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Annual Report and Accounts 2004-2005 - The London Development Agency.rtf

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					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 key
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 broadcasting
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                                          Number of
                                                  homes
The Royal Docks (including 5,000 at Silvertown    up to 10,000
Quays)
Other Newham sites                                up to 3000
South Dagenham                                    up to 6,500
Woolwich Arsenal                                  up to 4,200
Lewisham                                          up to 1000
Tower Hamlets                                     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 park 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. Other
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 projects 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 company 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 suffer
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 terms 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 to
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 performance 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                               Actual
Business interventions               29%                                  15%
Businesses created                   29%                                  16%
Learning opportunities               40%                                  45%
People accessing jobs                40%                                  43%



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



Women beneficiaries 2004/2005
                                     Target                                Actual
Business interventions               15%                                   11%
Businesses created                   15%                                   17%
Learning opportunities               50%                                   31%
People accessing jobs                50%                                   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 promoting
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 face-
to-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 become 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                       Budget     Outturn £m            Variance £m          Variance as % of
                                   £m                                                    budget
   Single Regeneration Budget      84         83                    (1)                  (1)
   Single Programme                305        306                   1                    1
   Corporate and other             30         30                    0                    0
   services
Total net expenditure           419         419                   0                     0
Additional Corporation Tax      2           2                     0                     0
Charge
Total Cash Outturn              421         421                   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               (£m)
Core Grant (DTI/GOL)                                   329
Department of Culture Media and Sport                  11
Office of the Deputy Prime Minister                    49
European Union Funding                                 5
Asset disposals                                        20
Other income sources                                   7
Total                                                  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                                Target             Achievement              Achievement as % of
                                                                                    Target
Childcare places created                933                117
Business interventions to provide       15,000             34,035                   227
advice and consultancy
Businesses                          1,500                  1,532                    102
created/retained/attracted/expanded
Business space created (sq.m.)          150,000            151,683                  101
Jobs created and/or safeguarded         12,500             19,451                   156
Housing units created                   1,500              1,512                    101
Learning opportunities delivered        30,000             28,757                   96
Private sector investment into          250                254.7                    102
deprived areas (£m)
People accessing jobs                   8,000              11,079                   138
Brownfield land reclaimed               50                 53.91                    108
(Hectares)



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                  Brent                                 Tower Hamlets
Wellington Street                     Needle Parade                         St Johns Lane
Axe Street                                                                  Walden Street
Chequers Corner                       Southwark                             Turner Street
Dagenham Docks                        Newburn Street                        Varden Street
New Road                                                                    St Andrews Hospital
Hindmans Way                          Newham
Choats Road                           Three Mills                           Lewisham
Abbey Road                            Victoria Dock Road                    Rennell Street
                                      Silvertown Way                        Lewisham High Street
Haringey                              Warton Road                           Lewisham Road
Olympia Industrial Estate             Carpenters Road                       St James‟s
                                      Marshgate Lane
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                                    50 years
Computer equipment                                    3 years
Computer software                                     7 years
Furniture, fixtures and fittings                      5 years
Improvement works to office accommodation             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 non-
recoverable 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 through 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 undertaken
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                                                                       Mary Reilly
Chief Executive Officer                                Chair
Date: 01 August 2005                                                              Date: 01 August 2005
CONSOLIDATED REVENUE ACCOUNT
FOR THE YEAR ENDING 31 MARCH 2005
                                    Gross      Gross           Net   Prior Year Net
                               Expenditure   Income    Expenditure     Expenditure
                                    £'000      £'000        £'000             £'000
                         Notes
Continuing operations
Single Regeneration Budget         78,548                  78,548          137,617
Single Programme                  170,501     5,433       165,068          120,296
Land and property                                                           12,102
Other funding streams                                                        3,707
Corporate and other services 1     30,609                  30,609           14,555
Net cost of services              279,658     5,433       274,225          288,277

Pension interest cost and
expected return on pensions assets                            (32)              (7)
Asset management
revenue account              4                               (127)           (148)
Interest and
investment income            5                             (1,155)           (752)
Net operating expenditure                                 272,911          287,370

Appropriations
Appropriations from
Capital Financing Account                                 104,506           51,107
Appropriation from Pension Reserve                            (49)             171
Amounts to be met from Government grants                  377,368          338,648

Sources of Finance
Government grants                                        (398,993)       (323,366)
Net General Fund surplus/(deficit)                          21,625        (15,282)

Corporation Tax               14                           (1,977)           (794)
General Fund surplus/(deficit) for year                    19,648         (16,076)
General Fund balance
brought forward                                           (19,593)         (3,517)
General Fund balance carried forward                            55        (19,593)
BALANCE SHEET
AS AT 31 MARCH 2005
                                                    31 March 2005   31 March 2004
                                            £'000           £'000           £'000
                                  Notes
Fixed assets
Operational assets                   7
Other land and buildings                        0                           1,064
Vehicles plant and equipment                3,638                           3,175
                                                            3,638           4,239
Long term investments                 8                         1               1
Pension asset                      1(d)                                       179
Total long term assets                                      3,639           4,419

Current assets
Development property stock           9    270,357                        205,102
Debtors                             10     13,757                         10,825
Cash at bank and in hand                    1,199                         23,715
                                                         285,313         239,642

Current liabilities
Pension liability                  1(d)      745
Creditors falling due
within one year                     11     14,661         15,406          51,182
Net current assets                                       269,907         188,460

Long term creditors                 12                       240             414
Provisions                          13                         0              25
                                                             240             439
Total assets less liabilities                            273,306         192,440
Fixed Asset
Restatement Account                 21                   (43,909)         16,650)
Capital Financing Account           22                   317,905         195,204
Usable Capital Receipts Reserve     23                          0               0
Pension Reserve                    1(d)                     (745)             179
General Fund                        24                         55        (19,593)
Total equity                                             273,306         192,440


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                   Revenue Reserves

                                                    Usable
                              Fixed Asset   Capital Capital
                             Restatement Financing Receipts         Pension General
                                  Account Account Reserve           Reserve   Fund           Total

                  Note                 21           22         23       1(d)         24

                                    £'000        £'000     £'000      £'000       £'000     £'000



Balance as at 01/04/04             16,650      195,204         0)       179 (19,593)      192,440

Disposals                         (15,903)                                                (15,903)

Revenue contribution
to capital outlay   6                          200,373                                    200,373

Deferred charge
write off             2                        (95,195)                                   (95,195)

Depreciation written back                        (672)                                      (672)

Capital receipts generated                                18,195                          18,195)

Capital receipts utilised                                 18,195    (18,195)                      0

Revaluation                                    (44,656)                                   (44,656)

Pension reserve movement                                              (924)                 (924)

Capital expenditure written off

General Fund working balance for year                                19,648      19,648

Balances as at 31/03/05           (43,909)     317,905          0     (745)          55   273,306
CASHFLOW STATEMENT
FOR PERIOD ENDING 31 MARCH 2005

                                                       31 March 2005   31 March 2004
                                                               £'000           £'000
                                              Notes
Revenue activities
Cash outflows
Cash paid to and on behalf of employees                       19,614          12,979
Other operating cash payments                               186,444         169,231
                                                            206,058         182,210
Cash inflows
Government grants                                           169,300         167,548
Other cash receipts                                           10,991           4,906
                                                            180,291         172,454
Net cash (outflow)/inflow-revenue                 25        (25,767)         (9,756)


Returns on investments and servicing of finance
Cash inflows
Interest received                                              1,155            752
                                                               1,155            752


Capital activities
Cash outflows
Purchase of fixed assets                                       1,078           1,278
Development stock expenditure                               124,314           71,792
Capital grants                                                96,721          97,122
                                                            222,113         170,192
Cash inflows
Capital grants received                                     201,461         172,106
Other capital cash receipts                                   22,748          25,681
                                                            224,209         197,787
Net cash (outflow)/inflow-capital                              2,096          27,595
Net increase/(decrease) in cash                   26        (22,516)          18,591
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                  2004
                                                                           £’000                 £’000
Board members
Board members‟ fees                                                          200                   169
Pension costs                                                                   0                    0
National insurance contributions                                              18                    15
                                                                             218                   184
Employees
Salaries and wages inc. overtime                                          11,133                 7,951
Pension costs                                                              1,281                   880
National Insurance contributions                                           1,067                   736
Pension enhancements                                                         192                     0
                                                                          13,673                 9,567
Others
Agency staff
                                                                           4,108                 2,692
Seconded staff salary costs                                                1,188                   537
                                                                           5,296                 3,229
TOTAL SALARIES & WAGES                                                    19,187                12,980
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                                Re-appointed
Honor Chapman, CBE                                Term ended
John Biggs Vice Chair                            Re-appointed
Dame Judith Mayhew-Jonas, DBE                     Term ended
Rumman Ahmed                                        Appointed
Victor Anderson                                   Term ended
Mick Connolly                                    Re-appointed
Michael Frye,                                CBE Re-appointed
Steve Hitchins                                      Appointed
Tamara Ingram                                    Re-appointed
George Kessler,                              CBE Re-appointed
Jeremy Long                                         Appointed
Kumar Murshid                                     Term ended
Eric Ollerenshaw, OBE                               Appointed
Lord Paul                                        Re-appointed
Andrew Pelling                                      Resigned
Cllr Dame Sally Powell, DBE                      Re-appointed
Charles Secrett                                     Appointed
Yvonne Thompson, CBE                             Re-appointed
Alison Wheaton                                      Appointed
John Stone                                       Re-appointed
Professor Sir Roderick Floud                     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:


                                            Number of Employees
                                                 Paid in Year to                           Paid in Year to
Remuneration Band                                31 March 2005                             31 March 2004

£50,000 to £59,999                                               16                                      12

£60,000 to £69,999                                               14                                      10

£70,000 to £79,999                                                5                                       5

£80,000 to £89,999                                                6                                       2

£90,000 to £99,999                                                2                                       2

£100,000 to £109,999

£110,000 to £119,999                                              1

£120,000 to £129,999
                                                                                                          2

£130,000 to £139,999                                              1

£140,000 to £149,999                                              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 (www.civilservice-pensions.gov.uk). 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 so 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 %
Rate of inflation                                                 2.85

Rate of increase in salaries                                      4.85

Rate of increase in pensions                                      2.85

Rate for discounting scheme liabilities                           5.40

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)            (228)

Curtailment and settlements                                  (76)

Net operating expenditure:

Interest cost                                                (72)             (28)

Expected return on assets
in the scheme                                                 104              35

Amounts to be met from Government grants:

Movement on pensions reserve                                  831             221

Actual amount charged against Government grants for pensions in the year:

Employers‟ contributions
payable to scheme                                           (782)            (392)



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

LPFA Scheme
                                                31 March 2005       31 March 2004

                                                      £’000                 £’000

Estimated liabilities in scheme                          (4,758)            (687)

Estimated assets in scheme                                4,013              866

Net asset/(liability)                                     (745)              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                                             2.9             2.9

Rate of increase in salaries                                  4.4             4.4

Rate of increase in pensions                                  2.9             2.9

Rate for discounting
scheme liabilities                                            5.4             6.5



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         31 March               2005      31 March           2004
                                   %            £’000                 %          £’000             %

Equities                          7.7            3,160              78.8            711.0        82.1

Bonds                             4.8              434              10.8            108.0        12.5

Property                          5.7              285               7.1             33.0          3.8
Cash                                4.8            134              3.3             14.0     1.6

Total                               7.1           4,013         100.0              866.0   100.0

The movement in the net pension asset/liability for the year
to 31 March 2005 is as follows:
LPFA Scheme
                                                                           £’000
Net pensions liability at 1 April 2004                                       179

Movements in the year:
• Current service cost                                                     (787)
• Employers‟ contributions payable to scheme                                 775
• Contributions in respect of unfunded benefits                                7
• Retirement benefits payable to pensioners                                    0
• Past service costs
• Impact of settlements and curtailments                                    (76)
• Interest cost                                                                0
• Expected return on assets in the scheme                                     32
• Actuarial gains/(losses)                                                 (875)
Net pension asset at 31 March 2005                                         (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                                    95             74
Value of assets                                            4,013            866
Percentage of assets                                       2.4%            8.6%
Experience gains/(losses) on liabilities                     (72)            (6)
Total present value of liabilities                         4,758            687
Percentage of the total
present value of liabilities                              (1.5%)          (0.9%)
Actuarial gains/(losses)
recognised in CRA                                          (875)            (68)
Total present value of liabilities                         4,758            687
Percentage of the total present
value of liabilities                                      18.4%            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                                  531             155
Marketing and PR                                             671             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                             85
Fees payable for the certification of Grant claims                             5
Fees payable for the Statutory Annual Audit                                  110
Fees payable for other consultancy work                                        0
Total fees payable                                                           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                 Year to
                                           31 March 2005           31 March 2004
                                                   £’000                   £’000

Land and property                                        0                      0
Single Regeneration Budget                          27,596                 66,391
Single Programme                                    67,599                 22,260
Regional Innovation Fund                                 0                  1,669
Regional Selective Assistance                            0                    608
                                                    95,195                 90,928
Deferred charges amortised to the CRA             (95,195)               (90,928)
Balance at 31 March 2005                                 0                      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               Year to
                                                  31 March 2005         31 March 2004
                                                          £’000                 £ 000

Opening balance                                            3,592                      0
Set aside for excluded credit arrangements                     0                  3,592
Applied in year                                            3,592                      0
Closing balance                                                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           31 March 2004
                                                        £’000                   £‘000

Capital charge                                              (800)                 (579)
Depreciation                                                  673                   431
                                                            (127)                 (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                   Year to
                                              31 March 2005             31 March 2004
                                                       £‘000                     £‘000
Bought forward unfinanced creditors                    1,081                     2,079
Capital expenditure on assets being developed       124,744                    70,794
Capital expenditure written off                            0                         0
Deferred charge expenditure                           95,195                   90,928
Additions to fixed assets                              1,140                     1,278
Set-aside for credit arrangements                          0                     3,592
                                                    222,160                   168,671
Carried forward unfinanced creditors                       0                   (1,081)
Usable capital receipts                             (18,195)                 (25,126)
Application of provision for credit liabilities              (3,592)
Balance financed from revenue
contribution to capital outlay                              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          Vehicles plant
                                                  and buildings        and equipment           Total
Cost                                                      £’000                 £’000          £’000

At 1 April 2004
Opening balance                                          1,150                  4,426           5,576
Additions in year                                            0                  1,142           1,142
Disposals in year                                      (1,150)                     (6)        (1,156)
At 31 March 2005                                             0                  5,562           5,562

Depreciation
At 1 April 2004                                             86                  1,251          1,337
Charge for year                                                                   673            673
Disposals in year                                          (86)                     0            (86)
At 31 March 2005                                              0                 1,924          1,924
Net Book Value

At 31 March 2005                                             0                  3,638          3,638
Net Book Value
1 April 2004                                            1,064)                  3,175          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                Year to
                                                     31 March 2005          31 March 2004
                                                             £‟000                  £‟000

Opening Book Value                                         205,102                 148,986
Revaluation                                                (44,657)                 (6,606)
Additions in year                                          124,744                  70,794
Transfer from fixed assets                                    1,064                       0
Disposals                                                  (15,896)                 (8,072)
Amounts written off                                              0                  0
Closing Book Value                                         270,357            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 Compressor 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             Year to
                                                    31 March 2005       31 March 2004
                                                            £’000               £’000
Trade debtors
                                                                931                550
Prepayments                                                   4,190              6,485
Other debtors                                                   300              1,912
Government grant to cover Corporation Tax                       691                445
VAT                                                        7,645                 2,833
Provision for doubtful debts                                   0               (1,400)
Total                                                     13,757               10,825


11. CREDITORS
Amounts falling due within one year:

                                                        Year to               Year to
                                                 31 March 2005         31 March 2004
                                                         £’000                 £’000

Trade creditors                                           12,147               31,066
Corporation Tax due                                          691                  445
Prepaid income                                             1,823               19,671
Total                                                     14,661               51,182


12. CREDITORS
Amounts falling due after one year:

                                                        Year to               Year to
                                                 31 March 2005         31 March 2004
                                                         £’000                 £’000

Retentions on long term contracts                            240                   414
Total                                                        240                   414


13. PROVISIONS FOR LIABILITIES AND CHARGES


                                                        Year to               Year to
                                                 31 March 2005         31 March 2004
                                                         £’000                 £’000

Provision bought forward                                       25                    0
Provision for year                                           (25)                   25
Total provisions for liabilities and charges                    0                   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                                                             6,588
Corporation Tax at 30% charged to the CRA                                                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                          Others           Total
                                                 £’000                           £’000           £’000
Leases expiring:
- within one year                               1,748                               58           1,806
- between one and five years                    5,528                              100           5,628
- in over five years                            6,308                                0           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        at 31 March 2004
                                                             £’000                   £’000
Contractual commitments                                    412,461
Expenditure authorised by the Board                                                 577,599

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                       Year ending
                                     31 March 2005                     31 March 2004
                                              £’000                             £’000
Reconciliation of Cash Flow
Statement to Consolidated
Revenue Account
General Fund surplus/(deficit)               19,648                           (16,076)

Less Non Cash Transactions
Net capital cash outflow/(inflow)                        (2,096)              (27,595)
Provision for bad and doubtful debts                     (1,400)                 1,190
Contribution to/(from) provisions                           (25)                    25
Transfer to/(from) reserves                              (3,592)                 3,592
Less items included as Accruals
(Increase)/decrease in debtors                          (1,532)                (436)
Increase/(decrease) in creditors                       (35,615)               30,296

Adjustment for sums
accounted for elsewhere:
Interest received                                       (1,155)                 (752)
Net cash flow from activities                          (25,767)               (9,756)


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

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 www.lda.gov.uk/server/show/nav.001001003.

APPENDIX 2
Ethnicity by directorate as percentage of all staff

White
Directorate                                 British              Irish   Other White
Business and Skills                         17.05                1.27           2.54
CEO‟s Office                                 8.65                0.00           2.29
Regeneration and Development                16.28                1.53           2.54
Resources and Equality                      13.74                0.76           4.07
Total                                       55.73                3.56          11.45

Mixed
Directorate                      White and               White and        White and      Other
                           Black Caribbean            Black African           Asian      Mixed
Business and Skills                    0.00                    0.25            0.00       0.51
CEO‟s Office                           0.00                    0.00            0.00       1.27
Regeneration and Development           0.00                    0.00            0.00       0.00
Resources and Equality                 0.00                    0.00            0.25       0.25
Total                                  0.00                    0.25            0.25       2.04

Asian or Asian British
Directorate                                  Indian        Pakistani     Bangladeshi     Other
                                                                                         Asian
Business and Skills                           2.29               0.25           0.76      0.76
CEO‟s Office                                  1.53               0.25           0.00      0.25
Regeneration and Development                  0.00               0.51           0.00      0.00
Resources and Equality                        0.51               0.00           0.25      0.25
Total                                         4.33               1.02           1.02      1.27


Black or Black British
Directorate                             Caribbean              African         Other
                                                                               Black
Business and Skills                           3.05               2.29           0.25
CEO‟s Office                                  0.76               0.51           0.51
Regeneration and Development                  2.04               1.27           0.25
Resources and Equality                        1.53               3.31           0.25
Total                                     7.38            7.38          1.27

Chinese or other and not stated
Directorate                           Chinese          Of other          Not
                                                         origin       stated
Business and Skills                       0.25             0.00         0.76
CEO‟s Office                              0.00             0.00         0.25
Regeneration and Development              0.00             0.51         0.25
Resources and Equality                    0.00             0.00         1.02
Total                                     0.25             0.51         2.29


TOTAL
Directorate
Business and Skills                      32.32
CEO‟s Office                             16.28
Regeneration and Development             25.19
Resources and Equality                   26.21
Total                                   100.00


Gender by directorate as percentage of all staff

Directorate                               Male          Female         Total
Business and Skills                      16.54           15.78         32.32
CEO‟s Office                              5.34           10.94         16.28
Regeneration and Development             11.45           13.74         25.19
Resources and Equality                   13.23           12.98         26.21
Total                                    46.56           53.44        100.00


Disability (DDA) by directorate as percentage of all staff

Directorate                           Disabled     Not Disabled        Total
Business and Skills                       0.51            31.81        32.32
CEO‟s Office                              0.00            16.28        16.28
Regeneration and Development              0.51            24.68        25.19
Resources and Equality                    0.51            25.70        26.21
Total                                     1.53            98.47       100.00


Disability (social model) by directorate as percentage of all staff

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

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

Salaries                         11,133,270               199,797                          11,333,067
National Insurance                1,066,577                18,165                           1,084,742
Pension Contributions             1,280,671                     0                           1,280,671
Agency                                                                     4,108,387        4,108,387
Seconded costs                                                             1,188,160        1,188,160
Total salaries
and on costs                     13,480,518               217,962          5,296,547       18,995,027


                                                  Total for year
Consultancy fees                                     2004/2005

Audit Fees – Internal                                    46,206
Audit Fees – External                                   200,372
Marketing Resources                                      86,966
Marketing Consultants                                    25,879
Building Professional Fees                                    0
Consultants‟ Fees                                       428,678
Legal Fees                                              219,214
Miscellaneous Professional Fees                         132,434
Grand Total for consultancy fees 2004/2005            1,139,749


Miscellaneous professional fees – breakdown                   £
Finance                                                  59,795
HR                                                            54,372
Regeneration and Development                                  17,160
Chief Executive‟s Office                                       1,107
Total miscellaneous professional fees                        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: communications@lda.gov.uk

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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