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The London Development Agency


									The London Development Agency Annual Report and Accounts 2004/2005 Developing London CONTENTS This report covers the past year from April 2004 to April 2005 and illustrates the range and impact of the LDA‟s work in London. It illustrates how we are implementing the Mayor‟s Economic Development Strategy with our focus on people, infrastructure and places, enterprise and the marketing and promotion of London. It has been prepared for everyone with a stake or interest in our organisation and what we do for London. It shows how we have invested our resources to ensure London continues to prosper in a sustainable way, and to maintain the city‟s national and global status. The report also gives a brief outline of our plans and priorities for the next year. Building a great global city Review of the year Developing people Developing infrastructure and places Developing enterprise Developing marketing and promotion Equality sustainability and health Our people and policies Looking ahead Statement of accounts Appendices MAYORAL FOREWORD The London Development Agency (LDA) has had major successes for London‟s people, businesses and communities over the past year. Providing the bulk of financial support and working with London 2012 to construct London‟s winning bid for the 2012 Olympic Games and Paralympic Games, a project which will catalyse the regeneration of the London Thames Gateway, and indeed, the entire Lower Lea Valley. Putting into action my pledge to secure 10,000 new and affordable childcare places in London over the next three years through the Childcare Affordability Programme. Helping deliver the new Wembley Stadium and the regeneration of the surrounding area. Steaming ahead with the set-up and implementation of important environmental initiatives such as the Climate Change Agency for London and the Green Grid network of wildlife corridors and green spaces. Securing the transfer of the Business Link for London contract from the Small Business Service, thereby paving the way for improved and coordinated support to businesses in London. There are over 300,000 businesses of all sizes in London, and thousands of new start-ups every month. It is my priority to ensure that London remains the best place to do business in Europe. Therefore, I am pleased

that Londoners and business in London alike remain undeterred by the events of 7 July 2005 and are more united than ever. Through the LDA, I will continue to work with organisations such as Visit London, the visitor organisation for the capital and Think London, the inward investment agency - to maintain and boost the number of visitors and inward investors to this city. The Olympics will help us to do this over the next seven years. In fact, winning the bid has already re-asserted London‟s position as one of the few truly global cities and it will help us strengthen our links of trade and of friendship with cities and nations across the world. I think London won because our bid clearly reflects the diversity of London‟s residents, businesses, visitors and is designed to bring a tangible lasting legacy to the capital‟s 200 different national and ethnic communities. Our aim is for people from every single community to benefit from the hosting of the Games. The LDA is also promoting London‟s diversity by spearheading my new Diversity Works for London campaign, which will engage organisations in harnessing the benefits of a diverse workforce and supplier base. Diversity Works for London is being implemented alongside other key diversity projects which will address some of the barriers faced by disadvantaged communities in achieving educational and employment success. All of these projects aim to create an even greater sense of unity and understanding, and a more integrated society. It is very clear from its achievements over the past year that the LDA remains committed and passionate about the future of this great city. The LDA is working to boost its effectiveness and to improve the capital for the people, communities and businesses who are proud to live, work, visit and do business here. Ken Livingstone Mayor of London

CHAIR’S STATEMENT London is a truly diverse and economically successful city. Dynamic, culturally inspiring, commercially successful, demographically unique - it is one of the three great global cities alongside New York and Tokyo. As the organisation responsible for maintaining and driving London‟s sustainable economic success, we are committed to harnessing London‟s variety and diversity. However, this rich mix means that the businesses and communities of London have different and sometimes even conflicting needs. The LDA‟s initiatives are therefore designed to achieve multiple goals. We intervene in areas where we can have the greatest impact and where the benefits will be greatest for the largest number of individuals. This is why we supported the successful bid to bring the 2012 Olympic Games and Paralympic Games to London. We know the Games will not only reinforce London‟s status as one of the world‟s greatest, most productive and efficient cities, but they will also catalyse the regeneration of the Lower Lea Valley and wider Thames Gateway, a substantial area with great potential. We also worked hard to increase the value of our work by leveraging extra investment from the private sector. Last year for example, by partnering with the DTI and the Learning and Skills Council to invest around £17.5 million into training local people, we encouraged Ford to invest an additional £169 million in its diesel engine manufacturing facility in Dagenham, east London. The increased excitement, visibility and general „buzz‟ London will experience in the run-up and the period following the Games will attract hundreds of thousands of visitors to London and the rest of the UK. The experience of other host cities shows that the tourism boost begins well before and lasts long after the

Games have finished. Sydney and Barcelona are both excellent recent examples of where the Games have boosted the cities‟ tourism and economies. Therefore we remain confident about London‟s position as a world class tourism and business destination. London has continuously changing needs and we, with our partners, recognise the need to foresee and respond to them. London‟s business community has been extremely resilient after the events of 7 July, and we will continue working with the Mayor and Visit London to monitor and address the impact on London‟s tourism economy. As ever, London‟s issues are large and complex, and we work with the continued and increased support of our existing and new partners within the GLA family, the wider public, private and voluntary and community sectors, to deliver the policies and investment the capital needs. We present this Annual Report and Annual Accounts to you, our stakeholders and partners, and look forward to working with you to help ensure that this city remains amongst the world‟s best. Mary Reilly Chair

CHIEF EXECUTIVE’S REVIEW The past year has been one of great change and significant achievement for the London Development Agency. We underwent a process of organisational change which helped us achieve a „Good‟ rating from the Audit Commission during our first Initial Performance Assessment in February 2005. The Commission stated that we are „truly determined and ambitious about supporting and extending London‟s economic success.‟ This rating is significant because it will enable us to gain increased financial flexibility from Government, which is welcome as it allows us to respond even more proactively to London‟s ever-changing needs. London is not a one-dimensional city, thus, the LDA cannot be a one dimensional organisation. Throughout this document you will see some of the issues that London faces now and will face in the future - ranging from the effects of Climate Change [which the London Climate Change Agency we are spearheading on behalf of the Mayor will help address], to population expansion, rising costs, the shortage of affordable homes, child poverty and income inequity - and how we plan to deal with them. We are responsive and proactive to these diverse needs and aim to catalyse and orchestrate change by making selective interventions throughout the city. We also aim to deal with new threats and opportunities proactively and fearlessly. We and our stakeholders, under strategic direction from the Mayor, have worked to ensure that London‟s status as a global financial powerhouse and one of the world‟s most sustainable and equitable cities continues. We have many reasons for being confident about London‟s future: • London is already one of the most successful cities in the world. It is Europe‟s top business location and attracts millions of pounds more in international investment than any other European city • it is the most productive region in the UK and boasts a gross value added of over £160 billion a year • its global transport links are second to none - Heathrow airport serves 180 destinations in 90 countries and is the busiest in the world • it has a highly skilled and diverse pool of labour and a world-leading telecommunications infrastructure

• it has an above average share of employment in high technology services compared to other world cities and is a strong base for science, ICT and environmental tourism • its architectural, educational and cultural heritage is deeply rich and it is one of the most visited cities in the world • it celebrates diversity, fosters creativity and has a unique positive vibe that you won‟t find anywhere else in the world. These attributes mean we are also confident about our plans for improving London. The most far reaching of these is the much welcomed revised Economic Development Strategy [EDS] for London we produced for the Mayor last year. The revised EDS clearly illustrates our vision, targets and objectives and after reading these documents alongside our Corporate Plan, one cannot doubt the Mayor and the LDA have an ambitious vision for London. We are already working to achieve the objectives set out in the EDS. In the area of regeneration and development, we have been working on some particularly exciting projects, including Silvertown Docks which is the focus of a £1 billion public and private sector investment, designed to regenerate and develop over 20 hectares of land. The regeneration of Wembley would not have happened with the financial security it did without the LDA. The ongoing work on the handover and subsequent development options for the National Sport Centre and Crystal Palace Park have also achieved some significant milestones, including a successful consultation with over 2500 local people turning up to give their views. Fostering innovation is another priority and in the last year we launched the £3.8 million Jumpstart programme, designed to help Black and minority ethnic businesses innovate on a scale never before seen in London. This programme is just one of several that illustrate our drive to further the equalities agenda in London. We have also taken responsibility for the Business Link for London contract, extending its reach and undertaking a strategic review of business support services. And last, but by no means least, the LDA worked tirelessly with our partners to help win one of the biggest prizes for the capital in decades - the honour of hosting the 2012 Olympic Games and Paralympic Games. This was one of the most closely contended competition in Olympic history with London up against four other cities - Madrid, Moscow, New York and Paris, all with exemplary bids. The Games will focus rather than divert from our priority to boost, develop and invest in London-wide development and regeneration programmes, because it will bring momentum, investment and an unparalleled level of cooperation and partnership working amongst the city‟s private and public sector organisations. Our achievements in the past year were due to the hard work of our expert teams, who worked together with our stakeholders to ensure that the needs of London were being met. What we have achieved in the past year is testament to the passion and commitment we at the LDA have for London‟s people, communities, businesses and places. It is this passion, expertise and commitment, coupled with our continuous drive for excellence, that will help us ensure London remains one of the most successful global cities – unified, sustainable and diverse. Together with our stakeholders, we will continue to work for all of London‟s communities, to ensure that the economic and social regeneration taking place in the city benefits them all and leads to a society that is truly integrated and engaged in London life. Manny Lewis Chief Executive Officer

THE LONDON DEVELOPMENT AGENCY BUILDING A GREAT GLOBAL CITY OUR WORK IS FOCUSED ON FOUR IMPORTANT AREAS: Developing people Strengthening our programmes to enhance skills and address underachievement; providing affordable and accessible childcare tackling discrimination and disadvantage; ensuring lasting benefits for all communities and developing people‟s basic and vocational skills. Building on London‟s cultural diversity and making sure every person who lives, works and visits here can share in the prosperity of our city. Developing infrastructure and places Regenerating areas of deprivation across London; supporting the 2012 Olympic and Paralympic Games as part of our work to regenerate the Lower Lea Valley and wider Thames Gateway; supporting the waste recycling sector; setting up a new Climate Change Agency for London and revitalising the South Bank and run-down town centres. Developing enterprise Supporting new start-ups, business growth, women‟s enterprise, disabled entrepreneurs and minority ethnic enterprises; providing finance, workspace, advice and business support; helping businesses to innovate and internationalise; supporting the growth of key sectors and facilitating the development of clusters through City Growth Strategies. Developing marketing and promotion Building on our status as an international tourist destination; promoting inward investment and trade to k ey international markets; improving the quality, range and diversity of the attractions we offer to visitors and making the city more accessible.

London has a unique personality, steeped in history, yet modern, bustling and progressive. Even the physical skyline reflects this mix, with monuments rich heritage such as the dome of St Pauls Cathedral standing securely alongside more modern landmarks such as Foster‟s Gherkin. It is this vibrancy, dynamism and air of constant change and rapid growth that makes London a true global success story. How do we know that London is a great global city? With a monetary value of £160 billion a year, it is the driver of the UK economy. It boasts the UK‟s highest productivity rate, its global transport links are second to none and the skills and diversity of its people are world class - making it a thriving location for businesses and visitors alike. However, London is also a city of contrasts. Even though it is the UK‟s and Europe‟s financial powerhouse, it also has the highest rates of child poverty in the country and around 20% of our wards are classed as the most deprived in Europe. There are additional challenges such as rising costs, population expansion and shifting demographics. These issues must be dealt with effectively and efficiently for London to maintain and build on its status as one of the world‟s greatest cities. The London Development Agency - working to create a great global city

At the LDA, our goal is to meet these challenges consistently, systematically and head on helping to create a successful, secure, equitable and unified city. We are achieving success in our work. In the past year we have achieved and even exceeded our goals and targets without overspending. Out of a £417 million budget, we spent exactly £417 million and we were given a „Good‟ rating in our first Initial Performance Assessment (IPA) by the Audit Commission, in recognition of our efforts to become a truly excellent authority. We are a member of the GLA Group [alongside Transport for London, the Metropolitan Police Authority and the London Fire and Emergency Planning Authority], and also one of the nine Regional Development Agencies (RDAs) in England and Wales. We perform our various roles with powers given to us by both Government and the Mayor. We work strategically and with a long term focus - it‟s our job to act as a catalyst for change in London, bringing key stakeholders together to ensure that the city continues to thrive in the next year, the next decade and in the next century. We receive funding from central Government via the Department of Trade and Industry (DTI) and the Greater London Authority (GLA). The Mayor appoints our Board members, sets our strategy, and approves our Corporate Plan. Our performance targets are also set by the Mayor and agreed by the Secretary of State. To streamline reporting lines, the GLA and Government Office for London (GOL) work together to monitor our performance. How we operate We pursue economic development in the most holistic, modern and strategic sense - sustainable development that encompasses people, places, businesses, marketing and promotion; which protects and minimises damage to our natural environment and which is designed to reap benefits now and in the future. It is challenging but it is what we strive to do every day. Our work is also designed to support the delivery of other Mayoral Strategies, including the Mayor‟s Childcare Strategy for London, the London Plan, the Energy Strategy, the Culture Strategy and also the Mayor‟s Green Procurement Code which seeks to encourage businesses in London to purchase goods made from recycled materials and is being delivered on behalf of the Mayor by London Remade. Equality, sustainability and health Equality, sustainability, health and social inclusion underpin all of our goals. We have been striving to make them an intrinsic part of our work because they are a natural part of life, work and business in London. In the last year we led a pilot on behalf of the Home Office to devise Equality and Community Cohesion Impact Assessments and integrate them into our work. The resulting impact assessment process is now being rolled out across all the Regional Development Agencies and a specific equality impact assessment process has also been developed for land acquisition using compulsory purchase orders. We‟re also working to ensure that our regeneration and development projects are accessible and meet inclusive design principles. We are working with the Disability Rights Commission to develop best practice guidance for RDAs and in April 2005 we hosted a conference for RDAs to discuss this work. The LDA also partnered with the Disabled Persons Transport Advisory Committee‟s (DPTAC) Built Environment Group to host a breakfast briefing for developers in March 2005. The meeting was used to promote the concept of inclusive projects and to encourage developers to commit to inclusive design principles; to setting out an access strategy at the beginning of the development process; using access statements and the expertise of access consultants and to involving local access groups in development proposals. We are putting this into practice in our own work by producing an Access For All strategy for the 2012 Olympic Games and Paralympic Games. Later in the report we‟ll say more about how we have been successful in linking

regeneration and inclusion and making equality an integral part of our work. Our equalities targets are also provided on page 36. Sustaining Success The Mayor’s new Economic Development Strategy for London We do not only react to London‟s challenges. The LDA also seeks to take the initiative, proactively researching, anticipating and planning for forthcoming challenges and opportunities. The Economic Development Strategy [EDS] for London is the most in depth, proactive economic plan we have for the city. It sets out a plan to promote the sustainable, equitable and healthy growth and development of London‟s economy up to the year 2016. We drafted the EDS on behalf of the Mayor of London and it forms part of a number of Mayoral strategies outlined on page 07. In January 2004, we produced the revised draft and submitted it to our stakeholders for their views. Following this consultation process, we published the final version of the second strategy, „Sustaining Success‟ in January 2005. The revised EDS puts the Mayor‟s vision for London into concrete policies and proposals. It sets clear goals for how the Mayor, the LDA, the rest of the GLA group and other public and private sector bodies will work together to address the challenges facing the city - in particular accomodating population growth of around 800,000 and the challenge of creating over 636,000 additional jobs in London by 2016. We use the EDS to strategically decide what projects to undertake, where to invest and where to intervene; we work to actively implement it with our partners; and to encourage private sector businesses, other public sector bodies, voluntary sector organisations and individuals to help implement certain actions. For example, we are working closely with the London Borough of Brent, Wembley Stadium Ltd and Quintain Estates to build the new Wembley Stadium and regenerate the areas around it - including the town centre. Our own plans for implementing the EDS are set out in our Corporate Plan, which is revised annually to ensure we are always addressing the current issues facing London. The EDS is based on four central, interconnected themes which are discussed in more detail in our review of the year starting on page 09. They are: • investment in people • investment in infrastructure and places • investment in enterprise • investment in marketing and promotion.

In 2004/2005 we: • created or safeguarded 19,451 new jobs for Londoners [original target: 12,500] • helped 11,079 people get into work [original target: 8,000] • ensured 1,512 new homes were built in London [original target:1512] • provided 28,757 training places for Londoners to gain new skills • provided 933 childcare places [original target: 800] • helped create 151,683m2 of workspace [original target: 150,000] • assisted 34,035 businesses [original target: 15,000] • developed 53.91 hectares of brownfield land to create more space for new homes, workspace, leisure facilities and green space [original target: 50 hectares]

• attracted or created 1,532 new businesses in London [original target: 1,500] • leveraged £254,700 million of private investment into some of London‟s most deprived areas [over £4 million more than our target].

REVIEW OF THE YEAR Developing London‟s economy by implementing the Economic Development Strategy is a significant task which the LDA cannot deliver alone. Our annual budget of around £400 million a year is relatively small in relation to the scale of the challenges and opportunities facing the city. Therefore we must make selective and crucial interventions, and much of our work is based on leveraging our budget and brokering solutions from other public and private sector resources. The following sections highlight how we have done this in the past year, the successes we have achieved, the challenges we‟ve faced, and, most importantly, how we have made an impact on individuals, communities, businesses and the city as a whole. DEVELOPING PEOPLE London‟s population continues to change as a result of demographic and social trends. Nearly a third of the city‟s inhabitants are from Black, Asian or other minority ethnic groups; around one-fifth of the working age population is disabled and the number of languages spoken in the city has grown to over 300. Londoners now belong to at least 14 different faiths and in the next decade, people from London‟s Black and minority ethnic communities will account for 80% of the increase in London‟s working age population. One of the great challenges posed by this diversity of ages, races and abilities is the skills needs and employability of these different groups of people. We have been working to ensure that skills and employment provision in London is targeted at the right audience and is of sufficiently high quality to give everyone the chance to apply for, obtain and excel at the 636,000 new jobs that are expected to be created in London over the next 11 years. We are also working with London‟s employers to ensure we are giving people the skills they need for their business and to also help them understand the need to use London‟s diversity to their advantage. The success of London‟s economy depends on using these demographic and social changes to improve the status of the city‟s people, businesses and economy. For example, in the past year we have continued to develop our leading role in skills through the London Skills Commission, working with key partners such as the Learning and Skills Council (LSC) and Jobcentre Plus to develop the Regional Skills Prospectus, encouraging businesses to invest in their workforce development and enabling individuals to pursue their own learning needs. We launched the Music City project which provides employment opportunities for young people in Deptford; developed and launched welfare-to-work packages in partnership with JobCentre Plus for Islington and Camden; and also launched the London Riverside - London Stansted project in partnership with JobCentre Plus to meet the needs of BAA Stansted‟s employers. The Barking Learning and Advice Centre was opened to improve local access to job brokerage services to allow them to benefit from anticipated growth in employment opportunities and we have continued to implement the Pathways to Jobs programme in the City Fringe and the Construction Employment Training Initiative at Kings Cross.

Many of our skills development programmes have been based in the most deprived areas of London. Tower Hamlets for example, has the largest Bangladeshi population in the capital. At present, employment rates for Bangladeshi and Pakistani men are at least 20% lower than the rates for similarly qualified men from other ethnic groups. Bangladeshi women also experience a lot of problems accessing work. One of our most exciting and practical projects in the past year has been focused on upskilling and supporting this particular community. The project, based at the London Muslim Centre [LMC] in Spitalfields, east London, provides nursery care and training, particularly in English as a second language, not just to Bangladeshis, but to other Muslim communities, including Somalians and Pakistanis. We will be supporting the LMC with over £500,000 over the next two years, to help them go further and provide secondary and adult education to the local community. KEY FACTS THE LDA’S WORK By 2006, 45-59 YEAR OLDS will form the largest labour force group. We are using our influence on London’s employers and our management of the Business Link for London contract to promote employment of older people to 90,000 London businesses.

Another project is the Bromley by Bow centre, based in one of the most highly deprived areas in London, with high rates of unemployment, low skill levels and poor levels of health. Its „Healthy Living Centre‟ model provides a combination of GP and alternative therapies to local patients and was so successful that it was rolled out throughout the UK. It is communityowned, with the membership and staff predominately made up of local people. The LDA has supported the Centre in a variety of ways, including a £2.7 million seven-year programme that tackled local socio-economic problems by encouraging local enterprise and learning, promoting sustainability and increasing direct community involvement. We also continued to support the Stephen Lawrence Charitable Trust and the Stephen Lawrence Centre which aim to reach young men who are excluded from educational institutions and from the labour market. The Trust hopes to provide skills training in architecture and mentoring to help young boys overcome the difficulties they may face in different areas of their lives. Last year, we confirmed funding for the capital phase of this project and the planning application for the new purpose built centre was submitted. In 2004/2005 the LDA and the European Social Fund (ESF) co-financed a new package of projects to strengthen London‟s labour market. The projects are focused on getting excluded groups back into the workplace and tackle some of the key challenges identified in the Mayor‟s Economic Development Strategy and the London Framework for Regional Employment and Skills Action, known as the London FRESA. The ultimate aim of undertaking this diverse range of projects is to ensure that London‟s workforce has the skills employers need. By working simultaneously with a variety of communities, we aim to create a smooth flow of labour into the marketplace and ensure that all Londoners have the opportunity to reach their full potential.

Changing Faces The Changing Faces Project 9, run by Youth Cultural Television (YCTV), provides young people at risk of social exclusion with the skills they need to write, shoot and edit their own programmes. The aim is release the creative talents of young people aged 11-25, through the medium of television while enabling them to gain important life skills. By creating television by and for young people, they are excited into the learning process, and in addition gain opportunities to develop skills in the media industry. Changing Faces received £1.1million of LDA funding in 2002, a year after it was set up. To date, 756 young people have received training in a variety of creative areas including television production, music technology, event management and general ICT. A further 63 young people have secured employment in the media industry and 29 others have undertaken valuable work experience placements at broadcas ting companies including BBC, Channel 4, BSkyB, Celador and ITV. NVQ level one training has also been provided for 15 young people who have obtained qualifications. The programme has made a real difference, particularly through working with some of the most marginalised young people. For example, the project worked with the exclusion unit at Sion Manning School in west London. Of the pupils they helped, 90% have re-engaged in the „normal‟ curriculum and worked towards GCSE‟s and further education. Samantha Joseph, head of projects and youth at YCTV explains: “We have found excluded kids are very creative and may not be able to relate directly to the way that mainstream education is arranged. We provide an alternative where they gain by learning technical skills.” All young people are required to complete a four-day taster session and learn a range of basic skills such as scripting, editing and presenting. At the end of this they will have made a short programme. As Samantha says “These skills help to build confidence and life skills in ways that you cannot measure. It is particularly pleasing when you see very shy young people learn to speak publicly with confidence and work well in teams.” Dean Annon, 23, joined Changing Faces Project in 2002. In 2003, he completed a three-month internship at Bloomberg Television as a broadcast operator. Of CFP he says, “Because I stutter, I enjoy expressing myself through print and the project has built my confidence and skills - I used to be quite shy. Now, after doing this programme, can apply for jobs I would never have considered before.” Jake Bryan-Amaning, 24, joined the project two years ago and is focused on becoming a successful director. He has just finished directing Jumpstart, a short film on entrepreneurship that will be screened in colleges and schools across the country. He says: “My outlook has changed because I have learnt a lot about the TV industry and how things work through various work experience placements CFP has sent me on. I have done camera work, production assistance and running. There is always a lot of help here and you can more or less approach any body and they give you time. I am currently working on a few script ideas for short films to be able to practice my directing more.” THE LDA’S WORK KEY FACTS Around 53% of students left London’s secondary schools with five or more A-C GCSE grades in 2004, compared to around 45% in 1997. However, the number of student staying on after the age of 16 is still TOO LOW and many employers are not satisfied with the basic skills of school or college leavers who go directly into employment when they leave. The LDA leads on the Regional Skills

Partnership for London which works to ensure that young people have the skills and ambition to CONTINUE LEARNING and take up employment through whichever route serves them best. We have also been involved in a number of projects to encourage young people to train for careers in hospitality, travel, leisure and tourism, health and social care, financial services and engineering.

More affordable childcare in the pipeline The lack of good-quality, affordable childcare is a severe problem for many Londoners who struggle to pursue skills training or move into work. Many parents have said time and time again that they would be able to move into training or work if they had more access to affordable childcare. This barrier to work in turn seriously affects the lives of London‟s children and young people. For example, London has the highest rate of child poverty in Great Britain, with one in three children living in households that survive on incomes below the Government‟s poverty threshold. In inner London, this number rises to one in two families. Because of these economic and social impacts, childcare has remained at the top of our strategic agenda in 2004/2005. From hosting the first ever LDA Childcare Partners Seminar to developing a new, one-stop childcare services website we have focused on a range of avenues to support new and more affordable childcare places in the capital. We announced the Childcare Affordability Programme (CAP) which will create up to 10,000 affordable childcare places over the next three years and provide more support for parents entering learning or actively job seeking. We continued to support the Neighbourhood Nurseries Initiative by providing capital funding to build, refurbish and expand nurseries in the 20% most deprived wards in London. This lead to the creation of over 900 new childcare places for low income and unemployed families in the last year. In 2005/2006 we will be developing a programme to support the creation of an additional 350 childcare spaces for childcare provision attached to schools. The Lloyd Park Centre is an under-fives community nursery in Walthamstow, east London. It re-opened in July 2004 in a new purpose built centre and currently has 165 children on its register. Lloyds Park provides a range of services in addition to the provision of day care. These include parent and toddler drop-in sessions, holiday schemes and breakfast and teatime pick up from local primary schools. The centre also runs health visitor drop in sessions and parenting classes and actively encourages the involvement of parents and other members of the local community. Centre co-ordinator Pauline Thomas, says, “Parental involvement is at the heart of what we are doing. As part of our constitution, 60% of parents manage us. They are not just involved in the decision making but in all aspects of the work.” The centre received a £50,000 grant through the Neighbourhood Nurseries Initiative, supported by the LDA. The money, Ms Thomas says, was crucial to getting the centre up and running. “We had a new build so we needed a lot of funding, £1.3 million in all. We put together a cocktail of funders such as Sure Start and the Community Fund but we fell short,” she explained. “The £50,000 we received from the LDA was make or break to whether we could open up and complete our plans. We were funded for specific initiatives and deadlines were looming and this also helped us to get things finished and moving.” Lloyd Park has been designated the second children‟s centre for the London Borough of Walthamstow out of the 12 that are planned by 2008.

Like Lloyd Park, the Learning Centre Loxford, in Redbridge, also provides day care for children under five and aims to offer quality, affordable accessible childcare. The centre received a £100,000 grant from the Neighbourhood Nurseries Initiative and opened in September 2004. It was immediately inundated with requests from parents. Angie Ormston, learning centre manager explains: “I did not expect such an immediate interest and feel very strongly that this has highlighted the gap that there was in this area for local childcare provision. By the end of 2004 it became evident that we would have to recruit more staff to satisfy the demand. We hope to have some new staff in post as soon as the relevant checks have been completed and we will then be able to offer more places to the many families on our waiting list.” The centre currently has 35 children on its register with a mixture of full time and part time places. When it is fully staffed it will be able to offer 56 childcare places. “The crucial gap funding provided by the LDA enabled us to provide quality nursery provision above generally acceptable standards. For example it allowed us to fully fit and furnish our outdoor play spaces and the children really benefit from that,” Ms Ormston says. THE LDA’S WORK KEY FACTS London’s economic output would be £1.5 BILLION higher if part time employment rates for London’s mothers were raised to equal those in the rest of the country. Through the Childcare Affordability Programme we are working to support 10,000 NEW affordable childcare places in London, to help single parents, particularly women, enter full time employment. DEVELOPING INFRASTRUCTURE AND PLACES Our co-ordinated investment and direct support for deprived areas of London continued in the last year. London‟s development must be managed so that it actively promotes social inclusion and tackles some of the complex physical and social barriers that prevent many people from fully participating in the capital‟s success. The physical regeneration and development work we undertake is carried out under the guidance of the Mayor of London and the London Plan [the strategy for London‟s physical development over the next 20 years] and is designed to promote and ensure social inclusion. In the last year we‟ve worked to improve and add to the infrastructure that is needed to support London‟s future growth. In particular, we have made real progress on a number of key regeneration and development projects, including London‟s South Bank, Wembley Stadium, the Royals Business Park, the area surrounding Kings Cross, Dagenham Dock, the Albert Basin development and the Thames Gateway in east London. Our development work has been further supported by a Board resolution to implement our powers as a statutory consultee on planning applications involving more than 150 Housing Units, allowing us greater ability to influence housing development in London. Delivering more and better homes London‟s population is expected to increase by 800,000 people by 2016. This is equivalent to adding a city the size of Leeds to London in the next 11 years. In addition, high housing prices and the lack of affordable homes are currently having a serious effect on many Londoners, particularly those on low or medium-sized incomes. Sustaining the success of London‟s economy means

additional and improved housing needs to be built to cope with future population increases and current issues of availability and affordability. This is why the Mayor and central Government have laid out plans for large scale house building in London and the south east. With our substantial landholdings and partnerships with other agencies, we expect to facilitate the delivery of over 25,000 additional homes, over the next 10 years, many of which will be affordable to people on lower incomes. These sites are located in: Location The Royal Docks (including 5,000 at Silvertown Quays) Other Newham sites South Dagenham Woolwich Arsenal Lewisham Tower Hamlets Number of homes up to 10,000 up to 3000 up to 6,500 up to 4,200 up to 1000 Up to 800

Sites in the Royal Docks and Woolwich Arsenal are already delivering additional homes on the ground, along with improved housing achieved through funding estate renewal projects. In addition the LDA will be facilitating the delivery of over 9,000 additional homes as part of the Olympics legacy programme, as well as additional homes now in construction in the Wembley and Ashburton Grove redevelopment projects. We have also been working with English Partnerships to develop the Gallions 2 site in the Royal Docks as part of the London Wide Initiative [LWI]. The LWI is a pilot scheme aimed at fast-tracking the creation of more affordable homes in Greater London. The pilot will deliver up to 4,500 homes over the next five years, of which 1,000 will be affordable homes for sale and 1,000 will be made available under the First-Time Buyers‟ Initiative announced by the Office of the Deputy Prime Minister on 24 January 2005. The Gallions 2 site itself will help create between 300-400 new homes.

THE LDA’S WORK KEY FACTS London’s population is projected to increase by 800,000by 2016. We’re using our land ownership to drive forward strategic and sustainable homebuilding in London. In the Thames Gateway, over 25,000homes can be built on LDA land and schemes are already underway. An additional 9,000 homes will be developed for housing from the Olympics Legacy, 50% of which are planned to be affordable. Our continuing focus on the Lower Lea Valley and the wider Thames Gateway is helping facilitate the delivery of the 91,000 additional homes identified in the Thames Gateway Development Investment Framework (TGDIF) of which the 25,000 homes identified on page 17 will form a considerable part. We‟re also continuing to work on developing an investment framework for the north London corridor (part of the

London-Stansted-Cambridge- Peterborough corridor) to help deliver housing development in key strategic sites. The Mayor‟s London Plan sets an annual minimum target of 23,000 additional homes, but this looks likely to be increased to 31,500 additional homes. The LDA will be working towards achieving the Mayor‟s 50% affordable housing target in line with the London Plan. The Lower Lea Valley is one of four areas in the southeast identified by the Government and the London Plan for large scale home construction. Around 120,000 homes are due to be built in the area, and it is also expected to provide 200,000 of London‟s 636,000 required new jobs. Much of the LDA‟s land interests lie in the Lower Lea Valley and the wider Thames Gateway - we control 304 hectares in all and are one of the largest landowners. Thirty thousand homes can be built in the area on LDA land alone, and 18,000 units are underway or approved to be ready by 2007. Across London as a whole we own around 850 hectares, and we are using this land ownership to drive forward strategic and sustainable regeneration and development of London‟s most deprived areas. We are fulfilling our role by working with our partners to build new developments that are close to transport and local shops, thereby lessening people‟s reliance on cars. We are also striving for sustainability and environmental improvement by focusing most of the development, particularly that being undertaken in the Thames Gateway, on brownfield land. The approach to development adopted in the Thames Gateway is a requisite for all our regeneration and development projects. It takes a complete view of development - combining creation of house and workspace, business creation, job creation, skills training, environmental improvements, town centre regeneration and leisure provision, to ensure that it benefits people, businesses, communities and the natural environment. Helping win the 2012 Olympic Games and Paralympic Games London‟s bid to host the 2012 Olympic Games was premised on its role as a catalyst for regional regeneration. The lives of thousands of people, from many different communities, would be vastly improved. This focus struck a chord with the IOC judges and on 6 July 2005, the world watched as London was chosen to host the greatest sporting show on earth. Our work on the Bid was both high profile and intensive, and we committed considerable resources, funding, expertise and passion to the project. We were responsible for delivering vital technical and planning aspects of the Bid, including delivering the Olympic and Legacy masterplans, securing planning consent for the Olympic Park and assembling land in the Lower Lea Valley. Now the real work to deliver a successful Games begins, including ensuring a lasting legacy for future generations. It is work the LDA is committed to. Our immediate priorities include establishing the interim Olympic Delivery Authority (ODA) from August 2005, until the ODA is established by statute in 2006, and continuing with our land assembly programme. Ahead of the establishment of the ODA, we will also be leading on the procurement of a number of major contracts. The Games will drive forward regeneration of the Thames Gateway and countless neighbouring areas, making London, a city which already has so much to offer, even better. From construction to hospitality, industries across the city will reap a host of benefits.

The impact of the Games on local and regional communities is extremely important and we will continue to engage with community groups to ensure it is positive. There is real determination to see local communities and businesses of all sizes capitalise on the greater employment opportunities and improvements in education and skills the preparation for the Games will bring.

Bidding for better business districts Kingston upon Thames, south west London, is set to become a cleaner, safer and more competitive town centre following the success of the LDA funded Business Improvement District [BID] pilot programmes last year. BIDS aim to create a cleaner, safer, more pleasant environment for people to shop, work, do business and socialise. Under the scheme, local businesses decide what improvements they would like to see made and contribute to the cost of implementing these improvements. This in turn has a knock-on effect on the local economy and the competitiveness of the local businesses of all sizes and types. The idea has been very successful in the United States, but Kingston was the first to translate the idea in the UK. The range of benefits BIDS bring include: • cleaner environments, with environmental rangers on duty seven days a week, street washing, gum removal and enhanced tree planting • safer streets, with community rangers on duty seven days a week to deter anti-social behaviour • better transport and access with funding for existing Park and Ride schemes • increased marketing and promotion and greater support for small businesses, including improving access to governmentfunded training. Around 66% of businesses voted yes in the Kingston First postal ballot held in late 2004. The yes vote paved the way for more BIDs around London, with another overwhelming yes vote [71%] taking place in the world-renowned Piccadilly Circus and Leicester Square areas in the heart of London. BIDS are being planned for other areas in London and will help transform the city‟s town centres into cleaner, more successful business districts. A new start for Crystal Palace The future of the Crystal Palace National Sports Centre was secured last year thanks to the intervention of Mayor of London and the LDA. The centre will become the LDA‟s responsibility in February 2006, with an option to cover the park as a whole by 2009. We are working with partners - notably Sport England and Bromley Council - to shore up the park‟s facilities in the short-term while we plan for the long-term future. The long term debate as to the future for the park is one of continued dialogue. In September 2004 during a nine day consultation exhibition over 2500 members of the community told us what they wanted for the park and its sports facilities. We have also appointed design advisors for the project and developed a draft planning framework. This year we will submit a planning framework to the London Borough of Bromley outlining how the p ark can be rejuvenated and a way forward for the Sports Centre. Wembley - delivering the vision Wembley is another of London‟s most exciting regeneration opportunities. The LDA is investing more than £85 million to

help improve public transport, build a new footbridge and a new town square. This will complement the existing business support, training and social inclusion projects which are set to bring huge benefits for local people and businesses. Developers Quintain have also set up a Consultative Access Forum enabling disabled people to be directly involved in the design of the development. The building and naming of a new state-of-the-art footbridge connecting the National Stadium to the town centre was an exciting task for the LDA. The footbridge is designed by Marks Barfield, the architects of the London Eye, and is part of a major upgrade to Wembley Stadium Station. We launched an international competition to name the footbridge and teamed up with BBC Radio Five Live in February 2005 to reveal the chosen name. Billy the White Horse took just over a third of the 36,500 votes that were cast on the Five Live site. Sir Alf Ramsey was close behind while the three other names - Sir Bobby Charlton, Sir Geoff Hurst and Live Aid - each took about 4,000 votes. DEVELOPING ENTERPRISE London‟s status as a leading global city is due to its position as a dynamic, thriving business location. In 2004/2005 we continued working with our stakeholders to make sure London remains the business location of choice - improving infrastructure, support services and creating the right climate for innovation and enterprise. E-Business Alexandra Tool Hire Enfield-based business Alexandra Tool Hire now serves a much wider geographical area of customers thanks to the e-Business Success programme, a range of free courses offered to north London businesses through a partnership between Business Link for London, the small business advice and support service for the capital and Futuretrend Technologies, a local training provider. The project is funded by the LDA and the European Social Fund. Bob Rist, owner of Alexandra Tool Hire, undertook several e-Business Success courses and found the advice effective and easy to implement. Now the knowledge gained from a Search Engine Marketing course has made a big difference to Alexandra Tool Hire‟s business. By improving the company‟s visibility on Internet search engines such as Google, Alexandra Tool Hire‟s domestic market has grown considerably, attracting a number of home improvers and weekend DIY enthusiasts from a much wider area. Part of a national network of tool hire companies, the website has also benefited from the addition of images and changes to the homepage, giving Alexandra Tool Hire a competitive edge in the market place. Bob Rist‟s Business Link for London Business Adviser recommended the e-Business Success courses to him because they covered topics such as website design, email marketing and web selling. Lasting from half a day through to two full days, the courses are completely free and come with the offer of free follow-up workshops designed to help participants apply their newly developed skills and measure the benefits. Bob says: “With the tips I picked up I now have a website that makes my small, local business look like a large national company. The courses also offered a great opportunity to network with other small businesses in the area and share ideas and knowledge.” +++++++++++++ +++++++++++ London Youth Support Trust 2

London Youth Support Trust 2 (LYST) demonstrates the LDA‟s targeted approach to social inclusion. LYST is a registered charity which provides vital workspace centres for disadvantaged young people in London who want to set up and run their own business but cannot find suitable or affordable premises. The LDA provides gap funding to LYST and two centres are already up and running in Hackney and Deptford. The centres house 24 business which employ over 50 people, including RWD, a music magazine and website which now registers 80,000 unique users per month, more than Kiss FM or Capital Radio. More hubs are planned, one of which will be a specialist centre for music related businesses We also gave specific support to the most productive elements of the capital‟s economy - its world class business sectors such as life sciences, creative industries and manufacturing. The ultimate aim of our work is to maximize long term, sustainable growth; increase productivity and innovation, encourage new business start-ups, and ensure that London‟s richly diverse communities can share in the benefits of this growth. Making business work for London In his 2004 budget statement, Chancellor Gordon Brown announced that responsibility for Business Link contracts will be devolved to the RDAs. Therefore, one of the largest projects we initiated in 2004/2005 was the successful transfer of the Business Link for London contract. We‟ve worked with Business Link for London to agree a two-year contract to deliver improved business support services. Business Link for London has agreed to increase its target business penetration figure from 80,000 in 2004/2005 to 90,000 in 2005/2006 and to increase its target penetration rate for Black and minority ethnic business from 23% to 29%. Also in partnership with Business Link for London, we conducted and launched the second London Annual Business Survey - the largest and broadest of its kind reflecting the London business marketplace, providing vital information on the structure of businesses which is not available from any other source. Plus, we have gone a step further and started a comprehensive review of business support in London. The ultimate aim of the review is to find out where duplication in business support exists; where there are gaps and inadequate provision and where there is low quality support and to then catalyse a more streamlined, efficient and high quality business support network which adequately and efficiently meets the needs of business in the capital. Supporting sectors Sectors are one of the key activities in our business support services. Different business sectors face specific issues and challenges which one-size-fits-all, generic business development programmes will not solve. This is why we create and implement sectoral strategies and programmes which are designed to tackle the specific issues a sector faces from the point of view of the businesses operating within them. Manufacturing Our support for London‟s manufacturing sector continued last year, with the launch of the Production Industries Strategy and Action Plan. This Strategy comprises an overall goal for a modern, forward looking manufacturing sector. It also provides a picture of global sector trends, a profile of production industries in London, and lays out the key issues the sector faces. A Production Industries Panel, consisting of leading manufacturing businesses and partner organizations will now work with the LDA to implement the action plan. In addition, we also continued our £2.7 million funding package for the Manufacturing Advisory Service, which supports small and medium sized manufacturers by helping them improve efficiency. Oth er key manufacturing success stories were the decision of Ford to invest an additional £169 million in its diesel engine manufacturing facility at Dagenham and the ULV Industrial Estates Programme, which aims to

regenerate a number of older industrial estates and derelict buildings as a means to secure the retention of existing businesses and enable them to grow. Biotechnology With more investment funds than the top 10 European cities combined and 1,350 top rated bioscience academics, it‟s no wonder London is home to almost 100 biotechnology companies - whom together form a vital growth sector for London‟s economy. We have also been working to make it easier for businesses of all types to tap into the range of expertise the city‟s world-class universities and researchers offer and use it to improve their business performance. The LDA initiative BioLondon fosters and promotes world class biotechnology businesses, a task which began with the launch of the 2003-2007 Life Sciences Strategy and Action Plan. This stressed the need for suitable space for life sciences and support for the development of centres of excellence. In 2004/2005 we continued to put the strategy into action, collaborating with London NHS and industry to work with St George‟s Hospital Medical School (SGHMS) and the St George‟s Healthcare NHS Trust in the joint development of a commercial Clinical Research Facility. The facility will address several constraints to the School‟s clinical research activities including pressure on NHS beds and other facilities that had formerly been available for research, and a need for better and more co-ordinated general research facilities. We also continued to play a key role in the London Bioscience Innovation Centre (LBIC). Our relationship with LBIC extends back to 2001 when we supported the establishment of the capital‟s first purpose-built, biotechnology innovation centre with a £1.4 million investment. Recently, we have invested a further £2.7 million into a third phase of expansion for LBIC, which is the UK‟s most successful incubator of biotechnology companies. Our involvement has ensured the most state-of-the-art facilities are available to over 20 companies involved in research or product development in the spheres of human health, industry and the environment. Creative industries We continued to promote, galvanize and invest in London‟s creative industries via Creative London. In 2004/2005 for example, we backed the Film London Audience Development Fund, which assisted 20 innovative film projects across London, including the London Disability Film Festival, Africa at the Pictures and the London Turkish Film Festival. In January 2005, the fund announced it was inviting applications for a twice-yearly award, with £150,000 of funding available to support and develop London‟s moving image culture.

London Fashion Forum The London Fashion Forum (LFF) was set up in 2002 to boost the textile and clothing industry. Its main aims are to improve communications in the textile and clothing sector, make the industry more aware of the help available and close the circle between designers, manufacturers and retailers. In practical terms this can mean getting a new designer in touch with buyers and manufacturers, providing advice on business strategies and solving problems. It can also mean getting high level exposure for designers through fashion shows such as the successful and heavily subscribed Profile event which runs twice a year. Around 90 new and emerging designers‟ collections are currently showcased in Profile and there is a competitive element to the show, with the winners having their collection, purchased or showcased by the sponsor retailers [currently Hobbs House of Fraser and Debenhams]. LFF has 8,000 members, ranging from designers and retailers to buyers and wholesalers. Project manager Jenny Holloway

emphasises: “We don‟t just help designers, we also help retailers find emerging talent and we work closely with retailers such as Top Shop, House of Fraser and others.” There are numerous pr ojects underway which provide real benefits for the sector including an online one-stop advice centre for anyone within London who has a question or needs impartial advice about the clothing and textiles industry. The forum also has two boutiques in Kingly Court, Soho and Bluewater shopping mall, which showcase designers‟ work. Ms Holloway says that before the LFF was set up, obtaining help and advice about the industry was patchy and of varying quality and effectiveness. Julia-Anna Designs illustrates the significant impact the LFF has on the businesses operating in the sector. Two years ago, JAD was struggling and its order base had dwindled to virtually nothing. LFF advised the company to offer fast-track quality production, to deal direct with fashion houses and to offer a design and selling service which would move the company further up the supply chain. After meeting with a buyer from Top Shop, JAD received a trial order to manufacture 100 pieces of clothing for the company. It was a success and orders now exceed 500 a week. The company is now about to launch its own range of women‟s clothing and the collection will be showcased at the LFF boutiques. JAD manager Svitlana Bounetska says: “If you had asked me two years ago where I thought my life was going I would have probably said that I was due to be working in a bar somewhere. Today we are working with Topshop, Burberrys, Jigsaw, Cabbages and Roses, Nouniform and Clements Ribero. It is a dream come true for us and all because the LFF identified a realistic way forward. This is what manufacturers need in London today. No more seminars, no more handouts - we want thriving businesses and the LFF have delivered that for us.” ++++++++++++ Women innovators The London Inspires Women Innovators Connection (LIWIC) focuses on helping female innovators from Black and minority ethnic communities turn their ideas and inventions into successful, marketable products and services. Bola Olabisi, founder and managing director of the Global Women Inventors and Innovators Network, which facilitates LIWIC explains: “We act as an intermediary. We don‟t just signpost women to the opportunities out there, but we have links with relevant organisations and make sure they have a full understanding of the barriers that Black and minority ethnic women are already facing for them to be able to give these women the necessary support. LIWIC initially agreed to give 25 women intensive support throughout the 18-month programme which is part funded by £100,000 from the LDA. But they have exceeded these targets and are currently giving 50 women intensive support. “It is an extremely attractive project and it was too difficult to turn these women away,” Bola says. “We look at every aspect of the idea from property rights and project development to making sure they have the right contacts and network, so when the project ends they have a network of support and contacts for the long term.” Simi Belo, inventor of a product called the New Hair Wig and managing director of a company called Imiis, was LIWIC‟s Innovator of the Month in November 2004. Ms Belo was one of LIWIC‟s first recruits, although she was already well advanced in inventing and launching her product at the time. The product, a cross between a hair piece and a traditional wig, has been selling in reputable salons and shops such as Selfridges since January 2004. She says: “I wish help like this was available sooner. The most useful advice I have received so far has been about grants and other financial things. My c ompany qualified for the Passport to Export Programme and without LIWIC it might have taken much longer. I also find the website and newsletters very helpful.”

Ms Belo has recently broken into the American and Canadian market with her hair product and plans to launch in South Africa, Nigeria and Ghana. Her projected first-year turnover is £200,000. We also worked with the Arts Council to pilot the Creative Space Agency. This innovative new venture helps the creative sector make greater use of temporarily vacant space and buildings in the capital by utilising them for events, exhibitions, performances and new work - and in the process contributes to maintaining London‟s position as one of the most exciting, vibrant and creatively cutting edge cities in the world. Fostering innovation and knowledge transfer Innovation is at the heart of economic growth, providing a key to unlocking the potential for social gain that exists in our diverse communities. Science and knowledge help provide the raw material for innovation; the new knowledge, ideas and creativity that make individuals, businesses and communities successful. Innovation can also provide the internal flexibility and strength to make economic and social development across London more sustainable and less vulnerable to external pressures and crises. London has significant assets when it comes to innovation; the creativity and dynamism of some of London‟s leading sectors and businesses and its world class universities and researchers. However, the majority of small businesses find it difficult to tap into these strengths and London‟s diversity is not fully harnessed in promoting innovativeness and creativity. Through London Innovation, we aim to promote the benefits of innovation through increased productivity and improved business practices. We fund a number of programmes via London Innovation, which provide support to businesses, covering areas such as investment readiness, knowledge transfer, premises and grants for businesses looking to become more innovative. We also have a number of initiatives aimed specifically at addressing barriers to innovation within minority businesses. For example, the £3.8 million Jumpstart programme launched in April 2004, focuses on boosting innovation through diversity, supporting small firms, especially those with women, disabled or ethnic minority owners, helping them to overcome existing barriers to innovation and enabling them to gain better access to research institutes and other useful sources of knowledge. Working with universities and partners across London, the SME Innovation Support Programme raises awareness of the benefits of innovation. Launched at the LDA‟s 2004 Innovation Conference, the programme has engaged with 106 companies and is supporting over 20 university collaborations in areas as diverse as art and design, engineering, food, ICT, marketing and medicine. It has also facilitated over 15 new product and process developments, dispersed over £300,000 of financial support, generated over £660,000 of SME research and development investment and advised 20 new business start-ups. Boosting enterprise in deprived areas London‟s economic success and wealth has failed to impact on its inner city areas, which continue to suf fer from some of the worst economic deprivation in the UK - characterised by market failure, low business start up, high business failure and unemployment rates, poverty, low education and physical dereliction. In fact, 22 of the 88 most deprived boroughs in the UK are in London. The City Growth programme is designed to boost enterprise in deprived areas. It was originally developed by Professor Michael Porter, of Harvard University and his organisation the Initiative for Competitive Inner Cities (ICIC).

The LDA worked with the ICIC to adapt the US model to reflect the UK‟s and London‟s needs. There are currently 17 City Growth programmes in England, seven of which are in London. The LDA is responsible for leading on the overall development, co-ordination and project management of the London programmes working with a number of local and sub-regional organisations and businesses. We are also responsible for providing policy and strategy development advice and direction to the delivery organisations. The City Growth programmes in London have shaped or led to a number of projects that contribute to the business and economic development of their communities. The MICE Corporate Tourism cluster, which is being delivered by First Protocol, has brought together over 300 firms in the corporate tourism sector to network, undertake joint marketing and do business with each other. The Hatton Gardens Jewellery cluster development is a major business cluster initiative delivered by the City Fringe Partnership. It involves manufacturers, precious metal processors, wholesalers and retailers to help them grow their businesses and create new jobs. City Growth has no direct budget for implementing strategies or projects. This means that finance needs to be raised from other budgets or partner organisations and the programme has successfully encouraged and leveraged private sector engagement. All the London programmes, strategies and delivery plans for example, are led by high profile „Business Champions‟ such as British Airways, British Airports Authority, BT, KPMG, Shell and Deutsche Bank. All the business cluster groups (Cluster Action Teams) are also led and run by businesses. Giving small and medium sized enterprises better access to finance Owners of small and medium sized businesses also find access to funding for growth a major barrier to the progress of their business. It has also been recognised that there are gaps in the type of funding available for businesses, particularly those within deprived areas. These gaps particularly impact on small businesses and start-ups without an established track record or collateral. They also affect larger lifestyle businesses and social enterprises moving into new areas of activity considered „high risk‟ by traditional market lenders. We worked with Business Link for London to develop the Access to Finance Programme to overcome these barriers. The programme supports businesses into enterprise, grants and equity and provides business loans of between £5,000 and £250,000 in value. The programme has received acclaim from the Department of Trade and Industry, and is considered to be an example of best practice in business support. THE LDA’S WORK KEY FACTS London’s Black and minority ethnic-owned businesses generated a combined sales total of £90 BILLION in 2004. In the past year we brought together over 100 ORGANISATIONS to draw up plans for helping black and minority ethnic businesses overcome the barriers they face to growth. We are now working to turn these plans into concrete action. Supporting London‟s Black and minority ethnic-owned businesses The LDA plays a critical role in supporting the growth and development of the city‟s businesses, including those owned by the capital‟s Black, Asian, Chinese, Turkish and other minority ethnic groups.

In 2004/2005 we commissioned research in the status of London‟s Black and minority ethnic-owned businesses because emerging evidence suggested that their number had grown significantly over the past decade and were making major contributions to the regional and national economy. This ground breaking research, titled „Redefining Black and minority ethnic-owned business‟ confirmed initial evidence and highlighted the extent to which Black and minority ethnic-owned businesses are becoming a major economic force in London. There are around 66,000 Black and minority ethnic-owned businesses in London, employing 560,000 people in 2004. In addition, there are approximately 93,000 self -employed people from Black and minority ethnic communities who are also contributing to the London economy. An increasing number of entrepreneurs are now running successful multi-million pound businesses in mainstream growth sectors such as banking and financial services, business and professional services, ICT, media, fashion and manufacturing. Many of them are also building international trade dimensions into the core of their business activities. These businesses are therefore making increasingly major contributions to the London economy in t erms of job creation, employment, GDP, income and wealth creation. Despite these successes however, there is strong evidence that Black and minority ethnic-owned businesses encounter disproportionate barriers to the development and growth of their businesses - particularly in securing contracts and accessing start-up and growth finance, affordable business premises, quality business support and international trade opportunities. Therefore we created an action plan to accompany the research. The action plan was developed through a unique multi-agency collaboration and a comprehensive consultation process which began in December 2004. This was the first time that such a wide consultative and collaborative process has taken place at the design stage of action plan development. Mentoring Black Businesses The Black Business Brokerage Programme assists African and Caribbean businesses to strengthen and grow by brokering mentoring relationships with large successful companies. Set up and run by Fullemploy, the pilot, which ran for two years, has brokered 48 partnerships, with 20 completing the full programme successfully. The project received £144,356 from the LDA, which aims to ensure Black and minority ethnic businesses achieve stability and have every opportunity to expand to make an even greater contribution to London‟s economy. A total of 32 mentors participated in the programme, some undertaking more than one mentoring relationship. A number of objectives of the project have been achieved, including providing support for African and Caribbean businesses to seek out new markets, improving the quality of businesses service delivery, providing mentoring support from major businesses, providing businesses with technical skills t o become more competitive in mainstream markets, and opening up new channels of business between the corporate private sector and African and Caribbean businesses. Mentor companies include Nichols Employment Agency, The Gleaner Voice Group, Aviva and Channel 5. The project‟s impact can be illustrated by the example of Millennium Enterprises (Crown Pops Ltd), a soft drinks distribution company and mentors from Waitrose. Annmarie Dixon-Barrow, chief executive of Fullemploy and Minority Matters Recruitment explains: “The reason why we chose a mentor from Waitrose is because that company has a local sourcing supply chain. This means that if you are a London business, then your local Waitrose will try to buy your goods wherever possible.”

Millennium Enterprises now supplies Waitrose with products and the company‟s sales have increased significantly as a result. Millennium Enterprises‟ managing director Floyd Millen says: “Apart from being matched with three store managers who all brought their experience and knowledge to the development of my soft drinks business, I also have access to specialist advice across the entire organisation. By joining the programme my soft drinks distribution business has moved a step up from just targeting ethnic markets.” DEVELOPING MARKETING AND PROMOTION Tourism is a key driver of the London economy. The LDA is committed to working closely with the Mayor, Visit London and the Department of Culture, Media and Sport to promote London as a tourist destination and further its role as a gateway to the rest of the UK. In 2004/2005 we continued to promote London‟s business benefits by supporting inward investment and business retention services across the city. By working with Think London and other partners we‟ve helped new businesses to establish their operations and provided support to retain existing companies. A record year London remained the UK and Europe‟s leading location for attracting foreign direct investment in 2004/2005, attracting 87 new companies that created over 2000 new jobs. To cement our position as a prime business location, we now invest more than ever in promoting London as a business location and began establishing representatives in our main markets through the London‟s inward investment delivery agency, Think London. China is rapidly developing as a major economy for example, and will present enormous opportunities for inward investment, tourism and trade. To harness this potential, we began planning to establish offices in Beijing and Shanghai in 2005/2006 in collaboration with the Mayor, Think London, Visit London and other stakeholders. Whilst attracting new investment is critical to London‟s economic performanc e we must not be complacent and lose the valued investment from companies already based in the capital. This is why we have worked extensively with London‟s businesses under our Business Retention Programme. This year, we helped retain 130 businesses which in turn safeguarded over 5000 jobs. The LDA‟s work with Ford Motor Company in Dagenham was a fantastic example of collaboration between the public and private sector. We were instrumental in landing a £160 million investment by the company in a new diesel engine manufacturing facility to be opened in 2007. The LDA team worked with Ford to ensure the investment was made in Dagenham rather than with European competitors such as the Czech Republic. By building strong working relationships with the company, we helped Ford successfully navigate the complex Government networks and were also able to put together a public sector support package of £12.7 million. This was a critical factor in Dagenham winning the investment project. This will have a direct social and economic impact on one of the most deprived areas in the city. It puts London and the UK firmly back on the map as a location for high value manufacturing and assures Ford‟s commitment to Dagenham for the foreseeable future. In 2004, Think London and the LDA also commissioned a report on the economic impact of Foreign Direct Investment [FDI] in London. The report „London Focus: One in Seven‟ illustrates two main points. FDI is crucial in creating the modern, knowledge-based economy we aim for - bringing with it productive, diverse and highly-skilled employment. The report shows just how vital inward investment is - not only for the health and future of London‟s economy, but for everyone living and working in the capital.

KEY THE LDA’S WORK FACTS There are currently FOUR World Heritage Sites - Palace of Westminster, Tower of London, Maritime Greenwich and Kew Gardens and 17 national museums across the capital. Plans to TRANSFORM other areas of east, south, west and north London into major tourist destinations have already been launched.

Tourism 2004/2005 was also a record year for tourism in the city. London welcomed over 13 million international visitors in 2004, who contributed £6.4 billion to the capital‟s economy. The need to preserve London‟s global position in the face of increasing competition is crucial, which is why Visit London became our principal tourism, marketing and promotion delivery partner in May 2004. Our grant agreement with Visit London is currently worth £41.2 million over three years and will help them continue to market and promote London as a destination for domestic and international tourists. In 2004/2005 for example, Visit London ran a series of domestic and European multimedia campaigns to encourage tourists to visit London. The funding incorporates an annual £1.5 million grant from the Department for Culture, Media and Sport. Last year was also the first year of our three-year commitment to invest £3.5 million to improve recruitment and skills in the hospitality, leisure, travel and tourism sector. There are 47,000 tourism and hospitality businesses in London but LDA research estimates that thousands of these firms have difficulty recruiting staff. This investment combines our ongoing commitments to improve workforce skills, break down barriers to recruitment and retention, whilst maintaining London‟s position as a top international destination. Eighteen projects have been selected for funding to date, all of which have been designed to improve the range and quality of learning provision in the sector. Projects include the Work and Apprenticeships in the London HLTT Sector programme which equips 16-24 year olds in Lambeth, Westminster and Southwark with the sector skills, experience and qualifications necessary to secure jobs and apprenticeships with participating employers. 2004/2005 was the final year of the current Tourism Action Plan for London. We have begun developing a comprehensive new strategy and action plan to take us forward from April 2006. A consultation document giving the context, a summary of achievements to date, and an outline of key objectives and actions signals the start of this new strategy, which will take the shape of a 10-year vision for tourism in London and a three year action plan which builds upon the achievements to date and considers the views of the tourism industry. Plans to transform areas of east, south, west and north London into major tourism destinations have already been launched. We are now working with Visit London and sub-regional agencies such as Tour East London, South London Business, West London Business and North London Limited to show visitors the diverse attractions, rich culture and history these areas and communities have to offer. The strategy also recognises how London attracts both commercial and business tourists. International business tourism is a thriving market, with large conferences and conventions worth an estimated £100 billion a year. Despite a high international profile that befits a capital city, London doesn‟t currently compete effectively in this market.

A Mayoral Commission, supported by the LDA, has been assessing the feasibility of a purpose-built international convention centre for London. The commission, which consists of leading representatives from a range of public and private organisations in the convention industry, presented their final report and recommendations to the Mayor in July. The report is due to be made public by the end of the year.

THE LDA’S WORK KEY FACTS. There are 6,128 licensed restaurants in London, a remarkable 22% of Britain’s restaurants. They include menus from more than 50 major country cuisines, and 36 Michelin star rated restaurants. Tourism is one of London’s most vital and dynamic sectors and 2004/2005 was the first year of our three year commitment to invest £3.5 MILLION to improve recruitment and skills in the hospitality, leisure, travel and tourism sector. Eighteen projects have been selected for funding to date, all of which have been designed to improve the range and quality of learning provision in the sector.

EQUALITY, HEALTH AND SUSTAINABILITY London is hailed as the most cosmopolitan city on earth - the „world in one city‟. Over 30% of Londoners were born outside the UK and more than 50 different ethnic groups live, travel and work side by side. Our work to promote the equality and diversity in London has gone from strength to strength in the past year, culminating in the launch of the ground breaking Diversity Works for London and Procurement Development Programme [PDP] in March 2005. Our work in mainstreaming equalities We‟ve made a commitment to making equality an integral part of our work through a process of mainstreaming and building specialist expertise to ensure compliance with both legislation and our overall commitment. In addition, although we spent £38 million on specialist equality projects in 2004/2005 this figure reflects only a small percentage of our total outlay on projects benefiting London‟s most disadvantaged communities. We will continue to create and fund some specialist projects, but our ultimate aim is to ensure that all our projects deliver benefits to all people in London. For example, all our training and enterprise programmes target disadvantaged groups and are designed to promote economic equality. You can see examples highlighted in the Enterprise section of this report (pages 22-29). Measuring and boosting our impact In 2004/2005 our Board established an Equality Monitoring and Review Group and a Health and Sustainability Advisory Group to draw on specialist expertise to inform our overall approach and advise on specific projects. We have also established a cross-agency Senior Management Equality Forum (SMEF) chaired by our Executive Director of Resources and Equality. These Groups monitor performance both in terms of our investments and our actions as an employer. Our performance is also monitored closely by the GLA. For example, as part of this year‟s Corporate Plan and budget submission we are required to prepare detailed returns on our equality and environment work.

Equality targets We have worked with the Mayor to set a number of challenging equality targets. Our progress in meeting these targets is reported to the Mayor quarterly and is used to set our budgets and priorities for future years. Whilst progress has been made in some areas we need to improve our performance in meeting equality targets. Below-target performance can be explained in part, by the change in the way in which we measure equality beneficiaries. In previous years we have reported the percentage of Black and minority ethnic, women or disabled beneficiaries from those projects which reported against agreed equalities targets. We are now reporting against all LDA projects, including those inherited projects which were developed before targets were set and this will inevitably result in some under-reporting. Nevertheless, measures have now been put in place to ensure that programme planning for 2005/2006 addresses the current shortfall in delivery. For example, we are recruiting a regional co-ordinator for disabled-owned businesses to help address the shortfall in this area. Equality projects The global marketplace is increasingly competitive and businesses must adapt to successfully attract London‟s full wealth of available talent. Not only in terms of their employees but by encouraging supplier diversity, attracting a wider customer base and reaching new markets facilitates a competitive advantage that no organisation can afford to ignore. Black and minority ethnic businesses also make a significant contribution to the London economy in terms of job creation, GDP, income and wealth creation, generating a combined sales total of £90 billion in 2004. The Diversity Works for London programme is designed to engage with business, offer vital support to companies looking to maximise the benefits of diversity, and ensure that the city‟s Black and minority ethnic businesses continue to make an impact on London‟s economy. The Procurement Development Programme (PDP) aims to open up the public sector procurement process to Black and minority ethnic owned and other small and medium enterprises by helping them to successfully tender for contracts. We also continued to drive forward the delivery of other Black and minority ethnic flagship projects in 2004/2005. Construction on the Rich Mix Centre started on site in early 2004 and work is progressing well. The LDA has been working with the new management team and strategic partners, including Whitechapel art gallery, the Asian Dub Foundation and Community Music, to ensure that the programmes to be delivered from the Centre compliment the LDA‟s wider creative agenda for the area. The Centre is due to be completed in early 2006. The funding package for the Bernie Grant Centre in Tottenham, north London was confirmed during the year and initial works have started on site. The building will house a purpose built arts centre and enterprise units for promoting, developing and nurturing Black and minority ethnic artistic talent. Health The LDA is the only Regional Development Agency (RDA) in England to have the promotion of health improvement and sustainable development as a statutory responsibility. Improved health is a key outcome of economic development, a healthier workforce will be more productive and the difference between being in or out of work is a significant determinant of a person‟s health. We invest about £8 million each year across a wide range of health related activities, including the extensive health work in physical development and regeneration. All our investment indirectly contributes to the improved health of Londoners. For example, through our support for the London 2012 Olympic Games and

Paralympic Games and the redevelopment of the National Sports Centre at Crystal Palace we will continue to harness opportunities to increase physical activity and promote sport, maximising the health legacy of these major initiatives. We also make targeted interventions in key areas such as London‟s life sciences sector (see page 24), a driving force behind harnessing and developing the economic contribution of the health sector. A key health project for 2004/2005 was the NHS London Healthy Urban Development Unit (HUDU) established in February 2004, in partnership with the Regional Public Health Group - London and the five London NHS Strategic Health Authorities. It was set up to address the need for the health community to engage more effectively with the urban planning agenda in London to ensure that new communities were truly sustainable. In June 2004, London Food, co-ordinated and funded by the LDA, jointly produced the „Capital Eats‟ report with London Food Links. The report found that Londoners spend nearly £11 billion on food each year. It highlighted the lack of access to nutritious food for people on low-incomes and showed that 53% of inner London children and 33% of outer London children live below the poverty line. The capital, according to the report, is home to 13 wards in east London boroughs identified as „food deserts‟ where there is no local provision of affordable fresh food. London Food will address many of the issues raised in the report via the London Food Strategy - designed to benefit the people and economy of London, promote local food, maximise activity on healthy eating, food and nutrition and identify and link local suppliers into public procurement. The draft strategy will be launched for public consultation in the winter of 2005. Black and minority ethnic beneficiaries 2004/2005 Target Business interventions Businesses created Learning opportunities People accessing jobs 29% 29% 40% 40% Actual 15% 16% 45% 43%

Disabled beneficiaries 2004/2005 Target Business interventions Businesses created Learning opportunities People accessing jobs 5% 5% 10% 5% Actual 1% 2% 2% 3%

Women beneficiaries 2004/2005

Target Business interventions Businesses created Learning opportunities People accessing jobs 15% 15% 50% 50%

Actual 11% 17% 31% 33%

Making diversity work for London Diversity Works for London, launched in March 2005, is a high profile four year programme to engage thousands of businesses in the financial and social benefits of developing a diverse workforce. It highlights the financial costs of workplace discrimination and assists businesses in developing sound employment practices that promote equality and diversity. Throughout the course of the project, it aims to work with at least 10,000 companies. Diversity Works is focusing on three areas: engaging private, public and voluntary sectors in pr omoting equality, seeking and sharing business best practice and helping businesses to ensure that all levels of their workforce reflect the diversity of London‟s population. A number of practical measures will be used to assist both large corporations and small businesses to achieve these goals. For example, providing high quality subsidised consultancy services from workforce diversity specialists including a one-stop advisory service on compliance with equality related legislation and a telephone helpline; secondment schemes; training and development programmes and leadership programmes for company board members, executives and senior managers. Although in its early stages, Diana Skeete, head of workforce diversity in employer engagement at the LDA says the project is making good progress. “One area of the programme, the Diversity Dividend, is an online self assessment process - to help organisations to track and measure the work they are doing in equality and diversity. This pilot will run for six months and we already have 20 organisations signed up to it. We have a mix of private sector companies and large public sector bodies such as the NHS involved.” She adds: “In the first year we will roll out the trial and produce a good practice guide for companies who want to develop a diversity and equality framework.” Another aim of the project is to encourage greater supplier diversity so businesses will be better placed to attract a wider customer base and recognise new markets. A further task of the project will be to gather evidence which proves the economic benefits to companies that employ a diverse workforce. Diana says: “This is a long term goal. There is anecdotal evidence. But we want to start to identify a common framework and develop some comparative work, especially on a global level. Some organisations are already doing this work [collecting evidence] and we want to be able to share that on a much wider level. “We are developing a best practice forum through seminars, workshops and conferences in partnership with others. We are also planning an international diversity academy in partnership with others that will provide a forum for the transfer of knowledge and best practice.”

Sustainability and the environment There is an increasing recognition that regeneration and economic development requires the integration of environmental issues in order to deliver sustainability. The Mayor‟s environmental strategies provide the focus for environmental improvement in the capital and require a multi-agency response. The LDA has a key role to play in supporting the delivery of these strategies, providing strategic leadership and in delivering sustainable development through its development and regeneration and business and skills programmes. Our commitment to integrate sustainability into other aspects of economic development reflects the recognition that this is crucial to London‟s long-term economic performance. Through London‟s Single Regeneration Budget schemes and our new area investments, we have been delivering improvements to London‟s built environment, biodiversity, green space and public realm, and our new Corporate Plan highlights our increased emphasis on support for the environmental business sector and London‟s broader environmental and sustainability agenda. One good apple The Green Organisation named the LDA National Green Champion in Building and Construction in November 2004. The award was given for our clean-up of contaminated land at White Hart Triangle, east of Woolwich, a site which is being developed into a one million square foot industrial park. Together with contractor Birse CL, we disposed and recycled 30,000m3 of fly-tipped material and treated 20,000m3 of Japanese Knotweed - an invasive plant that is famously difficult to eradicate. The treatment methods we used in White Hart showed that on-site treatment is not only viable, but also extremely cost effective [in this case it led to £2 million in savings] and can dramatically diminish the environmental impacts of a project. White Hart Triangle sits at the southern end of the proposed new Thames Gateway Bridge. Its regeneration will play a major role in the economic future of the area because it will create around 2000 jobs for people in the Thames Gateway, office space, attract businesses and help revitalise the area. The award shows that we can pursue necessary economic developed in a positive, environmentally-sound way. A joint venture between the LDA, the London Borough of Greenwich and private developers, work on developing the first 50,000sq ft of business space began in November 2004 and the whole park is expected to be finished in 10 years. THE LDA’S WORK KEY FACTS The below-average rainfall London experienced in the first eight months of 2005 equated to the DRIESTperiod since 1976. Through the London Climate Change Agency, we are working to REDUCEemissions and pollutants in London in order to reduce the capital’s contribution to global warming and tackle the effects of climate change. The London Climate Change Agency

The LDA was responsible for establishing the London Climate Change Agency (LCCA) as part of the Mayor‟s 2004 election manifesto. The LCCA will be a central driving force in accelerating reductions in emissions in London which will improve air quality and the health of Londoners as well as tackling climate change. Allan Jones MBE, who pioneered this approach in Woking, was appointed as Chief Development Officer of the LCCA by the Mayor ahead of its formal launch in Trafalgar Square on 20 June 2005. The Mayor‟s Energy Strategy commits London to reducing its emissions of carbon dioxide by 20%, relative to the 1990 level, by 2010. The Mayor wants the LCCA to establish itself as a municipal company - in partnership with private sector firms - which will design, finance, build and operate low and zero-carbon capacity. This will include a combination of combined cooling, heat and power (cogeneration and trigeneration), energy efficiency, renewable energy and fuel cells/hydrogen systems. The LCCA is receiving substantial support from the LDA and has top UK and global companies as its founding supporters including BP, HSBC, Lafarge, Legal & General, Sir Robert McAlpine and Johnson Matthey. Support is also coming from the Corporation of London, Carbon Trust, Energy Saving Trust and the Rockefeller Brothers Fund. The LCCA will also consider projects in other sectors that impact on climate change, especially transport, waste and water. Early work of the LCCA includes developing a carbon accounting system, energy efficiency revolving fund, better buildings partnership, flagship projects for the GLA Group, energy services projects for both new and existing development and potential inward investment opportunities. The Green Grid The expansion of many areas of east London continues apace. The predicted population increase places huge demands on the capitals green spaces. The Green Grid is a network of interconnected green spaces which vary in size, character and function in east London. The intricate network made up of existing and proposed new green spaces and corridors will provide infrastructural, as well as aesthetic, enhancement. The Green Grid is a real opportunity for east London, challenging public expectations and perceptions of the area, and complementing other regeneration activities to enable sustainable communities. East London is set to grow significantly to meet the Governments Sustainable Communities Plan objectives. Much of this regeneration will be concentrated on a narrow band of development sites alongside the Thames, the Lea and the Roding. It is vital that there is a commensurate increase in the provision and quality of green space to support this growth and to provide for those existing communities who are already deficient in access to green space. The Green Grid is also a physical response to adapting to a changing climate, enabling east London to mitigate some of the impacts of tomorrow‟s climate. The need for higher density development to enable growth in the Thames Gateway to be sustainable will place greater demands upon the environment than at present. Pressure for land will mean that green space will have to perform a number of roles to support this expansion. In 2004 the LDA commissioned consultants to prepare the Green Grid framework for east London. A steering group with partners has supervised this work and their report is due to be published in summer 2005. Preparations are now being made with a range of partners to deliver the Green Grid. OUR PEOPLE AND POLICIES As with any organisation, the LDA relies on the skills of the people who work here. We have worked hard to assemble a team of talented, expert and passionate staff, many of whom are actively involved in their local communities. LDA staff profile March 2005 compared to London demographic (measure by census 2001)

In 2004/2005 we made significant strides towards ensuring that the profile of our staff reflects the demographics of London. Representation of Black and minority ethnic staff reached 28% by March 2005, just under our target of 29%. When we look at the top 5% earners, the level of Black and minority ethnic representation is even higher, at 40%. However, further analysis highlights some under-representation of Asian communities, particularly Pakistani, Bangladeshi and Chinese. Women make up 53% of total staff. However, representation at the senior grades is significantly lower, with only 35% in the top 5% earners. Nevertheless the trend over the past three years has been towards improved representation. Disabled people continue to be under-represented, at only 2.8%, and a Disability and Employment Strategy has been developed to help address this. More information on the equality profile of LDA staff is available in Appendix 2. Openness and transparency As a public body, we are acutely aware of the need to be transparent and accountable about the way we spend public funds. This is why we are currently piloting a records management system that will centralise our complaints and enquiries process and ensure that we respond within our published and statutory timescales. Complaints and comments Our complaints policy was introduced in 2003/2004. Our improvement plans for the next year include implementing our new stakeholder relations policy [which incorporates complaints and enquiries handling] via a staff induction training programme, improved data capture and reporting. General enquiries to the LDA are made via telephone calls, correspondence (letters and emails) and faceto-face requests. Service standards for responding to enquiries are within 10 working days. From April 2004 to March 2005 we have responded to 2498 enquiries. Our service standards for responding to Freedom of Information (FOI) enquiries are to acknowledge them within two working days and to give a full response within 20 working days. From 1 January to 31 March 2005, we responded to 33 FOI requests for information. Consultations Consultation is central to the work of the LDA and we strive to obtain and utilise the opinions and views of everyone that we work with. It allows individuals, stakeholders and partners to bec ome more involved in the decision-making process; helps us to develop policy and strategies which are deliverable and clear; and ensures that we improve our business delivery through open and effective consultation and engagement. We have consulted widely with relevant groups of stakeholders on a number of areas including the development of the Mayor‟s revised Economic Development Strategy, the regeneration of the Lower Lea Valley and the Olympic proposals, our 2005-2008 Corporate Plan and the future of Crystal Palace Park in south London . The large scale Crystal Palace Consultation was particularly successful with Londoners overwhelmingly supporting the rejuvenation plans for the park. The consultation was visited by around 2500 people, a response which showed the strength of feeling people have for the 200-acre park and its sports facilities, which gets about one million visits a year. Most of the people who took the opportunity to have their say came from local areas, but there were comments from right across London. Our location

We continue to operate from Devon House in St Katharine‟s Dock, London, E1, which provides a good location, in close proximity to City Hall and key regeneration areas to the east of the city. As our remit and programmes have increased, our staff numbers have grown and we have taken an additional 15,207 sq ft within the building this year and used the opportunity to negotiate reduced rent costs. The average price is now below £30 per square foot, which amounts to an annual rent of £1,748,436. Our current office space will not be able to accommodate our guaranteed expansion beyond what is projected for 2005/2006. As a result, the LDA Board agreed in July 2005 for us to relocate, and negotiations are continuing with our preferred choice of building, Palestra on Blackfriars Road in Southwark. We expect to move during the late summer of 2006. Working towards a greener office Sustainability is integral to our work. The LDA is working to adhere to the Mayor‟s Green Procurement Code. This code seeks to encourage businesses in London to purchase goods made from recycled materials. In the past year, we have set up a sustainable working group to produce and implement an action plan to help us become an exemplar organisation in relation to environmental issues. This work feeds into the wider GLA family commitments and we will be expected to report back on progress internally, to the GLA and to the London Assembly. The group‟s remit will initially focus on recycling, waste minimisation, green procurement, energy efficiency and renewable energy and creating a sustainable travel plan. These are the areas that the Mayor has committed to and are referenced in our Sustainability Business Plan. We have been assigned targets for each of these areas, for example, we must recycle 50% of all the materials we use. We currently share rented accommodation and this limits our ability to influence the choice of energy supplier. However, we are in discussions with our current landlord to establish whether we can purchase our own energy from a green supplier. In addition, the LDA is developing its own green energy procurement plan and we are seeking to ensure that our relocation plans fully take into account our green energy procurement plan. The LDA currently has recycling facilities for white paper, other paper and plastic, and we publish the amount of waste recycled each month in weight. We aim to achieve a 50% recycling rate within the next two years, in line with GLA policy; or a 10% improvement on our current rate - whichever is the greater. We are also currently reviewing the range of measures we have in place to encourage sustainable travel to work. This will be consolidated into a working travel plan for our new office. The travel plan will include measures to ensure our workplace conforms to best practice with regard to encouraging sustainable travel. CLOSING STATEMENT: LOOKING AHEAD We have achieved a lot in the past year, but plenty still remains to be done. London is a constantly changing city and we are well-placed, willing and prepared to tackle these challenges as they come. We will continue working with everyone who has a stake in London‟s future - individuals, communities, businesses, local councils and other public sector bodies - to sustain London‟s future success. Our key priorities for the next year include delivering new levels of affordable childcare places to remove one of the major barriers to employment; promoting employment diversity with businesses through our Diversity Works for London Programme; working to help set up the Olympic Delivery Authority and ensuring that the economic opportunities of the 2012 Olympic Games and Paralympic Games continues to benefit all of London and the regions; delivering on the Business Link for London transition and the Business Support Review and working to ensure that London is a safe, successful and sustainable global city.

The 2012 Olympic Games and Paralympic Games have given us renewed drive, vigour and focus for our work throughout London. In the next year we will be seeking even closer working relationships with our partners and stakeholders from the private and public sector to ensure that that we continue to deliver the objectives of the Economic Development Strategy for London. 2004/2005 STATEMENT OF ACCOUNTS FOREWORD TO THE FINANCIAL STATEMENTS This foreword provides an easily understandable guide to the key matters reported in the accounts. PRIMARY STATEMENTS The primary statements in the accounts and their purpose are: The Consolidated Revenue Account This statement reports the Agency‟s activities during the year. It shows the net cost for the year of the operations in which the Agency is engaged and demonstrates how the costs have been financed from government grant, the capital financing account and other sources of income. The Balance Sheet This statement reports the Agency‟s position at the year-end. It shows the balances and reserves available, the fixed and current assets and the current and long-term liabilities. The fixed assets are analysed by broad headings. The Statement of Total Movement in Reserves This statement brings together all the recognised gains and losses during the period and identifies those that have not been recognised in the Consolidated Revenue Account. It separates the movements between revenue and capital reserves. The Cash Flow Statement This statement summarises for revenue and capital purposes the inflows and outflows of cash arising from transactions with third parties. REPORTING OF EXPENDITURE AGAINST BUDGET The Agency receives its grant allocation from central Government on a cash basis. The table below sets out the cash expenditure outturn against the cash expenditure budget for each area of activity: London Development Agency cash outturn against cash budget Programme Single Regeneration Budget Single Programme Corporate and other services Budget £m 84 305 30 Outturn £m 83 306 30 Variance £m (1) 1 0 Variance as % of budget (1) 1 0

Total net expenditure Additional Corporation Tax Charge Total Cash Outturn

419 2 421

419 2 421

0 0 0

0 0 0

The cash outturn of £421 million is different from the Net Cost of Services of £274 million shown in the Consolidated Revenue Accounts (CRA) on page 53 for two reasons: • the Net Cost of Services includes accrued expenditure in addition to the cash expenditure shown above. • capital expenditure funded from revenue resources is not included in the net cost of services but is included in the cash outturn shown above. The CRA (page 53) reports the income and expenditure of the Agency and shows a surplus of £55,000 for the financial year. This is attributable to: • grant expenditure in relation to activity in quarter four of 2003/2004 that is required under accrual accounting to be recognised in the period in which the activity takes place but is met from the 2004/2005 cash budget • funds were received for the purchase of land at the former St Andrews Hospital site in the year ending 31 March 2004, but completion and payment was delayed until April 2004. As a consequence cash expenditure for the year ended 31 March 2005 includes £17.68 million acquisition costs financed by cash, accounted for on an accruals basis in the previous year. SOURCING OF FUNDING The Agency receives the majority of its funding from the Department of Trade and Industry (DTI) via the GLA. However it also receives funding from a growing range of providers. In addition, the Agency obtains sales receipts from assets it owns, in the furtherance of its regeneration objectives. The table below provides a breakdown of the funding sources on a cash received basis. London Development Agency funding sources Core Grant (DTI/GOL) Department of Culture Media and Sport Office of the Deputy Prime Minister European Union Funding Asset disposals Other income sources Total (£m) 329 11 49 5 20 7 421

REVIEW OF ACTIVITIES Outputs achieved Outputs are one of the measures of success that the LDA uses. These quantify the key deliverables that the Agency is charged with. The table below provides the headline target outputs set by the Mayor and agreed with the Secretary of State and the LDA‟s achievement against those targets.

Activity Childcare places created Business interventions to provide advice and consultancy

Target 933 15,000

Achievement 117 34,035 1,532 151,683 19,451 1,512 28,757 254.7 11,079 53.91

Achievement as % of Target

227 102 101 156 101 96 102 138 108

1,500 Businesses created/retained/attracted/expanded Business space created (sq.m.) Jobs created and/or safeguarded Housing units created Learning opportunities delivered Private sector investment into deprived areas (£m) People accessing jobs Brownfield land reclaimed (Hectares) 150,000 12,500 1,500 30,000 250 8,000 50

Investments The LDA continues to invest in land and buildings. It is consolidating existing regeneration initiatives as well as supporting emerging schemes. The table below identifies some of the main acquisitions made by London borough, in the last financial year Barking and Dagenham Wellington Street Axe Street Chequers Corner Dagenham Docks New Road Hindmans Way Choats Road Abbey Road Newham Three Mills Victoria Dock Road Silvertown Way Haringey Olympia Industrial Estate Warton Road Carpenters Road Marshgate Lane Lewisham Rennell Street Lewisham High Street Lewisham Road St James‟s Southwark Newburn Street Brent Needle Parade Tower Hamlets St Johns Lane Walden Street Turner Street Varden Street St Andrews Hospital

Borrowing failities The Agency has no current borrowing facilities or capital borrowing. PREPARATION OF ACCOUNTS The Agency is required to comply with section 111 of the Greater London Authority Act 1999 in preparing its financial statements. The Agency was established with a local authority financial framework and these accounts are prepared on an accrual basis in accordance with the Code of Practice on Local Authority Accounting in Great Britain jointly developed by CIPFA and the Accounting Standards Board. The code constitutes the “proper accounting practice” which local authorities must comply with by statute. The 2004 code includes the requirements of the Accounts and Audit Regulations 2003. The Agency is not a local authority and does not provide conventional local authority services. The Consolidated Revenue Account is therefore presented by area of programme activity Other Regional Development Agencies, unlike the LDA, are non-departmental public bodies and therefore subject to section 14 of the RDA Act in the preparation of their accounts. For this reason their accounts are not directly comparable with this statement of accounts. THE STATEMENT OF ACCOUNTING POLICIES a) Basis of accounting The financial statements of the London Development Agency (LDA) have been prepared in accordance with the Chartered Institute of Public Finance and Accountancy Code of Practice, relevant Statements of Standard Accounting Practice (SSAPs) and Financial Reporting Standards (FRSs). A summary of the main accounting policies, which have been applied consistently, together with details of any departures from the recommended practice, is set out below. b) Fixed assets - tangible operational assets Land and building operating assets are recorded at cost and revalued every five years. Other tangible operating assets are recorded at cost but are not revalued. The depreciation policies are set in paragraph (g). In addition to depreciation a capital charge at 3.5% per annum is charged to the Consolidated Revenue Account in respect of the closing balance of operating assets. Expenditure for routine repairs and maintenance of the operating assets is excluded, and is charged direct to the Consolidated Revenue Account. Valuations are carried out in accordance with best practice as contained in the Statement of Asset Valuation Principle and Guidance Notes published by the Royal Institution of Chartered Surveyors (RICS). Revaluation is planned at five yearly intervals although material changes to asset values will be recorded in the intervening years as they occur. c) Current assets - development property stock Development property stock, consisting of land and buildings, is shown at the lower of cost or net realisable value. All development property stock is classified as a current asset rather than a fixed asset since it represents the stock in trade for the physical regeneration programme. The development stock land and property assets were formally valued at 31 March 2005 by two external independent valuers. GVA Grimley, International Property Advisers, valued all the LDA‟s land and property assets with the

exception of the assets located in the Wembley area. These properties were valued by Drivers Jonas. The valuations were undertaken in accordance with the Statements of Asset Valuation Principle and Guidance Notes of the Royal Institution of Chartered Surveyors (RICS). Where there has been significant in-year capital expenditure on development stock assets since the previous formal valuation, the carrying value has been assessed against open market values of the assets to confirm that the market value is at least equal to the carrying value. Where the open market value is lower than the carrying value the asset valuation is written down. d) Deferred charges Deferred charges represent grants to third parties for capital expenditure as defined by the Local Government Act 2003. This does not result in the creation of an asset for the Agency and therefore the costs are fully charged to the Consolidated Revenue Account in year. e) Leases The Agency has not acquired any assets under finance lease agreements. f) Capital receipts disposal of assets are paid into the Usable Capital Receipts Reserve and used to finance new capital expenditure. g) Depreciation Depreciation is provided to write off the replacement cost of tangible fixed assets over their anticipated useful lives on a straight-line basis at the following annual rates: Freehold buildings Computer equipment Computer software Furniture, fixtures and fittings Improvement works to office accommodation 50 years 3 years 7 years 5 years 15 years

h) Investments and loans Investments and loans are shown net of provision for amounts considered doubtful and of write-offs for amounts considered irrecoverable. Provision has been made for all loans where recovery appears doubtful. No loan is written off until the impossibility of recovery is beyond doubt. Approval from Government Office for London is obtained for any write-off in excess of £250,000. i) Debtors and creditors All sums due from debtors are recorded in the accounts at the time they become due. Therefore the balance sheet figure represents sums due at 31 March 2005 that have not been received. For creditors the accounts are adjusted to reflect the value of goods and services received during the year but not paid for at the balance sheet date. j) Pension costs Employees of the London Development Agency can participate in the London Pension Fund Authority Scheme, the English Partnerships Pension Scheme and the Principal Civil Service Pension Scheme (the PCSPS), all of which are defined benefit schemes. The PCSPS is a non-contributory unfunded scheme. The Agency‟s contributions to the Schemes are charged to the Consolidated Revenue

Account so as to spread the cost of pensions over the employees‟ working lives with the LDA. Other than the Chair, the Board Members are not members of these schemes. k) Government grants receivable The London Development Agency is funded primarily by Government grant. In 2004/2005 the majority was provided by the Department of Trade and Industry. l) Interest receivable Balances are invested in accordance with the Agency‟s treasury policy. m) Provisions Liabilities are provided for in accordance with FRS 12. This requires that there is a present obligation as a result of a past event; that a reliable estimate can be made of the probable cost of meeting the obligations; and that there is a clear probability that the cost of meeting the liability will need to be met by the Agency. n) Value Added Tax Where non-recoverable VAT can be directly attributable to a project, it is charged there. All other nonrecoverable VAT is charged to Corporate and Other Services. THE STATEMENT OF RESPONSIBILITIES FOR THE STATEMENT OF ACCOUNTS THE AGENCY’S RESPONSIBILITIES The LDA is required: • to make arrangements for the proper administration of its financial affairs and to secure that one of its officers has the responsibility for the administration of those affairs. In this Agency that officer is the Executive Director of Resources and Equality • to manage its affairs to secure economic, efficient and effective use of resources and safeguard its assets • to approve the statement of accounts. RESPONSIBILITY OF THE EXECUTIVE DIRECTOR OF RESOURCES AND EQUALITY The Executive Director of Resources and Equality is responsible for the preparation of the Authority‟s Statement of Accounts in accordance with the Code of Practice on Local Authority Accounting in Great Britain (the „Code of Practice‟) and the Best Value Accounting Code of Practice (BVACOP). These accounts must present fairly the financial position of the Agency at the accounting date, 31 March 2005, and its income and expenditure for the year ended 31 March 2005. In preparing the Statement of Accounts, the Executive Director of Resources and Equality has: • selected suitable accounting policies and applied them consistently • made judgements and estimates that were reasonable and prudent • complied with the Codes of Practice. I certify also that: • proper accounting records were kept which were up to date • reasonable steps were taken for the prevention and detection of fraud and other irregularities. Helen Hughes CPFA Executive Director of Resources and Equality

Date: 01 August 2005

INDEPENDENT AUDITOR’S REPORT TO THE BOARD OF THE LONDON DEVELOPMENT AGENCY We have audited the financial statements on pages 53 to 68 which have been prepared in accordance with the accounting policies applicable to local authorities as set out on pages 46 to 47. This report is made solely to the London Development Agency in accordance with Part II of the Audit Commission Act 1998 and for no other purpose, as set out in paragraph 54 of the Statement of Responsibilities of Auditors and of Audited Bodies, prepared by the Audit Commission. RESPECTIVE RESPONSIBILITIES OF THE CHIEF FINANCIAL OFFICER AND AUDITORS As described on page 48, the Chief Financial Officer is responsible for the preparation of the financial statements in accordance with the Statement of Recommended Practice on Local Authority Accounting in the United Kingdom 2004. Our responsibilities, as independent auditors, are established by statute, the Code of Audit Practice issued by the Audit Commission and our profession‟s ethical guidance. We report to you our opinion as to whether the financial statements present fairly the financial position of the Agency and its income and expenditure for the year. We review whether the statement on pages 50 to 52 reflects compliance with CIPFA‟s guidance „The Statement on Internal Control in Local Government: Meeting the Requirements of the Accounts and Audit Regulations 2003‟ published on 2 April 2004. We report if it does not meet the requirements specified by CIPFA or if the statement is misleading or inconsistent with other information we are aware of from our audit of the financial statements. We are not required to consider whether the statement on internal control covers all risks and controls, or to form an opinion on the effectiveness of the Agency‟s system of internal financial control. Our review was not performed for any purpose connected with any specific transaction and should not be relied upon for any such purpose. We read the other information published with the statement of accounts and consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the statement of accounts. BASIS OF AUDIT OPINION We conducted our audit in accordance with the Audit Commission Act 1998 and the Code of Audit Practice issued by the Audit Commission, which requires compliance with relevant auditing standards issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgments made by the Agency in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Agency‟s circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion, we evaluated the overall adequacy of the presentation of the information in the financial statements. OPINION In our opinion the financial statements present fairly the financial position of the London Development Agency as at 31 March 2005 and its income and expenditure for the year then ended.

CERTIFICATE We certify that we have completed the audit of the accounts in accordance with the requirements of the Audit Commission Act 1998 and the Code of Audit Practice issued by the Audit Commission. Baker Tilly Lancaster House 7 Elmfield Road Bromley Kent BR1 1LT Date: 01 August 2005

STATEMENT ON INTERNAL CONTROL 1. SCOPE OF RESPONSIBILITY The London Development Agency (LDA) is responsible for ensuring that its business is conducted in accordance with the law and proper standards, and that public money is safeguarded and properly accounted for, and used economically, efficiently and effectively. The LDA also has a duty under the Local Government Act 1999 to make arrangements to secure continuous improvement in the way in which its functions are exercised, having regard to a combination of economy, efficiency and effectiveness. In discharging this overall responsibility, the LDA is also responsible for ensuring that there is a sound system of internal control which facilitates the effective exercise of the LDA‟s functions and which includes arrangements for the management of risk. 2. THE PURPOSE OF THE SYSTEM OF INTERNAL CONTROL The system of internal control is designed to manage risk to a reasonable level, rather than to eliminate all risk of failure, to achieve policies, aims and objectives; it can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of the LDA‟s policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. The system of internal control has been in place at the LDA for the year ended 31 March 2005 and up to the date of approval of the Annual Report and Accounts and, except for the details of significant internal control issues at section 5, accords with proper practise. 3. THE INTERNAL CONTROL ENVIRONMENT The system of internal financial control is based on a framework of regular management information, financial regulations, administrative procedures (including segregation of duties), formal appraisal of all new projects prior to approval, management supervision and a system of delegation and accountability. Particular features of this system are: • comprehensive financial and performance target systems against which actual performance is monitored and reviewed throughout the year • clearly defined revenue and capital expenditure budgets and guidelines; • formal project management disciplines and project appraisal and approval process thr ough the LDA‟s Corporate Investment Panel

• clear articulation and communication of LDA‟s objectives from the Mayor‟s Economic Development Strategy providing the strategic cornerstone for performance management • hierarchical structure for policy development and decision making • compliance with established policies, procedures, laws and regulations is reinforced through training and induction programmes, internal audit coverage and by senior management on a regular basis • best value self-reviews of LDA‟s activity within a five yearly cycle • formalised policies and procedures covering all areas of the business which help to ensure that we achieve economy, efficiency and effectiveness. 4. REVIEW OF EFFECTIVENESS The LDA has responsibility for conducting, at least annually, a review of the effectiveness of the system of internal control. The review of the effectiveness of the system of internal control is informed by the work of the internal auditors and the executive managers within the LDA who have responsibility for the development and maintenance of the internal control environment, and also by comments made by the external auditors and other review agencies and inspectorates in their annual audit letter and other reports. The Performance and Audit Committee (P&AC) has been delegated authority by the Board for ensuring an annual review of the effectiveness of the internal control environment is undertaken and that the findings from that review are dealt with in a prompt manner. This review process is undert aken on a continuous basis throughout the year. The key elements of this process are listed below: • a risk based internal audit programme is agreed by the P&AC on an annual basis and delivered by KPMG LLP the LDA‟s outsourced internal audit function • internal audit reports including management responses to recommendations are considered by both the Senior Management Team and the P&AC • the external auditors provide an annual management letter with recommendations for improvements to the internal control environment that have been identified during their annual audit • the P&AC meets quarterly and receive regular progress reports on the action taken in response to outstanding recommendations made by the internal and external auditors • the LDA has been subject to an Initial Performance Assessment review by our External Auditors. This report has been considered by the Senior Management Team and the LDA Board, and an action plan developed to address the challenges as set out • best value reviews undertaken by the LDA are reviewed by the P&AC and subject to external challenge and formal inspection by the Audit Commission • the Executive Directors are ultimately responsible for ensuring the policies and procedures explicit within the internal control environment are adhered to. We have been advised on the implications of the result of the review of the effectiveness of the system of internal control by the LDA and a plan to address the weaknesses and ensure continuous improvement of the system is in place. During the year, the LDA has sought to make improvements in its internal control system. Many of these actions have been in response to external reviews undertaken by the NAO, Government Office for London, Audit Commission, and GLA. Internal control improvements include: • introducing new project appraisal and approval procedures with improved project and performance management reporting arrangements through a re-organised performance management office • developing a Risk Management Strategy and Framework for the LDA, implementing systematic and transparent risk management processes during the year in operational and tactical areas, including the delivery of a major programme of risk management training for the majority of LDA staff

• undertaking a comprehensive review of the LDA procurement code, providing training in its application for all relevant staff and introducing compliance monitoring systems • introducing stronger staff establishment, recruitment and vacancy controls • undertaking a fundamental review of the IS/IT and knowledge management arrangements, introducing new management structures and processes, including much tighter IS/IT development control overseen by an IS/IT Strategy Board • improved internal communications through introduction of formal team briefing arrangements • implementing a new Financial Accounting package providing improved reporting arrangements • improved budget setting and control process established for 2005/2006, with greater devolved responsibility and all budgets confirmed and communicated to budget heads before the start of the financial year. The LDA has been growing considerably in size and complexity for a number of years and systems have had to develop in order to maintain an effective control environment. In some instances audit recommendations have not been implemented according to agreed timescales due to the need to prioritise resources and control improvement activity. Performance in implementing recommendations on a timely basis will be reported to the Senior Management Team and P&AC on a quarterly basis in 2005/2006. 5. Significant internal control issues The LDA are currently implementing the following action plans in 2005/2006 to further develop the internal control environment. • Risk Management - obtain collective sign-off and risk ownership for the corporate risk register, and develop and implement guidance to enable the consistent communication and escalation of risks between team, project and corporate risk registers. This will be addressed primarily through embedding risk management review into the business plan milestone monitoring procedures in the first two quarters of 2005/2006. • Procurement - improve compliance with the Procurement Code through raising awareness through directors, divisional reporting of non-compliance and the setting of staff objectives is an on-going priority. Document retention demonstrating compliance will be improved through the Records Management Project planned for later in 2005/2006. • Information Security - Address control gaps identified by the review of LDA systems against the information security standard BS7799 prioritised according to risk exposure. • Business Continuity Plans - Resources are being put in place in 2005/2006 to ensure appropriate plans are established, communicated and tested during the year. Initial plans will be put in place during the summer of 2005, with more detailed plans developed and tested later on in the year. • Partnership Risk - The LDA will be reviewing its arrangements for managing risk of performance & delivery so that the control frameworks applied reflect the differing level and types of risk inherent in the wide variety of public and private sector organisations the LDA delivers its objectives through. This review will be undertaken in the summer of 2005. Manny Lewis Chief Executive Officer Date: 01 August 2005 Chair Date: 01 August 2005 Mary Reilly

CONSOLIDATED REVENUE ACCOUNT FOR THE YEAR ENDING 31 MARCH 2005 Gross Expenditure £'000 Notes Continuing operations Single Regeneration Budget 78,548 Single Programme 170,501 Land and property Other funding streams Corporate and other services 1 30,609 Net cost of services 279,658 Pension interest cost and expected return on pensions assets Asset management revenue account 4 Interest and investment income 5 Net operating expenditure Appropriations Appropriations from Capital Financing Account Appropriation from Pension Reserve Amounts to be met from Government grants Sources of Finance Government grants Net General Fund surplus/(deficit) Corporation Tax 14 General Fund surplus/(deficit) for year General Fund balance brought forward General Fund balance carried forward

Gross Income £'000

Net Expenditure £'000

Prior Year Net Expenditure £'000


78,548 165,068


30,609 274,225

137,617 120,296 12,102 3,707 14,555 288,277

(32) (127) (1,155) 272,911

(7) (148) (752) 287,370

104,506 (49) 377,368

51,107 171 338,648

(398,993) 21,625 (1,977) 19,648 (19,593) 55

(323,366) (15,282) (794) (16,076) (3,517) (19,593)

BALANCE SHEET AS AT 31 MARCH 2005 £'000 Notes Fixed assets Operational assets Other land and buildings Vehicles plant and equipment Long term investments Pension asset Total long term assets Current assets Development property stock Debtors Cash at bank and in hand 7 0 3,638 8 1(d) 3,638 1 3,639 1,064 3,175 4,239 1 179 4,419 31 March 2005 £'000 31 March 2004 £'000

9 10

270,357 13,757 1,199 285,313

205,102 10,825 23,715 239,642

Current liabilities Pension liability Creditors falling due within one year Net current assets Long term creditors Provisions Total assets less liabilities Fixed Asset Restatement Account Capital Financing Account Usable Capital Receipts Reserve Pension Reserve General Fund Total equity

1(d) 11

745 14,661 15,406 269,907 240 0 240 273,306 (43,909) 317,905 0 (745) 55 273,306 51,182 188,460 414 25 439 192,440 16,650) 195,204 0 179 (19,593) 192,440

12 13

21 22 23 1(d) 24

Manny Lewis Chief Executive Officer Date: 01 August 2005 Approved by Board 22 July 2005

STATEMENT OF TOTAL MOVEMENTS IN RESERVES FOR PERIOD ENDING 31 MARCH 2005 Capital Reserves Usable Fixed Asset Capital Capital Restatement Financing Receipts Account Account Reserve Note 21 £'000 22 £'000 23 £'000 Revenue Reserves

Pension General Reserve Fund 1(d) £'000 24 £'000



Balance as at 01/04/04 Disposals Revenue contribution to capital outlay 6 Deferred charge write off 2

16,650 (15,903)



179 (19,593)

192,440 (15,903)

200,373 (95,195) (672) 18,195 18,195 (44,656) (924) (18,195)

200,373 (95,195) (672) 18,195) 0 (44,656) (924)

Depreciation written back Capital receipts generated Capital receipts utilised Revaluation Pension reserve movement Capital expenditure written off General Fund working balance for year Balances as at 31/03/05 (43,909)

19,648 317,905 0 (745)

19,648 55 273,306

CASHFLOW STATEMENT FOR PERIOD ENDING 31 MARCH 2005 31 March 2005 £'000 Notes Revenue activities Cash outflows Cash paid to and on behalf of employees Other operating cash payments Cash inflows Government grants Other cash receipts Net cash (outflow)/inflow-revenue Returns on investments and servicing of finance Cash inflows Interest received 1,155 1,155 Capital activities Cash outflows Purchase of fixed assets Development stock expenditure Capital grants Cash inflows Capital grants received Other capital cash receipts Net cash (outflow)/inflow-capital Net increase/(decrease) in cash 26 201,461 22,748 224,209 2,096 (22,516) 172,106 25,681 197,787 27,595 18,591 1,078 124,314 96,721 222,113 1,278 71,792 97,122 170,192 752 752 25 169,300 10,991 180,291 (25,767) 167,548 4,906 172,454 (9,756) 19,614 186,444 206,058 12,979 169,231 182,210 31 March 2004 £'000

NOTES TO THE ACCOUNTS 1. CORPORATE AND OTHER SERVICES Corporate and other services covers the costs of delivering the programmes. A detailed breakdown of the most significant areas of expenditure, together with additional information, is given below: a) Salaries and wages The salaries and wages costs of Board members and staff were as follows: 2005 £’000 Board members Board members‟ fees Pension costs National insurance contributions Employees Salaries and wages inc. overtime Pension costs National Insurance contributions Pension enhancements Others Agency staff 4,108 Seconded staff salary costs TOTAL SALARIES & WAGES 1,188 5,296 19,187 2,692 537 3,229 12,980 11,133 1,281 1,067 192 13,673 7,951 880 736 0 9,567 200 0 18 218 169 0 15 184 2004 £’000

b) Board members and observers The appointment term of the Board members finished on 31 July 2004, with reappointments effective from 1 August 2004. All appointment terms effective from 1 August 2004 are for a period of four years. Mary Reilly Chair Honor Chapman, CBE John Biggs Vice Chair Dame Judith Mayhew-Jonas, DBE Rumman Ahmed Victor Anderson Mick Connolly Michael Frye, Steve Hitchins Tamara Ingram George Kessler, Jeremy Long Kumar Murshid Eric Ollerenshaw, OBE Lord Paul Andrew Pelling Cllr Dame Sally Powell, DBE Charles Secrett Yvonne Thompson, CBE Alison Wheaton John Stone Professor Sir Roderick Floud Re-appointed Term ended Re-appointed Term ended Appointed Term ended Re-appointed CBE Re-appointed Appointed Re-appointed CBE Re-appointed Appointed Term ended Appointed Re-appointed Resigned Re-appointed Appointed Re-appointed Appointed Re-appointed Re-appointed

All Board members are contracted to carry out two days‟ work per month (two days' per week for the Chair) on behalf of the Agency. Other than the Chair no Board members are eligible for pension contributions, performance related pay or any other taxable benefit as a result of employment with the Agency. Andrew Pelling and John Biggs are members of the Greater London Authority and as such are not entitled to draw a salary from the LDA. Honor Chapman‟s term of appointment as Chair finished on 1 August 2004. Mary Reilly was re-appointed to the Board and appointed as Chair on 1 August 2004. John Biggs was re-appointed to the Board and appointed as Vice Chair on 1 August 2004. Judith Mayhew‟s term of appointment as Vice Chair finished on 31 July 2004. John Biggs was re-appointed to the Board and appointed as Vice Chair on 1 August 2004. Judith Mayhew‟s term of appointment as Vice Chair finished on 31 July 2004.

c) Salary of staff The number of employees whose remuneration during the period 1 April 2004 to 31 March 2005, excluding pension contributions, was £50,000 or more, in bands of £10,000, together with the equivalent number for the previous year, were:

Remuneration Band £50,000 to £59,999 £60,000 to £69,999 £70,000 to £79,999 £80,000 to £89,999 £90,000 to £99,999 £100,000 to £109,999 £110,000 to £119,999 £120,000 to £129,999

Number of Employees Paid in Year to 31 March 2005 16 14 5 6 2

Paid in Year to 31 March 2004 12 10 5 2 2


2 £130,000 to £139,999 £140,000 to £149,999 1 1

d) Pension arrangements The Agency offers retirement benefits as part of the terms and conditions of employment of its officers and other employees. The Agency has a commitment to make the payments that need to be disclosed at the time that employees earn their future entitlement, although these will not actually be payable until employees retire. Board members, other than the Chair, are not members of any pension scheme of the Agency. Employees of the Agency are members of one of the following schemes: Principal Civil Service Pension Scheme (PCSPS) The PCSPS is an unfunded multi-employer defined benefit scheme but the London Development Agency is unable to identify its share of the underlying assets and liabilities. A full actuarial valuation was carried out at 31 March 2004. Details can be found in the resource accounts of the Cabinet Office: Civil Superannuation ( For 2004/2005, employer's contributions of £390,299 were payable to the PCSPS (2003/2004 £371,301) at one of the four rates in the range 12% to 18.5% of pensionable pay, based on salary bands. Employer contributions are to be reviewed every four years following a full scheme valuation by the Government Actuary. The

contribution rates reflect benefits as they are accrued, not when the costs are actually incurred, and reflect past experience of the scheme. English Partnerships Scheme Former employees of English Partnerships participate in the English Partnerships Pension Scheme, which provides benefits based on final pensionable salary. This is a funded scheme, meaning that the Agency and employees pay contributions into a fund, calculated at a level estimated to balance the pension‟s liabilities with investment assets. Contributions paid by the Agency to English Partnerships pension fund are at rates determined by the pension fund's actuary. The rate for 2004/2005 was 14.5%. Employer contributions of £108,098 were paid in 2004/2005 (2003/2004 £117,120). The Scheme is set-up under trust and the assets of the scheme are, therefore, held separately from those of English Partnerships. Members pay contributions of 6% of pensionable earnings.

The English Partnerships scheme is a funded multi-employer scheme but it is not possible to identify the Agency‟s share of the underlying assets and liabilities. The pension cost charged to the Income and Expenditure Account is calculated by the actuary s o as to spread the cost of pensions over the employees‟ working lives with the Agency. The pension costs are based on the most recent actuarial valuation which was completed with an effective date of 31 March 2002, but updated to 31 December 2002. This updating was carried out by the actuary because, in the latter part of 2002, there were historically large changes in investment markets with large falls in equity prices, and also falls in fixed interest yields. Liabilities have been assessed on an actuarial basis using the projected unit method, an estimate of the pensions that will be payable in future years dependent on assumptions about mortality rates, salary levels, etc. The main assumptions used in the calculations are: English Partnerships Scheme 31 March 2005 % 2.85 4.85 2.85 5.40

Rate of inflation Rate of increase in salaries Rate of increase in pensions Rate for discounting scheme liabilities

The market value of the Scheme‟s assets as at 31 March 2005 was £98.8 million. The actuarial value of the liabilities as at 31 March 2005 is estimated to be £108.2 million. This results in a net pension liability of £9.4 million. The accounts of the Pension Scheme are available from the Secretary, English Partnerships, St George‟s House, Kingsway, Team Valley, Gateshead, NE11 0NA. All employees are issued with a summary of the accounts.

London Pensions Fund Authority Scheme (LPFA)

The Agency provides the option for its employees to participate in the LPFA scheme. This is also a funded scheme. The LPFA is triennially valued in accordance with the provisions of the Local Government Pension Scheme Regulations (1997). The fund's actuaries, Hymans Robertson, carried out a full triennial valuation as at 31 March 2004. Employers and employees contributions to the scheme were determined by the actuary following this valuation. The rate for 2004/2005 was 12.5%. Members pay contributions of 6% of pensionable earnings. Employer contributions of £782,274 were paid in 2004/2005 (£391,933 in 2003/2004). The increase in contributions is due to the increase in the number of staff employed by the Agency. The number of participating employees has increased from 93 active members and one deferred pensioner at 31 March 2004 to 154 active members, six deferred pensioners and one pensioner at 31 March 2005. The cost of retirement benefits is recognised in the net cost of services when they are earned by employees, rather than when the benefits are eventually paid as pensions. However, the charge we are required to make against our grant income is based on the cash payable in the year, so the real cost of retirement benefits is reversed out of the Consolidated Revenue Account (CRA) after net operating expenditure. The following transactions have been made in the CRA during the year:

LPFA Scheme 31 March 2005 31 March 2004 £’000 £’000 Net cost of services: Current service cost (787) Curtailment and settlements Net operating expenditure: Interest cost Expected return on assets in the scheme Amounts to be met from Government grants: Movement on pensions reserve 831 221 (72) (28) (76) (228)



Actual amount charged against Government grants for pensions in the year: Employers‟ contributions payable to scheme



The underlying assets and liabilities for retirement benefits attributable to the Agency at 31 March 2005 are as follows: LPFA Scheme

31 March 2005 £’000 Estimated liabilities in scheme Estimated assets in scheme Net asset/(liability) (4,758) 4,013 (745)

31 March 2004 £’000 (687) 866 179

The liabilities show the underlying commitments that the Agency has in the long-run to pay retirement benefits. The assets of the scheme are not sufficient to meet these commitments and the Balance Sheet shows a net liability of £745,000. This net liability has only a minimal effect on the net worth of the Agency. Liabilities have been assessed on an actuarial basis using the projected unit method, an estimate of the pensions that will be payable in future years dependent on assumptions about mortality rates, salary levels, etc. The main assumptions used in the calculations are: LPFA Scheme 31 March 2005 31 March 2004 % % Rate of inflation Rate of increase in salaries Rate of increase in pensions Rate for discounting scheme liabilities 2.9 4.4 2.9 2.9 4.4 2.9



Assets in the LPFA pension fund are valued at fair value, principally market value for investments, and consist of the following categories, by proportion: LPFA Scheme Long-term return % Equities Bonds Property 7.7 4.8 5.7

31 March £’000 3,160 434 285

2005 % 78.8 10.8 7.1

31 March £’000 711.0 108.0 33.0

2004 % 82.1 12.5 3.8

Cash Total

4.8 7.1

134 4,013

3.3 100.0

14.0 866.0

1.6 100.0

The movement in the net pension asset/liability for the year to 31 March 2005 is as follows: LPFA Scheme Net pensions liability at 1 April 2004 Movements in the year: • Current service cost • Employers‟ contributions payable to scheme • Contributions in respect of unfunded benefits • Retirement benefits payable to pensioners • Past service costs • Impact of settlements and curtailments • Interest cost • Expected return on assets in the scheme • Actuarial gains/(losses) Net pension asset at 31 March 2005 £’000 179

(787) 775 7 0 (76) 0 32 (875) (745)

The actuarial gains identified as movements on the Pensions Reserve in 2004/2005 can be analysed into the following categories, measured as absolute amounts and as a percentage of assets or liabilities at 31 March 2005:

LPFA Scheme 31 March 2005 31 March 2004 £’000 £’000 Differences between the expected and actual return on assets Value of assets Percentage of assets Experience gains/(losses) on liabilities Total present value of liabilities Percentage of the total present value of liabilities Actuarial gains/(losses) recognised in CRA Total present value of liabilities Percentage of the total present value of liabilities

95 4,013 2.4% (72) 4,758 (1.5%) (875) 4,758 18.4%

74 866 8.6% (6) 687 (0.9%) (68) 687 9.9%

e) Loans The number of employees who have interest free loans with the Agency with balances outstanding in excess of £2,500 at 31 March 2005 is two. The total of loans outstanding at 31 March 2005 was £87,151. These loans result from advances of

salary £32,361 and loans for the purchase of season tickets £54,790. f) Public expenditure Section 5 of the Local Government Act 1986 requires that a separate account is to be kept of publicity expenditure. This includes the costs of recruitment and appointment of staff and the marketing and public relations cost of the Agency. For reporting purposes the expenditure shown below is included within corporate and other services expenditure.

Year to Year to 31 March 2005 31 March 2004 £’000 £’000 Recruitment and appointment Marketing and PR 531 671 155 800

g) Audit Fees Fees payable for services provided by the appointed auditors of the LDA include: Year to 31 March 2005 £’000 Fees payable in respect of Statutory Inspection under section 10 of the Local Government Act 1999 Fees payable for the certification of Grant claims Fees payable for the Statutory Annual Audit Fees payable for other consultancy work Total fees payable 85 5 110 0 200

2. DEFERRED CHARGE WRITE OFF Deferred charges represent amounts funded to external organisations to finance capital expenditure. Capital grant advances are regulated by the Local Government Act 2003 for capital control purposes. They are amortised in full to the Consolidated Revenue Account in the year in which the advances are made since the Agency retains no interest in those assets. Year to 31 March 2005 £’000 Land and property Single Regeneration Budget Single Programme Regional Innovation Fund Regional Selective Assistance Deferred charges amortised to the CRA Balance at 31 March 2005 0 27,596 67,599 0 0 95,195 (95,195) 0 Year to 31 March 2004 £’000 0 66,391 22,260 1,669 608 90,928 (90,928) 0

3. PROVISION FOR CREDIT LIABILITIES The Provision for Credit Liabilities (PCL) is a memorandum account made up of amounts required to be set aside to meet credit liabilities in order to reduce the net indebtedness of the Agency. The current code of practice on local authority accounting in the UK (SORP) recommends a revised treatment of provisions for credit liabilities. Credit arrangements entered into prior to 1 April 2004 have been accounted for, and there is not a requirement for future disclosure. The Agency has no borrowing obligations. Year to 31 March 2005 £’000 Opening balance Set aside for excluded credit arrangements Applied in year Closing balance 3,592 0 3,592 0 Year to 31 March 2004 £ 000 0 3,592 0 3,592

4. ASSET MANAGEMENT REVENUE ACCOUNT This account records capital charges and depreciation. The balance is credited to the Consolidated Revenue Account. Year to Year to 31 March 2005 £’000 Capital charge Depreciation (800) 673 (127)

31 March 2004 £‘000 (579) 431 (148)

5.INTEREST AND INVESTMENT INCOME Bank interest is the primary source of interest income, and is earned on credit balances on the Agency's bank balances.

6.REVENUE CONTRIBUTION TO CAPITAL OUTLAY The balance to be financed from the revenue contribution to capital outlay is as follows: Year to 31 March 2005 £‘000 Bought forward unfinanced creditors 1,081 Capital expenditure on assets being developed 124,744 Capital expenditure written off 0 Deferred charge expenditure 95,195 Additions to fixed assets 1,140 Set-aside for credit arrangements 0 222,160 Carried forward unfinanced creditors 0 Usable capital receipts (18,195) Year to 31 March 2004 £‘000 2,079 70,794 0 90,928 1,278 3,592 168,671 (1,081) (25,126)

Application of provision for credit liabilities Balance financed from revenue contribution to capital outlay

(3,592) 200,373 142,464

Capital expenditure in excess of the amount that can be funded from usable capital receipts and borrowing has to be charged to revenue.

7. TANGIBLE OPERATING ASSETS Movements in fixed assets during the period were as follows: Other land and buildings £’000 Vehicles plant and equipment £’000

Cost At 1 April 2004 Opening balance Additions in year Disposals in year At 31 March 2005 Depreciation At 1 April 2004 Charge for year Disposals in year At 31 March 2005 Net Book Value At 31 March 2005 Net Book Value 1 April 2004

Total £’000

1,150 0 (1,150) 0

4,426 1,142 (6) 5,562

5,576 1,142 (1,156) 5,562

86 (86) 0

1,251 673 0 1,924

1,337 673 (86) 1,924

0 1,064)

3,638 3,175

3,638 4,239

8. LONG TERM INVESTMENTS The Agency holds a 97.5% interest in the ordinary shares of the Royal Docks Management Authority Ltd (RODMA). This amounts to 46.8% of the voting rights of RODMA, whose main business is the management of the water areas and associated infrastructure of the Royal Docks in central London. Tony Winterbottom, an Executive Director of the LDA, is Chairman of the RODMA Board. No remuneration is received for this role. 9. DEVELOPMENT PROPERTY STOCK Year to 31 March 2005 £‟000 Opening Book Value Revaluation Additions in year Transfer from fixed assets Disposals 205,102 (44,657) 124,744 1,064 (15,896) Year to 31 March 2004 £‟000 148,986 (6,606) 70,794 0 (8,072)

Amounts written off Closing Book Value

0 270,357

0 205,102

The land and property programme supports physical regeneration across London and the capital expenditure on this is included in the additions in year total shown above. Examples of additional acquisitions made during the year are listed in the Foreword, whilst existing Development Property Stock furthering the Agency‟s regeneration programme include the following: • 30 acre former Royal Mail sorting office in West Ham • 8 acre vacant site in Leyton • a listed school building in Islington • 27 acre proposed industrial site in Greenwich • 11 acre disused stadium in Hackney • 6 acres of vacant land and 1 acre light industrial in Enfield • various retail/office and residential sites in Lewisham High Street • a former malt house in Barking • various large landholdings in the Dagenham area • a reduced but still substantial landholding at the Royal Arsenal Woolwich • 5 acres including student accommodation in Hackney • landholdings around the Royal Docks. Land and buildings were valued at 31 March 2005 as part of the overall asset valuation exercise. The only fixed asset included in the land and buildings classification, was “The Compress or House”, located in the Royal Docks. This building is now part of a development agreement with a third party, and is therefore included in Development Property Stock (note 9).

10. DEBTORS Amounts receivable within one year: Year to 31 March 2005 £’000 Trade debtors Prepayments Other debtors Government grant to cover Corporation Tax 931 4,190 300 691 550 6,485 1,912 445 Year to 31 March 2004 £’000

VAT Provision for doubtful debts Total

7,645 0 13,757

2,833 (1,400) 10,825

11. CREDITORS Amounts falling due within one year: Year to 31 March 2005 £’000 Trade creditors Corporation Tax due Prepaid income Total 12,147 691 1,823 14,661 Year to 31 March 2004 £’000 31,066 445 19,671 51,182

12. CREDITORS Amounts falling due after one year: Year to 31 March 2005 £’000 Retentions on long term contracts Total 240 240 Year to 31 March 2004 £’000 414 414


Year to 31 March 2005 £’000 Provision bought forward Provision for year Total provisions for liabilities and charges 25 (25) 0

Year to 31 March 2004 £’000 0 25 25

14. CORPORATION TAX The status of the London Development Agency for Corporation Tax purposes is taken from Section 419 of the Greater London Authority Act which sets out which functional bodies are to be treated as local authorities for the purpose of Corporation Tax. As the LDA is not listed it therefore does not have local authority status for the purposes of Corporation Tax. The Agency has agreed a taxation basis with the Inland Revenue. Interest received plus rental income (excluding development stock disposal proceeds) is taxed at the appropriate rate, and the due amount paid over under the Corporation Tax (Instalment Payments) Regulations 1998.

Total £’000 Total amount chargeable to Corporation Tax for year ended 31 March 2005 Corporation Tax at 30% charged to the CRA 6,588 1,977

15. DEFERRED CAPITAL RECEIPTS There were no deferred capital receipts received in year. 16. OPERATING LEASES As at 31 March 2005 the Agency had annual commitments under operating leases as follows: Buildings £’000 Leases expiring: - within one year 1,748 - between one and five years 5,528 - in over five years 6,308

Others £’000 58 100 0

Total £’000 1,806 5,628 6,308

Rental costs of operating leases are charged to the Consolidated Revenue Account on a straight-line basis over the term of the lease. The current code of practice on local authority accounting in the UK (SORP) recommends a revised treatment of provisions for credit liabilities (see note 3). Accordingly the occupancy leases for the LDA headquarters are now treated as an operating lease.

17. CONTINGENT LIABILITIES The Agency may proceed to adjudication over additional costs included in a final claim submitted by a contractor for construction works on one of its development sites. It is not practicable to estimate the financial effect, or the timing of outflows if any, should the claim prove adverse for the Agency. 18. COMMITMENTS at 31 March 2005 £’000 412,461 at 31 March 2004 £’000 577,599

Contractual commitments Expenditure authorised by the Board

In last years Annual Report the LDA provided a commitment value that identified expenditure authorised by the Board. However not all that amount would have been contractually committed during the year. Accordingly for the year ended 31 March 2005 the LDA is providing a value for contracts signed. The value represents the future contracted commitments that the LDA will pay for, although the expenditure may be spread over a number of years. Whilst last years value is included for reference, it is not directly comparable with the value for the year ending 31 March 2005.

19. RELATED PARTY TRANSACTIONS During the period ending 31 March 2005 the Agency received Grant of £329,337,081 from Government Office for London through the Greater London Authority.

Board member transactions Mary Reilly is Chair of the London Regional Council of the CBI. She is a Partner with Deloitte & Touche LLP, which received £1,605,991 for services provided to the LDA. She is a Board member of London 2012 which received Grant of £9,212,300 from the LDA. Her LDA Board appointment term ended on 31 July 2004, and she was re-appointed as a Board member and appointed as Chair on 1 August 2004. Honor Chapman’s LDA Board appointment term ended on 31 July 2004. She was appointed Executive Chair of the London Centre for Regeneration Excellence (now called Future London) with effect from 1 August 2004. John Biggs is an elected member of the Greater London Assembly. He was a Director of the Centre for Engineering and Manufacturing Excellence (CEME), which received Grant of £4,683,359 from the LDA (resigned September 2004). He is a Director of London Riverside Ltd. He became a Board member and Deputy Chairman of the London Thames Gateway Development Corporation on 1 November 2004. He became a Board member of Barking and Dagenham Housing Association on 8 December 2004. His LDA Board appointment term ended on 31 July 2004, and he was reappointed as Board member and Vice Chair on 1 August 2004. Dame Judith Mayhew is Vice President to the President‟s Committee, a Board committee of London First. London First Centre (name changed to Think London November 2004), which is a wholly owned subsidiary of London First, received Grant of £2,650,171. She is Chair at the Royal Opera House Covent Garden. Her LDA Board appointment term ended on 31 July 2004. Rumman Ahmed is Community Relations Advisor to the Royal Borough of Kensington and Chelsea. The Borough has received funding from the LDA including SRB grant for the Golborne area. He was appointed to the LDA Board on 1 August 2004. Victor Anderson is a member of the London Sustainable Development Commission. He is a member of the Mayor's Advisory Cabinet. His LDA Board appointment term ended on 31 July 2004. Mick Connolly is a Member of the London East Learning and Skills Council, and Chair of the Audit Committee of the London West Learning and Skills Council. He is a TUC Regional Secretary. The South East Regional TUC received Grant of £181,705 from the LDA. He is a Board Member of Made in London. His LDA Board appointment term ended on 31 July 2004, and he was reappointed on 1 August 2004. Michael Frye is a Business Leader on the President‟s Committee, a Board Committee of London First. London First Centre (name changed to Think London with effect from November 2004), which is a wholly owned subsidiary of London First, received Grant of £2,650,171. He is a Director of West London Business, which received Grant of £459,732 from the LDA. He is a Member of the London Regional Committee of the CBI. He is a Trustee of Vision for London. His LDA Board appointment term ended on 31 July 2004, and he was reappointed on 1 August 2004. Steve Hitchins is Leader of Islington Council, and Vice Chair of the Association of London Government. He is a Director of ALG Ltd. He is a non-executive Director of Islington Primary Care Trust, and a Director of Greater London Enterprise. He is a Board

member of Central London Partnership, and Chair of Islington Strategic Partnership. He was appointed to the LDA Board on 1 August 2004. Tamara Ingram is Chair of Visit London Ltd, which received £20,537,052 in Grant from the LDA. She is Chair of the Development Board of the Royal Court Theatre. Her LDA Board appointment term ended on 31 July 2004, and she was reappointed on 1 August 2004. George Kessler is Group Deputy Chairman of Kesslers International Limited which received indirect LDA Grant funding targeted at organisations in the manufacturing sector, such as the Lean Manufacturing Services consultancy provided by CEME and Business Link for London as well as the Manufacturing Advisory Service and various organisations providing apprenticeships and training courses. • He is also a Director of; Bridgewater Distribution & Management Limited, Kesslers Investments limited, Kesslers International Holding Company Limited (in liquidation), Carpenters Road Properties Limited, Brand Technology Limited, Loopweave Limited, Kesslers Properties South Limited, Kesslers Properties North Limited, Kesslers International Group Limited and Carpenters Road Holdings Ltd. These companies have interests in land in the Olympic bid zone or surrounding areas. • He is a trustee/member of Kesslers International Limited Self Administered Pension Scheme, which has interests in land in the Olympic bid zone or surrounding areas. • He is Chair of the Production Industries Commission. • He is a Board member of the London Manufacturing Group (Made in London Council), and a member of the Modern Apprenticeship Task Force. • He is a Business Leader on the President‟s Committee, a Board committee of London First. London First Centre (name changed to Think London with effect from November 2004), which is a wholly owned subsidiary of London First, received Grant of £2,650,171. • His LDA Board appointment term ended on 31 July 2004, and he was reappointed on 1 August 2004. Jeremy Long was appointed to the LDA Board on 1 August 2004. He was Managing Director of First Rail, part of First Group PLC until 22 March 2005. Kumar Murshid was a councillor with the London Borough of Tower Hamlets which received Grant of £3,489,610. He was a Non-executive Director of Business Link for London which received Grant of £4,548,320 from the LDA. He was a Board member of the London Pensions Fund Authority. His appointment term ended on 31 July 2004. Eric Ollerenshaw is a Councillor to the London Borough of Hackney. He was appointed to the LDA Board on 1 August 2004. Lord Paul is a Board member of London 2012 which received Grant of £9,212,300 from the LDA. His LDA Board appointment term ended on 31 July 2004, and he was reappointed on 1 August 2004. Andrew Pelling was an elected Member of the Greater London Assembly and a

Member of the South Wandle Valley Partnership. He was a Councillor of the London Borough of Croydon which received Grant of £1,073,111 from the LDA. He was a member of the London South Learning and Skills Council (resigned 6 July 2004). He resigned from the LDA Board on 6 July 2004. Dame Sally Powell is a Councillor for the London Borough of Hammersmith and Fulham, which received Grant of £4,220,436 from the LDA for its SRB programmes White City Opportunities and Bridging the Divide in addition to other associated funding strands. • She is a Non-executive Director of Greater London Enterprise, which received Grant of £849,454 from the LDA. • She is a Non-executive Director of Business Link for London, which received Grant of £4,548,320 from the LDA. • She is a Director of the Park Royal Partnership which received Grant of £1,388,641 from the LDA. • She is associated as a related party with North Fulham New Deal for the Communities. • She is Deputy Group Leader of the Local Government Association. • She is a Director and Deputy Chair of the Association of London Government. • She is a Director of Local Government Information House. • She is a Director of Regenesis which has been a recipient of SRB grant. • Her LDA Board appointment term ended on 31 July 2004, and she was reappointed on 1 August 2004. Charles Secrett was appointed to the LDA Board on 1 August 2004. Yvonne Thompson is Chair of the London Central Learning and Skills Council. She is a Board Member for the national LSC Equality and Diversity Committee. She is an observer on the Board of Business Link for London, which received Grant of £4,548,320 from the LDA. She is Chair of the Ethnic Minority Business Forum, and is President of the European Federation of Black Women Business Owners which received Grant of £20,000 from the LDA. She is Chair of the African Caribbean Business Network Ltd which received Grant of £162,500 from the LDA. Her LDA Board appointment term ended on 31 July 2004, and she was reappointed on 1 August 2004. Alison Wheaton is a member of the London Regional Committee of the CBI. She was appointed to the LDA Board on 1 August 2004. She is associated as a related party with Business Systems Group Ltd, who have provided services to London 2012. John Stone is an official observer to the LDA Board. He is Principal at Ealing Hammersmith and West London College. He is Director of the London Metropolitan Area Network. He is Director of West London Business which received Grant of £459,732 from the LDA. He is a member of London West Learning and Skills Council. He is Director of Southall Regeneration Partnerships which received SRB grant of £503,367. He is Chair of the Association of London Colleges London region. He is a

Director of the London Regional Aggregation Board which received Grant of £749,721. He is a Director of Regenesis which has been a recipient of SRB grant. His LDA Board appointment term ended on 31 July 2004, and he was reappointed on 1 August 2004. Professor Sir Roderick Floud is an official observer to the LDA Board. He is Vice Chancellor at London Metropolitan University which received grant of £449,737 from the LDA. He is a member of the Presidents Committee of London First. London First Centre (name changed to Think London, November 2004) which is a wholly owned subsidiary of London First, received Grant of £2,650,171 from the LDA. He is a member of the Steering Group of London Higher. His LDA Board appointment term ended on 31 July 2004, and he was reappointed on 1 August 2004. 20. POST BALANCE SHEET EVENTS There were no post balance sheet events. 21. FIXED ASSET RESTATEMENT ACCOUNT The system of capital accounting, which was first implemented for local authorities in 1994, required the establishment of the Fixed Asset Restatement Account. All land and buildings were revalued on 31 March 2005. The account will be written down by the net book value of assets disposed of and debited or credited with the deficits or surpluses arising on revaluation. 22. CAPITAL FINANCING ACCOUNT The capital financing account contains the amounts that are required by statute to be set aside from capital receipts for the repayment of capital expenditure financed from revenue and capital receipts. It also contains the difference between the amount provided for depreciation and that required to be charged to revenue. 23. USABLE CAPITAL RECEIPTS RESERVE Capital receipts are mainly sums received from the sale of investment and development assets. Reserves created from these sales were used in total to fund capital expenditure during the year. 24. GENERAL FUND RESERVE The General Fund Reserve represents the cumulative surplus/(deficit) from the Consolidated Revenue Account. 25. RECONCILIATION OF CASH FLOW STATEMENT TO CONSOLIDATED REVENUE ACCOUNT Year ending 31 March 2005 £’000 Reconciliation of Cash Flow Statement to Consolidated Revenue Account General Fund surplus/(deficit) 19,648 Less Non Cash Transactions Net capital cash outflow/(inflow) Provision for bad and doubtful debts Contribution to/(from) provisions Transfer to/(from) reserves

Year ending 31 March 2004 £’000


(2,096) (1,400) (25) (3,592)

(27,595) 1,190 25 3,592

Less items included as Accruals (Increase)/decrease in debtors Increase/(decrease) in creditors Adjustment for sums accounted for elsewhere: Interest received Net cash flow from activities

(1,532) (35,615)

(436) 30,296

(1,155) (25,767)

(752) (9,756)

26. ANALYSIS OF CHANGES IN CASH AND CASH EQUIVALENTS DURING THE YEAR Cash at bank and in hand at 1 April 2004 Net cash outflow for year Cash at bank and in hand at 31 March 2005 £’000 23,715) (22,516) 1,199

APPENDIX 1 THE LDA BOARD During the period 1 April 2004 to 31 March 2005 the membership of the LDA Board was renewed by the Mayor. On 31 July 2004, the four year term of the first LDA Board ended and the Mayor appointed a new Board from 1 August 2004 until July 2008. Prior to 31 July 2004 the Board consisted of 13 members. The Mayor renewed the Board of the LDA on 1 August 2004, increasing the number of members to 15. Board members are drawn from the private and business sectors, local government and the Greater London Assembly (GLA). The Board also had two observers representing higher and further education. During this period nine regular Board meetings and one special Board meeting were held. In accordance with the principles of open government embodied in the Agency‟s Standing Orders, the Board continued to keep Part 2 of its meetings open to the public and media. The Agency has sought to minimise the number of items on the private agenda. Meeting dates and the complete agenda, reports and minutes are published on the LDA‟s website at The LDA’s Board members for the period 1 April 2004 – 31 March 2005 Mary Reilly Chair of the Board (from 1 August 2004) Vice Chair of the Board (concluded 31 July 2004) The Mayor appointed Mary Reilly as Chair of the Board from 1 August 2004. Prior to this Mary Reilly was Vice Chair of the Board from 1 December 2003. Chairman of the London Regional Council of the CBI, Board member of London 2012 Ltd and partner at Deloitte & Touche LLP. Fellow of the Royal Society of Arts and the Institute of Chartered Accountants of England & Wales. Honor Chapman, CBE

Chair of the Board (concluded 31 July 2004) The Mayor appointed Honor Chapman as Acting Chair on the resignation of George Barlow at the end of March 2003, and the appointment was made permanent in September 2003. The Mayor appointed Honor Chapman Executive Chair of the London centre for Regeneration Excellence (now known as Future London) with effect from 1 August 2004. Formerly International Partner of Jones Lang La Salle, Main Board Member of Legal and General plc, Main Board member of Cardiff Bay Urban Development Corporation. Consultant to Grosvenor and Land Securities. Chair of the Royal Academy Burlington Gardens Committee. (Honor Chapman completed her four-year term as a member of the LDA Board on 31 July 2004). John Biggs Vice Chair of the Board (from 1 August 2004) The Mayor appointed John Biggs as Vice Chair of the Board from 1 August 2004. Labour Party Member of the London Assembly for the constituency of City & East London. Director of London Riverside Ltd and Deputy Chairman of the London Thames Gateway Development Corporation. Formerly was a Director of the Centre for Engineering and Manufacturing Excellence (resigned September 2004), Director of the Socialist Health Association, Leader of Tower Hamlets Council and prior to this its opposition. His Board appointment term ended on 31 July 2004, and he was reappointed on 1 August 2004. Dame Judith Mayhew Jonas, DBE Vice Chair of the Board (concluded 31 July 2004) The Mayor appointed Dame Judith as Acting Vice-Chair on the resignation of George Barlow at the end of March 2003, and the appointment was made permanent in September 2003. Mayor's Cabinet Adviser on City and Business, Deputy Chair of the Policy and Resources Committee of the Corporation of London, Deputy Chair of the Public Private Partnerships Programme (4Ps), and Vice President to the President‟s Committee, a Board committee of London First (now known as Think London). Provost of King‟s College Cambridge and Chair of The Royal Opera House Covent Garden. Trustee of the Natural History Museum. (Dame Judith Mayhew Jones completed her four-year term as a member of the LDA Board on 31 July 2004). Rumman Ahmed Rumman Ahmed was appointed to the LDA Board on 1 August 2004. Community Relations Adviser to the Royal Borough of Kensington and Chelsea. Member of the Home Secretary's Race Equality Advisory Panel and was a member of the Community Cohesion Panel. Founder Chair and is now an Honarary Adviser to the Faith Based Regeneration Network U.K. He sits on a number of trust boards and is an adviser to a wide range of civil society organisations. Member of Chartered Institute of Management and Institute of Fundraising and a Fellow of Royal Society for Arts. He is co-author of a number of books on fundraising, management, community development and regeneration. Victor Anderson Environment Advisor to the Mayor and member of the London Sustainable Development Commission. Author of two books, Alternative Economic Indicators and Energy Efficiency Policies. (Victor Anderson completed his four-year term as a member of the LDA Board on 31 July 2004).

Mick Connolly Regional Secretary of Southern and Eastern TUC. Member of the London East Learning and Skills Council, Board member of Made in London and on the Board of East of England Inward Investment Agency. Treasurer of the National Assembly Against Racism, a Vice President of the European TUC‟s “Interregional Trade Union Council” for the Nord Pas de Calais (F), West Flanders (B) and South East England Region. His Board appointment term ended on 31 July 2004, and he was reappointed on 1 August 2004. Michael Frye, CBE Leading UK industrialist, Chairman of Lynara Group, DeltaDOT Ltd and Water and Waste Ltd. Serves on the Public Services Productivity Panel Unit for the Treasury and is also a member of the Ministerial (PSXE) Committee on E-Commerce. Chairman of Water for People and Peace, Trustee of Worldaware and Business Leader on the President‟s Committee a Board committee of London First Centre (now known as Think London) Former Chairman of the London Regional Council of the CBI and former member of the National Manufacturing Council of the CBI. Former Chairman and founder of the West London Leadership Team, former Chairman and Founder of the Park Royal Partnership, former Chairman of Business Link London and Chairman of the Creative Industries Commission and the London Science & Industry Council. His Board appointment term ended on 31 July 2004, and he was reappointed on 1 August 2004. Steve Hitchins Steve Hitchins was appointed to the LDA Board on 1 August 2004. Leader of Islington Council, non-Executive Director of the Islington Primary Care Trust and Chair of the Islington Strategic Partnership. He is a member of the executive of the Central London Partnership and was made a director of Greater London Enterprise in 2004. Tamara Ingram Joined Saatchi & Saatchi in 1985 (Board Account Director 1989, Executive Board Director 1993, Joint Chief Executive Officer January 1995, Executive Chairman 2001). Joined McCann-Erickson in 2002 as Chairman and Chief Executive, President of Added Value, The Henley Centre and Fusion 5 (in the US), part of The Kantar Group owned by WPP until June 2005. Now CEO of Grey Group London. Chairman of Visit London, member of the Council of the Institute of Practitioners in Advertising (IPA), member of both the Marketing Society and Marketing Group of Great Britain and Chair of the Development Board of the Royal Court Theatre. Non Executive Director of Sage. Her Board appointment term ended on 31 July 2004, and she was reappointed on 1 August 2004. George Kessler, CBE Group Deputy Chairman of Kessler‟s International Ltd. Chair of the Production Industries Commission, Board Member of the London Manufacturing Group (now known as Made in London), a Business Leader on the President‟s Committee a Board committee of London First Centre (now known as Think London) and a member of Gordon Brown‟s Task Force to Review Modern Apprenticeships. His Board appointment term ended on 31 July 2004, and he was reappointed on 1 August 2004. Jeremy Long Jeremy Long was appointed to the LDA Board on 1 August 2004. Chief Executive Officer - European Business, MTR Corporation. Formerly MD Rail, First Group PLC until March 2005. Former Chairman of the London Regional Council of the CBI.

Fellow of the Royal Society of Arts, Fellow of Institute of Chartered Accountants of England & Wales. Eric Ollerenshaw, OBE Eric Ollerenshaw was appointed to the LDA Board on 1 August 2004. Leader of the Conservative group on Hackney Council where he has been a Councillor since 1990. He was an elected member of the Inner London Education Authority for Kensington and was the leader of the Conservative Group from 1988 to 1990. Formerly a GLA member he chaired the Economic and Social Development committee and was also Leader of the Conservative group on the GLA. He also sat on the Budget and Transport committees and was a member of the London Fire and Emergency Planning Authority as well as the Metropolitan Police Authority. Lord Paul Chairman of the Caparo Group and member of the House of Lords Select Committees for Science & Technology. and Economic Affairs; Chancellor of the University of Wolverhampton; Ambassador for British business, Co-Chairman of the India-UK Round Table (2000-2005) member of the Industrial Development Advisory Board; member of the Council of the Royal Albert Hall and a Board member of London 2012. His Board appointment term ended on 31 July 2004, and he was reappointed on 1 August 2004. Andrew Pelling Conservative Party Member of the London Assembly for the constituency of Croydon and Sutton. London Tory business spokesperson, Leader of the Conservative Group on Croydon Council and an international investment banker. (Andrew Pelling resigned from the Board on 6 July 2004). Cllr Dame Sally Powell, DBE Councillor for the London Borough of Hammersmith and Fulham, non-Executive Director of Greater London Enterprise plc., non-Executive Director of Business Link for London, Director of the Park Royal Partnerships, Director and Deputy Chair of the Association of London Government. Her Board appointment term ended on 31 July 2004, and she was reappointed on 1 August 2004. Charles Secrett Charles Secrett was appointed to the LDA Board on 1 August 2004. Co-Director, ACT (Active Citizens Transform). Chair, Board of Triodos Bank Renewable Energy Fund. Trustee of The Building Exploratory. Member of Advisory Boards of The Ecologist magazine and the Centre for Reform. Formerly Executive Director, Friends of the Earth (1993-2003) and a member of the Round Table on Sustainable Development and Sustainable Development Commission (1994-2003). Yvonne Thompson, CBE Founder and Chief Executive of marketing and PR Company, ASAP Communications. Director Choice FM. Board member of Britain in Europe, Observer on the Board of Business Link for London, member of the DTI‟s Small Business Council. Chairs the African Caribbean Business Network Ltd, DTI‟s Ethnic Minority Business Forum and the London Central Learning and Skills Council. President of the European Federation of Black Women Business Owners. Former member of the Economic and Social Committee in Brussels. Her Board appointment term ended on 31 July 2004, and she was reappointed on 1 August 2004.

Alison Wheaton Alison Wheaton was appointed to the LDA Board on 1 August 2004. Property and IT Director for Mitchells & Butlers with responsibility for all areas of property, portfolio planning, including Asset Management, Building Management, Estates, Acquisitions and I.T. A member of the CBI London Council since 2001, and joined the Property Group of the CBI in 2003. LDA Board observers 1 April 2004 – 31 March 2005 Professor Sir Roderick Floud, Economic Historian, Vice-Chancellor of London Metropolitan University until 1 April 2004 then President of the University. Convenor of the London Higher Education Consortium 1999-2001, President of Universities UK 2001-2003. Board member, European University Association. His Board appointment term ended on 31 July 2004, and he was reappointed on 1 August 2004. John Stone Principal of Ealing, Hammersmith and West London College. Chair of the Association of Colleges London Region. Vice Chair of the London Metropolitan Network (LMN) Ltd. Vice Chair of the Joint Information Systems Committee (JISC) and Chair of its Learning and Teaching Committee. Director of the Southall Regeneration Partnership, Regenasis, the London Regional Aggregation Board, and West London Business. Member of the London West Learning and Skills Council. His Board appointment term ended on 31 July 2004, and he was reappointed on 1 August 2004. Board Committees and Advisory Groups On 9 September 2003 the Board approved a revised committee structure to align with the new structure of the LDA. The new structure came into effect from December 2003. There are four new committees and two new advisory groups. The purpose of the committees and advisory groups is to provide a forum for in-depth and specialist discussion of policy areas to guide decisions by the full Board or the Executive. They play a valuable role in informing the strategic direction and policies of the LDA. Most committees meet monthly, and advisory groups meet bi-monthly. Corporate Affairs Committee (met seven times) From 1 August 2004 the membership was as follows: Mary Reilly (Chair), John Biggs (Deputy Chair), Michael Frye, George Kessler, Jeremy Long, Cllr Dame Sally Powell, Charles Secrett and Yvonne Thompson. Prior to 1 August 2004, the committee met twice. The membership was as follows: Honor Chapman (Chair), Dame Judith Mayhew-Jonas, Mary Reilly and Cllr Dame Sally Powell. Business and Skills Committee (met 10 times) From 1 August 2004 the membership was as follows: Jeremy Long (Chair), George Kessler (Deputy Chair), Rumman Ahmed, Mick Connolly, Professor Sir Roderick Floud, Michael Frye, Steven Hitchins, and Alison Wheaton. Prior to 1 August 2004, the committee met three times. The membership was as follows: Dame Judith Mayhew-Jonas (Chair), Andrew Pelling, Michael Frye, Mick Connolly, George Kessler, Professor Sir Roderick Floud and John Stone. (As Andrew Pelling resigned from the Board, he was no longer a member of this committee from 6 July 2004.)

Performance and Audit Committee (met five times) From 1 August 2004 the membership was as follows: John Biggs (Chair), Michael Frye (Deputy Chair), Mick Connolly, Eric Ollerenshaw, Professor Sir Roderick Floud and Alison Wheaton. Prior to 1 August 2004, the committee met twice. The membership was as follows: Mary Reilly (Chair), Mick Connolly, Andrew Pelling, Michael Frye and Professor Sir Roderick Floud. (As Andrew Pelling resigned from the Board, he was no longer a member of this committee from 6 July 2004.) Regeneration and Development Committee (met six times) From 1 August 2004 the membership was as follows: Cllr Dame Sally Powell (Chair), John Biggs (Deputy Chair), George Kessler, Eric Ollerenshaw, Charles Secrett, John Stone and Yvonne Thompson. Prior to 1 August 2004, the committee met twice. The membership was as follows: Cllr Dame Sally Powell (Chair), Victor Anderson, Kumar Murshid, Yvonne Thompson, George Kessler, Mary Reilly and John Biggs. (As Kumar Murshid resigned from the Board, he was no longer a member of this committee from 22 March 2003.) Health and Sustainability Advisory Group (met five times) From 1 August 2004 the membership was as follows: Charles Secrett (Chair) and Steve Hitchins. Prior to 1 August 2004, the advisory group met twice. The membership was as follows: Victor Anderson (Chair) and Kumar Murshid. (As Kumar Murshid resigned from the Board, he was no longer a member of this committee from 22 March 2003.) Equality Monitoring and Review Group (met five times) From 1 August 2004 the membership was as follows: Yvonne Thompson (Chair), Mick Connolly and Rumman Ahmed. Prior to 1 August 2004, the advisory group met once as the Equality Committee (subsequently replaced by the Equality Monitoring and Review Group). The membership was as follows: Yvonne Thompson, Kumar Murshid and Mick Connolly. LDA Standing Orders and Code of Conduct The Standing Orders were revised and approved by the Board on 8 September 2004. They deal with general proceedings of the Board and the Agency‟s scheme of delegation. A Code of Conduct and Best Practice sets out the standards of conduct expected of Board Members. The code applies to all appointed members, observers and specialist advisers of the LDA‟s Board, committees and advisory groups. Members must observe the LDA‟s Code of Conduct whenever they are: • conducting the business of the LDA • conducting the business of the office to which he or she has been appointed • acting as a representative of the LDA. The Code covers, amongst other things:

• standards in public life expected of Board members • role of the Chair and corporate responsibilities of Board members • individual responsibilities and personal liability of Board members • declaring and registering interests, gifts and hospitality • accountability for public funds, audit and preparation of annual report and accounts • breach of the Code and LDA Standing Orders. The Standing Orders and full information on the structure and membership of our Board and Committees is available at APPENDIX 2 Ethnicity by directorate as percentage of all staff White Directorate Business and Skills CEO‟s Office Regeneration and Development Resources and Equality Total Mixed Directorate

British 17.05 8.65 16.28 13.74 55.73

Irish 1.27 0.00 1.53 0.76 3.56

Other White 2.54 2.29 2.54 4.07 11.45

White and Black Caribbean Business and Skills 0.00 CEO‟s Office 0.00 Regeneration and Development 0.00 Resources and Equality 0.00 Total 0.00 Asian or Asian British Directorate Business and Skills CEO‟s Office Regeneration and Development Resources and Equality Total

White and Black African 0.25 0.00 0.00 0.00 0.25

White and Asian 0.00 0.00 0.00 0.25 0.25

Other Mixed 0.51 1.27 0.00 0.25 2.04

Indian 2.29 1.53 0.00 0.51 4.33

Pakistani 0.25 0.25 0.51 0.00 1.02

Bangladeshi 0.76 0.00 0.00 0.25 1.02

Other Asian 0.76 0.25 0.00 0.25 1.27

Black or Black British Directorate Business and Skills CEO‟s Office Regeneration and Development Resources and Equality

Caribbean 3.05 0.76 2.04 1.53

African 2.29 0.51 1.27 3.31

Other Black 0.25 0.51 0.25 0.25

Total Chinese or other and not stated Directorate Business and Skills CEO‟s Office Regeneration and Development Resources and Equality Total




Chinese 0.25 0.00 0.00 0.00 0.25

Of other origin 0.00 0.00 0.51 0.00 0.51

Not stated 0.76 0.25 0.25 1.02 2.29

TOTAL Directorate Business and Skills CEO‟s Office Regeneration and Development Resources and Equality Total

32.32 16.28 25.19 26.21 100.00

Gender by directorate as percentage of all staff Directorate Business and Skills CEO‟s Office Regeneration and Development Resources and Equality Total Male 16.54 5.34 11.45 13.23 46.56 Female 15.78 10.94 13.74 12.98 53.44 Total 32.32 16.28 25.19 26.21 100.00

Disability (DDA) by directorate as percentage of all staff Directorate Business and Skills CEO‟s Office Regeneration and Development Resources and Equality Total Disabled 0.51 0.00 0.51 0.51 1.53 Not Disabled 31.81 16.28 24.68 25.70 98.47 Total 32.32 16.28 25.19 26.21 100.00

Disability (social model) by directorate as percentage of all staff Directorate Business and Skills CEO‟s Office Regeneration and Development Resources and Equality Total Disabled 0.76 0.00 0.76 1.27 2.80 Not Disabled 31.55 16.28 24.43 24.94 97.20 Total 32.32 16.28 25.19 26.21 100.00

Age by directorate as percentage of all staff Directorate Business and Skills CEO‟s Office Regeneration and Development Resources and Equality Total <20 0.00 0.00 0.00 0.00 0.00 20-30 6.62 4.58 3.82 4.33 19.34 30-40 10.69 5.85 7.38 7.38 31.30 40-50 7.12 2.29 7.38 6.11 22.90 50-60 1.78 0.25 2.04 1.78 5.85 60+ 0.00 0.00 0.25 0.00 0.25 Unknown Total 6.11 32.32 3.31 16.28 4.33 6.62 20.36 25.19 26.21 100.00

APPENDIX 3 Other staffing arrangements, such as secondments used to supplement LDA staff and consultative arrangements. At end of March 2005, there were 18 people at the LDA on secondment from other organisations. Nine of them were based in our Business and Skills Directorate, five were working in the Chief Executives Directorate, three in the Regeneration and Development Directorate and one in the resources and Equality Directorate.

SALARY AND CONSULTANCY FEES 1 APRIL 2004 - 31 MARCH 2005 Contracted and agency staff

Permanent staff Salaries National Insurance Pension Contributions Agency Seconded costs Total salaries and on costs 11,133,270 1,066,577 1,280,671

Board and Chair 199,797 18,165 0

Total all staff 11,333,067 1,084,742 1,280,671 4,108,387 1,188,160 18,995,027

4,108,387 1,188,160 13,480,518 217,962 5,296,547

Consultancy fees Audit Fees – Internal Audit Fees – External Marketing Resources Marketing Consultants Building Professional Fees Consultants‟ Fees Legal Fees Miscellaneous Professional Fees Grand Total for consultancy fees 2004/2005 Miscellaneous professional fees – breakdown Finance

Total for year 2004/2005 46,206 200,372 86,966 25,879 0 428,678 219,214 132,434 1,139,749

£ 59,795

HR Regeneration and Development Chief Executive‟s Office Total miscellaneous professional fees

54,372 17,160 1,107 132,434

OTHER LANGUAGES AND FORMATS This publication is also available in large print, braille, on disk, audio cassette and in the languages listed below. For a copy, please contact the LDA Communications Team: London Development Agency Devon House 58-60 St Katharine‟s Way London E1W 1JX Tel: 020 7954 4500 Email: Arabic Punjabi Bengali Turkish Chinese Urdu Greek Vietmanese Gujarat Hindi Report author Olivia Mejias Designed and produced by Appetite Photography by Phil Sayer, Michael Harding

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