working age population. Despite strong economic and employment growth during the 1990s, the proportion of the working age population in employment in London is one of the lowest in Great Britain EVIDENCE BASE: CHART 1.20. There are stark disparities in labour market outcomes between different ethnic groups, between people living in different types of household, and between people in different areas of London. Addressing these issues is crucial to improving both the output and equity of the London economy.

38 LDA Sustaining Success – Developing London’s Economy

Low employment is a critical issue, which particularly affects households with children INVESTMENT THEME: ENTERPRISE, CHAPTER 5 , FOR FURTHER DETAIL ON BARRIERS TO SUCCESS. The capital has the highest rate of child poverty in Great Britain EVIDENCE BASE: CHART 3.30, with 38% of London’s children living in poverty and 54% of children in inner London.13 The average in England is 30%. Nearly a quarter of all households with dependent children in London, and nearly a third in inner London have no adult in employment. By contrast, London households without children (excluding retired people) are no more likely to be workless than their counterparts elsewhere EVIDENCE BASE: CHART 3.23 . These disparities in employment between households with and without children are not registered anywhere else in England or Wales.14 London now has a lower employment rate for women than the country as a whole, reversing the long-term position which pertained until the early 1990s. This, again, is primarily due to lower than average employment among women with children. Lack of suitable, good quality, culturally sensitive and affordable childcare is a key barrier for women competing in the London labour market. London’s overall low level of employment compounds labour market disadvantages experienced by different groups within the working age population. Unemployment rates are around twice the London average for black, Pakistani and other minority ethnic groups and nearly three times the average for Bangladeshis. In many cases, disparities between different ethnic groups are much more pronounced in London than in the rest of England and Wales EVIDENCE BASE: CHART 3.14. What makes London distinctive is the proportion of its population

affected by these disparities.15 Belonging to an older age group and being disabled are both associated with particularly poor labour market outcomes in London. Inner London has very low employment rates for those aged between 50 and retirement age although it has higher employment rates for those over retirement age16. Compared to the London average rate, far larger proportions of disabled Londoners were unemployed in 2001/200217 and less than half were actually in employment. Disabled black and minority ethnic Londoners are even more likely to be without work. Labour market disadvantage is not only reflected in disparities in employment status. Earnings for disabled Londoners and black and minority ethnic workers are also far lower than the London average. On top of this, the gender pay gap in London is significantly wider than nationally, with some of the biggest discrepancies occurring in London’s professional sectors. At the broadest level, differences between areas of London can be grasped by comparing inner and outer areas INVESTMENT THEME: PLACES
AND INFRASTRUCTURE, CHAPTER 3, FOR DETAIL ON

ECONOMIC DEVELOPMENT STRATEGY

For example, in 2000-2001 the unemployment rate in outer London was just over 5%, almost identical to the national rate. In inner London, though, unemployment stood at nearly twice this rate EVIDENCE BASE: CHART 2.27. But there are striking differences, too, between areas within inner and outer London. Inner London includes some of the wealthiest as well as some of the poorest areas in the UK. Outer London includes many areas of severe disadvantage. Every borough in London has at least some clusters of low employment. But high levels of disadvantage in inner London
STRATEGIC EMPLOYMENT LOCATIONS.

13

Department for Work and Pensions, Households below average income, 2004. 14 GLA, Workless households with dependent children (GLA 2003). 15 London Divided, p31. 16 Low incomes among older people in London: Interim findings from GLA research on pensioner poverty (Mayor of London, October 2003). 17 Labour Force Survey, Comparison between the UK average and London figures 2003.
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4 INVESTMENT IN PEOPLE
The importance of this issue from the earliest age has been underlined by the Government’s “Five Year Strategy for Children and Learners”, published in July 2004, which sets out proposals for a step change in the provision of children’s services, education and training which emphasises the need for skills development from early years education right through to entry into the world of work.

Other strategies and initiatives

are not confined to isolated pockets of deprivation. They extend right across central and east inner London, both north and south of the Thames and across the inner London boundary into the adjacent outer London area SEE CHART 2.30. London’s low levels of employment are a result of a complex interaction of factors that accentuate the challenge. These include: • high housing costs, making lower paid jobs impractical for many people, especially if they have dependents18 EVIDENCE BASE: CHART 2.12 • the high cost of business space within the city EVIDENCE BASE: CHART 2.11, impacting on the pattern of demand for labour and on earnings levels • lack of flexibility in much employment across the capital, including a lack of family-friendly policies • discrimination and the inherited effects of past discrimination • lack of good quality, affordable childcare suitable for London’s population EVIDENCE BASE:
CHARTS 3.24 TO 3.26

eligible for an in-work credit of £40 a week during their first year of employment. London’s Framework for Regional Employment and Skills Action (FRESA) INVESTMENT THEME: ENTERPRISE, CHAPTER 5 , FOR FURTHER DETAILS ON FRESA’S STRATEGIC OBJECTIVES , prepared by the LDA on behalf of the London Skills Commission, will bring together key partners to meet the challenge of increasing employment and skills in London. This includes addressing some of the issues raised in this chapter, and many in the next. This Strategy aims to ensure that there is adequate investment in the skills necessary for London to sustain its unique pattern of growth and in the social infrastructure needed for all of London’s residents to participate in the labour market. Other strategies and initiatives (see box). Interventions therefore need to be based on four interlocking aims: • tackling barriers to employment • reducing disparities in labour market outcomes between groups • addressing the impact of concentrations of disadvantage • improving the skills of the workforce. Investment in skills is addressed in the next chapter, as we focus here on the first three of the interlocking aims.

• levels of educational attainment which are low in the context of a growing demand for more highly skilled labour in London’s labour market EVIDENCE BASE: CHART 3.10 • benefit traps, which are particularly severe in areas of high housing and childcare costs, making lower paid employment unviable for many households. In his 2003 Pre-Budget Report, the Chancellor acknowledged the need for better gains to employment in London, especially for families with children. In recognition of this, he announced that from April 2005 all parents in London who have been out of work and on certain benefits for more than one year will be

4.2 TACKLING BARRIERS TO EMPLOYMENT
INVESTMENT THEME: ENTERPRISE, CHAPTER 5, FOR FURTHER DETAIL ON BARRIERS TO BUSINESS.

A range of factors can make entering or re-entering employment exceptionally difficult. Extra costs associated with employment, such as childcare, can cancel out any increase in

18

Centre for Economic and Social Inclusion, Making work pay in London, London divided (p43-44), (2003).

40 LDA Sustaining Success – Developing London’s Economy

incomes from working, particularly lower down the income scale. Poor transport links or poor accessibility can also restrict access to the labour market. In addition, the interaction between different elements in the tax and benefit systems can erode gains from employment, particularly in areas of high housing cost. Uncertainties about entitlements and problems in the administration of benefits can make entering short-term employment risky. There is a need for the further development of active labour market approaches to improve pathways into employment. These include transitional employment measures and the creation of more intermediate labour markets. Targeted interventions are also needed to make mainstream labour market policies, such as Welfare to Work, more effective in London.

or family structure, can also influence outcomes. London’s refugees and asylum seekers, for example, face a number of specific barriers not only concerning discrimination and language, but also difficulties in obtaining recognition for non-UK qualifications and a concern among employers about the legal status of potential employees. Disabled people and older workers also face specific barriers to more active participation in the labour market. Differences between groups are also driven by problems, which, while not confined to those groups, have a more marked impact upon them. This can be due, for example, to age structure, household type or social class. Most of London’s black and minority ethnic groups, for example, have a particularly young age structure, so that problems associated with youth employment or barriers affecting families with young children will tend to deepen disparities between these groups and the white population. Achieving the objective of reducing disparities between different ethnic groups therefore depends not only on policies and interventions that are specifically designed for particular groups, but also relies on measures designed to address the full range of factors that create and exacerbate disparities. Specific issues relate to access to employment and treatment in the workplace experienced by members of different groups, be they faith groups, different sexualities, and other equalities groups, by homeless people or by ex-offenders. These need further research with a view to preparing action plans to address them.

ECONOMIC DEVELOPMENT STRATEGY

4.3 REDUCING DISPARITIES IN LABOUR MARKET OUTCOMES BETWEEN GROUPS
Disparities in labour market outcomes between groups arise from a complex interplay between an array of factors. It is therefore important that interventions to improve outcomes are designed and delivered in full recognition of this complexity. This Strategy aims to tackle negative impacts faced by any and all disadvantaged groups in London. Groups which have not been specifically mentioned in this document will nonetheless be included as the Strategy is rolled out. Discrimination, including the long-term effects of historical discrimination, is one of the key factors that explain poor outcomes for many black and minority ethnic groups. Factors specific to certain groups, such as language

41

4 INVESTMENT IN PEOPLE

4.4 ADDRESSING THE IMPACT OF 4.5 JOINING UP AND USING CONCENTRATIONS OF DISADVANTAGE WHAT WORKS
While there are areas of deprivation in every London borough, the highest concentration is in inner London EVIDENCE BASE: CHART 2.30. This pattern is driven and reinforced by selective in and out-migration and has a clear impact on people’s experience and prospects, both in education and employment. Concentrations of disadvantage arise in part because of housing market conditions, the location of social housing and other historical patterns. These help worsen the chances for already excluded households in such areas through loss of services, poor school performance, inadequate or very expensive access to credit, poor local employment opportunities, and so on. Regeneration policy to date has improved prospects for some residents in these areas. But it has had far less impact on concentration effects because individual beneficiaries tend to move on and tend to be replaced by people moving into the area who continue to experience disadvantage. This implies that addressing the impact of concentration is an ongoing process, that is, until such time as the factors creating concentration effects are fundamentally changed. As noted in the previous chapter, long-term, concerted and integrated efforts, working closely with local communities, are required to address these issues. It will be essential that the interventions shaped by this Strategy take into account existing activity, including central Government policies on poverty reduction and increasing employment. This will include identifying what has worked and building on it, whilst learning lessons from past activities that may have failed. Important lessons can be learned from a wide range of area based, sector and clientgroup focused programmes in the past, many of them time-limited. Those still running can be supported and built upon. The engagement of key partners will be vital during implementation and delivery. These will include community based organisations, local and sub-regional partnerships, London-wide organisations and regional arms of national programmes or services SEE ACTION PLAN CHAPTER 7,
FOR FURTHER DETAIL ON PARTNERS AND RESOURCES.

42 LDA Sustaining Success – Developing London’s Economy

CHAPTER 5: INVESTMENT IN ENTERPRISE

5
Objectives • Address barriers to enterprise start-up, growth and competitiveness. • Maintain London’s position as a key enterprise and trading location. • Improve the skills of the workforce. • Maximise the productivity and innovation potential of London’s enterprises. London’s economy is increasingly marked by its high productivity, competitiveness and global orientation EVIDENCE BASE: CHARTS 1.8. 1.12 & 1.13. As we have seen, its success is increasingly dependent upon high value, high wage activities, and investment in companies and people able to compete and thrive in this environment. There is no future in seeking to offer low value, low wage activities in the kind of globally and nationally competitive environment we now face. In addition, it is vital that London makes the fullest and most sustainable use of the resources available. These challenges are addressed in this chapter. The Government has identified five drivers of improved productivity. The first is investment, which is a key theme underlying this Strategy. The second is skills, aspects of which are dealt with in the previous chapter, while workforce training is covered here. The others, which are the subject of this chapter, are: • enterprise • competitiveness • innovation. This chapter describes how London needs to provide as fertile an environment as possible if enterprise is to flourish, innovate and compete. Enterprise includes private businesses, social enterprises and voluntary organisations, and many parts of the public sector. This chapter also deals with the implications of moving towards an ever higher-value economy – one which must sustain success while minimising the negative effects change can bring for particular communities and individuals. There will be a need for intervention to help deal with these problems, where the market will not do so alone. This chapter also focuses on a number of additional factors that impact on business competitiveness. It outlines factors that can inhibit enterprises from performing as efficiently and effectively as possible, thereby justifying intervention by the public sector. This is informed by a range of evidence, including the findings of the Annual Business Survey carried out by the LDA and Business Link for London (BL4L).
ECONOMIC DEVELOPMENT STRATEGY

5.1 KEY ISSUES FOR PRODUCTIVITY AND ENTERPRISE: SETTING THE SCENE FOR SUCCESS 5.1.2 A CITY GEARED FOR SUCCESS
Providing all areas of London with the infrastructure and services to support and sustain creative, high value enterprise is fundamental to the successful development of a high-productivity economy. Having a wide range of different and dynamic enterprises is an important element of London’s continued economic success. This means creating an environment in which people with entrepreneurial flair, whether in the public, private or voluntary sectors, can develop ideas and see them come to fruition Other strategies and initiatives (see box top of page 45).

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SWOT Analysis Strengths • Above average share of employment in high technology services relative to other world cities EVIDENCE BASE: CHART 4.1. • Close proximity between existing worldrenowned clusters, such as higher education institutions, life sciences, pharmaceuticals and creative industries; and resulting ability to share knowledge, both formally and informally. • Science based sectors, ICT and green sectors, and tourism. • Creative, cultural and design-based sectors. • High rates of inward investment from elsewhere in the UK and abroad. Weaknesses • Lack of an appropriately skilled workforce for many enterprises EVIDENCE BASE: CHART 3.10. • Under-funding of workforce training by many employers and in some cases, weak links between management objectives and workforce development. • Gaps in provision of vocational skills and other business needs by the public sector. • Access to start-up and growth finance for SMEs, young entrepreneurs, black and minority ethnic and women-owned businesses, and entrepreneurs from other equalities groups EVIDENCE BASE: CHARTS 4.16, 4.19, 4.20 & 4.22. • High cost of workspace and labour EVIDENCE BASE: CHARTS 2.11, 3.8 & 3.27 . Opportunities • Improving understanding of innovation opportunities, which can lead to greater scope for commercialisation of London’s research activities. • Improving access to finance for business start-ups by overcoming information barriers between lenders and borrowers. • Redevelopment of the Thames Gateway to establish new sites for industry and business. • Legislation at European and national levels, and regional policies driving the environmental agenda. • Maximising the untapped potential of many excluded black and minority ethnic community entrepreneurs, women, older and young people and those from other equalities groups. • Improved performance of business support services, to ensure they are genuinely responsive to clients’ needs. • Scope to exploit number of languages spoken to enhance competitiveness. Threats • London’s capacity to foster enterprise is reduced by persistently high costs and other business barriers EVIDENCE BASE: CHARTS 2.1 & 4.16. • Global investment diverted to competitor cities, with faster growing clusters and better domestic and international transport links. • Difficulty of recruiting and retaining workers across all sectors as house prices become prohibitively high EVIDENCE BASE: CHART 2.15.

44 LDA Sustaining Success – Developing London’s Economy

The Government White Paper on Enterprise, Skills and Innovation, “Opportunity for All in a World of Change”, published in February 2001, recognises that for the UK to be successful, businesses and individuals need to learn new skills and use their knowledge to produce higher value goods and services.

Other strategies and initiatives

Some of the key factors required to help London’s businesses realise their opportunities and address the threats they face are described in other sections of this Strategy. They include: • supporting delivery of the London Plan • ensuring that London continues to attract and retain people from across the UK and the world • helping London’s current and future labour force to improve their educational qualifications and skills. The public sector has an important role to play by providing high quality public goods and services and helping to address market failures. But it does not have the resources or the powers to kick-start enterprise where the basics do not exist. The public sector delivers a range of services that can have a critical impact on the success or otherwise of enterprises. These include services supporting a high quality, safe local environment, which is clean and attractive – essential conditions for growth in the sectors on which London increasingly relies. Public bodies are also responsible for a range of services that regulate enterprises and their activities. It is important these should be implemented in ways that satisfy the wider public interest and encourage business and economic development.

property has been more attractive than other forms of commercial property development, but this has not translated into new workspace so much as investment in existing stock. SME workspace is perceived to be a higher risk investment and cost inefficiencies in managing multiple units can deter investors. The public sector alone does not have the resources required to resolve this problem. It can, however, work with the private sector to address barriers and stimulate market provision of business accommodation. This might include joint venture arrangements, providing funding to cover letting risks until sustainable occupancy rates are achieved, bringing forward public sector-owned sites at affordable rates, or assistance with site assembly.

ECONOMIC DEVELOPMENT STRATEGY

5.1.4 LONDON’S KNOWLEDGE INFRASTRUCTURE
London has particular assets available to foster new enterprises and encourage innovation and productivity improvements among existing ones. Among the most important of these is its knowledge infrastructure. This includes 40 higher education institutions (HEIs); a well-developed further education sector; research and technology organisations (including national assets such as the National Physics Laboratory and the Office of the Government Chemist); a wide range of leading art and design establishments (including the University of the Arts, London), and significant science, technology and design capacity. Other strategies and initiatives (see box). Knowledge assets benefit from the exchange of people and ideas that comes with dense geographical clustering in related sectors. The success of London’s knowledge infrastructure can be shown by the proportion of national resources

5.1.3 WORKSPACE
INVESTMENT THEME: SEE PLACES AND INFRASTRUCTURE, CHAPTER 3 FOR FURTHER DETAIL ON STRATEGIC EMPLOYMENT LOCATIONS.

London’s enterprises, especially Small and Medium Enterprises (SMEs), need an adequate supply of suitable workspaces. Pension funds and other large property investors have traditionally been reluctant to invest in certain types of SME workspace. In recent years, SME

The Government’s “Future of Higher Education” report published in January 2003 recognises the importance of the UK’s higher education system to the UK’s competitiveness but acknowledges that there is no room for complacency in promoting and expanding participation in higher education. The importance of these issues has been further underlined in the Government’s proposals relating to Foundation Degrees “Meeting the Need for Higher Level Skills” published in 2003.

Other strategies and initiatives

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it receives. A quarter of all research funding by the national research councils and other sources go to London’s HEIs, and 70% of NHS research and development funds are spent in London. London’s knowledge infrastructure is one of the main reasons that businesses give for locating and investing in London EVIDENCE BASE: CHART 3.7. It can also be a key driver for fostering enterprise innovation, as the Government’s Lambert Review19 has highlighted. It will be important to ensure that the value of any Government investment in this area is maximised for London. Other strategies and initiatives (see box). Relative to other cities, London performs reasonably well in its share of employment in high technology sectors and creative industries. A high proportion of London’s workforce has higher-level qualifications EVIDENCE BASE: CHART 3.9.

London economy. But the vast majority of black and minority ethnic-owned enterprises are relatively small and tend to be concentrated in specific localities and sectors. Getting access to start-up, equity and growth finance from traditional banking and financial institutions has been particularly problematic for many black and minority ethnic entrepreneurs. There is considerable scope to enhance the potential of black and minority ethnic-owned businesses in London. A Regional Action Plan, based on research recommendations and other evidence, is being developed by the LDA. Women’s enterprises: represent only 20% of London’s businesses. Businesses wholly owned by women account for only 6% of the total. Women therefore remain substantially under represented amongst business owners. In May 2003, a Strategic Framework for Women’s Enterprise (SFWE) to address the issues surrounding the growth and survival of women’s enterprise was launched. This is aimed at increasing the number of women starting and developing businesses to match US start-up rates for women, improving business support provision for women’s enterprise; and encouraging the development of strategic partnership in the regions to implement SFWE priorities. Challenging targets have been set within the Framework to increase the proportion of women-owned enterprises in the UK. In London, a strategic regional partnership is being established, led by the LDA, to spearhead the development of a London-wide strategy for women’s enterprise. This will bring together recommendations, priorities and actions from a number of areas, including the SFWE, this Strategy and the FRESA, to ensure maximum strategic impact. It will dovetail with the GLA’s work to develop wider policy on

The Government’s Lambert Review of Business University Collaboration which reported in December 2003 and the accompanying Science and Innovation Investment Framework 2004-2014.

5.1.5 BARRIERS TO BUSINESS SUCCESS
INVESTMENT THEME: PEOPLE, CHAPTER 4 , FOR FURTHER DETAIL ON KEY ISSUES FOR INVESTMENT IN PEOPLE.

Other strategies and initiatives

While the emphasis has to be on facilitating the market, there are areas where it does not work effectively by itself and where more direct intervention is justified. Providing support for particular types of businesses to overcome the barriers that disproportionately affect them is one such area. Black and minority ethnic-owned enterprises: have been emerging as a powerful economic force over the past decade. According to independent research, in 2001 they accounted for 20% of the London business total, employing over 800,000 people, and generating £40 billion in annual sales revenues – a significant contribution to the

19

HM Treasury, The Lambert Review (2003)

46 LDA Sustaining Success – Developing London’s Economy

Women in London’s Economy. Again, it will be important to build on this groundwork. Disabled entrepreneurs: make an important contribution to London’s economy with self-employment being a route chosen more often by disabled people than by non-disabled people. Despite this contribution, many disabled people still face considerable barriers to starting up and running their own enterprises in London. Some barriers are those experienced by all entrepreneurs such as access to finance and affordable business premises. However disabled entrepreneurs face specific barriers including difficulty in securing accessible and relevant business advice and support services, finding up-to-date information on ways in which in-work benefits and Government schemes such as Access to Work can be applied to self-employment and finding accessible business premises. There is scope for further research on the contribution of and barriers faced by disabled entrepreneurs in London, which will inform detailed action plans and future policy work within the GLA Group and elsewhere. Equalities groups: there are groups in the community facing particular barriers and issues preventing them from playing a full part in London’s enterprise economy and from benefiting of the opportunities it can bring. For example young entrepreneurs who have little or no track record or collateral can face difficulties securing loans or grants and there can be disproportionate take up of business advice and financial support between particular groups. There is a need for joint work including the GLA Group, local authorities, sub-regional partnerships and existing business advice and financial support together with the groups concerned to identify and understand these

needs, and find appropriate ways of meeting them in ways that are relevant, accessible and effective for those concerned. Access to finance: can be a substantial barrier. According to the LDA/BL4L Annual Business Survey, just over a quarter of companies wanting to invest more cited access to external finance as an issue. This was particularly so for young and micro-businesses. The use of credit cards and overdrafts is an expensive short-term solution that can ultimately have a negative impact on business growth. These problems may be exacerbated for those working in businesses where income streams are uncertain or volatile, for example, life sciences, creative industries or information and communications technology. The most common reasons given for the failure to raise finances were that businesses were too new, had a poor credit rating or lacked security. But too few businesses felt they understood the help available from external sources, how to prepare a financial plan or how to measure the return on an investment. Enterprises need to be better trained and more competent in fields such as financial management, business planning, and applying for loans. There may also be a role for matchmaking services between potential lenders and borrowers. There is a need too, to tackle barriers to funding that impact disproportionately on enterprises owned or led by particular groups, and on those based in particular areas of London. Less traditional forms of funding that can play an important role in addressing social exclusion should also be examined and supported. Other steps might include dissemination of best practice, working with the financial sector to develop funding vehicles for particular types of enterprise and maximising the effectiveness of national grant funding programmes at London level.
47

ECONOMIC DEVELOPMENT STRATEGY

5 INVESTMENT IN ENTERPRISE

5.1.6 MAXIMISING TRADE OPPORTUNITIES FOR LONDON’S ENTERPRISES
In addition to creating the conditions needed to nurture enterprise, there is scope to help established firms in London realise their full potential by making the most of international trade opportunities. The globalisation of the world economy has sharpened international competition, affecting both established exporters and, increasingly, those operating solely in domestic markets. Less than 10% of London’s businesses view international trade as an important consideration. This may reflect London’s relatively low share of employment in traditional export sectors, such as manufacturing. Recently liberalised international trade and enlarged markets in Europe and beyond should result in more competitive market opportunities. Fast-growing economies in China and India, for example, are becoming increasingly important to London. UK Trade and Investment (UKTI) has been established as the LDA’s international trade arm and is working to promote the internationalisation of London’s enterprises. The Regional International Trade Strategy (RITS) recognises the challenges posed by increasing globalisation and suggests that too many London firms, large and small, are failing to exploit their full international potential. Several barriers, including poor market information, represent a particular hurdle for smaller companies. The RITS puts forward a number of priority areas to improve this, including the development of: • skills to maximise the trade performance of London’s enterprises • high quality international trade information and advice that is accessible to London enterprises
48 LDA Sustaining Success – Developing London’s Economy

• a partnership for joint working and collaboration to deliver London’s international trade services • international strategies for London’s high growth sectors and clusters. Existing measures to assist London companies will be extended to provide practical help in building the skills and capacity needed for enterprises to succeed in the international trading arena.

5.1.7 INWARD INVESTMENT
Attracting entrepreneurs and organisations from overseas is another way of fostering the range of enterprises London needs. London has been the market leader for inward investment amongst large European cities for some time. It is an important location for international headquarters, with one third of the Fortune Global 500 companies located here EVIDENCE BASE: CHART 1.12 . However, London’s share of inward investment is falling amidst growing competition from other cities and from fast growing economies such as India and China. It is essential for London’s long-term success that it continues to be regarded as the city in Europe in which to do business and that it is positioned to be attractive to emerging markets across the world. This will require a continued focus on the fundamentals – London’s workforce, infrastructure, quality of life, cost base and regulatory environment – and effective promotion and marketing, as described in the next chapter. Think London (formerly London First Centre) will deliver inward investment services for the period 2003-2008 and will focus on targeting global markets. The goal is to ensure that the fruits of successful inward investment benefit all London’s communities. This will entail

working collaboratively with sub-regional partners and others to improve investors’ knowledge of London’s sub-regions and their competitive advantages. Whilst there will be a particular focus on the potential of the Thames Gateway as an inward investment location, other priority areas (including the City and key suburban centres, such as Croydon) will not be neglected.

Investment Scheme. This provides grant funding for eligible investment projects to large companies in London’s Assisted Areas and to SMEs throughout London. Business support agencies focus their services on viable enterprises currently located in London, not on retaining businesses that have no long-term future. Effective action requires a coordinated approach from the LDA and its partner organisations (including the local LSCs, BL4L, FE colleges and other training providers). Working together, partners can provide advice and help to resolve problems with premises, skills, transport and other issues affecting business location decisions. Trade union and business representatives play useful roles in identifying key issues facing business in London.

ECONOMIC DEVELOPMENT STRATEGY

5.1.8 SUPPORT FOR ESTABLISHED ENTERPRISES
For London to remain the location of choice for enterprises, the capital needs improved infrastructure, services, and a good business climate. This is essential for enterprises of any size, but there are particular issues facing larger employers, who employ a majority of London’s workforce. Unless problems facing large enterprises are identified and addressed at the earliest opportunity – before they become insurmountable obstacles – there is always the danger that businesses will relocate out of London. London competes with other world cities for large businesses to make their home and remain here. The LDA has formed a central team to coordinate the support services provided to 800 major employers and strategically important businesses in London. The LDA team is backed by a network of sub-regional agencies, which provide inward investment support to Think London and deal directly with the companies in their areas. These sub-regional agencies share operational protocols with organisations such as the CBI, London First and the London Chamber of Commerce and Industry, so that companies can quickly receive the support or assistance they may require. The LDA is also responsible for delivery of the DTI’s Selective Finance for

5.2 KEY ISSUES FOR PRODUCTIVITY AND ENTERPRISE: MANAGING CHANGE
The shift towards a high productivity, high value economy, and the constant pressure of global competition, brings economic and social strains. Other strategies and initiatives (see box). As we have seen elsewhere, London cannot compete by offering low value and low wage activities. Some businesses will fail and employees will be displaced. The responsible policy approach is to manage change in ways that minimise negative impacts on people, communities and enterprises and assist them to adapt and thrive in the changing economic environment.

5.2.1 BUSINESS SUPPORT
IMPLEMENTATION AND ACTION PLAN, CHAPTER 7 , FOR FURTHER DETAIL ON WORKING IN PARTNERSHIP

The Government White Paper “Making Globalisation a Force for Good”, which was published in July 2004 sets out both the opportunities and challenges globalisation brings and the steps that the UK, the European Union and the international community need to take to ensure that potential benefits are felt by all.

There is already a significant level of public sector funding for general business support

Other strategies and initiatives

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The Government’s Energy White Paper “Our Energy Future – Creating a Low Carbon Economy”, which was published in February 2003, sets out the energy and environment challenges the UK and global economy faces and highlights the need for a new energy policy based on cleaner, smarter energy and a more efficient use of existing resources.

Other strategies and initiatives

in London, primarily from the Small Business Service (SBS) via BL4L, the LDA and London boroughs, with services delivered by many local agencies. Through the SBS, the DTI has developed a strategic framework for supporting the small business sector. In this context, a London Business Support Strategy has been developed to align funding more closely with strategic priorities for London, deliver high quality, customer-focused support services and eliminate customer confusion. The implementation of this Strategy will be an important step toward consolidating, simplifying and improving the quality of business support services across London. The transfer of Business Link Operator contracts from the Small Business Service (SBS) to the Regional Development Agencies, including the LDA, represents a significant opportunity to bolster a demand-led support service, which is quality assured and able to meet the needs of start-ups and growing enterprises alike. BL4L has already made radical changes to the way its services are delivered, moving from direct delivery to a brokerage model. London is in a strong position to build on these changes. The LDA and BL4L will work in partnership to ensure renewed focus on London’s unique needs within the context of changes in national business support policy. Further steps are needed to provide enterprises with a real choice of services – such as financial, environmental or property advice – from a range of providers, including suitably accredited private sector providers. A plentiful supply of good information to guide enterprises to the assistance available must also be provided. The ultimate goal must be to provide mainstream business support services offering a range of activities capable of meeting the needs of

enterprises irrespective of their age, size, sector or location. This must be balanced with the requirement for more specialist provision tailored to respond to the particular issues faced, for example, by enterprises owned or led by women, disabled people or black and minority ethnic groups, or by social enterprises and micro-businesses. Many of London’s enterprises would benefit from improving the efficiency of their use of energy and other materials, and reducing waste. Advice and support services need to help enterprises reduce their costs while driving environmental improvement Other strategies and initiatives (see box above).

5.2.3 ACCESS TO SKILLS/WORKFORCE DEVELOPMENT
London’s employers need a skilled workforce. Too many London enterprises have unfilled vacancies due to lack of suitably skilled applicants, and a significant number report internal skills gaps. Tackling barriers to employment and improving employability skills is an important step towards solving this problem. However, providing training and development opportunities for those in work is also crucial to competitiveness. Some employers in London do not provide employees with development opportunities. Only about 40% of employers have a training plan and just one-third offer training to their staff. Only two fifths of employees receive training paid for by their employer. It is important that employers recognise the business benefits to be gained from the continuing development of their staff’s skills through training. Other strategies and initiatives (see box). But they must also have access to the support and advice needed to

50 LDA Sustaining Success – Developing London’s Economy

The Government’s Lambert Review of Business University Collaboration, which reported in December 2003 and the accompanying Science and Innovation Investment Framework 2004-2014, has confirmed the importance of innovation and technological development in supporting economic growth and competitive advantage. The 2004 Spending Review has given RDAs specific responsibilities for implementing the recommendations of the Lambert Review.

Other strategies and initiatives

help them do this. The unique barriers faced by small, medium and micro enterprises need to be addressed and individuals empowered to seek out opportunities to update and develop their own skills portfolios. Ways to increase the vocational skills levels of the workforce and recognise the vital role that FE colleges and HEIs play in achieving this need to be found. Two key strategic objectives of the London FRESA focus on the needs of the existing workforce. They are to: • improve the chances for those in work or seeking work • meet employers’ workforce development needs. The FRESA outlines specific actions to support these aims. It provides a structure for key organisations to work together towards common goals through the London Skills Commission. This successful mode of partnership work will continue under the new Regional Skills Partnership. A shared vision and actions between the key partners will help to shape London’s future workforce development priorities, based on a sound analysis of business needs. The London Skills Commission will implement the FRESA by creating a Regional Skills Partnership (RSP) for the capital. The new RSP will work to remove obstacles and barriers to engaging employers in raising their productivity, innovation and skills, maximising the benefits of having a diverse workforce, and addressing economic exclusion.

in the market. For this reason, this Strategy is not prescriptive about which sectors to invest in, nor does it identify priority sectors. Instead, the Strategy is designed to support businesses that can promote productivity, employment, social inclusion or environmental goals, irrespective of sector. However there are some circumstances in which it makes sense to deliver enterprise support along sectoral lines, based on considerations of market failure and/or social and environmental benefits goals. Specific details of the LDA’s work with individual sectors, including how it is taking forward the work of the London Production Industries and Creative Industries Commissions, are set out in the LDA Corporate Plan. Sectoral interventions and priorities need to be agreed in discussion with stakeholders, guided by the following principles: • that there is clear evidence of market failure • that there is an understanding of the scale and extent of that failure – determining whether it affects a sufficiently large proportion of enterprises in the same industry to justify a sector-wide approach (as opposed to a London-wide or companylevel approach, or one aimed at particular business sizes or locations) • that the enterprises operating in the sector are clearly capable of generating income and employment in London on a sustained basis and against the backdrop of changing global economic conditions • that intervening in a particular sector for a particular reason does not signal that all other public sector interventions should be concentrated in this sector (thereby risking erring in the direction of now discredited industrial policy).

ECONOMIC DEVELOPMENT STRATEGY

5.2.4 SECTORAL INITIATIVES
INVESTMENT THEME: PLACES AND INFRASTRUCTURE, CHAPTER 3, FOR FURTHER DETAIL ON AREA-BASED INITIATIVES

The public sector cannot and should not attempt to pick winners. It does not have privileged information about who will succeed

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There are many reasons for adopting a sector approach to business support rather than delivering generic services. Different sectors have different needs, which may not always be reflected in generic programmes. Enterprises often see themselves as part of an economic ‘sector’ and respond more positively to support programmes offered under a sector banner. Enterprises from a range of different sectors often work together to share information, increase market and political power, and promote their products. Active promotion of professional networking and collaboration through trade associations, supplier development and best practice transfer schemes, can be best achieved via a sectoral approach. The same is true of building a common sector image or brand, promoting inward investment or targeting supplier gaps. Sector policies have the potential to bring together disparate programmes, adding greater focus and coherence to business support service delivery. Particular industries may be critical to improving the resource efficiency of the entire business base, such as the environment sector. This has a key role to play in improving productivity through increased energy efficiency and green procurement. These principles and considerations should continue to form the basis for the London approach to sector support programmes, which must remain flexible and responsive to the dynamic nature of the London economy.

this is often seen in terms of production, it is particularly difficult to assess the extent of innovation in a service-dominated economy like London’s. While there is very considerable inventiveness in developing new products and approaches among London’s financial and business services, this can be difficult to measure. Some surveys suggest that few London firms introduce product and process innovation. But other measures of innovative activity, such as the proportion of production industries in high-technology fields, show that London leads the country. Successful enterprises recognise the positive impact that design innovation can have on performance. Recent research by the Design Council 20 reveals that 90% of rapidly growing businesses consider design as a key part of their operations. Against the competitive background spelt out earlier, it is vital that London’s enterprises in all sectors understand the need to develop innovative services, products and processes. Mainstream support services need to support enterprises to become more innovative. Creative approaches need to be shared across all sectors in the quest for increased productivity and competitiveness. As pointed out earlier, organisations need to be made aware of London’s rich knowledge infrastructure. Promoting innovation is a key priority for Government. The DTI is developing a ten-year investment framework for science and innovation and will be launching a Technology Strategy in April 2005. It will be important to ensure London’s particular needs are addressed, and that the city receives the resources it needs to maximise its potential. London’s science base is of world-class calibre, which is not being adequately exploited. Establishing a science park in the capital could help to attract and

5.2.5 SUPPORTING INNOVATION IN LONDON’S ENTERPRISES
Enterprise innovation is the last of the key drivers of improved productivity. Because
52 LDA Sustaining Success – Developing London’s Economy

20

Design Council, Design in Britain 2003-04 (2003)

retain science and technology companies. The London Regional Science and Industry Council will also be important, helping to set the strategic direction for science and technology across the capital and ensuring key priorities are realised. Successful delivery of the London Innovation Strategy will be another important step. It aims to position London as the leader in creating a culture of innovation across all organisations and enterprises. The strategy identifies three key priorities for successful innovation: • creating a culture of innovation in all of London’s organisations • harnessing London’s world-class knowledge base to benefit enterprise • encouraging and enabling London’s enterprises to be innovative. The business support services mentioned elsewhere in this chapter can be tailored to encourage innovation. Indeed, there are already successful examples of this boosting innovative practice, showing the scope for wider action. Other actions might include: • supporting the building of links between enterprise and London’s knowledge infrastructure. This will include connecting business with London’s knowledge infrastructure through existing supply chains and professional and trade bodies, academic and other entrepreneurs in London • streamlining the institutional infrastructure underpinning intellectual property development, particularly in the NHS – the single largest opportunity for such commercialisation in London and the UK • helping ensure appropriate financing innovation. This will include developing the Higher Education Innovation Fund to provide a permanent funding stream to support knowledge transfer

• supporting development of hubs bringing together workspace, including specialist accommodation, like laboratories, access to advice, training and other services and help with accessing venture capital and other funding opportunities. There may be scope for locating these close to learning institutions, making the most of opportunities for research spin-offs. In particular, creative industries, life sciences and similar sectors may benefit from this kind of approach. Development and support of London’s evolving environmental sector will be a strategically important aspect of innovation policy. About 140,000 people are employed in the sector, more than printing and publishing or television and radio. London has particular strengths in the built environment; the green knowledge economy; headquarters functions for commercial enterprises in the sector, government agencies, the voluntary and community sector including international charities; eco-business services and environment service industries, such as recycling. The Mayor has set a specific target for the creation of 10,000 new environmental jobs in London. As well as processes and products, there is scope for developing innovative approaches to the way London’s enterprises do business. Examples include corporate social responsibility; ethical investment; fair trade; work/life balance and flexible working and finding ways to ensure consumers are able to make informed choices.

ECONOMIC DEVELOPMENT STRATEGY

5.2.6 SOCIAL ENTERPRISE AND THE VOLUNTARY AND COMMUNITY SECTOR
There are up to 5,000 social enterprises in London, including care, environment, information and communications technology,
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financial services, construction, retailing, tourism, the arts, childcare and manufacturing. London’s voluntary and community sector comprises 18,000 registered charities and over 40,000 voluntary and community groups. It employs more than 200,000 people in a range of sectors, from health and social care to the environment, childcare, education and training, and the arts. Social enterprises and voluntary and community organisations are important as sectors of the economy in their own right, as employers and as partners in delivering this Strategy. They provide a route to reach those who are at greatest risk of social and economic exclusion and who have most to gain from successful economic development in London. While many of the mainstream enterprise issues and policy approaches outlined in this chapter apply to them, social enterprises and the voluntary and community sector have particular needs. Differences in legal form, their social purposes, not-for-profit operation, and changes being made to funding regimes, pose a number of challenges and opportunities.

Social enterprises require access to specialist, flexible support within an improved and more holistic approach to business support services. The voluntary and community sector needs access to flexible specialist support and advice, appropriate finance and funding, suitable workspace and skills, and employment training and mentoring. These services need to be responsive to the needs, culture and diversity of the sector. Adopting and promoting procurement practices that enhance the contribution of these sectors – in particular as deliverers of social care services, and enabling partnership working will be important. The compact, Working Together, agreed by the Mayor, Transport for London, the LDA and the London Voluntary Service Council is a model that should be promoted.

54 LDA Sustaining Success – Developing London’s Economy

6
Objectives

CHAPTER 6: INVESTMENT IN MARKETING AND PROMOTION

Mayoral strategy (see box)

• Ensure a coherent approach to marketing and promoting London. • Coordinate effective marketing and promotion activities across London. • Maintain and develop London as a top international destination and principal UK gateway for visitors, tourism and investment. EVIDENCE BASE: CHARTS 5.4 & 5.5 Marketing and promotion is an increasingly important component of economic development activity. The activities proposed in this chapter aim to ensure that London maintains its position as one of the world’s greatest cities in the face of an increasingly competitive environment. The impact of global markets and competition has been described earlier. These have brought to the fore a number of factors cities and regions must face, including: • continued globalisation of consumer tastes • growing international migration • easing of cross-border financial flows • the growth of information and communications technology • rising levels of education worldwide. Cities are under mounting pressure to invest in product development and promotion to maintain and increase their market share. As a result, many have adopted sophisticated approaches to marketing and promotion. A range of activities to promote London is required if the objectives set out in the previous three chapters are to be achieved. Marketing specific geographical areas to support the objectives of the Places and Infrastructure chapter, and marketing London

as a location to do business and invest to support the objectives of the Enterprise chapter are just two examples. At the same time, there is a clear case for looking at the issue of marketing and promotion as an intervention in its own right. For too long this has been overlooked. Now, for the first time, London has the commitment, organisation and resources needed to make this happen. The purpose of this chapter is to draw together key promotional activities from preceding chapters and to address the broader issue of how to market and promote London as a successful, diverse and growing city in an increasingly competitive world. Different areas of the economy face different competitive pressures. London’s financial services and banking industries compete primarily with New York, Paris EVIDENCE BASE: CHART 1.11 and Tokyo.21 The newer knowledge and internetbased industries compete directly with Amsterdam, San Francisco and Bangalore. The fashion and creative industries are head-to-head with New York, Paris, Milan and Toronto. Tourism competes globally. Similarly, higher and further education sectors face challenges from around the world, including the United States and Australia. London’s manufacturers compete with a wider range of locations EVIDENCE BASE: CHART 4.3. London needs to be promoted internationally, to the domestic UK market and internally, within its own boundaries. Maintaining London’s ability to attract international visitors and investment is central to this Strategy. London has a unique role to play as the principal gateway to the UK for many visitors and investors. London’s visitor economy attracts significant custom from UK locations. London also needs to promote itself to its own people and businesses, not only to boost spending and re-investment but also to develop a sense of civic pride and commitment.
21

Mayor’s Culture Strategy and Strategic Tourism Plan.

ECONOMIC DEVELOPMENT STRATEGY

Mayoral strategy

Saskia Sassen, op cit
55

6 INVESTMENT IN MARKETING AND PROMOTION

SWOT Analysis Strengths • London successfully combines the many facets of its wide appeal: history, creativity, diversity and entrepreneurial energy. Its ethnic, cultural and linguistic diversity combine to create a unique visitor experience, as well as being a significant asset for business growth and development. • London is Europe’s top business location, attracting significantly more international investment than any other European city. • A rich environmental heritage, including a network of green spaces and public places across London increase its attraction for visitors and businesses, and the Thames – one of the cleanest urban rivers in the world, a showcase for some of London’s major attractions, and a vital visitor asset in its own right. • A heritage of institutions including universities, museums and galleries. Weaknesses • High costs and poor infrastructure combined with some negative perceptions tend to undermine London’s reputation EVIDENCE BASE: CHART 2.1 & 2.5. • The poor quality of some visitor accommodation and some of what London offers its visitors. Opportunities • The scope to maximise benefits from changing patterns of domestic and global tourism. • The scope to continue to develop the dynamic potential of VisitLondon, a unique public/private partnership. • Global overseas investment is projected to grow. London is poised to secure a healthy share. Emerging markets – like China and India – raise new opportunities for trade and investment. • Increased partnership working at national, regional and local levels to capture major international opportunities, such as the bid to stage the Olympic and Paralympic Games in 2012. Threats • Fragmentation of effort and inability to agree a common agenda between key players in London. • Structural changes as globalisation continues. • Competitor cities and emerging destinations responding more effectively to these challenges.

56 LDA Sustaining Success – Developing London’s Economy

Internal promotion enables the cultural and social benefits of living in a world city to be available to all of London’s people. The confidence engendered by a strong and positive self-image has enabled competitor cities, such as New York, to reap huge benefits from visitors and investment. Tourism and inward investment can have a significant impact on the environment. It will be important that all the organisations and enterprises involved in these areas work together to minimise negative effects, and take positive steps to contribute to sustainability.

6.1 KEY ISSUES FOR MARKETING AND PROMOTION
London has unparalleled access to global markets, highly developed and cost-effective international links and a pool of talent and expertise unrivalled by any other major international business centre. Maintaining London’s position as Europe’s top location for enterprise EVIDENCE BASE: CHART 1.12 is a priority for this Strategy. The range of skills available (including diversity of languages spoken), the quality of communications and telecommunications links, and the availability of competitive and modern premises are rated by investors as essential factors when deciding where to locate their enterprises. Value for money, quality of life and freedom from pollution are also important considerations. Although inward investment is dealt with elsewhere in this Strategy, it is worth noting that London has increased its share of key international financial markets in recent years. This is despite concerns that failure to join the single currency might adversely affect London’s financial centre. London has developed a leading position in international business services and a range of creative industries. However, as the number of potential

competitor destinations across the world has grown, London has been losing market share in international tourism EVIDENCE BASE: CHART 5.5. Action is required to make sure London maintains and develops its market share. London’s share of world expenditure on tourism fell by over 40% between 1985 and 2003, although overall spending by visitors in London did not fall (and most recently, market share has increased). The visitor economy is a key contributor to London’s economy, with tourists, business visitors and those visiting friends and relatives all bringing significant resources. Overseas visitors, in particular, are a key income generator, staying longer and spending more than domestic visitors. The capital is also facing increased competition in attracting international students to London’s HEIs, from overseas and from institutions elsewhere in the UK. While Chart 5.8 illustrates an increase in London’s overseas intake of foreign students, negative messages about London’s infrastructure, costs and crime levels are deterring students from applying to study here. Clarity about London’s overall promotional message is critical. Market feedback suggests that there are widely differing perceptions of London’s attractiveness. London’s traditional image is well established, but there remains a pressing need to promote London as a uniquely exciting, diverse, cultural and welcoming world city with an unrivalled range of experiences and attractions. These messages will have to be adapted for particular markets. Business visitors are drawn to the capital by its modernity and world-class business facilities. Domestic visitors come to enjoy London’s major entertainment offerings, particularly in central and west London, and London’s wealth of attractions and activities for families. Sole reliance on traditional
57

ECONOMIC DEVELOPMENT STRATEGY

6 INVESTMENT IN MARKETING AND PROMOTION

markets could leave London lagging behind in an increasingly competitive environment. Established and new niche markets need to be developed. Making sure that London is marketed and promoted as effectively as possible requires a coordinated and coherent effort. Of course, marketing and promotion can only be successful if the message is backed by constant improvement of the range and quality of what London can offer. This will require having a clear view of areas where improvement and investment are needed. Some of these are highlighted elsewhere in this Strategy. It will also need coordinated action by the GLA Group and other London stakeholders to prioritise and implement actions needed. In the past, the fragmented effort and involvement of a large number of bodies have hindered the successful marketing of London. In this context, there are three key priorities for marketing London: • London must develop an integrated and coherent overall image and promotional message, while recognising and retaining its many niche strengths • the quality and extent of investment in certain sectors and in existing niche markets need to be increased and new markets developed • the effectiveness of marketing and promoting must be improved through better coordination of existing efforts.

learn from other cities that are more advanced in developing collaborative approaches to promotion. The message must communicate London’s unique essence, focusing on: • celebrating London’s difference and diversity • London’s creativity • the resourcefulness of London’s people, enterprises and institutions, its ability to evolve and its continuous state of flux. A variety of approaches will be required to address different target audiences, for example the leisure market and business visitor market. In this sense, London can be compared to a company promoting a portfolio of products across a range of markets, using specific techniques to attract different market segments. Like any company, London needs a marketing strategy that delivers a range of targeted messages, reinforcing one another and building a positive and coherent image. In short, London needs promoting as a place, to people, and as a place for people to do business. Promoting London as a place
INVESTMENT THEME: PLACES AND INFRASTRUCTURE, CHAPTER 3, FOR FURTHER DETAIL ON PLACES AS A KEY ISSUE.

6.2 DEVELOPING THE LONDON MESSAGE
Efforts to develop London’s message should play on London’s strengths – based on what London has to offer as a destination for tourism and business, and as a place for culture, learning and sport. London must also
58 LDA Sustaining Success – Developing London’s Economy

London’s unique diversity, dynamism and heritage enables the visitor to have an unrivalled experience, enjoying the wide range of its cultural offerings, environments, attractions and architecture, together with a rich mix of races, ethnicities and languages. London needs to raise its profile in other ways as well. The promotion of cultural and sporting events can raise awareness of London and its creativity and diversity. The GLA Group and partner agencies are working with the British Olympic Association, the Government and

other organisations to support the London bid for the 2012 Olympic and Paralympic Games. The Games and their longer-term legacy would result in economic and regeneration benefits. A successful strategy could maximise tourism and investment opportunities for London and the UK as whole, as was achieved by the Sydney and Barcelona Olympics. London hosts a wide variety of other cultural events, including the London Film Festival, London Fashion Week and London Design Week. All of these can be used to raise the profile of London’s cultural industries. The emphasis on the promotion of places within London will reflect the spatial priorities identified in the Mayor’s London Plan. The Olympic/Paralympic Bid, for example, targets the regeneration of the Lower Lea Valley and Thames Gateway. The importance of spreading the benefits of tourism across the capital has already been highlighted. Success in developing cultural quarters, such as Deptford or Shoreditch and the City Fringe, needs to be built upon. Effective management arrangements and promotional opportunities would ensure that London remains attractive and safe for its residents and visitors. These include the entertainment management zone concept, business improvement districts and application of the Mayor’s Ambient Noise Strategy. Efforts to promote key opportunity areas in London for inward investment will focus on achieving the spatial objectives in the London Plan. Promoting London to people Promoting London to people is not only a means of stimulating the visitor economy, but will also bring positive benefits for other areas of public policy. For example, promoting the capital’s sporting assets and opportunities to participate in sport could have positive health benefits for all Londoners.

Promoting London as a place to invest and do business The chapter on Enterprise has highlighted the importance of action to maximise trade opportunities for London’s diverse enterprises and to attract inward investment. Tackling these challenges requires the kind of targeted, coordinated action by a range of organisations and interests stressed here. These efforts can be supported by successfully attracting international institutions and organisations to London. Work is under way to examine the scope for an international convention facility in London, and the contribution this could make to promotion of the city as a place to do business.

ECONOMIC DEVELOPMENT STRATEGY

6.3 ENHANCING COORDINATION AND PARTNERSHIP
IMPLEMENTATION AND ACTION PLAN, CHAPTER 7, FOR FURTHER DETAIL ON PARTNERS AND RESOURCES.

A central theme running throughout this Strategy is the need for greater cooperation, coordination and partnership working. This applies as much to marketing and promotion as it does to each of the areas for intervention outlined in previous chapters. Effectiveness through coordination Recent developments provide opportunities to succeed in delivering more effective marketing. First, establishment of the office of the Mayor of London provides leadership and a focus that will contribute significantly to the delivery of a coherent London-wide message. Secondly, the existence of new and revitalised bodies, such as the LDA and VisitLondon, offer mechanisms through which the activities of the private sector, London boroughs and other agencies can come together to share a consistent promotional message and language, and a coherent set of
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brand images. Thirdly, the Olympic bid provides a focus for all and a unique opportunity to position London and the UK as a whole in new ways. The private sector must be engaged in promoting London more effectively. For example, the banking sector may have an interest in promoting London to foreign students; travel companies and airlines have an interest in the international tourist market; and the accounting and legal professions, as well as the utilities, may have an interest in promoting inward investment. VisitLondon and Think London, both supported by the GLA Group, take the lead within their respective fields of international and domestic tourism and inward investment. However, there are still areas where responsibilities are unclear and greater coordination is required, such as in attracting international students. In these areas the GLA Group will seek to play a leadership and coordination role, bringing together key partners to develop strategic approaches that are consistent with London’s overall marketing efforts.

London Gross Value Added, supporting 280,000 full-time and part-time jobs. London is a vital gateway to the rest of the country, with about half of all overseas visitors to the UK spending time here. Tourism has become an important strategic issue for London. In September 2002 the GLA published VisitLondon the Mayor’s strategic tourism plan. The plan has been supported by production of a detailed action plan and by the establishment of VisitLondon. Several key principles underlie the plan: growth: the Mayor is committed to London’s growth as a tourism destination, to create jobs and increase the contribution of tourism to the economy of the capital and to the country as a whole dispersal: growth needs to be more evenly spread across London, with new businesses encouraged to develop outside the central London area. This will increase choice and improve value for money for visitors, and help ensure all parts of London can share in the economic benefits of tourism. The Mayor’s Culture Strategy has also highlighted the importance of the spatial diversification of London’s cultural amenities resources: skill levels and shortages need to be addressed by providing training and other mechanisms to improve access to jobs for London’s communities. Small business support and information, along with coherent branding, need to be developed diversity and inclusion: London’s diversity is an important aspect of its appeal. London’s cultural diversity should be built on and enhanced, promoting the involvement of all sections of the community in developing new businesses and tourism initiatives.

6.4 SUPPORTING LONDON’S VISITOR AND TOURISM OFFER
The GLA Group, working with VisitLondon, Think London and others, has made a start in ensuring a coordinated approach is made to tackling these issues effectively. The analysis in this chapter suggests a number of key issues for the development, marketing and promotion of London’s tourism including: • supporting London’s visitor and tourism offer • developing London’s message • enhancing coordination and partnership. The capital attracts an estimated 27 million tourists every year, spending £15 billion (2002 figures). This is equivalent to around 9% of
60 LDA Sustaining Success – Developing London’s Economy

The strategic plan focuses on four separate themes: • leadership and promotion • market development • evidence and intelligence • product development. The prime delivery vehicle for the action plan – VisitLondon – is a private company limited by guarantee. It is funded by membership subscriptions, commercial activity, the Department for Culture, Media and Sport, the Mayor, the LDA and Association of London Government. VisitLondon’s specific role is to promote and market London to leisure and business visitors, to press for quality improvements to tourism infrastructure and services and to work to maximise the benefits of tourism for Londoners and the local economy. Progress against the strategy will be reviewed annually and new action plans developed. The effectiveness of any marketing and promotion activity depends on the quality of the product being marketed. Increasing the investment in, and the quality of London as a tourism destination is essential. A key area for improvement is in the supply and quality of London’s visitor accommodation, where there is potential for at least a further 36,000 hotel bedrooms. Increase in supply, better value for money and more effective quality control will drive up standards across London. The location of additional visitor accommodation and new attractions should also take account of local infrastructure, of the diverse heritage of built and natural environments and attractions and of the benefits of increasing dispersal patterns. In particular, consideration should be given to maximising the potential of more diverse

tourism products in all parts of London. Existing and new niche markets that could be developed include people visiting friends and relatives. Business tourism has considerable potential. Historically there has been underinvestment in business tourism facilities. For example, London lacks a centrally located international convention centre of sufficient capacity to compete with other European capitals and a commission has been set up to establish the scope for such a facility. A number of smaller, independent initiatives have taken place without strategic coordination. This has substantially lessened the resulting benefits they have had, and has not ensured that these outweigh any benefits displaced in other areas. Students Attracting students to London universities is integral to the growth of the capital’s economy. Just under a fifth of London’s HEI students (60,000) are from outside the UK. But China and India, for example, are huge growth areas and both have greatly increased their student intake over the past five years. Attracting students is essential to any campaign to market London. Working with London Higher and VisitLondon, a strategy will be developed to attract more students using promotional material and literature. London’s HEIs need to be encouraged and supported in their ambassadorial and wider role representing London internationally. Research has shown that students want to study in London, both because of the range and quality of courses on offer and the many cultural and entertainment attractions available. Development of these across London will enhance the pull that the capital has for international students, particularly where value for money is a factor.
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ECONOMIC DEVELOPMENT STRATEGY

CHAPTER 7: IMPLEMENTATION AND ACTION PLAN

This Strategy will only be a success if its ideas and objectives are implemented on the ground, making an identifiable, positive difference to London and its people. This chapter describes the approach that will be needed to make sure the Strategy is delivered effectively. It does this by addressing ways of: • making the best use of the resources available to support London’s economic development • developing effective and inclusive partnerships by identifying shared priorities and coordinating activities for maximum effect • making sure there is the leadership needed for London’s continued success. This leadership will need to explain the direction of economic change in London and its implications, build consensus about required action and make the case for London to national Government and beyond. The following sections start by reviewing the key issues involved, and their implications for the various organisations and individuals concerned. They end with a summary of the roles to be taken by the GLA Group, and by the LDA in particular. The previous chapters have identified strategic objectives, focussing on the need to take action to: London’s places and infrastructure • Support the delivery of the London Plan, to promote sustainable growth and economic development. • Deliver an improved and effective infrastructure to support London’s future

7

growth and development. • Deliver healthy, sustainable, high quality communities and urban environments. London’s people • Tackle barriers to employment. • Reduce disparities in labour market outcomes between groups. • Address the impact of concentrations of disadvantage. London’s enterprises • Address barriers to enterprise start-up, growth and competitiveness. • Maintain London’s position as a key enterprise and trading location. • Improve the skills of the workforce. • Maximise the productivity and innovation potential of London’s enterprises. London’s marketing and promotion • Ensure a coherent approach to marketing and promoting London. • Coordinate effective marketing and promotion activities across London. • Maintain and develop London as a top international destination and principal UK gateway for visitors, tourism and investment
EVIDENCE BASE: CHARTS 5.3, 5.4 & 5.5.

While there are initiatives the public sector can take, there are limits on what it can and should do. ROLE OF THE EDS, CHAPTER 2, FOR FURTHER
DETAIL ON WHEN THE PUBLIC SECTOR SHOULD INTERVENE IN ECONOMIC DEVELOPMENT.

70% of London’s economic activity is in the private sector. It will only be possible to make a difference if private enterprises are ready and willing to respond. Delivering these policies will depend on all organisations with a stake in London’s economic development agreeing to this agenda and working together to make it a reality. Far from being a weakness, this reliance

62 LDA Sustaining Success – Developing London’s Economy

on joint working is the only way to take effective action in London; the high degree of consensus that exists about the issues London faces and the steps needed to address them is a major strength to be built upon. The Mayor and the GLA Group, which includes the LDA, are committed to working with all London’s stakeholders, wherever in the economy or wherever in London they work, to ensure the success of this Strategy. Given this background, it is not possible to provide a detailed action plan showing exactly what will be done, where, by whom, when, and how much it will cost. London’s economy is complex and fast moving. A strategy for its economic development has to be flexible enough to respond to change. There will be other documents explaining the programmes and initiatives to implement aspects of this Strategy over its lifetime. These include the LDA’s Corporate Plan and other GLA Group strategic documents. This chapter shows how the Strategy can be effectively implemented recognising the respective roles and strengths of stakeholders, respecting London’s diversity and complexity and providing best value for resources used.

range from £9 billion to £15 billion.22 Despite its economic success, London faces an overall investment deficit given the scale of the challenges it has to meet. Substantial investment is needed in infrastructure and public services over the next 15 years. For example, Crossrail is vital to London’s development and will require significant funding. The public sector alone will not be able to mobilise resources on the scale required. It has to work with the private and other sectors to secure and deploy the investment needed to address these and other key priorities. To deliver this Strategy the scale of the issues faced needs to be assessed, funding secured, and the best possible value from every pound spent needs to be achieved. The only way to do this is by partnership working. To identify, secure and make best use of resources, the following will need to be undertaken. • Making the case for London: London has pressing investment needs. Its overall prosperity tends to mask deprivation exacerbated by its high cost base. Resources are needed to address London’s low housing standards, poverty, health disparities and poor air quality. Investing in London makes strategic sense for the entire UK, given the city’s leading edge in high-productivity and fast-growing economic sectors. London brings in investment, employment and innovation that boost the entire national economy contributing the largest GVA per capita of any region EVIDENCE BASE CHART 1.2. Many other UK regions benefit from London’s success. Investment in the capital is also crucial to deliver the key national priorities, including tackling child poverty, addressing regional disparities and boosting innovation. There is a constant need to make the case for the investment London needs to sustain success to national Government and

ECONOMIC DEVELOPMENT STRATEGY

7.1 RESOURCES
Issues Resources available to support economic development in London are at a premium. This is one reason why joint working is so important. London’s gross value added is over £160 billion. Research for the LDA suggests that in 2000/ 2001 £3.1 billion of public money was spent on London’s development priorities. The LDA’s budget for the same period was £300 million. London makes a substantial contribution to the national public purse every year – estimates

22

GLA Economics, Working Paper 6: Calculating London’s Tax Export, March 2004

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7 IMPLEMENTATION AND ACTION PLAN

others responsible for allocating resources across the public, private and other sectors. • Getting the most from public sector investment: London needs investment to provide the infrastructure and services to meet the needs of a growing city and address the results of years of neglect. Public sector investment inevitably has a major role to play in this. It is essential to make sure London receives the level of funding needed to sustain its success and deliver national policy objectives. It will require all involved in London’s development to work together to identify ways of making the most of the resources available. This may be achieved by aligning budget priorities and processes, pooling resources to optimise outcomes or finding ways to improve how resources are used. The particular circumstances that exist here suggest the need for new public spending programmes and for adaptation of existing ones. Success will be maximised only with the commitment and willingness of partners to identify and get the most from opportunities to make public investment stretch further. • Maximising private sector leverage: London’s investment needs cannot be met from the public purse alone. Many of the more innovative urban development funding tools available to the public sector in other countries are not available here (such as bond issues, special investment funds, tax incentives, tax increment funding, guarantee funds and dedicated levies). London needs to make best use of mechanisms that do exist or are being developed – like business improvement districts – and use public funds to attract private finance. It will be vital to maximise the input and impact of the private sector; coordinating investment priorities and finding new ways of mobilising resources and

expertise will be essential. Doing business in London is expensive. Tackling the underlying reasons for this will improve the business environment and support employment growth; working in partnership with the public and other sectors to deliver this Strategy will provide businesses with the environment they need to flourish. London is uniquely placed to provide leadership for this, given the wealth of investment expertise in its financial services sector. This is a vital asset, and can enable innovative ways of financing economic development to be explored. These might include building on existing proposals to allow local authorities to retain a proportion of local business rates if their local economies grow beyond a set threshold. Roles London stakeholders already invest significantly in the areas covered by this Strategy. Their continued commitment and support is needed to maximise the value of investment and to ensure the case for London is made effectively. The Mayor made a detailed submission, about the city’s needs and the benefits it brings to the UK, as part of the 2004 Spending Review process.23 The GLA Group will build upon this foundation over the period of this Strategy to make sure a well informed, convincing case is made for the investment London needs. The LDA will build on its support for pilot City Growth Strategies, which involve local business leaders in development of local growth and business improvement districts. The GLA Group will continue to explore these and other ways of engaging with the private and other sectors. To this end, the LDA has established a Private Investment Commission. This is a group of experts in private and public investment that can guide policy-making in this field. Options already considered include:

23

The Case for London – the Mayor of London’s Submission to the Spending Review 2004

64 LDA Sustaining Success – Developing London’s Economy

• promoting take-up of Community Investment Tax relief in London • ways of capturing increases in property value arising from major projects • property-based partnership options, including joint ventures, particularly in the Thames Gateway • business improvement districts and ways of financing workspace for small and medium enterprises (SMEs). These ideas will be explored by the GLA Group, in discussion with Government and other stakeholders, to find new ways of delivering shared objectives. The LDA’s resources are vital to support delivery of the objectives and policies set out in this document. The Strategy and its annual monitoring process will inform the LDA’s corporate planning and programme development. It will provide the high level strategic framework to guide LDA resource allocation. Decisions about deployment of LDA resources are made through the LDA’s own annual planning process. The LDA’s annual Corporate Plan contain details of programmes, projects and budgets, together with targets and timescales. These are prepared collaboratively, including wide consultation and will reflect this Strategy’s objectives. To be most effective all stakeholders in London need to be involved. Details of how and when to participate are available on the LDA website (www.lda.gov.uk) SEE ACTION PLAN , for more detail on partners and resources).

economy and the issues it faces. It is also because there is a multiplicity of agencies and groups involved in economic development across London. As a result, effective partnership working is the only way to deliver success. Partnership working can mobilise London’s diversity and recognise the formidable strength that can emerge from shared understandings, priorities and actions. Joint work across all parts of the economy and the community can bring a rich variety of benefits to maximise economic development. Key potential partners will need to be found, priorities agreed, and alliances built. The agendas of decision-makers and funders will need to be influenced. Partners can help each other understand new perspectives and address familiar issues in possibly unfamiliar ways. Those delivering policies, initiatives and services will need to be responsive to and representative of the communities they seek to serve. Above all, partners need to work together in ways that get the best possible value from resources. This will mean learning from experience about what works and what does not. It will mean being clear about objectives and targeting initiatives to bring maximum benefits for intended beneficiaries. It also means aligning policies and working practices to ensure a more coordinated approach to procurement and commissioning. Effective methods will be needed to engage with London’s communities about what is planned, what is being done, and how far it has succeeded. This Strategy necessarily deals with Londonwide, strategic actions. Delivering its objectives will require planning and implementation at local levels. The detail about sub-regional and local delivery, taking account of the different needs and circumstances of each part of

ECONOMIC DEVELOPMENT STRATEGY

7.2 PARTNERSHIP
Issues No one organisation is placed or resourced to deliver on all the priorities covered by this Strategy. This is partly because of the scale, composition and complexity of the London

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London, will be shaped by sub-regional economic documents (SREDs). SREDs will be informed by, and consistent with, this Strategy, the London Plan and the sub-regional development frameworks being developed to implement the Plan. Research by GLA Economics and monitoring processes will ensure policy-making is based on the most reliable, up-to-date information about what is happening in sub-regional economies. Preparation of SREDs will be led by the LDA with other parts of the GLA Group. It will involve London-wide, sub-regional and local partners so that its impact can be maximised. Roles Key groups of partner organisations that will deliver the objectives of this Strategy are likely to include the following. The private sector: In a city where 70% of the economy is represented by this sector, delivery of this Strategy will be impossible without their full support and participation. This may be through: • representative organisations, including London First, the London Region of the Confederation of British Industry and the London Chamber of Commerce and Industry • trade associations, including the British Retail Consortium • individual firms. The private sector has been crucial for delivery of initiatives such as Modern Apprenticeships. There is a need for further joint work to address discrimination and promote environmentally friendly business practices. Many firms already have corporate social responsibility programmes. These can contribute to delivery of many of the objectives central to this Strategy, such as addressing labour market discrimination. The private sector has
66 LDA Sustaining Success – Developing London’s Economy

experience and expertise it can bring to help others in delivering objectives and initiatives efficiently and effectively. The European Union (EU) and supra-national bodies: Key areas of policy mentioned in this Strategy are increasingly influenced by EU legislation and policies, as well as by the work of international organisations such as the World Trade Organisation and Organisation for Economic Cooperation and Development (OECD). It will be essential to ensure that London's interests are fully reflected in these organisations' decision making and that London and Londoners benefit as much as possible from funding and programmes put in place by them. London's European Office in Brussels provides London with that clear voice in the EU policy process. It ensures that London's interests are represented and that London's expertise is made available to EU policy makers. Government and other nationally sponsored public sector agencies: such as • organisations taking key national policy and funding decisions, including HM Treasury and other Government departments • those planning for and delivering key public services, including the NHS and the organisations involved in planning and delivering transport services • regionally based governmental bodies, including the Government Office for London, health authorities and bodies, the Employment Agency and agencies concerned with business support and skills • bodies set up by national Government specifically to deliver regeneration objectives. These might be bodies tasked with action in particular places, like the Thames Gateway Urban Development Corporation, or those

with a wider brief, such as English Partnerships • there are other Government bodies, such as those involved in higher and further education, which are funded nationally to deliver services locally. Partnerships with and between all these organisations will be vital. Such partnerships could agree and deliver common policies and priorities in areas such as transport, housing, employment, and neighbourhood renewal. They could also support action on social, health, safety, educational and skills issues. Many are major employers and purchasers of goods and services in London. This makes the public sector an important economic sector in its own right. The NHS is of particular significance. It has enormous purchasing power and a large capital and physical development programme. It is a major employer. It is also a significant contributor to wealth creation, often in deprived areas. In addition, the connection between improving health and building sustainable communities is clear. Joint work with the NHS is likely to include skills and employment, local procurement, construction and innovation. Sub-regional partnerships: The sub-regional level will support translation of this Londonwide Strategy into local activity. This is helpful given London’s complicated geographic and social contexts. This Strategy uses the five subregions described in the London Plan: East, West, North, South and Central INVESTMENT
THEME: PLACES AND INFRASTRUCTURE, CHAPTER 3, FOR FURTHER DETAIL ON LONDON’S PLACES AND THE SUB-REGIONAL FRAMEWORK .

provide forums that can be drawn upon by London-wide organisations when consulting on and implementing initiatives. It is vital that these partnerships are genuinely representative. They need to respond to the interests and concerns of the range of organisations active in their sub-regions, including those mentioned in this chapter. They are likely to have a role in preparing the sub-regional economic documents (SREDs) mentioned earlier. Local government, strategic partnerships and other locally based agencies: London’s local authorities have powers, responsibilities and investment functions for many of the activities in this Strategy. They have extensive powers and responsibilities for services directly related to economic development, such as land use planning. Their community leadership and wider roles, including preparation of key plans and strategies, are essential to ensuring sustainable communities. Many local government services are crucial to ensure the high quality environments London’s economy increasingly demands. Their regulatory functions have a major impact on the climate for enterprise in London. Through their education, housing and social services functions, they play an important part in ensuring the availability of a well-trained workforce, and help address social exclusion. Working together through the Association of London Government, boroughs also have an important role in making the case for London and providing strategic services. Local strategic partnerships, particularly in boroughs eligible for Neighbourhood Renewal funding, are vital for the coordination of initiatives at a regional and local level. Through them, lessons can be learned, shared and built upon.

ECONOMIC DEVELOPMENT STRATEGY

A network of partnerships representing the public, private and voluntary and community sectors is developing sub-regionally. These are likely to

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A range of voluntary and community sector bodies, such as housing associations, also provide local services. They will have valuable roles to play in delivering aspects of this Strategy. Together, the organisations and partnerships working at local level across London will have vital roles to play in translating the broad, London-wide objectives outlined in this Strategy into local action and delivery. This will include participation in preparing SREDs. The voluntary and community sector: such as • community-based organisations. These include self-help groups representing those with a shared interest or concern • small independent voluntary organisations, including a range of advice and information agencies or single issue interest groups • larger voluntary organisations, these include the London Regional Citizen’s Advice Bureaux, Greater London Action on Disability, the Black Londoner’s Forum and organisations whose members are from other equalities groups. This group also includes those representing smaller voluntary and community sector bodies like London Voluntary Service Council, London Voluntary Sector Training Council, the Law Centres Federation and the London Advice Service Alliance. Some voluntary and community sector organisations fall into more than one of the above groups. Housing associations for example range from the relatively small to the extremely large. Community transport projects may also be small and community based, or maybe larger and borough-wide. The voluntary and community sector is a key partner in planning and delivery of economic and social development initiatives throughout

the capital. The compact “Working Together” 24 was agreed between the Mayor, LDA, Transport for London and London’s voluntary and community sector. It acknowledges the sector as a major partner and an important contributor to a democratic, inclusive society. The voluntary and community sector is of growing economic importance in its own right. INVESTMENT THEME: ENTERPRISE, CHAPTER 5 , FOR FURTHER INFORMATION
ON THE VOLUNTARY AND COMMUNITY AS A BUSINESS SECTOR .

It is a significant service deliverer and employer. It provides a route to those traditionally viewed as hard to reach by the private and public sectors.

Trade unions: All of these organisations rely on those working for them for their success. Implementation of this Strategy will be impossible without the commitment, participation and ideas of London's workforce. For those employed in the private sector, unions are an integral part of the business community. For the public and voluntary and community sectors they can help organisations and agencies deliver many of the priorities outlined here, such as making sure the case for London is made. The most effective way of securing these is through trade unions and their representative body, the Trade Union Congress (particularly through its Southern and Eastern Region, SERTUC). It will be important to foster a social partnership between employers and employees across all sectors of the London economy, and to recognise the important roles unions often have in areas like working with employers to develop best employment practice, health, safety and welfare at work, tackling discrimination in the workplace, workforce development and skills training.
24

GLA, Working Together (April 2003)

68 LDA Sustaining Success – Developing London’s Economy

Londoners and the Civic Forum: Ultimately, success is impossible unless Londoners are supported to engage with this Strategy. This needs to include individuals, and the organisations they choose to represent them. Londoners will need to be informed about this Strategy and the analysis underlying it, then consulted and involved in the design and implementation of specific economic development initiatives. Feedback will need to be given on the results of consultation. The London Civic Forum has an important role to play. It will provide one of many means to include the groups representing all London’s communities including: • black and minority ethnic communities, of all different backgrounds • faith communities and other ethically-based organisations • specialist equalities organisations, including organisations of disabled people, young, older, and lesbian, gay, bisexual and transgendered people. GLA Group: The GLA Group will have an important function in catalysing and leading partnerships. This will be achieved particularly through the leadership role of the Mayor and deployment of the resources and powers of the GLA and its functional bodies. The LDA will contribute to the development of new approaches, tools and resources. It will support partnership building to deliver the objectives in this Strategy. The GLA Group will seek to influence relevant strategies prepared by others, for example: • local authority strategies (including community, transport, local implementation and development plans and neighbourhood renewal, education, tourism and open spaces strategies). These are likely to have a key role to play in the development of SREDs

• the London Housing Strategy, prepared by the London Housing Board • Primary Care Trust local delivery plans • the London regional education strategy prepared by the Higher Education Funding Council, and its local counterparts prepared by local authorities • the London Framework for Regional Employment and Skills Action (FRESA), prepared by the London Skills Commission • Learning and Skills Councils’ strategies • strategic plans and freight strategies prepared by the Strategic Rail Authority (and any replacement).

ECONOMIC DEVELOPMENT STRATEGY

7.3 IDEAS AND LEADERSHIP
A strategy of this kind poses particular challenges for implementation. It relies on action by a range of organisations; working in partnership to influence decisions taken by others at regional, national, European and international levels; and developing and implementing distinctive policies for London. This demands an inclusive, high-level approach to implementation and monitoring. It is therefore important that all concerned act on the basis of the best evidence and information available and that everyone is aware of new ideas about good practice and innovative approaches. The GLA Group, and the LDA in particular will take the lead on implementation. They will call on the contribution of all potential partners including those outlined earlier in this chapter. Ideas There are a number of ideas and concepts that will be important in the implementation of this Strategy.

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Definitions of each of the cross-cutting themes and information on how they are integrated throughout this Strategy can be found in Chapter 1, Overview.

Sustainability, equality and health

• Impact assessments for sustainability,
equalities and health: Sustainability, equalities and health (see box): There are

groups and places within London that have not shared in their city’s success; many have been failed by economic development initiatives in the past. Equally, there are unwanted impacts and unforeseen side effects of economic development and growth that can adversely impact on London and those living and working here. All programmes, whether designed to benefit particular sections of the community or not, must be monitored to ensure effective help is given where it is needed most, and action designed to help does not actually hinder progress. There are a number of issues that cut across and underlie the themes and issues dealt with in the other chapters of this Strategy, notably equality of opportunity, sustainable development and promoting the health of Londoners. These have implications for the design, implementation and evaluation of policies and initiatives. Structured, evidence-based impact assessments to identify and understand in advance the likely effects of policies and initiatives on environmental, economic and social well-being are important. Impact assessments identify the potential positive and negative impacts a strategy, programme or individual project may have in advance. They are designed to maximise the positive and avoid, or at least minimise, the negative. Impact assessments will need to be used for much of the work resulting from this Strategy. Evaluations, referring closely to initial impact assessments, will need to be carried out at key stages during implementation of specific

elements of this Strategy to keep work on track. Approaches to integrated impact assessments are being developed, and will be valuable to ensure the linkages between economic, environmental, health and social issues are identified and addressed. • Community involvement in planning processes: This Strategy is about setting the conditions for the successful development of London at the strategic, London-wide scale. Delivery will depend on a large number and range of actions at all levels, including individual neighbourhoods. This will require the fullest possible involvement of local communities and groups. They will need to help design and implement initiatives and make sure local people understand and accept what is being done in their neighbourhoods. How this is done will depend on the needs and circumstances of particular groups and particular places. Effective means of involvement, consultation and learning need to be built into all economic development activities, and the obligation to explain what is happening and why must be integral. • Sustainable procurement: The purchasing power of the public, private and voluntary and community sectors in London is enormous. It can be applied in ways that can maximise the benefits of success to London enterprises and individuals as well as positive environmental impact. Developing local supply chains, and building capacity of local, small and medium-sized and black and minority ethnic-owned or women-owned enterprises to bid for and secure contracts can have a major impact. Making those responsible for purchasing decisions aware of the scope for action within their legal frameworks is essential to this.

70 LDA Sustaining Success – Developing London’s Economy

• Corporate citizenship: Throughout this Strategy objectives are identified that can only be realised if individual enterprises, employers and agencies across all sectors of the London economy take action. This will require development of the concept of corporate citizenship, building on the corporate social responsibility programmes already in place in many enterprises and organisations. This will enable issues to be tackled, including discrimination in recruitment and in the workplace, taking active steps to improve health and safety at work and the welfare of employees and the community as a whole. It also includes local and small-scale initiatives, such as providing work experience, waste minimisation and other environmentally friendly practices. To support its leadership role, the GLA Group will ensure that all the groups established to oversee delivery of Mayoral priorities, strategies and initiatives play their part in implementing this Strategy. These include: • the groups established to oversee implementation of the London Plan • the Thames Gateway Strategic Partnership • the London Sustainable Development Commission • the London Health Commission • the London Skills Commission • sub-regional partnerships and organisations. The LDA Board will direct and coordinate implementation of this Strategy. The LDA will work directly with key partner organisations and groups. It will support activities being carried out by others that will help further realisation of the objectives set out here. The LDA takes account of the developments and trends at national, European and international levels. These will affect delivery and monitoring of this Strategy. This work will include benchmarking

against other cities; identifying and spreading best practice and innovative ideas; and learning from experiences of other cities and regions. It will draw on links established with international networks and organisations, such as the OECD. The LDA will draw on its contacts within the London, the UK and overseas in its leadership of implementation. It liaises regularly with the other UK regional development agencies. Its relationship with agencies and bodies in neighbouring regions, the East of England Regional Development Agency (EEDA) and the South East England Regional Development Agency (SEEDA) in particular, will be important in understanding how economic development in London and its neighbours are interrelated. It will also provide opportunities to work together to promote the success of the wider south east of England. While the LDA has the lead responsibility for overseeing implementation, success depends on strong and visible city leadership, provided by the Mayor and the GLA Group of organisations as a whole. It will be important to ensure the objectives set out in this document are fully reflected in the other Mayoral strategies. In particular: • the Mayor’s Transport Strategy. This sets out a ten-year transport plan for London and will be revised during the life of this Economic Development Strategy • supplementary planning guidance, best practice guidance and sub-regional development frameworks. These are being produced to support the London Plan and its implementation. Future revisions to the Plan or its policies will also reflect this Economic Development Strategy • revisions to any of the other Mayoral strategies that might come forward over the period covered by this Strategy.
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ECONOMIC DEVELOPMENT STRATEGY

7 IMPLEMENTATION AND ACTION PLAN

The objectives in this Strategy will be reflected in the budget decisions, plans and policies of the other functional bodies including Transport for London and the Metropolitan Police.

7.3 MONITORING IMPLEMENTATION
The LDA will produce annual monitoring reports for the Mayor. The reports will indicate how successfully the Strategy is being implemented and how it is contributing to overall economic, environmental and social development. These will be publicly available. They will show progress being made to achieve the objectives in the Strategy and identify areas where further action is needed. They will provide background information for all those interested in monitoring and scrutinising the effectiveness of economic development work in London. The action plan starting on page 73, lists the high level indicators for the Strategy. The core of the LDA reports will be a detailed statement showing performance against these indicators. The GLA Group’s direct service delivery responsibilities and the influence of the office of Mayor provide considerable opportunities to support implementation of the Strategy’s objectives and actions. This is the case in particular for transport and community safety, and in making the case for London. The LDA and others will draw on the expertise of GLA Economics to implement and monitor this Strategy. GLA Economics was set up by the Mayor to provide a robust statistical, factual forecasting basis for policy-making and service delivery. It will continue to publish information and analysis. It will identify developing trends and new policy approaches to help direct and monitor impact of Strategy implementation.

The London Assembly scrutinises the work of the Mayor and the GLA group. It will have a role in monitoring delivery of the Strategy. Its wider role in considering issues of general importance to London and Londoners will also be important in assessing success, and identifying areas where more work might be needed.

7.4 THE ACTION PLAN
To this point, this chapter has dealt with implementation in general terms. It has outlined the approaches that will be taken and the kinds of partners whose participation will be needed if the Strategy is to be implemented effectively. What follows is an action plan, which takes the strategic objectives set out at the beginning of this chapter and indicates how these will be pursued. For each objective it sets out: • example actions – the kind of actions that will be taken to deliver the objectives. It is not possible to be exhaustive, as much of the detail will have to be worked out in discussion with partners and set out in corporate plans and other strategic documents, by the LDA and other organisations • an indication of the role of the GLA Group in delivering each objective • a single, high-level indicator of success. These indicators will be used as the backbone of the LDA monitoring reports. They will provide yardsticks to identify the direction and speed of change and enable an assessment of success • an indication of the timescale required to deliver each objective • an indication of the resources likely to be needed. For each investment theme there is also an indication of the kind of partner organisations likely to be involved in implementing the objectives.

72 LDA Sustaining Success – Developing London’s Economy

ECONOMIC DEVELOPMENT STRATEGY
ACTION PLAN

Goals Project, Park Royal Partnership

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ACTION PLAN 2005 – 2016
The Strategy’s vision for London To create a sustainable world city with strong long-term economic growth, social inclusion and environmental improvement. Investment in places and infrastructure: to accommodate growth and ensure sustainable communities and enterprises in London Objective Support the delivery of the London Plan, to promote sustainable growth and economic development Measurement3: Achievement of London Plan job and housing targets in each of London’s sub-regions. Timescale Possible actions1 By 2016 Apply London Plan policies to help deliver a sustainable pattern of development in London. Coordinate strategy development and delivery across London in accordance with the London Plan, particularly in the Thames Gateway and in delivery of adequate and appropriate homes and workspace. Ensure adequate supply of appropriate homes and workspace to meet the needs of all parts of the city and all Londoners.

Deliver an improved and effective infrastructure to support London’s future growth and development Measurement3: Delivery of identified key projects.

By 2016

Make the economic, social and environmental case for investment in London’s transport, communications and other infrastructure, and ensure delivery of projects critical to supporting London’s growth (including Crossrail, East London Line extension and Thames Gateway Bridge). Maximise economic, social and environmental benefits from infrastructure and delivery. Identify infrastructure needs to support bidding for the 2012 Olympics and, if the bid is successful, to ensure delivery in ways that maximise the lasting legacy for London.

Deliver healthy, sustainable, high quality communities and urban environments. Measurement3: Assessed annually through a range of indicators developed for the Mayoral environment strategies including: Reduction in carbon dioxide emissions and protecting biodiverse habitats.

By 2016

Support delivery of the Mayor’s environmental strategies. Support improvements in design and management of the public realm, addressing energy efficiency, heritage significance, noise, air quality, safety, health, climate change and biodiversity issues and achieving sustainable design and construction.

1

Although there will be many actions to meet each objective, the following are given to provide some practical examples

2

This section of the Action Plan seeks to identify the principal delivery partners and resources available but it not intended to be an exhaustive list of all actors concerned with the delivery of this objective

74 LDA Sustaining Success – Developing London’s Economy

Role of the GLA Group The GLA Group will use its policies, planning powers and resources to promote implementation of the London Plan, working with strategic partners and, where appropriate, initiating new partnerships. This will include promoting locations for strategic development, assisting in preparing plans and policies for strategic locations, working with boroughs and others to identify appropriate use of Compulsory Purchase Order (CPO) powers, promoting use of Business Improvement Districts (BIDs) and other mechanisms to generate funding for community facilities, and encouraging public/private/community partnerships to manage these effectively. The planning powers of the Mayor and LDA will be exercised so as to promote the objectives in this Strategy and the London Plan.

Partners and resources2 Key partners for delivery of this objective include the London boroughs and sub-regional partnerships, ODPM, GOL and other central government departments, London Housing Corporation and the private sector.
ECONOMIC DEVELOPMENT STRATEGY

Resources have been allocated for monitoring the implementation of the London Plan and development of Sub-Regional Development Frameworks and Economic Development Strategy. GLA bodies’ budgets will be oriented to delivery of London Plan priorities. Additional investment will be required from Government and the private sector to deliver certain aspects of the spatial strategy.

All parts of the GLA Group will be involved in developing and making the case for investment in London’s infrastructure. Many of the major transport projects will be delivered by Transport for London. The LDA will have a role in ensuring maximum economic development, social and environmental benefits from infrastructure investments.

Key partners for delivery of this objective include the London boroughs and sub-regional partnerships, Transport for London, ODPM and other central government departments and organisations, London 2012, communitybased and voluntary organisations and the private sector. Resources have been secured for some projects in the shortto medium-term. Additional investment to ensure delivery of longer term proposals will be required from central Government and the private sector. Establishment of appropriate partnerships between the public, private and voluntary sectors will also be required.

The GLA Group will use its direct powers (including the Mayor’s planning powers and the LDA’s land acquisition and management powers) and its influence to seek to deliver this objective. The LDA will have a role in supporting the delivery of the Mayor’s environmental strategies through its own work on regeneration and with businesses.

Key partners for delivery of this objective include London boroughs, NHS, government departments and sponsored organisations and the private sector. The GLA Group is resourced to carry out its basic planning functions and contribute towards the delivery of the objectives of the Mayor’s environmental strategies.

3

Many of the indicators of success can be influenced by the level of economic activity in the economy. That is, many of the indicators can be influenced by factors outside the control of the GLA Group. To account for this sensitivity to economic activity, the

indicators of success are to be measured over a period long enough to account for the normal peaks and troughs in economic activity (commonly referred to as the economic cycle).

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ACTION PLAN 2005 – 2016

Investment in people: to improve economic inclusion and enable all Londoners to fulfill their potential Objective Tackle barriers to employment Measurement3: Increase the overall employment rate for London over the economic cycle. Timescale Possible actions1 Over each economic cycle Improve the accessibility, affordability and availability of childcare. Make employment more accessible by increasing Tax Credit receipts. Work with employers to promote equality within the workplace. Improve the quality and quantity of Basic Skills provision. Raise awareness and take-up of in-work benefits, including the Working Families Tax Credit. Encourage the expansion of flexible and family-friendly employment practices in the public and private sectors. Support the development of voluntary and community sector training providers.

Reduce disparities in labour market outcome between groups. Measurement3: Increase the employment rates of key target groups in London (for example specific black and minority ethnic groups, disabled people, women with children, older people and other minority groups) by more than the overall increase in the employment rate in London, over the economic cycle.

Over each economic cycle

Ensure that employment programmes benefit disadvantaged groups in London. Reduce and, where possible, eradicate barriers to key target groups entering employment in higher-level positions. Target interventions to address labour market barriers faced by particular groups and support the Government’s objective of increasing lone parent employment. Ensure that all London’s employers are ready to implement Part III of the Disability Discrimination Act 1995.

76 LDA Sustaining Success – Developing London’s Economy

Role of the GLA Group The GLA Group will: implement the Mayor’s Childcare Strategy by continuing to work with central and local government to improve the accessibility, affordability and availability and establishing a regional childcare partnership to take a strategic pan-London role in the planning of childcare provision

Partners and resources2 Key partners for delivery of this objective include Learning and Skills Councils, JobCentre Plus, GOL, training providers and childcare providers. Resources from the above partners are currently used to deliver towards this objective, as are funds from European and central Government.
ECONOMIC DEVELOPMENT STRATEGY

•

enable the pooling •identify mechanisms thatreduce administrativeof funding for childcare to costs and enhance effectiveness for in and benefits system and •lobbywithchangesandthe taxgovernment, JobCentre work central local Plus, the voluntary sector and employers to coordinate action to increase awareness and take-up of tax credits which use tax credit •continue to develop schemesother benefits and services entitlement as a passport to

•work with other partners to carry out research to identify best practice and advocate family-friendly
employment practices exemplar employers reflecting the diversity •beour internal performance and monitoring on of London in this issue and our positive influence on partners and suppliers.

The GLA Group: will monitor and evaluate mainstream programmes and review the appropriateness of existing target frameworks of all mainstream labour market programmes and policies

• •

Key partners for delivery of this objective include Learning and Skills Councils, JobCentre Plus, GOL and representative organisations of disadvantaged groups and employers. Resources from the above partners are currently used to deliver towards this objective as well as European and central Government funding.

explore ways of recognising qualifications amongst migrant populations and explore the specific barriers faced by disadvantaged groups in London’s labour market

tackle discrimination •develop a Mayoral campaign toworkplace. and institutional racism in the

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ACTION PLAN 2005 – 2016

Investment in people: to improve economic inclusion and enable all Londoners to fulfill their potential Objective Address the impacts of concentrations of disadvantage Measurement3: Increase the employment rate in London’s most disadvantaged areas by more than the rest of London, over the economic cycle. Timescale Possible actions1 2016 Ensure that existing and planned housing developments lead to balanced, healthy and sustainable communities. Deliver projects and programmes to increase the participation and attainment of disadvantaged students. Ensure disadvantaged young people are able to participate fully in society.

Investment in enterprise: to enable enterprise growth and competitiveness

Address barriers to enterprise start-up, growth and competitiveness Measurement3: Maintain or improve London’s net start-up rate (start-ups net of closures) over the economic cycle.

Over each economic cycle

Increase the supply of affordable and accessible workspace for SMEs. Improve access to enterprise start-up and growth finance. Simplify and improve the delivery and accessibility of customer-responsive enterprise support and advisory services across London. Ensure enterprise support services address barriers faced by particular clients groups (including, BME and women-owned enterprises, voluntary and community sector organisations and social enterprises). Build the capacity of minority owned enterprise to bid for local government tenders. Raise awareness and take-up of in-work benefit schemes for those in self-employment.

78 LDA Sustaining Success – Developing London’s Economy

Role of the GLA Group The GLA Group will: ensure that planned housing development is linked to employment opportunities and includes transport infrastructure and childcare provision

Partners and resources2 Key partners for delivery of this objective include London boroughs, Learning and Skills Councils, JobCentre Plus, Connexions and central Government. Resources are available to deliver this objective but there are issues of sustainability across funding streams and there is a need for increased coordination across funding streams.
ECONOMIC DEVELOPMENT STRATEGY

• •

support the development of London-wide programmes and networks for black and minority ethnic school staff and BME parents/carers and increase the number of BME teachers

all young people •ensure access foradvisory services to appropriate information and for people to •ensure accesshigh disadvantaged younginformation appropriate, quality employment and advisory services.

The GLA Group will work with external partners to develop a coherent strategy for the provision of enterprise support to London’s SMEs, encompassing the LDA’s new responsibilities for the management of Business Link services. It will also work with other partners to facilitate private/public sector solutions to workspace supply, access to finance and other areas of concern to enterprises (particularly those disproportionately faced with barriers to success).

Key partners for delivering this objective include central government departments, boroughs and sub-regional partnerships, Business Link for London, London Business Support Network, the private sector and agencies supporting minority owned enterprise. Resources exist at the regional level to deliver this objective but not necessarily at the level required to meet expected demands, national priorities or required outputs.

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ACTION PLAN 2005 – 2016

Investment in enterprise: to enable enterprise growth and competitiveness Objective Maintain London’s position as a key enterprise and trading location Measurement3: Over the course of the economic cycle, maintain London’s position as a key enterprise location as evidenced by international surveys. Timescale Possible actions1 Over each economic cycle Maintain London’s position as a key inward investment destination. Retain enterprises in London where economically efficient and feasible. Maximise trade potential for London firms.

Improve the skills of the workforce Measurement3: Reduce the percentage of businesses reporting a lack of appropriately skilled employees as a significant problem over the economic cycle.

Over each economic cycle

Improve the standard and accessibility of training and enterprise support to meet the complex needs of the wider community. Support training for those returning to work and promote skills progression routes for those in employment. Ensure London enterprises are fully engaged in identifying skill needs and developing provision and initiatives to address them.

Maximise the productivity and innovation potential of London’s enterprises Measurement3: Improve London’s Gross Value Added (GVA) per worker over the economic cycle.

Over each economic cycle

Increase the take-up and pursuit of product, process and service innovations. Develop and deliver appropriate sector interventions that address recognised market failures. Promote effective collaboration between enterprise and Higher Education Institutions (HEIs). Promote the business case for efficient use of resources, including energy, water and waste management, amongst London’s enterprise community.

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Role of the GLA Group The GLA Group will coordinate the development and delivery of inward investment and enterprise retention services, both through organisations like Think London with a city-wide focus, and through sub-regional business-led partnerships. Its focus will be worldwide including larger developing markets.

Partners and resources2 Key partners for delivering this objective include Think London, UK Trade and Investment (UKTI) and the private sector. Local service deliverers also have an important role in ensuring London provides a good environment for enterprise, and it will be important to ensure a sub-regional focus on these issues as well. The LDA, Think London and UKTI continue to allocate resources to this activity but significantly more resources will be needed to deliver at the required level.

ECONOMIC DEVELOPMENT STRATEGY

The GLA Group will support the work of the London Skills Commission, and will help establish the Regional Skills Partnership to deliver the skills for enterprise agenda. Particular initiatives to be delivered through these frameworks will include development of voluntary and community sector training providers and promotion of the case for increased flexibility and improved quality in the provision and design of training and qualifications.

Key partners for delivering this objective include central government departments and sponsored organisations, the LSC, JobCentre Plus, GOL, Further and Higher education organisations, Local Authorities and the VCS. Resources from the above partners are currently used to deliver towards this objective as well as current matched funding from the European Commission.

The GLA Group will work with partner organisations to support and help maximise the benefits of London’s knowledge infrastructure, deliver the London Innovation Strategy and promote sustainability. The LDA will work with businesses to develop innovation and sustainability potential.

Key partners for delivering this objective include London HEI’s, HEFC and the private and voluntary sector. Some resources are available for delivering this objective but not sufficient to meet the support demands nor national Government priorities.

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ACTION PLAN 2005 – 2016

Investment in marketing and promotion: to make sure that what London offers is understood, supported and valued Objective Ensure a coherent approach to marketing and promoting London Measurement3: Deliver a coherent approach to marketing and promoting London assessed annually through a wide range of measures and indicators. Timescale Possible actions1 Approach developed by 2006. Annual review. Counter negative perceptions of London and develop shared marketing and promotional resources for London. Invest in and deliver new products to support effective international marketing and promotion. Strengthen and promote London’s role as a gateway to the rest of the UK. Ensure a strategic approach to marketing London. Market London as a prime destination to specific groups such as domestic and overseas students.

Coordinate effective marketing and promotion activities across London Measurement3: Achieve growth in numbers of domestic and international visitors over the economic cycle.

2016

Support mechanisms which bring the activities of the private sector, London boroughs and others together. Utilise the Olympic bid process to provide a focus for the promotion of London.

Maintain and develop London as a top international destination and principal UK gateway for visitors, tourism and investment Measurement3: Achieve real growth in visitor spending over the economic cycle.

2016

Respond to and counter unexpected downturns in tourism and investment. Increase the appeal of less visited parts of London as a destination. Improve the quality and accessibility of London’s visitor accommodation. Develop London’s capacity to compete for enterprise and convention tourism and to host major events. Build on London’s diversity and international strengths.

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Role of the GLA Group The GLA Group will benchmark London’s offerings with other international cities, and ensure the results are used to inform the strategies and implementation plans of organisations involved in London’s marketing and promotion.

Partners and resources2 Key partners for delivering this objective include Visit London, DCMS, London local authorities and Think London. Resources are in place through the LDA, DCMS and Visit London. The case for additional resources will be made as necessary and appropriate.

ECONOMIC DEVELOPMENT STRATEGY

The GLA Group will clarify and map the roles of London partners engaged in marketing and promotion against the objectives of this Strategy.

Key partners for delivering this objective include Visit London, DCMS and London local authorities. Resources are in place through the LDA, DCMS and Visit London. The case for additional resources will be made as necessary and appropriate.

The GLA Group will review and revise the Mayor’s tourism strategy and action plan.

Key partners for delivering this objective include Visit London, DCMS and London local authorities. Resources are in place through the LDA, DCMS and Visit London. The case for additional resources will be made as necessary and appropriate.

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ACTION PLAN 2005 – 2016

Implementation: to maximise value added from the work of agencies investing in the London economy Objective Work in partnership to deliver this action plan Measurement3: Delivery of action plan in partnership with stakeholders assessed annually through a range of measures and indicators. Timescale Possible actions1 2016 Increase the resources available to implement the Strategy Monitored and Action Plan. annually. Build and develop a shared understanding of what works in sustainable, inclusive and healthy economic development activity in London. Ensure the joined up implementation of the Strategy by key partners. Coordinate interventions across EDS themes. Embed key delivery principles – including equalities, sustainability and health impacts – into all economic development activities. Produce annual report to the Mayor.

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Role of the GLA Group The GLA Group will make the case for the investment London needs, and will lobby for extra funding to resource necessary interventions. It will also develop new ways of financing economic development, and learning from international practice. The objectives set out in this Strategy will be incorporated in future Mayoral strategies and other organisational planning and implementation documents (including the LDA Corporate Plan). The LDA will convene an EDS delivery group and report on the implementation of the Strategy. The GLA Group will develop and implement new partnership working practices with the public, private and voluntary/community sectors and work towards improving communication and joint planning between agencies. The GLA Group will develop robust impact assessment tools and procedures and systematically report on and evaluate progress against this action plan.

Partners and resources2 Successful delivery of this Strategy will require all partners working together across London, as described in the Implementation chapter of this Strategy. While resources are already used across London to deliver a number of the above objectives there is a continued need to make the case for London, to identify further resources, to maximise the effectiveness of existing expenditure and to lever private sector investment.
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86 LDA Sustaining Success – Developing London’s Economy

ECONOMIC DEVELOPMENT STRATEGY
APPENDICES

Southall Market

APPENDIX 1: STATUTORY FRAMEWORK FOR THE PREPARATION OF THE STRATEGY

Section 7 A (4) of the Regional Development Agency Act 1998 (‘the RDA Act 1998’), as amended by the Greater London Authority Act 1999 (‘The GLA Act 1999’) requires the LDA to keep the London Economic Development Strategy (‘the EDS’) prepared under Section 7 A (1) of the 1998 Act in relation to its statutory purposes, under review, and empowers it to submit proposed revisions to the Mayor. The statutory purposes are (Section 4): • furthering the economic development and regeneration of London • promoting business efficiency, investment and competitiveness in London • promoting employment in London • enhancing and developing the skills of local people • contributing to sustainable development in the United Kingdom. In revising the EDS, the LDA is required to comply with any directions issued by the Mayor under the RDA Act 1998 (Section 40 (3)). Under section 41 (2) of the GLA Act 1999, the Mayor must keep each of his strategies under review and shall make such revisions of the strategies, as he considers necessary. When revising the Strategy, the Mayor is required to have regard to certain matters. These are: • the principal purposes of the Authority under section 30 of the GLA Act 1999 • the effect the proposed revision would have on the health of persons in Greater London and the achievement of sustainable development in the United Kingdom (Section 41(4))

• the inclusion of available policies and proposals relating to the subject matter of the Strategy as he considers best calculated to promote the health of persons in Greater London and contribute to the achievement of sustainable development in the United Kingdom (Section 41 (7)) • more specific matters set out in S41 (5) of the GLA Act 1999, being: • consistency with national policy and international obligations • consistency with other strategies • the resources available for the implementation of the Strategy • the desirability of promotion and encouragement of the use of the Thames for transport. The Mayor issued directions to the LDA under the following provisions: • Section 27 of the RDA Act 1998, to submit revisions of the EDS to him in accordance with Section 7A (4) of the RDA Act 1998 • Section 7A (6) of the RDA Act 1998, to prepare the proposed revisions in accordance with a Project Brief issued by him. The Mayor delegated the following of his functions in relation to the EDS to the LDA, in accordance with the provisions of Section 38 of the GLA Act 1999 to: • take responsibility for consultation required in connection with the preparation of the revised EDS in accordance with the 1999 Act

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• prepare consultation documentation/draft revised Strategy for his approval prior to consultation, which has regard to the need for consistency with his other strategies, and reflects his stated policies and the statutory requirements of sections 33, 41 and 404 of the 1999 Act and section 7A of the RDA Act 1998 • determine the persons or bodies to be consulted in accordance with section 42 (1)(e) of the 1999 Act and section 2 (3)(a) and (b) of the Regional Development Agencies Act 1998, in addition to any consultees notified to the LDA by him • produce and make available the approved consultation documents • publicise the consultation exercise and distribute the consultation documents • engage with stakeholders to seek their views • facilitate evaluation of consultation response to the Strategy and preparing reports to him, outlining the consultation processes that have been carried out, summarising consultation responses and identifying the principal drivers of proposed changes • prepare a report to be made available to the public outlining key aspects of the consultation process. Section 38(7) of the GLA Act 1999 empowers the LDA to exercise functions delegated to it on behalf of the Authority.

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APPENDIX 2: GLOSSARY

ACBN: Afro-Caribbean Business Network. Access: This term refers to the methods by which people with a range of needs (such as disabled people, people with children or people whose first language is not English) discover and use services and information. For disabled people, access in London means the freedom to participate in the economy, in how London is planned and in the social and cultural life of the community. Affordable housing: Housing designed to meet the needs of households whose incomes are not sufficient to allow them to access decent and appropriate housing in their borough. Affordable housing comprises social housing, intermediate housing and, in some cases, low cost market housing. Air quality: The concentration of pollutants in either the indoor or outside (ambient) air. The term is particularly relevant to the concentration of pollutants emitted to air from human activity. ALG: Association of London Government. Ambient noise: This is ongoing sound in the environment, such as that caused by transport and industry. It is distinct from sound caused by individual events, such as a noisy all-night party. Unless stated otherwise, noise includes vibration. Amenity: An amenity is an element of a location or neighbourhood that helps to make it attractive or enjoyable for residents and visitors. AOC: Association of Colleges.

Area for Intensification: Areas that have significant potential for increases in residential, employment and other uses through development of sites at higher densities with more mixed and intensive use. Areas for Regeneration: These areas are the wards in greatest socio-economic need, defined on the basis of the 20% most deprived wards in the London Index. Assisted Areas: The DTI designates Assisted Areas (on the basis of unemployment and other economic criteria) for regional aid to industry. London 2012: Olympic Bid Company. Biodiversity: This refers to the variety of plants, animals and other living things in a particular area or region. It encompasses habitat diversity, species diversity and genetic diversity. Biodiversity has value in its own right and has social and economic value for human society. BL4L: Business Link for London. Blue Ribbon Network: The River Thames, together with other waterways in London. Brownfield land: Both land and premises are included in this term, which refers to a site that has previously been used or developed and is not currently fully in use, although it may be partially occupied or utilised. It may also be vacant, derelict or contaminated. This excludes open spaces and land where the remains of previous use have blended into the landscape, or have been overtaken by nature conservation value or amenity use and cannot be regarded as requiring development.

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Business Improvement Districts (BIDs): This concept was originally developed in the USA for increasing investment within defined areas of a city, such as town centres. This is achieved through changes to local taxation, based on a supplementary rate levied on businesses within that defined area. CABE: Commission for Architecture and the Built Environment. Carbon dioxide (CO2): Carbon dioxide is a naturally occurring gas, comprising 0.04% of the atmosphere. The burning of fossil fuels releases carbon dioxide fixed by plants many millions of years ago and this has increased its concentration in the atmosphere by some 12% over the past century. It contributes about 60% of the potential global warming effect of all greenhouse gases released through human activity. CBI: Confederation of British Industry. CEBR: Centre for Economics and Business Research Ltd. Central Activities Zone (CAZ): The Central Activities Zone is the area in central and east London where planning policy promotes finance, specialist retail, tourist and cultural uses and activities. CITB: Construction Industry Training Board. Community Strategies: These are tactics for promoting or improving the economic, social and environmental wellbeing of the area of jurisdiction of a local authority. Such strategies are to be prepared allowing for local communities (based upon geography and/or interest) to articulate their aspirations, needs and priorities.

Congestion charging: This refers to applying charges to reduce the number of vehicles and level of congestion in congested areas. The Mayor has introduced a scheme to charge vehicles within a defined area of central London. Crossrail: Crossrail is an east–west, crosscentral London rail link between Paddington and Whitechapel serving Heathrow Airport, Canary Wharf and Stratford. It will serve major development and regeneration corridors, and improve access to large areas of central and suburban London. DfES: Department for Education and Skills. Disabled people: The social model of disability defines a disabled person as someone who has impairment, experiences externally imposed barriers and self-identifies as a disabled person. Some key external barriers are those preventing people taking up employment. The Disability Discrimination Act 1995 defines a disability as “a physical or mental impairment which has a long term and substantial adverse effect on an individual’s ability to carry out normal day to day activities”. Diversity: The differences in values, attitudes, cultural perspectives, beliefs, ethnic background, sexuality, skills, knowledge and life experiences of each individual in any group. DTI: Department of Trade and Industry. DWP: Department for Work and Pensions. EBP: Education Business Partnership. Eco-business services: The business sector that produces goods or services, which compared to other, generally more commonly available goods and services, are less harmful to the environment.

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APPENDIX 2
GLOSSARY

EDS: Economic Development Strategy. E-economy/e-commerce: A sector of business which comprises companies deriving at least some portion of their revenues from Internet related products and services. EEDA: East of England Development Agency. EERA: East of England Regional Assembly. Energy efficiency: This is about making the best or most efficient use of energy in order to achieve a given output of goods or services, and of comfort and convenience. This does not necessitate the use of less energy, in which respect it differs from the concept of energy conservation. Equality: This is the vision or aim of creating a society free from discrimination, where equality of opportunity is available to individuals and groups, enabling them to live their lives free from discrimination and oppression. Equal opportunities: The development of practices that promote the possibility of fair and equal chances for all to develop their full potential in all aspects of life and the removal of barriers of discrimination and oppression experienced by certain groups. European Cities monitor: An annual survey based on interviews with senior managers and board directors of 500 of Europe’s top companies. The survey covers issues regarded as important by companies when deciding where to locate, and then compares how Europe’s leading business cities perform on each issue. FDI: Foreign Direct Investment. FE: Further Education.

FRESA: Framework for Regional Employment and Skills Action. Greater London Authority (GLA) Group: The GLA Group consists of the Mayor, the London Assembly and four organisations that look after transport, the police, the fire brigade and economic development for London. They are: • Transport for London • The Metropolitan Police Authority • The London Fire & Emergency Planning Authority • The London Development Agency. The Mayor sets the budget for the GLA group and appoints people to the boards of the four organisations. Several of the board members are chosen from the London Assembly. GLA Economics: GLA Economics is part of the GLA that provides economic analysis and a firm statistical, factual and forecasting basis for policy decision making by the GLA and the GLA Group. Green belt: Green belts are a national policy designation that helps to contain development, protect the countryside and promote brownfield development, and assists in the urban renaissance. Development on green belt land is allowed only in exceptional circumstances. There is a general presumption against inappropriate development in the Green Belt. Gross Value Added (GVA): A measure of economic activity in the economy. (GVA is linked to Gross Domestic Product (GDP), with GDP equalling GVA plus taxes on products minus subsidies on products.

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Green industries: The business sector that produces goods or services that are less harmful to the environment, compared to other, generally more commonly used goods and services. HEI: Higher Education Institution. HEIF: Higher Education Innovation Fund. Higher Education Funding Council: Promotes and funds high-quality, cost-effective teaching and research, meeting the diverse needs of students, the economy and society. HIA: Health Impact Assessment. Housing Corporation: A statutory public body that reports to the Office of the Deputy Prime Minister and whose role is to fund and regulate Registered Social Landlords in England. ICT: Information and Communication Technology. Inward investment: It is the injection of money from an external source into a region, in order to purchase capital goods for a branch of a corporation to locate or develop its presence in the region. LCCI: London Chamber of Commerce and Industry. Local Strategic Partnerships (LSPs): Cross-sectoral, cross-agency umbrella partnerships, which are focused and committed to improving the quality of life and governance in a particular locality. They seek to enable services to be aligned in a way that effectively meets the needs and aspirations of those who use them.

London Civic Forum: The London Civic Forum engages the capital’s civil society in the regional governance of London through democratic and effective consultation with the Mayor and the London Assembly. The Civic Forum is a membership organisation drawing on the cross section of organisations which comprise London’s highly diverse civil society. London Development Agency (LDA): The LDA is one of nine regional development agencies (RDAs), established by the Government to promote economic development and regeneration. It is part of London government and reports to the Mayor of London. It consults and works with the GLA and a wide range of public and private sector partners. London First: London First is a business campaign group supported by over 300 of the capital’s major businesses, as well as higher education institutions, further education colleges and NHS Trusts. It engages the business community in promoting and improving London, using the vision, energy and skills of business leaders to shape and secure the capital’s future. London Health Commission (LHC): The Mayor’s advisory body on health matters. London Housing Board: The role of the London Housing Board is to produce regional housing strategies and advise Ministers on the allocation of funding from the Single Regional Pot for housing investment. It comprises Government Office for London, Greater London Authority, Housing Corporation, Association of London Government, London Development Agency and English Partnerships.

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APPENDIX 2
GLOSSARY

LSC: Learning and Skills Council. London Skills Commission: London Skills Commission is a strategic association of key agencies involved in the planning, delivery and support of employment, training and labour market policy. London Stansted Cambridge corridor: A development corridor to the east and west of the Lea Valley through north London and Harlow and north to Stansted and Cambridge. London Sustainable Development Commission (LSDC): The London Sustainable Development Commission works to develop a coherent approach to sustainable development throughout London, not only to improve the quality of life for people living, working and visiting London today and for generations to come but also to reduce London's footprint on the rest of the UK and the world. LVSC: London Voluntary Service Council. Equalities Groups: Where not explicitly stated, this includes black and minority ethnic groups, disabled people, women, those from faith communities, older people, those who are lesbian, gay, bisexual and transgender and other groups who may experience disparities in opportunity from realising their potential. Mixed-use development: Development for a variety of activities on single sites or across wider areas such as town centres. National Strategy for Neighbourhood Renewal: An action plan setting out a range of governmental initiatives aiming to narrow the gap between deprived areas and the rest of the country.

New Deal for Communities: An initiative that supports the intensive regeneration schemes that deal with problems such as poor educational attainment and poor job prospects in a small number of deprived local authorities. ODPM: The Office of the Deputy Prime Minister. This is the government department responsible for planning, housing, local government and regional development. OECD: Organisation for Economic Cooperation and Development. Open space: All land in London that is predominantly undeveloped, other than by buildings or structures that are ancillary to the open space use. The definition covers a broad range of types of open space within London, whether in public or private ownership and whether public access is unrestricted, limited or restricted. Opportunity Areas: London’s few opportunities for accommodating large scale development to provide substantial numbers of new employment and housing, each typically more than 5,000 jobs and/or 2,500 homes, with a mixed and intensive use of land and assisted by good public transport accessibility. Primary Care Trust: Primary Care Trusts are free-standing statutory bodies responsible for delivering better health care and health improvements to their local area PIC: Private Investment Commission. Public realm: This is the space between and within buildings that are publicly accessible, including streets, squares, forecourts, parks and open spaces.

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Race Equality Scheme: This is a strategy and a timetabled action plan which should state a public authority’s approach to race equality and its corporate aims. It should also state what arrangements the authority intends to put in place to meet each part of the specific duty. RDA: Regional Development Agency. Recycling: Recycling involves the reprocessing of waste, either into the same product or a different one. Many non-hazardous wastes such as paper, glass, cardboard, plastics and metals can be recycled. Hazardous wastes such as solvents can also be recycled by specialist companies, or by in-house equipment. RITS: Regional International Trade Strategy. Renewable energy: Energy derived from a source that is continually replenished, such as wind, wave, solar, hydroelectric and energy from plant material, but not fossil fuels or nuclear energy. Although not strictly renewable, geothermal energy is generally included. RSP: Regional Skills Partnership. RTO: Research and Technology Organisation. SBS: Small Business Service. Science parks: This refers to primarily officebased developments, strongly branded and managed in association with academic and research institutions, ranging from incubator units with well-developed collective services (usually in highly urban locations and good public transport access) to more extensive developments (possibly in parkland settings capable of improved public transport access) of a quality comparable and competitive with those beyond London.

Section 106 Agreements: These agreements confer planning obligations on persons with an interest in land in order to achieve the implementation of relevant planning policies as authorised by Section 106 of the Town and Country Planning Act 1990. SEEDA: South East England Development Agency is the Government funded agency set up in 1999 responsible for the economic and social development of the South East of England. SEERA: South East England Regional Assembly. SEL: Social Enterprise London. SFWE: Strategic Framework for Women’s Enterprise. SME: Small and medium sized enterprises. Social exclusion: A term for what can happen when people or areas suffer from a combination of linked problems, such as unemployment, poor skills, low incomes, poor housing, high crime environments, bad health and family breakdown. Social inclusion: The position from where someone can access and benefit from the full range of opportunities available to members of society. It aims to remove barriers for people or for areas that experience a combination of linked problems such as unemployment, poor skills, low incomes, poor housing, high crime environments, bad health and family breakdown. South East Region: The South East Region runs in an arc around London from Kent at the south-east extremity, along the coast to Hampshire, Southampton and Portsmouth in

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APPENDIX 2
GLOSSARY

the south-west, and then to Milton Keynes and Buckinghamshire in the north. In total, it encompasses 19 counties and unitary authorities, and 55 district authorities. Spatial Development Strategy (SDS): This strategy is prepared by the Mayor, replacing the strategic planning guidance for London (RPG3). The Mayor has chosen to call the Spatial Development Strategy ‘the London Plan’. Strategic Employment Locations (SELs): These comprise Preferred Industrial Locations, Industrial Business Parks and Science Parks and exist to ensure that London provides sufficient quality sites, in appropriate locations, to meet the needs of the general business, industrial and warehousing sectors. Sub-regions: Sub-regions are the primary geographical features for implementing strategic policy at the sub-regional level. The sub-regions are composed of: Central: Camden, Islington, Kensington & Chelsea, Lambeth, Southwark, Wandsworth, and Westminster. East: Barking & Dagenham, Bexley, City, Greenwich, Hackney, Havering, Lewisham, Newham, Redbridge and Tower Hamlets. South: Bromley, Croydon, Kingston, Merton, Richmond and Sutton. West: Brent, Ealing, Hammersmith & Fulham, Hillingdon, Harrow and Hounslow. North: Barnet, Enfield, Haringey and Waltham Forest.

Sub-Regional Development Frameworks Policy: Directions and focus for implementation for each of the five identified sub-regions, to be produced by the Mayor in partnership with boroughs and other stakeholders. The frameworks will provide guidance on Opportunity, Intensification and Regeneration Areas, town centres, suburbs and Strategic Employment Locations. The frameworks will be consistent with, and provide further guidance on, the objectives outlined in this Strategy. Sustainable development: This covers development that meets the needs of the present without compromising the ability of future generations to meet their own needs. TGLP: Thames Gateway London Partnership. Thames Gateway: This is an area extending from the Blackwall Tunnel eastwards, both north and south of the Thames, into Kent and Essex. Thames Gateway Strategic Partnership: The Thames Gateway Strategic Partnership focuses on the whole of the Thames Gateway London area, articulating at London and national levels the opportunity which Thames Gateway presents and the pressing needs which it must address to be able to live up to its potential. Think London: Think London is the official inward investment agency for London, providing free, confidential and comprehensive advice to help international businesses set up and succeed in London. Transport for London (TfL): One of the GLA group organisations, accountable to the Mayor, with responsibility for delivering an integrated and sustainable transport strategy for London.

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Unitary Development Plans (UDPs): Statutory plans produced by each borough which integrate strategic and local planning responsibilities through policies and proposals for the development and use of land in their area. Urban renaissance: Urban renaissance is the rediscovery of the opportunities offered by cities to accommodate a changing population, work and leisure patterns, through the creation of practical, attractive, safe and efficient urban areas that offer a vibrant and desirable quality of life. VisitLondon: VisitLondon is the official visitor organisation for the capital, funded by the LDA. Its aim is to promote London as the world’s most exciting city by marketing to domestic and overseas leisure and business visitors, as well as to Londoners themselves. VisitLondon is a partnership organisation which also acts as a voice for London tourism industry. It was formerly known as the London Tourist Board. Working Together compact: The Compact is the agreement between Government and the voluntary and community sector in England to improve their relationship for mutual advantage. World City: A globally successful business location paralleled only by two of the world’s other great cities, New York and Tokyo, measured on a wide range of indicators such as financial services, Government, business, higher education, culture and tourism.

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