A Legacy for London

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					A Legacy for London
Annual Report and Accounts 2005/2006

    Mayor’s foreword                                                                              2

    Chair’s statement                                                                             3

    Chief Executive’s review                                                                      4

    The London Development Agency: Creating a legacy for London                                   6

    Review of the year                                                                          10

          How we have made a difference                                                         10

          Performance targets 2005/2006                                                         11

    The 2012 Olympic Games and Paralympic Games and their legacy                                12

    Investment in infrastructure and places                                                     20

    Investment in people                                                                        30

    Investment in enterprise                                                                    41

    Investment in marketing and promotion                                                       52

    Our cross-cutting themes                                                                    60

          Equality                                                                              63

          Sustainability and health                                                             70

    LDA Board and staff                                                                         80

    Statement of accounts                                                                       92

    Glossary of accountancy terms                                                              126

    Appendix 1: Economic Development Strategy
                     Implementation Report                                                     135

    Appendix 2: Glossary of terms                                                              159

    Photo credits: All photography featured in this report shot in London

                                                            LDA Annual Report and Accounts 2005/2006   
    Mayor’s foreword

The LDA continues to meet London’s
economic development challenges head on.

The achievements featured in this report          Working with London’s businesses
show its progress in delivering my priorities.    continues to be a priority, with improved
These include improving the provision of          engagement high on the LDA’s agenda.
affordable childcare for Londoners and            They will have an increased focus on the
establishing the London Climate Change            world’s emerging markets, in particular
Agency, including a new partnership with          supporting the establishment of my first
EDF Energy to deliver low carbon energy.          office in Beijing.
Driving forward major regeneration
                                                  Breaking down barriers to employment
projects, such as Wembley infrastructure
                                                  and capitalising on our diversity is key to
and Crystal Palace Park is key to creating
                                                  securing economic success. That’s why
the healthy, sustainable communities
                                                  the LDA is delivering Diversity Works for
London needs to thrive. The LDA continues
                                                  London, a programme engaging major
to play a crucial role in providing additional
                                                  employers and promoting the strategic
housing across the capital, and further
                                                  imperative and proven business benefits
powers for London government in
                                                  of greater employee and supplier diversity.
planning and housing will give us further
                                                  That is also why the Agency is stepping
opportunities to deliver in this vital area.
                                                  up its engagement with London’s diverse
London is a great world city, a multicultural     communities.
hub of activity and we should never forget
                                                  I would like to congratulate the LDA for
that this diversity is one of our greatest
                                                  their continued commitment to delivering
assets. London’s diversity and unity played
                                                  projects which make a sustainable
a huge part in winning the Olympic bid.
                                                  difference to quality of life for all Londoners.
Since the announcement, the LDA has
made good progress towards land assembly
and remediation, and in the coming year it
will step-up and implement plans to secure
the Olympic legacy, providing Londoners
with a whole range of long-lasting physical,
economic, social, cultural and health             Ken Livingstone
benefits.                                         Mayor of London

      LDA Annual Report and Accounts 2005/2006
Chair’s statement

     With a growing economy and population, world class
     education facilities, and a great sense of creativity and
     dynamism, London is firmly established as one of the
     world’s most successful global cities.

     However, London cannot afford to be              The most successful modern economies
     complacent. It is vital that we have a           are the ones which make the most of their
     strategic overview, a long term plan for         people. Londoners are the life blood of
     London. This is the role of the London           our city so it is critical that we address the
     Development Agency; working with the             problem of those lacking the skills to share
     Greater London Authority and a wide range        in – and contribute to – London’s success.
     of private and public sector stakeholders        As the main supplier of public sector
     to deliver a shared vision for long term         business support in London and a major
     sustainable success.                             funder of employment training, particularly
                                                      for those facing barriers of discrimination
     We face a rapidly changing economic
                                                      or lack of skills, we are working hard to
     landscape, with China expected to become
                                                      ensure that all Londoners have the chance
     the second biggest economy in the world
                                                      to develop their talents fully.
     by 2020 and India and Russia also growing
     rapidly. To see this as a threat to our          So, as ever, huge challenges and enormous
     economy would be short-sighted. Instead,         opportunities lie ahead for London but
     as a highly diverse, global city with a strong   I believe that we have never been in a better
     specialisation in financial, creative and        position to face them with confidence.
     technology services, we are ideally placed       During the past 12 months the LDA has
     to attract new business and investment           grown in size and scope and I believe we
     from other growing economies. Indeed,            are firmly grasping our strategic role and
     to maximise these opportunities, we              gearing up for the future.
     have been involved in setting up London’s
                                                      We look forward to working with you to
     Economic Development and Inward
                                                      develop and strengthen London as a
     Investment Office in Beijing.
                                                      successful, diverse, and truly modern
     Winning the bid for the 2012 Olympic             world city – one in which all Londoners
     Games and Paralympic Games is, of course,        can reap the benefits.
     a great boost for London. It provides a
     unique chance to develop businesses
     and people, and promote London as an
     international destination. The Games
     will also accelerate and deepen the
     transformation of the Lower Lea Valley
     and the wider Thames Gateway, bringing           Mary Reilly
     opportunities for employment, enterprise –       LDA Chair
     and as many as 35,000 new homes.

                                                      LDA Annual Report and Accounts 2005/2006    
    Chief Executive’s review

005/006 was another year of significant progress for
the LDA. The figures speak for themselves: ,577 more
jobs for Londoners, over 56 hectares of brownfield land
reclaimed for productive use, ,855 childcare places
created and ,96 new businesses formed.

We have grown in size and authority, taking       whole rising to 5.3%, and even higher in
on new responsibilities such as public            disadvantaged areas. We will raise our
sector business support and a key role in         game in this area, addressing these issues
the delivery of the 2012 Olympic Games            with real energy and a clear strategic focus.
and Paralympic Games. However, London
                                                  Diversity is vital to London’s success.
still faces major challenges, including
                                                  It is calculated that as much as 80%
high rates of child poverty, continued
                                                  of the growth in London’s working age
health inequalities and the need for
                                                  population over the next 10 years may
essential improvements to housing and
                                                  come from black, Asian and minority ethnic
infrastructure. We’re responding to these
                                                  groups, so it is vital that no Londoner’s
challenges – working with our stakeholders
                                                  talents are wasted by lack of opportunity.
to drive forward the sustainable economic
                                                  During 2005/2006 we continued to
development of London and leveraging
                                                  implement the Mayor’s Diversity Works
resources, relationships and expertise to
                                                  for London Programme, working with
secure its position as a great world city.
                                                  major London employers to tackle barriers
We are focused on delivering for London –         and discrimination faced by Londoners,
prioritising the key areas for investment set     while encouraging businesses to grasp the
out in the Mayor’s Economic Development           ‘diversity dividend’.
Strategy; people, infrastructure and
                                                  Our belief is that long term economic
places, enterprise and marketing and
                                                  success and equality go hand in hand.
promotion. As our most recent Economic
                                                  Only by helping all Londoners to make the
Snapshot reveals, London is making
                                                  most of their abilities can we achieve long
some progress – for example, meeting
                                                  term economic success.
or exceeding targets on new housing
completions and major infrastructure              We were therefore delighted to hear that
projects, and has seen an uplift in               we are to be of the first organisations
enterprise and economic performance, and          in the country to achieve Level 5 of the
a good recovery of London’s leisure and           Equality Standard for Local Government.
tourism industry after 7 July. However, it        The initial assessment recognised the LDA’s
is in the area of people that the greatest        commitment to achieving equality for all
challenges still exist. Worklessness              Londoners and our ability to incorporate it
remains well above the national UK level          into so many of our strategies.
and pockets of deprivation remain in the
                                                  Other major highlights for 2005/2006 and
capital, with the gap between employment
                                                  2006/2007 include Crystal Palace Park
rates in London and those in the UK as a

      LDA Annual Report and Accounts 2005/2006
(page 26) where, in partnership with local     Olympic Games and Paralympic Games
people, the London Borough of Bromley          already under public authority control,
and Sport England we plan a revived            and excellent progress on the relocation
metropolitan park of the future, providing     of businesses, we are successfully fulfilling
sport, recreation and leisure facilities, as   our land assembly role. We aim to ensure
well as benefiting the economic health of      the Games deliver for Londoners. To
local neighbourhoods.                          this end, the LDA has already made £9
                                               million of funding available to support the
The LDA Opportunities Fund (page 28)
                                               implementation of a Local Employment
supports projects designed to help
                                               and Training Framework to provide
regenerate pockets of deprivation. Many
                                               employment, training and enterprise
of the projects chosen to share £50 million
                                               support to those living near to the Games’
of funding are led by community and
                                               sites in Stratford and the Lower Lea Valley.
voluntary organisations, which have the
                                               We are also developing London wide
ambition and local knowledge to bring real,
                                               initiatives to help businesses access the
grassroots improvements for Londoners.
                                               estimated £5 billion pounds of contract
In 2005/2006, we helped over 50,000            opportunities. By boosting skills, training
London businesses and have been granted        and growing inward investment and
increased responsibility for public sector     tourism, we will ensure we leave a lasting
business support in London. We undertook       legacy for London and the UK economy.
a major review of the way such services
                                               Our achievements in the past year were
are delivered, consulting over 4,000
                                               due to the hard work of our expert teams
businesses in the process. The result is our
                                               and the support of our stakeholders and
new Information, Diagnostic and Brokerage
                                               partners. I believe they really demonstrate
Service (page 44), which from 2007 will
                                               the passion and commitment we have for
provide streamlined, high quality one-stop
                                               London’s communities and businesses. It is
support to London’s small and medium
                                               this, coupled with our continuous drive for
sized enterprises.
                                               excellence, that will help us to ensure that,
Our creative industries are vital to our       despite the challenges it faces, London will
economy and we have invested in schemes        remain one of the most successful world
to help them network and develop.              cities – unified, sustainable and diverse.
Emerging Technology, Life Sciences and the
Green Economy have also been identified
as sectors which we will support in bringing
high growth, high value business to London.
The 2012 Olympic Games and Paralympic
Games provide an unprecedented
opportunity to create lasting benefits         Manny Lewis
for communities and businesses in east         Chief Executive Officer
London, right across the capital and in the
rest of the UK.
With 90% of the land required for the 2012

                                               LDA Annual Report and Accounts 2005/2006    5
         The London
         Agency: Creating a
         legacy for London

         London is unique. For hundreds of years, it has been one of the world’s
         great centres for tourism, commerce, science, art and culture. Such is
         the global influence of London that millions of people, from all over the
         world, have come to visit or to make this city their home. Now, with more
         than seven million people, London is one of the most diverse cities on
         the planet – a melting pot of languages, ideas and cultures.

This vibrant environment makes London             investment levels in infrastructure, skills,
one of the UK’s fastest growing cities, as        and facilities to allow people to work
well as the city with the fourth largest          (such as childcare, education, training and
economy in the world. Not only is it Europe’s     transport) have contributed to instances
most important financial centre, it is home       of severe unemployment and poverty
to a higher proportion of international firms     in the capital. And since the demand for
than either New York or Tokyo. In short,          labour is concentrated in the higher skilled
London is one of the world’s few truly            occupations, people with low qualifications
global cities.                                    are those most likely to be unemployed.
                                                  Because of this, London has only 71% of
However, a sizeable proportion of the
                                                  its working population in employment
capital’s population has not benefited from
                                                  and the highest rate of child poverty in
London’s economic growth. Insufficient
                                                  Great Britain.

6      LDA Annual Report and Accounts 2005/2006
                                                   and development: deliver healthy,
Our mission                                        sustainable high quality communities
The LDA is here to improve quality of life for     and urban environments
all Londoners and encourage sustainable
economic growth. In other words, we are          • People: Tackle barriers to employment;
helping to create a London that will thrive        reduce disparities in labour market
for generations to come.                           outcome between groups; address
                                                   the impacts of concentrations of
This is why we lead the delivery of the            disadvantage
Economic Development Strategy (EDS),
the Mayor’s blueprint for the sustainable,       • Enterprise: Address barriers to
equitable and healthy growth and                   enterprise start-up, growth and
development of London’s economy, all               competitiveness; maintain London’s
the way to 2016. A report on our success           position as a key enterprise and trading
in implementing the EDS can be found in            location; improve the skills of the
Appendix 1.                                        workforce; maximise the productivity
                                                   and innovation potential of London’s
The EDS sets out the Mayor’s priorities for        enterprises
London. The strategy is based on investing
in four vital areas.                             • Marketing and promotion: Ensure
                                                   a coherent approach to marketing
• Infrastructure and places: Support               and promoting London; co-ordinate
  the delivery of the London Plan to               effective marketing and promotion
  promote sustainable growth and                   activities across London; maintain and
  economic development; deliver an                 develop London as a top international
  improved and effective infrastructure            destination and principal UK gateway for
  to support London’s future growth                visitors, tourism and investment

                                                 LDA Annual Report and Accounts 2005/2006     7
The London Development Agency: Creating a legacy for London

                                                  Since our budget is relatively small
Our cross cutting themes:                         compared to the size of London and
Equality, sustainability                          the scale of our ambitions, we have to
and health                                        be selective in our investments and
All LDA projects and initiatives aim to           interventions, and continuously work in
support equality of opportunity, promote          partnership with others. This means looking
improvements in health, or contribute             ahead and always considering a project’s
towards sustainable development.                  long-term potential. Only when we are
                                                  confident in a project’s legacy potential do
More information on how we embed                  we set out to leverage resources from the
equality, sustainability and health across        public, private, voluntary and community
our work can be found throughout this             sectors. In this way we provide leadership
report, with details on specific projects and     and intelligence while identifying
outputs on page 68.                               and delivering on London’s economic
                                                  development and regeneration priorities.
What we do and how we do it                       London is one of the largest most dynamic
During 2005/2006 we invested our budget           cities in the world, which means we
of over £400 million in projects to meet          also have to be flexible, responsive and
the priorities and targets outlined in the        proactive. That is why we are constantly
EDS and the LDA’s Corporate Plan. But our         looking for new resources, fresh ways of
highest impact projects are not simply            doing things, and better ways to achieve
dependent upon LDA investment. We also            the greatest results for London. And that is
add value by driving London’s economic            where our stakeholders come in.
development activity, helping to make each
project more than the sum of its parts.

8      LDA Annual Report and Accounts 2005/2006
                                               We are also one of the nine Regional
Working with our                               Development Agencies (RDAs) operating
stakeholders                                   across England, all of whom are funded
We report to an elected London Mayor           by central Government. Although the LDA
who appoints our Board Members, sets           is sponsored by the Department of Trade
our strategy, and approves our Corporate       and Industry (DTI), which also approves our
Plan and performance targets. Along            targets, we have close ties to several other
with the Greater London Authority (GLA),       government departments. These include
Transport for London, the Metropolitan         the Department for Communities and Local
Police Authority, and the London Fire          Government (DCLG), the Department for
and Emergency Planning Authority, the          Culture, Media and Sport (DCMS), and the
LDA is a member of the GLA group, five         Department for Education and Skills (DFES).
organisations who work in partnership to
                                               The successful delivery of much of our
deliver a variety of London-wide strategies.
                                               work depends on the relationships we
Among our partners are the 33 London           build with stakeholders across London,
boroughs, sub-regional partnerships and        providing strategic leadership in exchange
numerous government departments,               for expert knowledge.
as well as a broad range of key partners
                                               By continually establishing new
from the voluntary, community, public
                                               partnerships and mobilising the support
and private sectors. Together we work to
                                               and resources of all our stakeholders, we
identify economic development needs and
                                               are providing leadership in economic
opportunities and to plan, procure and
                                               regeneration and actively engaging
deliver effective projects to support
                                               London’s communities in developing their
our priorities.
                                               own economic legacy.

                                               LDA Annual Report and Accounts 2005/2006    9
     Review of the year

                  How we have made a
                  Winning the chance to host the 2012
                  Olympic Games and Paralympic Games
                  is a once in a lifetime opportunity, as well
                  as a great challenge. To prepare ourselves
                  for the work ahead, we underwent a
                  complete corporate review in 2005/2006,
                  looking at our systems and processes,
                  improving stakeholder management
                  policies, and strengthening the LDA brand.
                  Despite it being a year of great change
                  and transformation, we still met all our
                  efficiency targets.
                  At the same time we have continued to act
                  as strategic brokers, providing leadership
                  and intelligence where it will help others
                  to act. We have worked with our
                  stakeholders to identify and deliver on
                  London’s economic development and
                  regeneration priorities. And we have put
                  time and energy – and over £400 million
                  of investment – into a variety of activities
                  such as creating jobs, increasing skills,
                  attracting businesses, building affordable
                  homes, enhancing the environment,
                  promoting equality, and improving the
                  health of the city.
                  Now that the year is behind us, we are
                  pleased to say that we have delivered not
                  just on all of our efficiency targets, but on
                  all of our performance targets too.

0    LDA Annual Report and Accounts 2005/2006
Performance targets 2005/2006
The performance targets listed below report on our progress against the targets
that were set in our 2005/2008 Corporate Plan

Output                      Definition                                         Target             Actual
Housing units	              Number of housing units facilitated*                1,500	             ,5
Brownfield land             Hectares remediated and/or total
reclaimed	                  private investment in reclaiming and
                            redeveloping land                              50 hectares	   56.6 hectares
Private sector leverage	    Private regeneration infrastructure
                            investment levered                            £300 million	   £0. million
People into jobs	           Number of beneficiaries accessing jobs**           10,000	            ,898
Childcare	                  Number of childcare places created                  2,350	             ,855
Basic skills	               Number of adults gaining basic skills as
                            part of the Skills for Life Strategy**              2,900	             ,9
Level two skills	           Number of adults in the workforce who
                            lack a full level two or equivalent who
                            are supported in achieving at least full
                            level two or equivalent as a result of
                            LDA programmes**                                    3,550	             ,797
Skills	                     Number of people assisted in their
                            skills development as a result of
                            LDA programmes**                                   30,000	            ,0
Business support	           Number of business assisted to improve
                            their performance**                                20,000	            5,08
HE/Business                 Number of businesses within the region		
collaboration	              engaged in new collaborations with the
                            UK knowledge base                                     275	              5
Business creation	          Number of new businesses created and
                            demonstrating growth after 12 months,
                            and businesses attracted to the region**            2,000	             ,96
Jobs created	               Number of jobs created or safeguarded              16,000	            ,577	

**The LDA is seeking to achieve a 50% affordable housing
  target in line with London Plan policy and guidance.
  In 2005/2006 it achieved 39%.

**Equalities targets

                                                       LDA Annual Report and Accounts 2005/2006      
       The 0 Olympic
       Games and Iste quidem veteres inter ponetur honeste, quirete vel

       Paralympic Games
                 mense brevi vel toto estors iunior anno. Uto caudaeque
                 pilos utator equinae paulatim vello unum, demo etiam
                 omne poema ambigitur quotiens uter utro sit prior unum
                 dum cadat elusus ratione ruentis acervi qui redit in fastos

       and their legacy
                 et virtutem aestimat annis miraturque nihil nisi quod
                 Libitina sacravit.

       On 6 July 005, London won the opportunity to host the
       0 Olympic Games and Paralympic Games. While this
       is an incredible achievement in itself, we also won the
       opportunity to do something else that day. Something even
       bigger. We won the opportunity to provide Londoners with
       a whole range of long-lasting physical, economic, social,
       cultural and health benefits.

   LDA Annual Report and Accounts 2005/2006
LDA Annual Report and Accounts 2005/2006   
2012 Olympic Games and Paralympic Games and their legacy

The LDA is playing a key role not just in         90% of the land required under public
delivering the Games but in delivering            authority control as of June 2006. Even
its legacy. The primary impetus behind            better, enhancements to the designs for
London’s bid for the Games was the                the Olympic Park mean that 78 businesses
opportunity it would afford us to transform       no longer need to relocate at all, while
the Lower Lea Valley and break the                businesses supporting more than 70% of
cycle of deprivation there. But while the         the jobs in the area that need to relocate
development of the Olympic Park is doing          have now confirmed relocation sites. Of
just that, creating thousands of new jobs         the rest, the vast majority are in active
and providing affordable housing in the           negotiations with the LDA and have
area, that is just the start. We are confident    identified a relocation site or a shortlist of
that the London Games will actually allow         sites. The LDA’s Olympic Land Team is also
us to achieve much more.                          working with other occupiers within the
                                                  Olympic Park to assist with relocations.
Getting a head start                              Meanwhile, the CPO required to enable the
Before we can start to build the Olympic          undergrounding of the power lines in the
Park, we must secure the land that it will        Lower Lea Valley has been confirmed by the
be built on. The LDA’s preferred route for        Secretary of State for Trade and Industry,
acquiring land is by private agreement,           and work has now started.
but ultimately there are deadlines to be
                                                  In June, the LDA, working with the Olympic
met, and not just for the Games, but for the
                                                  Delivery Authority (ODA), appointed two
regeneration of the Lower Lea Valley as a
                                                  contractors to take forward demolition and
whole. Because of this, the LDA has decided
                                                  remediation work needed for the Olympic
to use its compulsory purchase powers to
                                                  Park and the long-term regeneration of
acquire any land that cannot be acquired
                                                  the area.
by private agreement in time to meet the
2007 deadline.
                                                  The legacy for London
In order to facilitate land transfers, the
                                                  Much of the legacy left to London will come
LDA has offered to meet the reasonable
                                                  directly from the Games. For instance,
costs of any legal and professional advice
                                                  Londoners will have a number of brand
associated with relocation. We have also
                                                  new, world-beating facilities such as
offered businesses the chance to look at
                                                  the hockey venue, aquatics centre, and
sites within our own ownership, helped
                                                  velodrome at their disposal. And there will
them to secure planning permission at
                                                  also be a substantial area of new parkland
our own sites, and provided the services of
                                                  for Londoners to enjoy, plus a mixed-use
our own in-house Olympic-zone business
                                                  area that will provide new workspaces
support team.
                                                  and community facilities – not to mention
Thanks to this, the Public Inquiry for the        9,000 new homes. But really the legacy
Olympic, Lower Lea Valley and Legacy              starts right here and right now.
Compulsory Purchase Order (CPO) has
been progressing very well with over

     LDA Annual Report and Accounts 2005/2006
                                                           now and during the Games but for many
The extra inward investment, tourism                       years to come. And to make sure that as
and international students flowing                         many Londoners as possible can take
into the capital will create jobs and                      advantage of these opportunities, major
                                                           skills development initiatives are underway
strengthen its already competitive                         to equip Londoners with the skills and
economy – not just now and during the                      knowledge they need to acquire these new
Games but for many years to come.                          jobs – and then develop their careers for the
                                                           rest of their working lives.
                                                           To make certain that the infrastructure is
            That’s because everything we do towards        in place to support businesses leading up
            preparing London for the Games is also         to the Games, and to guarantee that we
            designed to prepare London for after the       will harness the power of the 2012 Games
            Games. Just the fact that we are going on      and bring positive and permanent change
            this journey is already raising London’s       to London, the LDA has put new delivery
            profile so that the capital’s businesses can   structures in place to co-ordinate our
            expect to reap the rewards for the short       Olympic-related activities. This includes
            term, medium term and long term. The           the establishment of a new Board
            extra inward investment, tourism and           sub-committee plus two dedicated teams:
            international students flowing into the        the Olympic Land Team (OLT), and the
            capital will create jobs and strengthen its    Olympic Opportunity and International
            already competitive economy – not just         Promotion team (OOIP).

                                                           LDA Annual Report and Accounts 2005/2006   5
2012 Olympic Games and Paralympic Games and their legacy

                                                  One of our top priorities is a programme
We are determined that                            of local employment, training and
individuals, community groups                     enterprise support that will reach the
and businesses will be able to                    businesses and communities in east and
                                                  south east London that most need help.
make the most of the Games                        To this end, the LDA has already made
and their legacy.                                 £9 million of funding available to support
                                                  the implementation of a Local Employment
                                                  and Training Framework (LETF) specifically
With less than six years to go before the
                                                  tailored for communities surrounding the
Olympic Opening Ceremony, the OOIP’s
                                                  main Olympic Park.
mission is to work alongside our regional
and national partners – as well as the            The LETF initiatives will include an
other teams within the LDA – to ensure an         employment support programme aimed
effective use of resources and a tangible         specifically at the construction industry to
positive impact for the capital and its           assist main contractors and subcontractors
residents. Whether it is by investing in          in maximising local recruitment; a job
London’s infrastructure, or simplifying the       brokerage and employment outreach
tendering process so that smaller companies       programme designed to give one-to-one
can compete for lucrative contracts, or           support and advice for local job seekers, as
providing opportunities for people to             well as access to basic skills and interview-
volunteer or undertake skills training, we        skills training. The LETF will have an initial
are determined that individuals, community        three-year lifespan, but will be updated
groups and businesses will be able to make        with further resources for 2009 onwards.
the most of the Games and their legacy.
                                                  In March 2006, the LDA and the Learning
As part of our effort to achieve this aim, last   and Skills Council (LSC) also launched a
year we created the London Employment             tri-regional Olympic skills programme
and Skills Task Force for 2012, chaired           co-financed by the European Social Fund.
by LDA Board member Jeremy Long. The              To help London’s workforce embrace the
group will sit for a limited period while         opportunities and challenges that the
they identify a coherent programme of             Games will bring, the programme will help
employment support and training that              train employees in skills relevant to the
meets the needs of both the Olympic               construction industry. It is also procuring
project and the gaps in London’s broader          a small number of projects to work with
labour market. Key central government             those small and medium-sized enterprises
departments and strategic funding
agencies in London are involved in the
group and have now delivered an action
plan to meet the skills demands of the            By working together with our
Olympic project. Once people are in a             partners in the best interests of
position to acquire the available jobs, this
will, in turn, help them develop skills that
                                                  Londoners, we will ensure that the
will be useful to their career progression        legacy lives on long after the Olympic
long after 2012.                                  flame has left London.

6     LDA Annual Report and Accounts 2005/2006
LDA Annual Report and Accounts 2005/2006   7
required to relocate and to help improve         access to the knowledge, skills and support
the skills of their workforce.                   to deliver, and benefit from, the Games.
For this programme a call for projects           The LDA is also establishing a panel of
totalling some £5.8 million in value over        national and international experts to
the next two years was made, with the            advise on all aspects of the Olympic and
main emphasis lying on promoting lifelong        Paralympic opportunities, so that our
learning, targeting higher-level skills          progress towards the world’s greatest
shortages in the workforce, and re-training      cultural and sporting event will be in line
the workforce with vocational skills             with our timetables.
(particularly for companies required to
                                                 Finally, we will develop targets to measure
relocate from the Olympic Park). Since the
                                                 and quantify Olympic benefits, ensuring
launch, 74 tenders have been received.
                                                 that procurement and implementation
Working with the London Organising               for the Olympics meet with the Mayor’s
Committee of the Olympic Games                   aspirations for social, economic and
(LOCOG) and the Olympic Development              environmental sustainability. At the heart
Agency (ODA), the LDA is also supporting         of all these plans is a simple vision: making
the establishment of the Contract and            the most of a global opportunity to develop
Employment Forecasting Unit to share             a global city. By working together with our
news about opportunities with interested         partners in the best interests of Londoners,
parties so they can access training              we will ensure that the legacy lives on long
opportunities and prepare themselves for         after the Olympic flame has left London.
tendering. In this way we aim to ensure that
all London businesses and workers have

8    LDA Annual Report and Accounts 2005/2006
LDA Annual Report and Accounts 2005/2006   9
                Investment in
                and places
0   LDA Annual Report and Accounts 2005/2006
London is an incredibly productive city with
average productivity per person standing
around 0% higher than in the rest of the UK.
But since 989 London has also been a city
of rapid growth. Not only is its population
expected to rise to 8. million by 06 (from
7. million in 00), but 66,000 new jobs
are anticipated in that time as well.

                                                LDA Annual Report and Accounts 2005/2006   
Investment in infrastructure and places

Faced with this increasing pressure on            2005/2006, the LDA facilitated 1,531
London’s infrastructure and housing               homes in Ashburton Grove, the Royal Docks,
supply, the Mayor of London produced              the Royal Arsenal, Silwood Estate, Poplar,
the London Plan, a land-use strategy              Forest Gate and Plaistow.
designed to ensure that future growth
                                                  In addition, we have been working with
is accommodated where it is most
                                                  English Partnerships to free up a site on the
appropriate. By making better use of the
                                                  Royal Albert Basin for the construction of
capital’s key resources the London Plan
                                                  new homes under a London Wide Initiative.
has one central aim: to create a socially
                                                  This will bring forward the development
inclusive city with a sustainable economy
                                                  of up to 300 homes, up to half of which
and environment. One of the jobs of the
                                                  will be affordable. Meanwhile the LDA’s
LDA is to support this plan.
                                                  landholdings in the Thames Gateway
                                                  are expected to bring forward 35,000
Affordable housing                                additional homes, of which 9,000 will be
The London Plan lays down a target for            delivered in the Olympic Park.
building 30,000 new homes every year
until 2016, with half of these being              The London Games and the
affordable to people on low or average
incomes. But the Plan doesn’t just mention
                                                  Lower Lea Valley
the number of homes and types of homes            regeneration strategy
that are needed; it also identifies key           Winning the chance to host the Olympic
geographical areas where deprivation              Games and Paralympic Games in 2012 was
demands urgent attention.                         an amazing achievement, but it is worth
                                                  remembering that the Games themselves
In support of the London Plan, the LDA
                                                  are only part of the plan. The two other
continues to play a crucial role in providing
                                                  main driving forces behind London’s bid
additional housing to the capital. In

     LDA Annual Report and Accounts 2005/2006
Among the many features envisioned
for the Lower Lea Valley’s regeneration
will be a ‘water city’, harnessing the
area’s unique natural environment of
canals, waterways and green spaces.

        were the need to accommodate London’s           Regeneration of the area is therefore crucial
        expected population growth and the desire       to tackling poverty, unemployment, lack of
        to regenerate the most deprived areas of        basic skills, and poor health.
        the city. Now, one year later, the Olympic
                                                        Produced in partnership with the GLA
        Park is set to bring phenomenal change to
                                                        and the London Thames Gateway
        the area by being built right in the heart of
                                                        Development Corporation, the Lower Lea
        that deprivation – the Lower Lea Valley.
                                                        Valley regeneration strategy represents our
        At the moment, the Lower Lea Valley is the      commitment to deliver a lasting legacy for
        largest remaining regeneration opportunity      the east of London beyond 2012. It is based
        in inner London. It runs north to south         on a shared vision to transform the area
        from Stratford to Canary Wharf and is just      into a vibrant, high quality and sustainable
        three miles from central London. Taking in      mixed-use district that is fully-integrated
        parts of the London boroughs of Hackney,        into London’s urban fabric and set within
        Tower Hamlets, Newham and Waltham               an unrivalled landscape.
        Forest, the area is characterised by derelict
                                                        Among the many features envisioned for
        industrial land as well as poor housing.
                                                        the Valley’s regeneration will be a ‘water
        Much of the land is fragmented and divided
                                                        city’, harnessing the area’s unique natural
        by waterways, overhead pylons, roads, the
                                                        environment of canals, waterways and
        London Underground Network and heavy
                                                        green spaces. In addition, there will be
        rail lines.
                                                        thriving centres at Stratford, Canning
        It is one of Britain’s most deprived            Town, West Ham, Bromley-by-Bow and
        communities with one of the worst public        Hackney Wick; 35,000 new homes with
        health records in the UK. Unemployment is       access to schools, healthcare, shopping and
        high – running at 35% on some estates –         leisure facilities; 50,000 new jobs; and an
        and skills levels are low.                      improved network of connections with new

                                                        LDA Annual Report and Accounts 2005/2006   
Investment in infrastructure and places

bridges, new and improved pathways and           the Lansbury Estate project and its creation
roads, and upgraded public transport.            of a large community park.
Underpinning all of this will be our drive       With our support, the Access to Excellence
to create and leave a sustainable legacy.        programme has set up the Learning
This will include removing overhead power        Development and Docklands Recruitment
lines, cleaning up the Valley’s river and        centres, designed to help Newham
canal systems, remediating contaminated          residents maximise their access to jobs,
land, ensuring people have sufficient            primarily in the Royal Docks. Located in a
power and water for their needs, and that        refurbished warehouse within the Excel
they are protected from the risks associated     exhibition centre, the centres have been
with flooding.                                   allocated just over £1 million and act as a
                                                 training and employment brokerage service
Thanks to London’s successful bid to host
                                                 linked to the construction, hospitality,
the Games, the regeneration strategy is
                                                 leisure and events industries. So far over
already making good progress. For example,
                                                 2,000 trainees have benefited from the
we are already working with partners to
                                                 centres and over 1,000 Newham residents
deliver this vision through Leaside SRB
                                                 have been placed into jobs.
where we have committed £1.78 million
in design and build costs to a brand             Meanwhile, the Construction Workforce
new Docklands Light Railway station at           Training programme is being supported
Langdon Park. The station will reconnect         by an LDA investment of £3.5 million. This
communities in East India and Lansbury           will go towards training existing workers in
with the growing opportunities in the            modern construction methods and helping
Lower Lea Valley as well as the Royal Docks,     people who are out of work to gain the
Canary Wharf and the rest of London.             skills needed to participate in construction
                                                 employment and training opportunities.
We have to help people to change their
own lives. Whether it is by giving them          Beyond that, we have also committed
assistance to get jobs, building the actual      £10 million to a programme of local
developments or by encouraging small and         employment, training, and supply-chain
social businesses to grow alongside the          support for the five Olympic boroughs –
new developments.                                Hackney, Tower Hamlets, Newham,
                                                 Waltham Forest, Greenwich – over the
For instance, we have already provided
                                                 next three years. This will include targeted
substantial funding to locally-based
                                                 employment support to enable people
organisations such as the Bromley-by-Bow
                                                 to take advantage of jobs created by the
Centre, the Leaside Regeneration in Tower
                                                 Games; funding for training in other related
Hamlets, and the Access to Excellence
                                                 sectors such as hospitality and tourism;
partnership in Newham, all of which are
                                                 business supply-chain development
now training and helping people into work.
                                                 initiatives to help companies access
Also at the Bromley-by-Bow Centre is Green
                                                 contracts; and funding to raise the career
Dreams, a landscaping and gardening
                                                 aspirations of young people in schools and
enterprise employing local people to build
                                                 make them aware of future opportunities.
their own landscapes, as demonstrated by

    LDA Annual Report and Accounts 2005/2006
LDA Annual Report and Accounts 2005/2006   5
Investment in infrastructure and places

The LDA is determined to improve the lives
of people throughout the capital, building
healthy, sustainable communities that work
to bring people together.

In December 2005 the LDA and the Joint            Crystal Palace Park
Planning Authority Team were awarded the          Crystal Palace Park is a historic treasure
Mayor’s Award for Planning Excellence for         in the heart of south London. Boasting
their good work in the Olympic Planning           a 150 year-old dinosaur park, it was
Process. In being given the Mayor’s Award         once home to the FA Cup Final and the
it demonstrated that the work of the              magnificent glass structure known as the
planners in the LDA and the respective            Crystal Palace.
borough planning departments was
absolutely key to winning the Olympic bid.        Following negotiations between the LDA,
                                                  the London Borough of Bromley (LBB), and
Wembley                                           Sport England, the LDA took over the lease
                                                  of the park’s National Sports Centre in
Regenerating London is not just about the
                                                  March 2006 and has an option to take over
east of the city and the Olympic Park. The
                                                  the rest of Crystal Palace Park by 2009.
LDA is determined to improve the lives of
people throughout the capital, building           The vision shared by all those involved is to
healthy, sustainable communities that             repair and rejuvenate the area, creating
work to bring people together.                    a 21st-century metropolitan park for local
                                                  people, sports people, and the public at large.
With the redevelopment of Wembley
the LDA has done just that, influencing           Beneficiaries of the project will include but
developer decisions on design, accessibility      not be limited to young people, the elderly,
and the quality of the public realm – all         and everyone who uses the Park for leisure,
despite having a relatively small landholding     sports, and relaxation. Even those who are
in the overall scheme.                            not regular users will see an improvement
                                                  in the economic health of their town centre
In conjunction with Transport for London
                                                  and neighbourhoods as the Park becomes
(TfL), we have worked to ensure that the
new pedestrian bridge link, station and
public square in Wembley are all now
nearing completion. The square and bridge
have both been designed by Marks Barfield         The vision shared by all those
Architects, designers of the London Eye,          involved is to repair and rejuvenate
and, as one of the Mayor’s ‘100 spaces’, the
square will provide a high-quality setting
                                                  the area, creating a st-century
for what promises to be a vibrant mixed-          metropolitan park for local people,
use urban quarter and a major contribution        sports people, and the public at large.
to the regeneration of Wembley.

6     LDA Annual Report and Accounts 2005/2006
a major attraction and source of local pride       Royal Arsenal and Woolwich town centre,
once again.                                        improving the night time economy and
                                                   increasing the attraction of the area.
Through two major consultation events
and on-going working group sessions, the           Already home to more than 1,000 people
local community has shown overwhelming             and a workplace for hundreds more, it will
support for this vision and for major              soon be fully integrated into Woolwich –
investment in improving the Park. The draft        doubling the size of the town centre and
planning framework has now been formally           playing a key role in the rejuvenation of the
approved by London Borough of Bromley.             wider Thames Gateway.

Royal Arsenal                                      London Bioscience Innovation Centre
In 2005/2006 the LDA partnered with                The London BioScience Innovation Centre
the private sector to invest £1.1 million          (LBIC) provides a focus for life science
in an ambitious redevelopment of the               activity in the capital by offering laboratory
Royal Arsenal at Woolwich, transforming a          and office facilities of an exceptionally high
disused and contaminated old armament              standard. Owned by the prestigious Royal
factory into an attractive, mixed-use,             Veterinary College, LBIC is the first and only
76-acre development. Alongside homes               incubator for biotechnology companies in
and businesses, the site also has a heritage       central London and is home to small start-
zone, which includes Firepower, the                ups as well as more established players.
Museum of the Royal Artillery, and the
                                                   With £2.7 million of funding from the LDA,
Greenwich Heritage Centre.
                                                   the amount of specialist biotechnology
The birthplace of Arsenal Football Club,           incubator space will be doubled and all
Royal Arsenal is now being developed to            jobs and businesses at the Centre will be
allow for 2,500 homes plus over 200,000            safeguarded. In the meantime, construction
sq ft of retail, leisure, restaurant, and office   works remain on schedule and budget.
space. This will build the link between the

                                                   LDA Annual Report and Accounts 2005/2006   7
Investment in infrastructure and places

LDA Opportunities Fund                           Included among the investments to be
The LDA Opportunities Fund supports a            made are:
range of innovative projects designed to         • £650,000 to Brent where small shops
eliminate pockets of deprivation through           and businesses in Willesden and
training, business support, and town               Wembley will receive training, promotion
centre regeneration. Many of the projects          and environmental improvements to
are designed to break down barriers to             make them more competitive
employment for disadvantaged groups
and are led by community and voluntary           • £820,000 to Redbridge to help small
organisations with local knowledge.                businesses and the marketing of the
                                                   town centre
Following an application process that
began in September 2005, funding                 • £1.4 million to Finsbury Park helping
was awarded to 94 applicants who had               businesses with marketing and
submitted high-quality proposals with              customer care
cross-borough benefits and partners from         • £8,000 to Mitcham where 100 traders
both the public and private sectors.               will receive training and business advice
The projects chosen to share the                 • £1 million to Local Employment Access
£50 million of funding were split into             Projects (LEAP) in Kensal Green. The
three themes: skills and employment,               BAME-led charity provides training
town centre and business locations, and            and one-to-one support to help change
the green economy.                                 attitudes to employment and improve
Black, Asian and minority ethnic (BAME)            skills. The project covers 14 boroughs
groups are by far the biggest beneficiaries        and is expected to train 792 people
totalling 46 out of the 94 projects. Another       and provide 396 people with access
32 will focus on equality issues for women         to employment over the three-year
and disabled people, while 14 will be              funding period.
supporting more than 6,000 businesses by         For the next round of the fund, the LDA will
helping to regenerate five town centres and      consult with the GLA, the voluntary sector
promote the green economy.                       and other key partners, to ensure projects
                                                 reflect the needs of London’s diverse
The LDA Opportunities Fund                       In total, it is planned that these projects will
supports a range of innovative                   provide training and employment support
                                                 for more than 14,000 women, 5,000
projects designed to eliminate                   disabled people and 15,000 people from
pockets of deprivation through                   BAME groups.
training, business support, and
town centre regeneration.

8    LDA Annual Report and Accounts 2005/2006
                                     “Essentially what we are doing is
                                     providing a very structured path
                                     into the creative industries.”

Finding our voice
“We have had plenty of people who have gone on to achieve through Urban Voice
projects,” says Lucy Mangua. “One that springs to mind is Brenda Edwards who
came through Urban Voice in 2000, was on The X Factor earlier this year, and is
now performing in the West End in the musical Chicago.”

As Director of Programmes at Urban Voice UK, Lucy is right to be proud of the
organisation’s success stories, including its own.

“Urban Voice started in 1998 as a community project set up by the singer/
songwriter Tony Biola. He was putting on open mic sessions around London, and
these then grew into an annual urban music talent competition.”

It wasn’t until 2003 that Urban Voice were able to tap into local authority and Arts
Council funding and establish itself as a non-profit organisation delivering training.

“A lot of the artists who were coming along were looking for artistic development,
music business information, and access to music business executives. So we
started off with music business seminars inviting executives for panel sessions and
Q&As. From there we set up a training course that was part music business and part
music performance called Gateway to Music.”

“Now that the LDA is giving us £527   ,000 as part of its Opportunities Fund over the
next three years we are able to provide a modular training programme with full
Btech and Skills for Life qualifications. The project – called Music Plus – will offer
personal development training for those people who aren’t just interested in the
music but want training in communication, goal setting, time management, help
with CVs, and interview skills.”

Although applications are expected to come mainly from black and minority ethic
backgrounds simply because of the nature of the course and the music, the project
is really aimed at all young adults over 16 who are unemployed with few or no
qualifications. This is because a key part of the project is being able to offer work
placements and apprenticeships, all with the ultimate aim of getting people into

“To get people into further education we will be using our links with institutions
like Lambeth College and South Thames College, who have some great courses in
music technology. But we will also be using our links with record companies and
publishing companies such as Turnfase Records, Westbury Music, EMI Publishing,
Universal, and others to get people into work placements as well. Essentially what
we are doing is providing a very structured path into the creative industries.”

                                                          LDA Annual Report and Accounts 2005/2006   9
             in people

0   LDA Annual Report and Accounts 2005/2006
London’s people are its greatest and most important
asset and much of this is down to the make up of its
population. London is the most ethnically diverse city in
the UK with almost a third of its population belonging
to a black, Asian or minority ethnic (BAME) group. But
London also has one of the lowest employment rates
in Great Britain, largely due to the disadvantages that
many people – women, disabled people, the Bangladeshi
community, and refugees to mention a few – face when
trying to join the labour market.

                                     LDA Annual Report and Accounts 2005/2006   
Investment in people

Only by ensuring that the most is made of the abundant
knowledge, experience and energy of the city’s multi-talented
workforce can we achieve the levels of productivity and
knowledge needed to maintain London’s competitive edge.

Not only is this an issue for those being         Following on from this, the LDA Regional
excluded, it is also an issue for London as a     Skills Partnership Productivity Programme
whole, limiting its potential for long-term       was launched in 2005/2006, targeting
sustainable economic growth. To counter           London’s key sectors including construction,
this, the LDA works to reduce labour market       financial services, health and transport.
disadvantage and tackle barriers to               By bringing together the main planning,
employment. Only by ensuring that the             funding and delivery organisations that
most is made of the abundant knowledge,           focus on skills and business support, it
experience and energy of the city’s               has delivered to over 1,300 beneficiaries.
multi-talented workforce can we achieve           We are now looking forward to using our
the levels of productivity and knowledge          leverage to support the Mayor in his new
needed to maintain London’s                       responsibilities for adult skills and his
competitive edge.                                 role as Chair of the new London Skills and
                                                  Employment Board.
Tackling general barriers                         Benefits were not just confined to key
to employment                                     sectors. Also launched in April 2005,
In a market place that is demanding               for example, was the first phase of the
increasingly higher skill levels, employers       employer-led Hospitality, Leisure, Travel
face the double challenge of improving            and Tourism (HLTT) skills and employment
the skills base of their existing workforce       programme, with the LDA investing
and recruiting suitably qualified new staff.      £3.5 million over three years into recruiting
It is therefore imperative that adults who        and retaining employees in the industry,
are already in work have opportunities to
improve their skills, while young people are
given the education, apprenticeship and
training opportunities they need to satisfy
employer demand.
To this end, we have worked closely with a
wide range of partners such as Jobcentre
Plus, Association of London Government,
Government Office for London, and the
London Sector Skills Councils, to publish the
2005/2006 prospectus and action plan for
the London Skills Commission (LSC). Led by
the LDA and the London Learning and Skills
Council, the LSC works with its partners
to ensure that learning, skills, business
and employment support are more
closely linked to the needs of the London
economy and its employers.

     LDA Annual Report and Accounts 2005/2006
engaging employers and building the skills       2005, this pan-London three-year pilot
base through training. In the first year         is investing £22 million in targeted
464 businesses were assisted, 112 people         support to provide 10,000 affordable
were supported into employment, and              childcare places. In 2005/2006, the LDA
605 employees were supported in skills           supported 3,100 affordable and flexible
training. In line with our aims for increasing   childcare places through the programme
equality, 40% of beneficiaries were from         while an additional 350 childcare places
a black, Asian or minority ethnic (BAME)         were created in London through the
group while 50% were women.                      Neighbourhood Learning Programme,
                                                 which opened its final centre last year.
Many women – and lone parents – find
access to childcare the main barrier to          But that’s not all. In 2005/2006 the LDA’s
playing an active role in the job market.        childcare team also produced a feasibility
Indeed, high child care costs often cancel       report for creating a London Childcare
out any financial advantage there may be         Portal. Currently, each of the 33 London
to working, particularly for women on            boroughs has a separate Children’s
low wages.                                       Information Service. However, many
                                                 parents face the dilemma of working in
That’s why we are delivering the Mayor’s
                                                 one borough, living in another and wanting
London Childcare Strategy, launched
                                                 childcare yet somewhere else. The planned
in 2003, to increase the accessibility
                                                 portal will be a one-stop website enabling
and affordability of childcare provision
                                                 parents to find and access childcare
throughout London. Within this, our largest
                                                 provision in the borough that they want.
childcare investment to date has been
                                                 Moving forward into 2006/2007, we will
the Childcare Affordability Programme
                                                 also be consolidating the LDA’s childcare
(CAP), enabling lower income parents to
                                                 activities and programmes into one
access the quality affordable childcare
                                                 specialist Childcare Unit.
of their choice. Launched in November

                                                 LDA Annual Report and Accounts 2005/2006   
Investment in people

                                                 The LDA and the European Social Fund
                                                 have co-financed a number of projects to
                                                 strengthen London’s labour market.

Focusing on disadvantaged                    Included among these is the LDA Skills
                                             and Employment Programme 2006/2008
groups                                       which is providing over £16 million towards
Currently there is a gap of 17 percentage    supporting the inclusion of disadvantaged
points between the employment rate of        individuals and improving the productivity
London’s black, Asian and minority ethnic    of businesses, focusing on funding for
groups and the employment rate for the       skills, employment support and assistance
city’s white ethnic group. At the same time, to businesses. To date the ESF Objective
women – as intimated earlier – are still     3 Co-Financing Programme has assisted
finding themselves under-represented         1,086 learners gain 230 full qualifications;
in the labour market with their average      progressed 64 leavers into employment,
employment rate at around six percentage and 89 into further positive outcomes;
points below the rate for London as a whole. created 727 learning opportunities with
The same goes for the average employment 30 hours of learning; and supported
rate for disabled people in London. It stood 135 of London’s small and medium-sized
at 40% in the year to summer 2005 and        enterprises (SMEs). Even better, the new
has shown no signs of improving.             programme for 2006/2007 provides
To reduce these disparities between          funding of up to £19 million specifically
different groups, the LDA and the European targeted to benefit London’s residents,
Social Fund (ESF) have co-financed a         workers and employers.
number of projects to strengthen London’s    But it is not just the established groups that
labour market. The projects cover training,  we need to cater for. There are an estimated
employment, and research, and tackle         600,000 people of working age in London
some of the hurdles encountered by the       with varying levels of ESOL (English
city’s economically excluded groups.         speakers of other languages) needs, but

    LDA Annual Report and Accounts 2005/2006
LDA Annual Report and Accounts 2005/2006   5
Investment in people

                                      There are whole areas, especially in inner London,
                                      where deprivation is particularly acute and where
                                      the LDA is working to make a difference.

only around 125,000 people who currently         strategic approach to addressing London’s
have access to ESOL learning. For 21% of         ESOL needs. Work is now being carried out
Londoners English is a second language,          to incorporate literacy, numeracy and key
whilst 19% have not achieved the level of        skills in the development of a Skills for Life
literacy, numeracy, or key skills expected       Strategic Action Plan for London.
from an 11 year old.
                                                 The TALENT programme was also set up
For example, one of the most marked              in response to London’s urgent need for
changes in London’s population in recent         new teacher trainers and good continued
years has been in the black African              professional development provision, to
population which grew by 215,000                 meet London’s Skills for Life agenda (see
residents, largely in east and south London,     case study on page 37). Skills for Life
between 1991 and 2001. Since London’s            acquisition (ESOL, Literacy, Numeracy,
refugees and asylum seekers face more            Key Skills, and ICT) is a crucial factor in
barriers than most – including language          responding to the capital’s social justice
problems and concerns about their rights         agenda, the productivity of its workforce,
– it is crucial that we provide them with        and its overall economic performance.
the basic tools to allow them to actively        Consequently, the LDA invested £1.7million
participate in London’s thriving economy.        from 1 April 2002 to 31 October 2005 on
                                                 the TALENT programme, which successfully
Therefore, a key project in 2005/2006 was
                                                 delivered 122 additional teacher training
the draft three-year Strategic Action Plan
                                                 programmes, trained 1,214 teachers, and
for English Speakers of Other Languages,
                                                 taught 49 new teacher trainers.
a scheme developed by London Skills
Commission partners to provide a joint           Importantly, the project provided an
                                                 invaluable pre-cursor in terms of its
                                                 delivery work and intelligence gathering
                                                 to inform the strategic work that has been
                                                 developed through the Regional Skills for
                                                 Life Flagship group. As a result the need for
                                                 a London Strategic Unit for the Learning
                                                 and Skills Workforce was identified. This
                                                 moves us further towards a strategy for
                                                 meeting London’s needs for teachers and

                                                 Focusing on deprived areas
                                                 Providing support for deprived
                                                 communities means more than just
                                                 identifying different groups of people. There
                                                 are whole areas, especially in inner London,
                                                 where deprivation is particularly acute
                                                 and where the LDA is working to make a

6    LDA Annual Report and Accounts 2005/2006
A special talent

In past career lives Wini Miller has been a carpentry teacher,
tutor in DIY for young mums, and worked in the world
of adventure play. So it was unlikely that her approach to
teaching English and Maths was ever going to be dry
and traditional.

“Don’t underestimate the effect you will
have on lives.”

Having trained to teach adults as part of the LDA and ESF’s
TALENT programme, Wini now teaches students from a wide
range of backgrounds at the College of North West London,
embedding English and Maths skills into all the activities
she oversees. And she loves it.

“Preparation and planning are vital – you need to go into
a room with a fixed idea of what you’re going to do. And
then you need to be completely flexible about that plan –
to explore those initial concepts with students. To bring
things alive and to elaborate – that’s a really important part
of the process.”

 “When you’re teaching adults it’s a completely different
relationship. They want to learn and you need to realise
the impact you can have on their whole lives. People will
identify with you and take you as a role model. It’s up to you
to be a good one. Don’t underestimate the effect you will
have on lives.”

                                     LDA Annual Report and Accounts 2005/2006   7
Investment in people

       A special talent (continued)

       Former I.T. Trainer of the Year, Anna Robinson knew she could teach.
       She just hadn’t found a place she really wanted to do it.

       A native of Sydney, Anna worked in San Francisco, Vancouver and
       a range of other enviable world locations before training to teach
       adults as part of the LDA/ESF TALENT programme and coming to the
       Ideas Store at Tower Hamlets.

       “It’s about demonstrating to these students that
       they really can achieve.”

       “For the first time, I feel like I’m with like-minded people. You have
       the opportunity to shape lives here. Yes, I was a good I.T. trainer,
       but here you have the flexibility to be whoever you like. You’re
       working with a group of people to make their dreams of a better
       lifestyle a reality.”

       Anna’s teaching method is to embed basic Maths and English skills
       into a range of creative activities. With her help, a group of local
       Bengali women wrote their own cookbook. But the project didn’t
       stop there. Buoyed by their achievement the group then desktop
       published it, before holding a book launch and giving telephone
       interviews to the local news journalists who reviewed it.

       “These classes are so closely linked to their self-confidence and
       sense of worth within their communities,” says Anna. “It’s about
       demonstrating to these students that they really can achieve.”

8   LDA Annual Report and Accounts 2005/2006
                                                             in line with targets. Over 481 have been
The Pathways to Jobs programme has                           supported into work and helped to
funded  projects to promote skills and                     develop their careers. The programme has
employment opportunities in priority                         been successful in targeting the creative
                                                             sector, and supporting people into jobs in
sectors across the City Fringe boroughs.                     the public sector, service sector and the
                                                             construction sector.
                                                             The project beneficiaries came
             For instance, as part of our goal to
                                                             predominantly from the four City Fringe
             regenerate and develop the City Fringe,
                                                             boroughs: Camden (200); Hackney (691);
             Kings Cross and Finsbury Park areas, we
                                                             Islington (371) and Tower Hamlets (722).
             finished testing our new job brokerage
                                                             The vast majority of beneficiaries were from
             toolkit last year. Produced in partnership
                                                             black, Asian and minority ethnic groups.
             with the London boroughs of Islington,
                                                             Over 7% of beneficiaries had a disability,
             Tower Hamlets, Hackney, Corporation of
                                                             although the real proportion may have
             London, Jobcentre Plus, and the Learning
                                                             been higher than this as many learning
             and Skills Council, the toolkit provides
                                                             disabilities go unreported.
             an effective means of linking local job
             opportunities with local people, particularly   The LDA has also supported the development
             those from BAME communities.                    of a Financial Services Skills Academy at
                                                             Tower Hamlets College. Over 50 City
             The Pathways to Jobs programme has
                                                             companies backed the new academy as a
             funded 12 projects to promote skills and
                                                             way of aligning vocational training with
             employment opportunities in priority
                                                             business needs. In addition, the LDA has
             sectors across the City Fringe boroughs.
                                                             provided on-going assistance to help secure
             The programme met its key outputs,              the private sector funding required for the
             helping 2,439 people to access Learning         Business Plan.
             Opportunities through the programme,

                                                             LDA Annual Report and Accounts 2005/2006   9
0   LDA Annual Report and Accounts 2005/2006
in enterprise
London is a great place to do business. It
has an above average share of employment
in high-technology services relative to other
world cities. It has high levels of inward
investment from outside London and the UK
and much higher productivity than the rest
of the UK.

                                                LDA Annual Report and Accounts 2005/2006   
Investment in enterprise

Starting and running a business can be            Responsibility and promoting London
difficult in a city where workspace and           as a key global business destination. We
labour are both at a premium, competition         will also work closely with other GLA
is intense, and getting access to finance can     Group members, addressing the impacts
be difficult. This is why more needs to be        of crime on quality of life and transport
done to ensure that people with a flair for       infrastructure, including CrossRail. Key
business – whether in the public, private or      deliverables in 2006/2007 will include a
voluntary sectors – can develop their ideas       series of ‘big business’ breakfast meetings
and make something of them. At the same           to discuss the key issues outlined above,
time Londoners must be helped to deal             the LDA Economic Conference to be held
with the benefits and challenges of moving        in February 2007, and a streamlined
towards a higher-value economy.                   stakeholder relationship management
                                                  system, aimed at improving the quality of
In 2005/2006 the LDA built on our existing
                                                  our relationships with business.
programme of initiatives designed to
maximise our role as a strategic partner
to London’s large businesses. These will          Breaking down barriers
be further developed and implemented in           The LDA plays a crucial role in bringing
2006/2007. Working closely with partners          together the public, private, and voluntary
including Think London, Visit London, CBI,        sectors so that they can all play their part
London First and the London Chamber               in breaking down barriers to business.
of Commerce and Industry, we aim to               For example, helping businesses to make
provide an overview of the complex London         the most of the world-class education,
landscape, developing vital insights into the     research, and technology resources that are
issues that are most important to business.       on their doorstep.
These include giving Londoners the skills
                                                  With this in mind, the LDA has taken over a
they need, building on the opportunities
                                                  number of business-support programmes
offered by the Olympics, Corporate Social

     LDA Annual Report and Accounts 2005/2006
Thousands of small businesses and
entrepreneurs will continue to receive
the free support they need to both
start up new enterprises and expand
existing ones, helping London
maintain its position as Europe’s
economic powerhouse.

             from central Government. Not only has this     During the year, a total of £4 million was
             helped us align business support services to   awarded to 150 SMEs. The bioscience
             the needs of London’s businesses, but it has   sector was one of the biggest beneficiaries
             also given a boost to our role as strategic    with six projects being offered between
             leader and main funder of business support     £75,000 and £200,000 each. A number
             in the capital.                                of projects were researching potentially
                                                            lifesaving innovations including 3D
             Amongst the programmes that we
                                                            breast cancer screening, treatments for
             supported was the Selective Finance for
                                                            cardiovascular disease, and a hormone
             Investment in England (SFIE) scheme,
                                                            to combat obesity. On 1 April 2005, the
             designed for businesses wanting to invest
                                                            Department of Trade and Industry handed
             in an ‘Assisted Area’ but needing financial
                                                            over the responsibility for the Business Link
             help to do so. SFIE support then helps fund
                                                            Network from the Small Business Service
             new investment projects which in turn lead
                                                            to the Regional Development Agencies.
             to long-term improvements in productivity,
                                                            Following an extensive five month
             skills and employment. In 2005/2006, SFIE
                                                            tendering process run by the LDA, Serco
             offers totalling £5.85 million were accepted
                                                            was awarded the three year Business Link
             by 29 companies of varying sizes.
                                                            Operator grant. Business Link for London
             Another programme that we now deliver is       will continue to run the capital’s small
             the Grant for Research and Development         business support unit before handing over
             (GRAND) scheme, which enables us to            responsibility to Serco in April 2007.
             support technically innovative SMEs.
                                                            The move will ensure that thousands of
             This not only means that new products
                                                            small businesses and entrepreneurs will
             reach the market when they might not
                                                            continue to receive the free support they
             otherwise have done so, but it also ensures
                                                            need to both start up new enterprises
             that London stays at the cutting edge of
                                                            and expand existing ones to help London
                                                            maintain its position as Europe’s economic

                                                            LDA Annual Report and Accounts 2005/2006   
Investment in enterprise

                                                 In 005/006 some 00 firms from the
                                                 north and east of London – who had
                                                 previously been refused finance – were
                                                 subsequently able to raise £7 million.

Serco will be responsible for ensuring all       Social Responsibility agenda. The LDA has
businesses can access free information           continued to offer substantial business
online or via telephone 24 hours a day,          support to social enterprises and the
seven days a week. It will provide               voluntary sector through the Pan-London
information, diagnostic and brokerage            Social Enterprise Development programme,
services which will include advice on how        the GrO2 initiative for social enterprises in
firms can tap into 2012 Olympic and              deprived areas, and support for the London
Paralympic opportunities. Serco will also        Voluntary Services Council and London
help businesses access other support             Funders.
providers in both the public and private
                                                 Owners of small and medium-sized
                                                 businesses often find access to
A number of additional LDA business              development funding a major barrier to
support programmes are ongoing or in             the progress of their business, as do larger
development, including the Business              ‘lifestyle’ businesses and social enterprises
London Start-Up and Micro Business               that are moving into new areas of activity
Support and Skills Development                   considered high-risk by traditional market
programme for pre-start, start-up and            lenders. The new Access to Finance
growth businesses; the Access to Finance         programme was launched to provide
programme; the London Manufacturing              funding for these businesses, particularly
Advisory Service; and the Employer Skills        those in deprived areas.
programme which ensures that employers
                                                 The Access to Finance loan programme
and employees have access to affordable
                                                 helps businesses to expand and present
training provision.
                                                 their ideas to lenders for finance. It does
The LDA has also, working with Business          this by offering businesses advice from
in the Community and a range of industry         private-sector specialists, increasing
partners, launched the ‘London Better            SME awareness of finance options, and
Together’ initiative to encourage small          providing loan facilitation.
businesses to engage with the Corporate

    LDA Annual Report and Accounts 2005/2006
LDA Annual Report and Accounts 2005/2006   5
In 2005/2006, 300 firms from the north
and east of London – who had previously           The LDA launched a report
been refused finance – were subsequently          ‘Business Priorities for
able to raise £17 million. In addition,           Women’s Enterprise in
over 70% of the businesses helped were
BAME-owned, while 30% were owned                  London’, following consultation
by women – two groups who have                    with women-owned businesses,
historically had difficulty in raising finance.   practitioners and policy
Having received great acclaim from the            makers.
Department of Trade and Industry, the
programme is now being rolled out
across London.
Last year the LDA also published ‘Redefining
                                                  Keeping London at the top
BAME Business’, our research report on            For the fourth year running the European
how black, Asian, Chinese and other               Cities Monitor has found London to be
minority ethnic businesses are becoming           the best European city in which to locate
a powerful economic force in London,              a business. London came first in terms
with an annual contribution to the city’s         of availability of staff, ease of access to
economy of £90 billion. The report                markets, languages spoken, transport links
contributed to the development of a new           and the quality of telecommunications.
BAME Business Support Action Plan which           Where London does not score so well
now provides a practical framework for the        however, is in terms of value for money
LDA and their partners to develop joint and       of office space, pollution, and employee
coherent business-support strategies and          quality of life. Because of this, the LDA
programmes to support BAME-owned firms.           has committed much time, energy, and
Since women make up 52% of London’s               funding to maintaining London’s position
population but own only 11% of the                as a key enterprise and trading location.
city’s businesses, last year the LDA              This commitment was recognised
launched a report ‘Business Priorities for        internationally by the prestigious
Women’s Enterprise in London’, following          US-based International Economic
consultation with women-owned                     Development Council, when the LDA won
businesses, practitioners and policy makers.      the best practice award for its lead role
This will now inform a co-ordinated action        in the development of the City Growth
plan for supporting the growth and start-up       programme. The programme worked
of women-owned businesses in London.              with hundreds of companies in inner

6     LDA Annual Report and Accounts 2005/2006
Perfect match
“I know it’s a cliché,” says Alison Dwyer, Marketing and Project Manager at the
British Library’s Business and Intellectual Property Centre, “but since we share
common objectives with the LDA our partnership with them really is a match made
in heaven.”

Thanks to a £1 million grant from the LDA, the British Library was able to transform
its Business and IP Centre from a successful pilot project into a permanent resource.

“The LDA want to harness London’s world-class knowledge base and what better
way to do that than to leverage the world’s best library on their patch. In turn, their
funding has given us an opportunity to make our resources more accessible and
widely known.”

The Centre aims to help the launch of up to 25,000 new UK businesses in its first
five years, cuts costs for start-ups and small and medium-sized enterprises (SMEs),
and is designed to support entrepreneurs from the initial spark of inspiration
through to successfully launching and developing a business.

“It’s a complete win-win situation.”
“The cornerstone of the services we provide is the amazing amount of information
that we hold. For a start, the British Library is entitled to a copy of everything
published in the UK and Ireland. We also have arguably the largest collection of
market research reports in the world. We give free access to online subscription
databases where you can get up-to-date information on company news and
financial news. We also have amazing intellectual property resources, including
some 50 million patent specifications. And we offer a number of workshops run by
our information experts or trusted partners.”

As Alison points out, having these resources under one roof is a great advantage for
entrepreneurs. One of their alumni entrepreneurs, for example, is Adam Pritchard
who launched the product Pomegreat. He used the Library’s science resources to
research the health-giving properties of pomegranates then went to the Centre to
research the market for his juice drink.

“If we weren’t here people would have to pay hundreds or thousands of pounds
to buy the research, which means they might not be able to do the amount of
research needed to make their business a success.”

“The LDA grant has also helped fund workshop rooms where our information
experts can help run sessions showing people how to make the most of our
resources. For instance, DAWN (the Dynamic Asian Women’s Network) run a
programme for creative entrepreneurs in our Centre. They get to hold it in a very
accessible London venue and we can tell these budding entrepreneurs how our
fantastic resources can help them. It’s a complete win-win situation.”

                                                           LDA Annual Report and Accounts 2005/2006   7
The University of Chicago closed their Graduate
School of Business in Barcelona and, with the help
of Think London, reopened it in London, further
enhancing the city’s reputation as a centre for
global business.

city areas on a range of business cluster
activities aimed at increasing their growth,       The £80 million White Hart Triangle
retention and competitiveness. In addition,        continued to be developed as a location
City Growth provided robust evidence-              for business and employment with
based, business-led strategies and
implementation plans for seven London              more than 0,000 square feet of
areas, which have become the framework             business space now complete.
for shaping business and economic
development in these areas. Key delivery
partners such as City Fringe Partnership,
Pool of London Partnership, South London           But to maintain London’s reputation as
Business, Park Royal Partnership, Heathrow         a great place for all business we also need
City Partnership, MICE Ltd and First               to provide London with a suitable
Protocol Ltd have been vital to the success        infrastructure. In Greenwich, for example,
of the City Growth programme.                      the £80 million White Hart Triangle
                                                   continued to be developed as a location
It is one thing being the best, but it is
                                                   for business and employment with more
quite another staying the best. We have to
                                                   than 120,000 square feet of business
create an environment which attracts new
                                                   space now complete.
businesses to start up while encouraging
established businesses to stay and expand.
                                                   Improving skills
Of course winning the Olympic bid will have
                                                   The London Annual Business Survey
a huge beneficial impact as it will attract
                                                   2004, undertaken jointly by the LDA and
new companies, workers, and overseas
                                                   Business Link for London, found that ‘the
investment to the city. But it is not just about
                                                   percentage of businesses reporting a lack
the London Games. The last 12 months have
                                                   of appropriately skilled employees as a
seen the launch of a number of schemes
                                                   significant problem’ stood at 25% in 2004.
designed to promote London as a great
                                                   Furthermore, evidence suggests that with
place to do business. Just one month after
                                                   a much larger workforce available, it is
the winning bid was announced, the
                                                   becoming more difficult for some London
University of Chicago closed their Graduate
                                                   residents to compete for jobs, especially
School of Business in Barcelona and, with
                                                   when faced with additional barriers to
the help of Think London, reopened it
                                                   employment such as a lack of skills or
in London, further enhancing the city’s
                                                   access to opportunities.
reputation as a centre for global business.

8     LDA Annual Report and Accounts 2005/2006
             By launching Addmore, the London               and waste. The Manufacturing Advisory
             Learning and Skills Council provides           Service (MAS) received an extra £9 million
             companies with an assessment of their          to support businesses with a telephone
             training needs and helps them with their       enquiry line, in-depth advice sessions,
             training and development plan. They            on-site visits, workshops, and follow-
             also give free advice on the most relevant     up support. The MAS has now exceeded
             training resources and subsidies available     its output targets by delivering over
             and offer up to £1,000 towards developing      900 business information sessions and
             the skills of staff and managers.              70 business advice sessions against targets
                                                            of 50 and 35 respectively.
                                                            In conjunction with this, the Lean Learning
Jumpstart helped more than 500 minority                     Academy (LLA) was launched, based at the
business owners to participate in innovation                Centre for Manufacturing and Engineering
                                                            Excellence in Rainham. The LLA teaches
programmes by creating a culture of                         managers and employees how to
innovation in the BAME community.                           implement systems that gives employees
                                                            a say in how to make their jobs easier,
                                                            more productive and more fulfilling.
                                                            Together, the LLA and MAS schemes are
                                                            helping our manufacturing firms compete
             Increasing innovation and                      with firms abroad.
                                                            Jumpstart was also aimed at increasing
             Along with the creative and production
                                                            London’s productivity and innovation.
             industries, life sciences and the
                                                            This is a two-year, £3.6 million programme,
             environment sector, innovation is one of
                                                            led by the LDA’s London Innovation Unit,
             five areas the Government has identified as
                                                            and is also aimed at increasing London’s
             crucial to improving productivity. Against a
                                                            productivity and innovation. The
             very competitive background, it is therefore
                                                            programme has a number of aims. One is
             vital that London’s enterprises understand
                                                            to help SMEs to connect and work with
             the need to develop innovative services,
                                                            the city’s colleges, universities and
             products and processes.
                                                            centres of creativity and research.A
             In September, London’s 16,000                  second is to extend and strengthen the
             manufacturers were given a dedicated           existing networks of SMEs, innovation
             package of services to help them cut costs     and knowledge. The third is to provide

                                                            LDA Annual Report and Accounts 2005/2006   9
Investment in enterprise

                   In 005/006, the LDA succeeded in leveraging £ million to
                   transform the Library’s Business and Intellectual Property
                   Centre from a successful pilot project to a permanent resource.

opportunity and inspire innovation,
creativity, and enterprise in London’s
                                                  Boosting creativity
diverse minority businesses.                      A sector that has received particular
                                                  attention over the last year has been the
Jointly funded by the LDA and the EU,             creative sector – a major force behind the
Jumpstart helped more that 500 minority           overall growth of the capital’s economy,
owners to participate in innovation               accounting for approximately one in five of
programmes by creating a culture of               all new jobs in London.
innovation in the BAME community. It has
also supported women inventors and those          Following on from the launch of the
from the disabled community, and enabled          Creative London Action Plan in 2004,
London’s Asian businesses to innovate             the Creative London programme was
in particular sectors including food and          established to help grow London’s creative
hair and beauty. The programme also               sector and to address key market failures
enabled more than 100 new collaborations          such as poor infrastructure, inappropriate
between higher education institutions             business support provision, and the low
and business.                                     uptake of BAME businesses.

One such beacon of knowledge in London            Focusing on four areas of intervention –
has always been the British Library               talent, enterprise, showcasing and
where, in 2005/2006, the LDA succeeded            property – a number of programmes
in leveraging £1 million to transform             have been launched under the Creative
the Library’s Business and Intellectual           London banner. Included among these is a
Property Centre from a successful pilot           Networking and Showcasing programme
project to a permanent resource (see case         which has provided networking
study page 47). So in May 2006 the doors          opportunities and progression routes
opened on a key component of the LDA’s            into industry, and provided funding to 30
strategy of delivering innovation support         emerging networks of creative enterprises.
to SMEs. Now the Centre offers arguably           More than 400 employment support
the largest collection of market research         outputs have been delivered, with 84% of
reports in the world; free access to on-line      these BAME-owned.
subscription databases giving up-to-the-          Also included was Own It, an intellectual
minute company information and financial          property advice service providing specialist
news; and access to the Library’s extensive       advice and support to 3,000 businesses,
intellectual property resources, including        and a Creative Industries Equity Fund
its collection of 50 million patents. The         launched in January 2006 to provide
upgraded Centre now aims to help the              £10 million in investment finance for early-
launch of 25,000 new UK businesses in its         stage growth companies. Also launched
first five years.                                 was the Creative Capital Fund (CCF), a
                                                  £5 million equity fund that helps talented

50     LDA Annual Report and Accounts 2005/2006
  entrepreneurs and businesses in London’s
  creative industries achieve their potential
  by providing seed capital investment
  and business support. Delivered by AXM
  Venture Capital Limited, the CCF addresses
  a genuine need for funding and advice for
  the capital’s creative sector. Together with
  matching private investment, the CCF will
  result in over £10 million of new funding
  available for creative enterprises.
  On the property side, sustainable growth
  within the creative industries is based
  on the accompanying development of
  both incubation and tailored workspace
  that supports start-up and enterprise
  activity. Because of this, Creative London is
  working with local partners and workspace
  providers to ensure that incubation support
  is available.
  In addition London Film Festival, London
  Fashion week and London Design Festival
  have all become welcome additions to the
  capital’s calendar.
  London’s creative sector is a perfect
  example of how the city’s economy is
  becoming increasingly marked by its high
  productivity, competitiveness and global
  orientation. Because of this the LDA is
  committed to supporting high-value,
  high-wage activities, as well as investing
  in companies and people so that they
  can compete and thrive.

LDA Annual Report and Accounts 2005/2006
              Investment in
              marketing and
               London is a key player on the global stage – a leading
               world city. Dynamic, creative, and commercially
               successful, it has a unique atmosphere, vibrancy and
               heritage that owes much to its rich mix of cultures.
               Its universities, museums and theatres attract visitors
               from all over the world and it is Europe’s top business
               location, attracting significantly more international
               investment than any other European city.

5   LDA Annual Report and Accounts 2005/2006
LDA Annual Report and Accounts 2005/2006   5
Visit London’s ‘London in
September’ campaign helped
to attract an unprecedented
.5 million visitors to events in
the capital.

The world is changing fast. Globalisation,       industry support, putting sub-sector,
growing international migration, improving       sub-regional and pan-London campaigns
levels of education, increasing fluidity of      into the global marketplace. Leisure
financial flows, and developments in             campaigns were launched in the core
information and communications                   overseas markets of the USA, Europe and
technology all mean that attracting              Japan, while at home Visit London’s ‘London
visitors, businesses and capital is becoming     in September’ campaign helped to attract
increasingly competitive.                        an unprecedented 2.5 million visitors to
                                                 events in the capital.
In order to achieve the objectives of the
other three investment themes – people,          July 2005 also saw London win the chance
enterprise, infrastructure and places –          to host the 2012 Olympic Games and
as well as maintain our share of global          Paralympic Games, a fantastic opportunity
tourism and our position as Europe’s             for us and our partners to develop London
leading business location, we must               as a truly global city.
promote London to the rest of the world,
                                                 Because of this and because of the expiry
targeting our marketing and coordinating
                                                 of the Mayor’s Plan for Tourism and
our messages. We also have to promote
                                                 Tourism Action Plan in March 2006, one
London nationally, not only to boost
                                                 of our main priorities was to develop a
spending and re-investment but to develop
                                                 new tourism strategy and action plan. The
a sense of civic pride and commitment.
                                                 London Tourism Vision and Action Plan
                                                 was published in May 2006 setting out
Promoting London as a                            London’s path toward becoming a global,
tourist destination                              sustainable and inclusive city that offers
In 2005, London was rocked by the 7 July         a top-quality experience to visitors and
bombings. Faced with an immediate                professionalism at every level. With a ten-
reduction in visitor numbers, the LDA and        year life-span, from 2006 to 2016, the new
Visit London responded with marketing and        Vision will ensure that maximum benefits

5    LDA Annual Report and Accounts 2005/2006
                                                        Other priorities included delivering pan-
The London Tourism Vision and Action Plan               London visitor information via the Britain
was published in May 006, setting out                  and London Visitor Centre (BLVC) and
                                                        implementing a programme of support
London’s path toward becoming a global,                 for the Tourist Information Centre (TIC)
sustainable and inclusive city that offers              Network. The TIC Network support
a top-quality experience to visitors and                programme covers a range of services for
professionalism at every level.                         London TICs including quality assurance,
                                                        a variety of training opportunities, network
                                                        co-ordination, and advice. Market research
                                                        undertaken at BLVC into visitor satisfaction
            are achieved for the economy before, during showed a 4.69 satisfaction rating (out of
            and after the 2012 Olympic Games and        five) for the Centre with 97% of visitors
            Paralympic Games.                           saying they would recommend it.
            A key partner in delivering the London         As of last year, all of London’s five sub-
            Tourism Vision and Action Plan is Visit        regions now have a Sub-Regional Tourism
            London, whose remit is to market and           Development Strategy designed to improve
            promote London as a visitor destination.       the distribution of tourism’s benefits, as
            In 2004/2005 Visit London’s marketing          well as promote the breadth and diversity
            activity generated £317 million of             of London’s tourist offering.
            economic benefit to the capital, a return
                                                           Examples of sub-regional projects delivered
            on investment of 23:1. In 2005/2006 the
                                                           this year include a brand mapping exercise,
            LDA negotiated a new four-year funding
                                                           visitor surveys, Visit London’s increased
            grant for Visit London during which time it
                                                           coverage of sub-regional attractions
            will capitalise on past marketing activities
                                                           and destination training and market
            to deliver a total anticipated economic
                                                           segmentation. As well as research into the
            benefit to London’s tourism economy of
                                                           effect of the closure of the Channel Tunnel
            £1.27 billion.
                                                           Railway Link at Waterloo and the future
                                                           impact of its transfer to Kings Cross.

                                                           LDA Annual Report and Accounts 2005/2006   55
Investment in marketing and promotion

London International                              Think London assisted 9 overseas-owned
Convention Centre                                 businesses to set up operations in London,
Feasibility work continues on the                 and created ,800 jobs.
development of a London International
Convention Centre (ICC). In October 2005,
the London International Convention
Centre Mayoral Commission (funded                 Finally a new initiative, London Unlimited,
and managed by the LDA) announced its             was launched in November 2005 with the
findings, stating that an International           aim of promoting and reinforcing London’s
Convention Centre for London was                  brand position as ‘Globally Inclusive’
‘feasible, justified, necessary and overdue’.     consistently across a range of sectors to
The Commission has now been asked                 multiple audiences including businesses,
to progress its study and is researching          tourists and students. Activities such as the
location options and funding packages for a       Russian Winter Festival/Ice House project,
London ICC.                                       and ‘China in London’ both generated
                                                  significant national and international
This is especially important in light of the      media coverage in key emerging markets,
2012 Olympic Games and Paralympic                 raising London’s profile even further as the
Games, which will have a huge impact              best city in the world in which to invest,
on our business and tourism industries.           visit, study, and conduct business.
For example, Sydney, Barcelona and
Athens, all massively increased their             Business tourism proved to be more
convention business following the                 resilient than leisure tourism after the
success of their Games.                           bombings of 7 July but it also needed
                                                  urgent attention with specific sales and
                                                  promotional activity generated across all
Major events                                      major markets.
In 2005/2006 the LDA supported a range
of major events across the capital. Included
amongst these were the hugely successful
                                                  Promotion of London as a
New Year’s Eve celebrations which were            business location
watched live by over 10 million viewers on        Thanks to a greater focus on targeted
the BBC, the final stage of the Tour of Britain   sectors and increased promotional activity,
cycle race, the VE Day anniversary concert,       Think London, the LDA funded Foreign
and the ‘Trafalgar 200’ celebrations.             Direct Investment (FDI) agency for London,
                                                  delivered increased deal flow and FDI
Recognising the need to adopt a more
                                                  successes in 2005/2006. It also assisted
strategic approach towards events like
                                                  119 overseas-owned businesses to set
these, the LDA is partnered with the GLA
                                                  up operations in London, and created
and Visit London to develop a Major
                                                  2,800 jobs. To attract additional foreign
Events Strategy for London. Due to be
                                                  investment to London and to encourage
finalised in 2006/2007 for immediate
                                                  overseas companies to set up business,
implementation, the strategy seeks to
                                                  Think London also set up its first office in
change the way London creates, develops
                                                  the US and another in Beijing, China.
and attracts world class major events.

56     LDA Annual Report and Accounts 2005/2006
LDA Annual Report and Accounts 2005/2006   57
Investment in marketing and promotion

In 2004 alone, investment into London            and providing support to those companies
from greater China totalled £120 million.        considering relocation, consolidation or
Two years later China continues to               expansion. Working with our five
experience huge economic change and              sub-regional delivery agencies we were
growth, and our representative office            able to secure 158 retention projects
there will help London make the most             in 2005/2006, thereby safeguarding
of opportunities relating to inward              3,200 jobs.
investment, international trade, sector
                                                 A prime example of our success was our
development, tourism and cultural
                                                 work with the Otto Group, a German
exchange. Our presence also demonstrates
                                                 conglomerate that intended to relocate to
our determination to target potential
                                                 Bradford after its planned redevelopment
foreign investors with support and advice
                                                 of the Clapham Road Freemans HQ site
early on in their decision-making.
                                                 was refused by Lambeth Council. This
A key priority for the future will be to         would have displaced some 350 multi-
learn from the experiences of the Beijing        disciplinary staff.
authorities who will be hosting the 2008
                                                 The LDA and the Central London
Olympic Games and Paralympic Games. In
                                                 Partnership interviewed all stakeholders
the meantime, we have already begun to
                                                 and recommended that the Otto Group
look at other emerging markets – such as
                                                 submit a new application. Following a
India and Russia – who have similar growth
                                                 year of negotiations covering planning,
potential and opportunities.
                                                 security, regeneration, childcare and
                                                 community relations, a successful outcome
Business retention                               was reached. Once the development is
In addition to assisting overseas-owned          underway the LDA expects the delivery of
businesses to set up in London, the LDA          around 100 additional jobs incorporating
funds a Business Retention Programme             childcare and/or a business conference
focusing on London’s existing businesses         facility.

58    LDA Annual Report and Accounts 2005/2006
London has so many good
things to offer the world,
including its position as the
principal gateway to the
UK for many visitors and

London has so many good things to offer         Guided by the objectives of the Economic
the world, including its position as the        Development Strategy and the new London
principal gateway to the UK for many            Tourism Vision and Action Plan, we are
visitors and investors. In the past, however,   determined to put all our commitment,
the fragmented effort and involvement of        organisation and resources into ensuring
a large number of bodies have hindered          that London maintains its position as
the successful marketing of London.             Europe’s top location for enterprise.

                                                LDA Annual Report and Accounts 2005/2006   59
                 In addition to our four main investment themes,
                 infrastructure and places, people, enterprise
                 and marketing and promotion – there are also
                 three additional themes – equality, health and
                 sustainability – that are an integral part of all
                 our work. Our focus on these three cross-cutting
                 themes is critical to our ability to deliver the
                 Mayor’s vision for London as a sustainable world
                 city. Increasingly, we are embedding these themes
                 into our mainstream delivery programmes.

60   LDA Annual Report and Accounts 2005/2006
LDA Annual Report and Accounts 2005/2006   6
Since all our projects are now assessed on        to shape our overall approach to equality,
their ability to deliver against these themes,    sustainability and health. In addition,
we are seeing a shift away from specialist        we have also established a cross-agency
projects, unless they meet a specific             Senior Management Equality Forum
requirement. We are also moving away              (SMEF), chaired by our Executive Director
from simple input measures, such as levels        of Resources and Equality. Together these
of investment or numbers of specialist staff      groups monitor performance both in
needed on a project. Instead we are moving        terms of our investments and our actions
towards measures which better reflect the         as an employer. Our performance is also
real, broader impact of our investments.          monitored closely by the GLA.
While the LDA already requires all projects
to undertake impact assessments for
equality, health and sustainability,
our Board has established an Equality
Monitoring and Review Group and a Health
and Sustainability Advisory Group. These
will allow us to draw on specialist expertise

The LDA requires all projects
to undertake impact
assessments for equality,
health and sustainability.

6     LDA Annual Report and Accounts 2005/2006
Although London’s diverse population is often
regarded as its most important economic asset it
remains an advantage that is being under-utilised.
This is not only uneconomic, it is also unjust.

If London is to achieve long-term               To this end, we use Equality and Community
sustainable economic growth we must             Cohesion Impact Assessments to build in
promote inclusion and equal opportunity         positive impacts for minority groups in all
for all, regardless of gender, ethnicity,       our strategies, policies and projects from
disability, age, faith or sexual orientation.   the start. This can range from strategic
In fact, the very most must be made of          work with minority business owners
London’s extraordinary diversity of skills      and aspiring entrepreneurs to help their
and experience so that everyone in the city     business grow, to the impact assessment of
can play a part, not just in influencing the    our Economic Development Strategy.
economy, but in reaping the rewards from
                                                Our commitment to monitoring our
its growth.
                                                equality impact assessments and any
To address this imbalance and ensure            potential effects on Londoners themselves
that the city’s success includes its diverse    is at the heart of our work. In applying
population, the LDA is committed to             London Plan policies on accessible housing,
ensuring that public funds are attributed       we advocate the principles of inclusive
according to a robust evidence base so that     design, allowing us to identify and solve
all Londoners can benefit from our work.        relevant issues such as access strategies.

                                                LDA Annual Report and Accounts 2005/2006   6
Thanks to this high level of dedication, the      delivery and employment processes for
LDA became one of the first organisations         some time.
in the country to achieve Level 5 of the
                                                  Equality targets were set at challenging
Equality Standard for Local Government
                                                  levels, mostly above the demographic
(ESLG). We have been independently
                                                  norms. The mainstreaming approach to
assessed at Level 5 and are awaiting
                                                  equalities work we have adopted is founded
ratification from our auditors. The initial
                                                  on our target setting, monitoring, training,
assessment recognised that the LDA had
                                                  equality impact assessment processes and
been committed since its inception to
                                                  use of the Corporate Investment Panel
achieving equality for all Londoners and
                                                  to equality proof all planned work. We
that it had been working to mainstream
                                                  also target specific areas of need through
equalities into its strategic, business,
                                                  specialist projects such as Diversity Works
                                                  for London.

6     LDA Annual Report and Accounts 2005/2006
The LDA became one of the first organisations in
the country to achieve Level 5 of the Equality
Standard for Local Government (ESLG), and are
awaiting ratification from our auditors.

                                                     Procurement Development Project, a
      Diversity Works for London                     three-year initiative which helps Small
      In 2005 the Mayor of London launched the       and Medium sized Enterprises (SMEs) in
      Diversity Works for London programme.          London to access public and corporate
      By partnering with equality agencies           sector contracts. With the ultimate aim of
      and key stakeholders from the business         enabling SMEs to successfully tender for
      community, the programme aims to tackle        public sector contracts, the project has a
      the barriers and discrimination faced          BAME target rate of 75%.
      by working people and entrepreneurs in
      London, while simultaneously encouraging       In 2005/2006, these types of programmes –
      businesses to make the most of the capital’s   designed to make SMEs ‘fit-to-supply’ –
      extraordinary diversity.                       were successful in increasing the number
                                                     of engagements with developers and
      Diversity Works’ four key priorities are to    ‘buyers’, and ensured that 66% of the
      campaign to engage private, public and         SMEs supported by Supply London were
      third sectors in promoting equality; to        owned and/or managed by people from
      champion workforce and supplier diversity;     BAME backgrounds. They also established
      to help businesses ensure that all levels      strategic relationships with a number of
      of the workforce reflect the diversity of      intermediary organisations such as the
      London’s population; and to seek out and       Prince’s Trust, the Asian Business Forum,
      promote good diversity practice.               the Gay Business Association, a whole
      One of the flagship initiatives of the         spectrum of faith groups, and the European
      Diversity Works programme is the               Black Women Business Owners Federation.

                                                     LDA Annual Report and Accounts 2005/2006   65
In 005/006, the LDA distributed over £500,000 of grants –
from £,000 to £0,000 – to 90 inner city firms for staff training
and management development through the Inner City
Entrepreneurs’ Fund.

Also supporting women is the Women’s              training and management development
Enterprise Action Plan, launched to help          through the Inner City Entrepreneurs’ Fund.
female entrepreneurs access more contract
                                                  In addition:
opportunities. After reviewing evidence
in the London Annual Business Survey              • 48% of the 2,400 businesses that
(2004) which showed that only 11% of all            improved their knowledge of the
businesses in London could be categorised           procurement process through supply
as women-owned, the LDA commissioned                chain programmes were BAME-owned
the ‘Business Priorities for Women in
                                                  • of the 806 businesses that successfully
Enterprise in London’ consultation report.
                                                    raised finance as a result of the Finance
The report represents a crucial first step
                                                    Readiness advice programme, 58%
in supporting the growth and potential of
                                                    were BAME-owned, 30% were owned
London’s female-owned businesses.
                                                    by women and 4% were owned by a
                                                    disabled person
Supporting diverse
                                                  • of the 197 businesses assisted and 88
businesses                                          individuals supported into employment
Diversity Works is just the tip of the iceberg      through the Hospitality, Leisure, Travel
as far as the LDA and equality is concerned.        and Tourism (HLTT) skills programme,
In 2005/2006, the LDA distributed over              40% were from a BAME group and 50%
£500,000 of grants – from £1,000 to                 were women
£10,000 – to 90 inner city firms for staff

66     LDA Annual Report and Accounts 2005/2006
• of the 1,060 people who received              to expand their work helping young and
  30 hours of skills training, and of the 204   disadvantaged African-Caribbeans to
  people who were supported into work by        progress in education and employment.
  the City Fringe Sector, 50% were BAME,
                                                The Bernie Grant Centre also continues
  45% were women and 7% were disabled
                                                to progress. The project will provide a
                                                dedicated arts, education, training and
Centres of excellence                           enterprise programme in a flagship venue
Inner city London has also seen the             in Tottenham, expanding participation of
development of the Rich Mix Centre. This        black and culturally diverse communities in
focus of cultural activity and business         performing and production roles of the arts
support will capitalise on the diversity        media and broadcasting.
of London’s culture to become a local,
regional, national and international            2005/2006 Equality
destination venue, by linking with
established heritage museums and
participating in a wide variety of festivals.   The following tables show our performance
                                                against targets set for supporting black,
The Stephen Lawrence Centre also                Asian and minority ethnic communities,
saw progress during the year with the           disabled people and women in 2005/2006.
development of a training programme and         The majority of these beneficiaries
a business plan. When the Centre opens          supported by the LDA are taking part in
it will provide mentoring rooms, flexible       mainstream projects.
education studios, computer learning
resources, and business development suites      As shown on page 11, the LDA measures its
for young entrepreneurs. There will also be     performance against ten targets covering
a state of the art Creative Arts Laboratory     issues such as brownfield land remediated
with multi-media design and digital studio      to childcare facilitated. It is only relevant
facilities, as well as exhibitions, seminars    and possible for us to set targets and
and creative residencies. This will allow       monitor outputs for BAME’s, disabled
the Stephen Lawrence Charitable Trust           people and women in four areas.

                                                LDA Annual Report and Accounts 2005/2006   67

1) Business support – number of businesses
   assisted to improve their performance          Black, Asian and minority ethnic
                                                  community beneficiaries 2005/2006
2) Business creation – number of new                                    Target    Actual
   businesses created and demonstrating           Business	support	        29%	     7%
   growth after 12 months and businesses
                                                  Business	creation	       29%	   .5%
   attracted to the region
                                                  Skills		                 40%	     7%
3) Skills – total number of people assisted in
                                                  Employment	support	      40%	   6.5%
   their skills development, basic skills and
   level two skills
4) People into jobs/employment support –
   number of people assisted to get a job         Disabled beneficiaries
                                                                        Target    Actual
We performed well against our targets for
BAME beneficiaries, but we did not achieve        Business	support	         5%	    .%
all our targets for disabled people and           Business	creation	        5%	    .5%
women. However, we did improve on our             Skills		                 10%	    5.5%
2004/2005 performance across all our
                                                  Employment	support	      5%	     .9%
targets for women beneficiaries, and on our
targets for skills and employment support
for disabled beneficiaries.
More work is being done across the                Women beneficiaries
agency to further raise awareness and                                   Target    Actual
understanding of equality issues, in              Business	support	        15%	     9%
particular those relating to disability. Steps    Business	creation	       15%	   5.5%
have been taken to check the accuracy of
our reporting, make our Directors more            Skills		                 50%	     5%
accountable for equality targets and              Employment	support	      50%	     6%
to use our Corporate Investment Panel
(which makes all our funding decisions),
to prioritise projects which address
current underperformance and check
that equalities are built into all relevant
future projects.

68     LDA Annual Report and Accounts 2005/2006
LDA Annual Report and Accounts 2005/2006   69
         and health
                   The Mayor’s vision for London as a sustainable
                   world city requires an approach that tackles
                   inequalities and incorporates wider quality of life
                   and environmental improvement as an integral
                   part of economic development.

Sustainability                                    sustainability and health policy. Whilst
Our work on the cross-cutting themes              the two are separately constituted, both
is crucial. Without it we would not be            Commissions take an integrated view
able to deliver our objectives: tackling          which embraces well being and quality
discrimination, addressing poor                   of life.
environmental quality, encouraging                The London Sustainable Development
economic growth and improving the                 Commission have developed a Framework
quality of life for all Londoners.                which presents an holistic view of
Fulfilling this vision requires concerted         sustainability, based on the four Rs of
action, which not only addresses the              developing respect, taking responsibility,
complex needs and differing priorities            managing resources and getting results.
of Londoners but contributes to the               The LDA is represented on the London
achievement of sustainable development            Sustainable Development Commission and
in the UK. Economic efficiency must be            seeks to embed the framework into its work
improved and its benefits shared in order to      programme.
increase social cohesion and environmental
quality, and raise the overall quality of life.   The London Health Commission (LHC)
                                                  conducts a programme of work based on
Within London, the London Sustainable             priorities identified in the London Health
Development Commission and the London             Strategy (2000). The Commission has
Health Commission set the context for             conducted a Health Impact Assessment of

70     LDA Annual Report and Accounts 2005/2006
all the Mayoral strategies and has recently    business and ensure all London businesses
identified four health challenges, published   have ready access to quality advice on
in their prospectus for 2006 to 2008.          how to become more resource efficient.
                                               Meanwhile, we are working with businesses
• Challenge 1: increase the number of
                                               in key sectors to test and develop the
  disabled people in employment
                                               business case for resource efficiency.
• Challenge 2: introduce smoke-free
                                               The fact is that the scale and concentration
  workplace policies
                                               of activity that makes London a global
• Challenge 3: improve access to effective     economy also puts particular pressure on
  language support services for their users    its environment. And yet, a high quality
                                               environment is essential to the businesses,
• Challenge 4: help improve the emotional
                                               residents and visitors upon which that
  health and well being of young
                                               economy depends. So a fine balancing act is
                                               required, which is where the LDA comes in.
As a member organisation of the LHC we
                                               Whether it is by helping businesses
have immersed ourselves in the work to
                                               to appreciate the benefits of being
tackle these four challenges. For example,
                                               environmentally responsible, or by building
developing targeted projects such as
                                               sustainable design and construction
assisting disabled Londoners to learn new
                                               principles into our development activities,
skills and gain employment.
                                               or by equipping Londoners with the skills
Opportunities exist for the LDA to promote     to participate in the green economy, the
environmental responsibility through its       LDA works to protect and enhance the
engagement with business. The LDA is           environment, improve the quality of public
setting up a regional function to coordinate   areas, and tackle the causes and effects of
the provision of environmental advice to       climate change. Only in this way can we

                                               LDA Annual Report and Accounts 2005/2006   7
ever hope to have an economy that we can
truly call successful.                           To drive the strategy forward,
                                                 the Mayor launched the
London Climate Change Agency
                                                 London Climate Change
In the face of climate change, large,
major-energy consuming cities like London
                                                 Agency (LCCA) in June 005,
have a responsibility to minimise their          in partnership with private
carbon emissions. But, by virtue of their        sector firms such as BP, HSBC,
high population densities, they are also         Lafarge, Legal & General,
in the best position to take advantage
of new energy systems and schemes for
                                                 Sir Robert McAlpine, and
renewable energy.                                Johnson Matthey.
Taking the initiative, the Mayor’s Energy
Strategy of 2004 committed London to             As part of a whole raft of initiatives, the
reducing carbon dioxide emissions by             LCCA has chosen EDF Energy, one of the
20% – relative to the 1990 level – by 2010.      largest energy companies in the UK, to
At the same time, the strategy also expects      set up a joint-venture Energy Services
a zero-carbon development in every London        Company (ESCO) with the remit of
borough by 2010 and aims to generate 665         developing sustainable energy schemes
GWh of electricity from renewable sources –      for London. But not everything is on such
enough power for 100,000 homes.                  a big scale. The LCCA is also developing
                                                 high-profile flagship projects that
To drive the strategy forward, the
                                                 demonstrate innovative technologies
Mayor launched the London Climate
                                                 such as photovoltaic power generation
Change Agency (LCCA) in June 2005, in
                                                 and hydrogen fuel cells. At the same time
partnership with private sector firms such
                                                 they are working to stimulate research
as BP, HSBC, Lafarge, Legal & General, Sir
                                                 supporting other projects that might
Robert McAlpine, and Johnson Matthey.
                                                 reduce emissions either by creating
Established as a municipally-owned
                                                 markets for future energy technologies
company, the LCCA aims to provide a new
                                                 or by increasing the use of renewable
energy infrastructure that will support
                                                 resources in new developments.
business and communities by delivering
low and zero-carbon energy projects
and services. But what does this mean
in practice?

7    LDA Annual Report and Accounts 2005/2006
In 00, the LDA commissioned the Green
Grid framework, a plan for a network of
interconnected green spaces and corridors
in east London.

Perhaps the most ambitious of the LCCA’s        improve its biodiversity, mitigate against
activities are the ‘energy island’ projects     some of the impacts of climate change,
which seek to provide stand-alone or            contribute to the health of the population,
‘private wire’ low-carbon energy to the         and improve access to recreation facilities
LDA’s own sites.                                for people in east London.
Making major cities zero-carbon emission        Having completed the framework, we then
is achievable and urgent if we are to stop      chaired a steering group with its partners
the climate spiralling out of control. We can   in order to supervise work, and a report
be proud that London is driving towards a       was published in the summer of 2005. The
low-carbon economy and setting the standard     next steps are being led by the GLA and the
for cities around the world. As Stephen         Thames Gateway London Partnership in
Tindale, Greenpeace Executive Director said     order to resolve issues such as governance,
about the London Climate Change Agency:         the identification of initial Green Grid
“This initiative puts London at the forefront   projects, and their project leads.
of the fight against climate change.”
                                                Recognising the importance of high-quality
                                                green and public space as a key element
The Green Grid
                                                in regenerating deprived areas, the LDA
The predicted population increase, and          invested over £20 million in green and
the redevelopment of many areas of east         public spaces in 2005/2006. Aside from the
London that is needed to meet it, will          Green Grid, projects have included a major
place demands on the capital’s green            upgrade of the public realm in Wembley,
spaces. Since much of the regeneration          proposals to take over management
of east London will be concentrated on          of Crystal Palace Park, as well as local
a narrow band of development sites              investments in Rainham, Barking Town
alongside the Thames, the Lower Lea, and        Centre and Waterloo.
the Lower Roding, it is crucial that there is
a commensurate increase in the provision        Investment in green industries
and quality of green space.
                                                Tackling London’s waste problem is a major
In 2004, the LDA therefore commissioned         challenge but one that also represents
consultants to prepare the Green Grid           an economic opportunity – creating new
framework, a plan for a network of              businesses and jobs for the city while
interconnected green spaces and corridors       simultaneously turning its waste into new
in east London. Varying in size, character      resources. Because of this we scaled up
and function, the grid will enhance the         our investment in London’s waste sector
aesthetics and infrastructure of the area,      in 2005/2006, putting £2.3 million into

                                                LDA Annual Report and Accounts 2005/2006   7
Sustainability and health

capital grants for developing infrastructure   development while the MGPC works to
and tailored business support for waste-       develop the market for the product. The
sector businesses.                             Code has been so successful in providing
                                               support and advice to bigger organisations
One important group of beneficiaries has
                                               on buying green products that the third
been small and medium-sized enterprises
                                               Annual Purchase report recorded a nine-
(SMEs) who are often unaware of the
                                               fold increase in purchases of products with
need for quantified quality processes,
                                               recycled content. We are pleased to say
sustainable development policies, managed
                                               that this has resulted in the creation of
audited accounts, and health and safety
                                               480 jobs and 380,000 tonnes of waste
certification. Because of this, they are often
                                               being diverted from landfill.
unable to make the most of the commercial
opportunities afforded to them by London’s So, in addition to supporting London’s green
public and private sector supply chain.        industry sector, we are also developing
                                               initiatives to encourage all London
Delivered by London Remade and the
                                               businesses to become more resource-
London Community Recycling Network,
                                               efficient and to reduce their environmental
with steering group support from the Waste
                                               impacts. As part of the national BREW
and Resources Action Programme (WRAP),
                                               (Business Resource Efficiency and Waste)
Enhance is an LDA programme focused
                                               programme, for example, we have made
on supporting the development of those
                                               an initial investment of over £600,000 in
SMEs and social enterprises involved in
                                               projects that support and advise SMEs in
recycling, reprocessing or remanufacturing.
                                               London. Next year we will be establishing
With £1.8 million in funding from the LDA,
                                               a pan-London coordination function to
the programme will provisionally run until
                                               ensure that all businesses can get easy
March 2007, providing help with marketing
                                               access to quality environmental advice.
and communications strategies, financing
and funding, obtaining land and premises,      In 2005/2006, we set up the Green
and accessing new markets. It will also        Office Group to reduce the LDA’s own
give support in the form of mentoring,         environmental impacts. Our Green Office
training, business development, and            targets for 2006/2007 are to recycle
sector information.                            50% of our waste, reduce our total waste
                                               by 10%, achieve level B2 of the Mayor’s
The programme works alongside other
                                               Green Procurement Code, and reduce
business support and environmental
                                               energy consumption by 5%. Some of these
projects. Included among these are the
                                               targets will now be made easier to achieve
Furniture Recycling Network, the London
                                               by the fact that in 2005/2006 we also
Recycling Fund, the EnviroEntrepreneur
                                               worked with WRAP to secure London’s first
Summer School, and the Inspired Recycling
                                               recycling plant for PET plastics (e.g. clear
programme which designs products with
                                               plastic bottles for fizzy drinks, etc), due to
recycled content.
                                               be opened in 2007/2008.
Enhance has also formed a partnership
with the Mayor’s Green Procurement Code
(MGPC) whereby it supports business

7     LDA Annual Report and Accounts 2005/2006
The LDA scaled up its
investment in London’s waste
sector in 005/006, putting
£. million into capital grants
for developing infrastructure
and tailored business support
for waste-sector businesses.

                                   LDA Annual Report and Accounts 2005/2006   75
Sustainability and health

Health                                           Health services contribute to London’s
Health and economic development are              Gross Domestic Product (GDP) through:
connected in two ways. Firstly the wider         • commissioning of new facilities and as
health sector has a material role as an            a large landowner in London
economic force for London, and secondly
there is the fundamental role of economic        • their impact on direct employment,
development in improving the health of             training and education, more than
Londoners and tackling health inequalities.        200,000 people are directly employed
These twin roles provide a basis for the LDA       in health and social care in London
to engage with the health sector to promote      • procurement of goods and services
an integrated and sustainable approach
to regional economic development.                • generating new products and services
In addition, the LDA has the lead role           The impact of employment on health
responsibility for the Department of Health      is the most strongly evidenced of the
across the RDA network. How London is            wider determinants of health. The LDA is
developed economically and physically to         supporting a number of projects through
create sustainable communities will have         the 2006 Opportunities Fund (see page
a profound impact on the population’s            28 for further information), which are
health. It thus needs to be undertaken in        providing training and development
ways that maximise the health benefits and       opportunities specifically aimed at jobs in
minimise negative impacts. Moreover, as          the health sector. The programme includes
our core business relates to these elements      a number of projects supporting individuals
of London’s development, our work impacts        currently on incapacity benefits, especially
on the ‘wider determinants’ of health. As        mental health service users.
a result the LDA is a key agent in improving
heath and narrowing the gap between              The LDA has a key development role
those suffering worse states of physical and     to support mayoral initiatives which
mental health and those with better health       will deliver housing and other built
and life expectancy.
The latest Office of National Statistics
figures suggest that health and social work
services add approximately 6% to London’s
productivity evidenced by the Gross Value
Added (GVA) per worker data for 2003.

How London is developed
economically and physically
to create sustainable
communities will have a
profund impact on the
population’s health.

76    LDA Annual Report and Accounts 2005/2006
environment projects. These activities will      by the LDA and provides an important role
include schemes that utilise former NHS          in its work on innovation.
land for affordable housing development
                                                 Due to its nature, all aspects of life sciences
and/or will upgrade existing health facilities
                                                 activity has some impact on health. The
to the needs of London and the UK.
                                                 following are examples of the LDA’s key
The NHS also impacts on other key areas          health related interventions.
of interest to the LDA and specifically
                                                 • Funding to support Queen Mary,
on its environmental work. It is a large
                                                   University of London to develop the
producer of waste, generator of travel by
                                                   Centre of the Cell, an interactive centre
patients, staff and those supplying goods
                                                   specifically designed to provide learning
and services, and has other important
                                                   opportunities to school age children
impacts on environmental sustainability,
                                                   in the East End within a real working
for example via its energy consumption. In
                                                   scientific and biomedical research
2004, the NHS Chief Executive identified
good corporate citizenship as ‘one of five
new priorities for the next ten years.’ Good     • Support for St George’s, University of
corporate citizenship describes how the            London and St Georges’s Healthcare NHS
NHS can embrace sustainable development            Trust to develop a commercial clinical
and tackle health inequalities through             research facility
their day to day activities as employers and
                                                 • The NHS London Innovations Hub is
procurers of goods and services.
                                                   a partnership between the LDA, the
London has a uniquely strong life sciences         Office of Science and Technology, the
industry due to its strong university and          Department of Health, and the member
hospital base, the large number of spin-           NHS Trusts contributing to the Hub
out companies from universities and
                                                 • Support for the formation of the UK
the presence of large multi-national
                                                   Stem Cell Foundation, which is intended
pharmaceutical companies. London’s
                                                   to establish an investment fund
medical schools and health related
                                                   (targeted at £100 million) to catalyse
research and development institutions are
                                                   the development of stem cell based
of international importance and renown,
                                                   technologies to create new products and
and support a large biotechnology sector.
                                                   processes for regenerative medicine
A significant proportion of all NHS funded
research and development is invested in          Just like sustainability and economic
London universities and NHS bodies and           development, health and economic
there is significant commercial investment       development are also closely entwined.
in clinical research. This dimension of          For just as the wider health sector plays
health as an economic sector is recognised       its part as an economic force in London,

                                                 LDA Annual Report and Accounts 2005/2006    77
Sustainability and health

                                     The School Dinners project was actually taking
                                     place across the whole of Greenwich and was
                                     funded in part through the LDA Health Benefits
                                     Single Regeneration Budget (SRB) Programme.

economic development is returning the             unique mixture of cuisines as a compelling
favour by playing a crucial role in improving     reason for visiting the capital; increasing
the health of Londoners. Identifying and          opportunities for smaller local and regional
recognising this synergy means that we            producers to access the London market;
can now take a unified approach to engage         improving the quality of food available in
not only with the health sector but with          London; minimising the environmental
all stakeholders to promote an integrated         impact of the food sector; and encouraging
and holistic approach to London’s                 public and private sector organisations to
economic development.                             consider sustainability when making their
                                                  food procurement decisions.
London Food Strategy
Many people will be familiar with                 The NHS London Healthy Urban
Jamie Oliver’s School Dinners television          Development Unit
programme, set in Kidbrooke School. But           By the year 2016, the population of London
not everybody will know that the School           is expected to have grown by 800,000 –
Dinners project was actually taking               a figure that equates to the current size of
place across the whole of Greenwich and           Leeds. Faced with an inevitable increase
that it was funded in part through the            in population density, it is crucial that the
LDA Health Benefits Single Regeneration           health of Londoners is not sacrificed for the
Budget Programme. By paying for new               health of the economy.
kitchen equipment, staff training, and
                                                  This is why, in May 2004, the NHS’s Healthy
taster sessions with parents – as well as
                                                  Urban Development Unit (HUDU) was
investing nearly £100,000 in a £300,000
                                                  launched in partnership with the LDA, the
partnership – we helped improve the diets
                                                  London Regional Public Health Group,
of children all over the borough.
                                                  and the five London Strategic Health
But it isn’t just children’s diets that we need   Authorities (SHAs). While the primary
to be concerned about. The food industry          role of the HUDU is to support all NHS
impacts on the lives of every Londoner –          organisations across London, the unit is
economically, socially and environmentally.       also committed to developing partnerships
This is why we support the London Food            for health, influencing the London urban
Strategy, the Mayor’s vision of a world-class     planning agenda, and influencing urban
sustainable food system for London by 2016.       development across London. By being
                                                  involved at an early stage in the planning
After a 12 week consultation period,
                                                  process the NHS will also be able to
followed by feedback, impact assessments,
                                                  respond positively and proactively to the
and implementation work with our
                                                  opportunities and challenges provided
partners, the Strategy was launched in
                                                  by the expected growth in London’s
May 2006. Key priorities for 2006/2007,
                                                  employment and housing.
include delivering a training programme to
address widespread skills shortages in the        The LDA has now agreed to continue its
food and drink sector; promoting London’s         funding for a further three years.

78     LDA Annual Report and Accounts 2005/2006
LDA Annual Report and Accounts 2005/2006   79
         LDA Board
         and staff

LDA Board                                        Mary Reilly
During the period 1 April 2005 to 31 March       Chair of the Board
2006, our Board consisted of 15 members          Mary Reilly has been Chair of the Board
drawn from the private and business              since 1 August 2004. Mary is a senior
sectors, local government and the Greater        partner of Deloitte. She works with
London Assembly (GLA). The Board also            organisations operating in a wide range
had two observers representing higher and        of industries including retail businesses,
further education.                               recruitment, media, business services,
During this period nine regular Board            manufacturing and professional practices.
meetings and three special Board meetings        She is a Fellow of the Royal Society of Arts,
were held as well as four special workshops.     the Institute of Chartered Accountants of
In accordance with the principles of open        England and Wales and the Vice-Chair of
government embodied in the LDA’s Standing        the London Regional Council of the CBI.
Orders, the Board continued to keep Part
Two of its meetings open to the public and       John Biggs
media. We have sought to minimise the            Vice-Chair of the Board
number of items on the private agenda and
                                                 John has been Vice-Chair of the Board
are currently undertaking a Board initiative
                                                 since 1 August 2004. John is the Labour
to provide even greater transparency
                                                 Party member of the London Assembly for
to Board meetings. Meeting dates, the
                                                 the constituency of City and East London.
complete agenda, public reports and public
                                                 He is also Director of London Riverside
minutes (including a summary of private
                                                 Ltd, Board member, Deputy Chairman of
minutes) are published on the LDA’s website
                                                 London Thames Gateway Development
at www.lda.gov.uk
                                                 Corporation and Board member of Barking
The LDA’s Board members for the period           and Dagenham Housing Association.
1 April 2005 to 31 March 2006 were:              John’s special interests include transport,
                                                 regeneration, developing the Thames
                                                 Gateway, constitutional reform and
                                                 the development and empowerment of
                                                 regional government.

80    LDA Annual Report and Accounts 2005/2006
Rumman Ahmed                                    Former Chairman and founder of the West
A member of the Board since 1 August            London Leadership Team, former Chairman
2004, Rumman is a Community Relations           and Founder of the Park Royal Partnership,
Advisor to the Royal Borough of Kensington      former Chairman of Business Link London
and Chelsea. Rumman is a member of the          and Chairman of the Creative Industries
Home Secretary’s Race Equality Advisory         Commission and the London Climate
Panel and was a member of the Community         Change Agency. Member of the London
Cohesion Panel. He was also a Founder           Regional Committee of the CBI.
Chair and is now an Honorary Adviser to the
Faith Based Regeneration Network UK.            Steve Hitchins
                                                Steve Hitchins was appointed to the LDA
He is a member of Chartered Institute of
                                                Board on 1 August 2004. He was Leader of
Management and Institute of Fundraising
                                                Islington Council from January 2000 until
and a Fellow of Royal Society for Arts.
                                                May 2006 during which time the council
He is co-author of a number of books on
                                                was identified by the Audit Commission
fundraising, management, community
                                                as ‘the fastest improving council in the
development and regeneration.
                                                country’. While Leader of the Council Steve
                                                chaired the Islington Strategic Partnership
Mick Connolly
                                                which entered a Local Area Agreement and
Mick is Regional Secretary of Southern and      administered Islington’s Neighbourhood
Eastern TUC. He is also a member of the         Renewal Fund.
London East Learning and Skills Council, the
London European Programmes Committee,           The Secretary of State appointed him as
and on the Board of the East of England         a non-Executive Director of the Islington
Inward Investment Agency. Mick is the           Primary Care Trust. He is the Liberal
Treasurer of the National Assembly Against      Democrat Vice-Chair of the Association
Racism, a Vice President of the European        of London Government. Steve is a former
TUC’s ‘Interregional Trade Union Council’       director of Greater London Enterprise and
for the Nord Pas de Calais (F), West Flanders   the Improvement and Development Agency.
(B), South East England Region and a Board
member of Made in London.                       Tamara Ingram
                                                Tamara joined Saatchi & Saatchi in 1985
Michael Frye, CBE                               (Board Account Director 1989, Executive
Michael was appointed to the LDA Board on       Board Director 1993, Joint Chief Executive
1 August 2004. As a leading UK industrialist,   Officer January 1995, Executive Chairman
Michael is Chairman of Lynara Group,            2001). In 2002 she joined McCann-
WaterCarrier Ltd, Director of Water Maiden      Erickson as Chairman and Chief Executive.
and Casect. He serves on the Public Services    Tamara is now CEO of Grey Group London,
Productivity Panel Unit for the Treasury and    she is also Chair of Visit London, member of
is also a Member of the Ministerial (PSXE)      the Council of the Institute of Practitioners
Committee on E-Commerce.                        in Advertising (IPA), member of both the
                                                Marketing Society and Marketing Group
Former Chairman of the RSA. Honorary            of Great Britain, Chair of the Development
Fellow of the Royal College of Art, Trustee     Board of the Royal Court Theatre and Non
of Worldaware, former Chairman of CBI           Executive Director of Sage.
London and former member of the National
Manufacturing Council of the CBI.               (Tamara resigned from the Board on
                                                31 December 2005)

                                                LDA Annual Report and Accounts 2005/2006   81
George Kessler, CBE                              Eric is the Leader of the Conservative
George was appointed to the LDA Board            group on Hackney Council where he has
on 1 August 2004. He is Group Deputy             been a Councillor since 1990. He was
Chairman of Kessler’s International Limited,     an elected member of the Inner London
Europe’s leading producers of point-of-          Education Authority for Kensington from
purchase display and a director of nine          1986 to 1989 and was the leader of the
other companies. He is a Board member            Conservative Group from 1988 to 1990.
of London Manufacturing Group, Prince’s
Trust London Regional Council, London            Lord Paul
Economic Panel, Gordon Brown’s Task Force        Lord Paul, appointed to the Board on
to Review Modern Apprenticeships and the         1 August 2004, is Chairman of the
DTI’s MAS Review Steering Group. He is also      Caparo Group and member of the House
involved in the Apprenticeship Ambassador        of Lords Select Committees for Science
Network, Chair of LDA’s Production               and Technology and Economic Affairs.
Industries Commission, Chair of the DTI’s        He is Chancellor of the University of
Task Force to Evaluate MEP Manufacturing         Wolverhampton, Chancellor of the
Support in the US, Companion of the              University of Westminster and Ambassador
Institute of Mechanical Engineers (IMecHe),      for British business. He is also a member
Fellow of the Royal Society of Arts and          of the Council of Royal Albert Hall.
Business Leader on London First President’s
Committee.                                       Cllr Dame Sally Powell, DBE
                                                 Dame Sally Powell was appointed to the
Jeremy Long                                      Board on 1 August 2004, is a Councillor in
A member of the Board since 1 August             the London Borough of Hammersmith and
2004, Jeremy is CEO of European Business,        Fulham, Chair of Greater London Enterprise,
MTR Corporation. He is the former                Deputy Chair of Business Link for London
Chairman of CBI London Regional Council          and Deputy Group Leader of the Local
and former Managing Director of Rail             Government Association. Until May 2006,
for First Group Plc (until March 2005).          she was Deputy for Regeneration at the
Jeremy is a Fellow of the Royal Society of       London Borough of Hammersmith
Arts and a Fellow of Institute of Chartered      and Fulham.
Accountants of England and Wales.
                                                 Charles Secrett
Eric Ollerenshaw, OBE                            Charles Secrett was appointed to the LDA
Appointed to the LDA Board on 1 August           Board on 1 August 2004. He is Chair of
2004, Eric was a member of the Greater           Board of Triodos Bank Renewable Energy
London Authority from 2000 to 2004.              Fund, Trustee of The Building Exploratory,
He chaired the Economic and Social               Board member of FARM, Vice-President of
Development committee and was Leader             London Wildlife Trust, former Executive
of the Conservative group. He also sat on        Director of Friends of the Earth (1993 to
the Budget and Transport committees              2003) and a member of the Round Table
and was a member of the London Fire and          on Sustainable Development and the
Emergency Planning Authority as well as          Sustainable Development Commission
The Metropolitan Police Authority.               (1994 to 2003). Charles works for London
                                                 Unlimited/Visit London and the Mayor’s
                                                 Office to provide environmental advice and
                                                 programme management.

82    LDA Annual Report and Accounts 2005/2006
Yvonne Thompson, CBE                           LDA Board Observers 1 April
Yvonne was appointed to the LDA Board          2005 – 31 March 2006
on 1 August 2004 and has run her
own marketing and PR Company, ASAP             Professor Sir Roderick Floud
Communications for 20 years. She is a          Professor Floud is an Economic Historian,
Director of the UK’s only legally black        and was Vice-Chancellor of London
owned radio station, Choice FM. Yvonne is      Metropolitan University until 1 April 2004
also a Board member of Britain in Europe,      and President of the University 2004 to
an observer on the Board of Business Link      2006 when he retired. He was Convenor of
for London, and a member of the DTI’s Small    the London Higher Education Consortium
Business Council.                              1999 to 2001, President of Universities UK
She chairs the DTI’s Ethnic Minority           2001 to 2003 and Vice-President European
Business Forum, the London Central             University Association, 2005 to 2009.
Learning and Skills Council, and the African   (Professor Floud resigned as a Board
Caribbean Business Network Ltd. She            Observer on 31 March 2006)
also serves as President of the European
Federation of Black Women Business             John Stone
Owners. Yvonne has recently finished a
                                               John was Principal of Ealing, Hammersmith
four-year term on the Economic and Social
                                               and West London College until 31 March
Committee in Brussels and was awarded
                                               2006 when he became Chief Executive
a CBE in the Queens Honours Birthday List
                                               of LSN. John was Chair of the Association
in 2003 in recognition of the work she has
                                               of Colleges London Region (to 31 March
carried out with black and ethnic minority
                                               2006). He was also Vice Chair of the London
                                               Metropolitan Network (LMN) Ltd (to
                                               27 January 2006), Vice Chair of the Joint
Alison Wheaton
                                               Information Systems Committee (JISC)
A member of the LDA Board since 1 August       and Chair of its Learning and Teaching
2004, Alison is Property and IT Director       Committee (to 31 March 2006). John was
for Mitchells & Butlers with responsibility    Director of the Southall Regeneration
for all areas of property and IT across the    Partnership (to 31 March 2006) Regenasis,
estate of 1,850 pubs and pub restaurants,      the London Regional Aggregation Board,
including Asset Management, Building           and West London Business (to 31 March
Management, Estates, Acquisitions and          2006). He is also a member of the London
IT. Alison was a member of the CBI London      West Learning and Skills Council.
Council from 2001 to 2005.

                                               LDA Annual Report and Accounts 2005/2006   83
Professor David S Latchman                       Board Committees and
Appointed on 1 April 2006, Professor             Advisory Groups
Latchman is Master of Birkbeck University
                                                 The Board has five sub-committees and
of London, a position he has held since
                                                 two advisory groups to advise it on key
1 January 2003. He is also a Professor of
                                                 strategic issues. Their membership is drawn
genetics at Birkbeck and at University
                                                 from the Board and a Board member chairs
College London. He has published
                                                 each committee and working group. Some
extensively in the field of Genetics and
                                                 committees have co-opted members who
Molecular Biology.
                                                 bring expert advice in particular areas. The
Professor Latchman is Chair Elect of London      purpose of the committees and working
Higher, and a Board member of:                   groups is to provide a forum for in-depth
                                                 and specialist discussion of policy areas
London School of Hygiene and Topical
                                                 to guide decisions by the full Board or
                                                 the Executive. They play a valuable role
School of Oriental and African Studies           in informing the strategic direction and
                                                 policies of the LDA.
Heath Protection Agency and Biological
Standards Board                                  For the period 1 April 2005 to 31 March
                                                 2006, the LDA’s five committees, their
He is also a Board member, consultant
                                                 membership, and the number of times they
and founder of BioVex Ltd, a company
                                                 each met are outlined below.
established by him with Venture Capital
funding on the basis of patents developed
                                                 Corporate Affairs Committee (met four
by his laboratory.
                                                 Membership: Mary Reilly (Chair), John
                                                 Biggs (Deputy Chair), Michael Frye, George
                                                 Kessler, Jeremy Long, Cllr Dame Sally Powell,
                                                 Charles Secrett and Yvonne Thompson.

                                                 Business and Skills Committee (met
                                                 nine times and held three special
                                                 Membership: Jeremy Long (Chair), George
                                                 Kessler (Deputy Chair), Rumman Ahmed,
                                                 Mick Connolly, Professor Sir Roderick Floud,
                                                 Michael Frye, Steven Hitchins, John Stone
                                                 and Alison Wheaton.

                                                 Performance and Audit Committee (met
                                                 six times)
                                                 Membership: John Biggs (Chair), Michael
                                                 Frye, (Deputy Chair), Mick Connolly, Eric
                                                 Ollerenshaw, Professor Sir Roderick Floud
                                                 and Alison Wheaton.

84    LDA Annual Report and Accounts 2005/2006
Regeneration and Development                   LDA Standing Orders
Committee (met seven times)
                                               The Standing Orders cover the following:
Membership: Cllr Dame Sally Powell (Chair),    the LDA’s scheme of delegation, conduct
John Biggs (Deputy Chair), George Kessler,     of meetings, financial regulations,
Eric Ollerenshaw, Charles Secrett, John        procurement code, single programme
Stone and Yvonne Thompson.                     guide, land transactions, codes of conduct
                                               for Board members and employees,
Olympic Delivery Committee (met nine           registration and declaration of interests
times)                                         gifts and hospitality.
Membership: Lord Paul (Chair), Mary
                                               A Code of Conduct and Best Practice guide
Reilly, Jeremy Long, Mick Connelly, Alison
                                               for Board members sets out the standards
Wheaton, Cllr Dame Sally Powell. John
                                               of conduct expected of Board members.
Biggs is an observer to the Olympic Delivery
                                               The code applies to all appointed members,
                                               observers and specialist advisers of the
                                               LDA’s Board, committees and advisory
Health and Sustainability Advisory
                                               groups. Members must observe the LDA’s
Group (met six times)
                                               Code of Conduct whenever they are:
Membership: Charles Secrett (Chair), Steve
Hitchins, George Kessler (shared role) and     • conducting the business of the LDA
Michael Frye (shared role).                    • conducting the business of the office to
                                                 which he or she has been appointed
Equality Monitoring and Review Group
(met five times)                               • acting as a representative of the LDA
Membership: Yvonne Thompson (Chair),           The Code covers, amongst other things:
Mick Connolly and Rumman Ahmed.
                                               • standards in public life expected of Board
                                               • LDA values
                                               • corporate responsibilities of the Board
                                               • individual responsibilities and personal
                                                 liability of Board members
                                               • disclosure of sensitive information
                                               • Board induction and performance
                                               The Standing Orders are reviewed on
                                               a regular basis to ensure they remain
                                               up-to-date with best practice corporate
                                               The Standing Orders and full information
                                               on the structure and membership of our
                                               Board and Committees is available at

                                               LDA Annual Report and Accounts 2005/2006   85
LDA staff
LDA organisational structure from Autumn 2006

     Resources and              Strategy and      Communications         Corporate
         Risk                   Performance        and Marketing          Services


                                  Business            Olympic and
                                Engagement            Pan London
                                 and Skills          Infrastructure
                                Development          Development

LDA staff profile

Contract Type                                                         Number of employees
Permanent                                                                             258
Fixed Term Contract                                                                    55
Consultants                                                                            30
Agency staff (temps)                                                                   64
Work placement/Student/Secondee                                                        25
Total current number of staff                                                         432

We are working towards ensuring that our employee profile reflects the demographics of
London. Representation of black, Asian and minority ethnic staff reached 27% by March
2006, just under our target of 29%. An action plan to address this issue has been drawn up
and will be implemented in 2006/2007. Positively, the percentage of BAME staff in the top
5% earners was 43.75%, exceeding our target of 40%.
Women make up 51% of total staff, just below target of 52%. Of the top 5% earners, 44%
were women, a significant increase on 2004/2005 and our target of 35%. Disabled people
continue to be under-represented, at 3% (target 5%). We have agreed an action plan to
help us to attract more disabled employees. In addition, we have introduced a disability
management processs which ensures that all staff who identify themselves as having a
disability are provided with support and advice from our HR team. Our equalities team
are working proactively in partnership with other agencies, including Scope, to target and
inform all employment opportunities at the LDA to a wider pool of disabled job seekers.

86     LDA Annual Report and Accounts 2005/2006
Ethnicity by directorate as percentage of all staff
Directorate                                                    White
                                                  British                   Irish      Other White
Business and Skills                              15.20%                   0.95%             2.38%
CEO’s Office                                      8.08%                   0.00%             1.19%
Regeneration and Development                     13.78%                   0.48%             1.43%
Resources and Equality                           11.88%                   0.24%             4.04%
Total                                            48.93%                    1.66%            9.03%

Directorate                                                 Mixed
                                     White and        White and           White and
                               Black Caribbean     Black African              Asian    Other Mixed
Business and Skills                     0.24%               0.24%             0.00%         0.71%
CEO’s Office                            0.00%               0.24%             0.48%         0.24%
Regeneration and Development            0.00%               0.00%             0.00%         0.24%
Resources and Equality                  0.00%               0.00%             0.00%         0.24%
Total                                   0.24%               0.48%             0.48%         1.43%

Directorate                                      Asian or Asian British
                                       Indian          Pakistani        Bangladeshi    Other Asian
Business and Skills                     1.90%               0.24%             0.95%         0.71%
CEO’s Office                            0.95%               0.24%             0.00%         0.48%
Regeneration and Development            0.24%               0.24%             0.00%         0.00%
Resources and Equality                  0.24%               0.48%             0.48%         0.95%
Total                                   3.33%               1.19%             1.43%         2.14%

Directorate                                                 Black or Black British
                                                     Caribbean               African   Other Black
Business and Skills                                         3.33%             2.61%         0.24%
CEO’s Office                                                0.48%             0.71%         0.24%
Regeneration and Development                                1.66%             0.95%         0.24%
Resources and Equality                                      2.38%             3.33%         0.48%
Total                                                       7.84%             7.60%         1.19%

                                                 LDA Annual Report and Accounts 2005/2006     87
Ethnicity by directorate as percentage of all staff – continued
Directorate                                               Chinese or Other           Not stated
                                                   Chinese         Of other origin
Business and Skills                                  0.24%                   0.00%      2.14%
CEO’s Office                                         0.00%                   0.00%      2.61%
Regeneration and Development                         0.00%                   0.24%      5.94%
Resources and Equality                               0.00%                   0.00%      1.90%
Total                                                0.24%                   0.24%      12.59%

Directorate                                                                               Total
Business and Skills                                                                     32.07%
CEO’s Office                                                                            15.91%
Regeneration and Development                                                            25.42%
Resources and Equality                                                                  26.60%
Total                                                                                    100%

Gender by directorate as percentage of staff
Directorate                                           Male              Female            Total
Business and Skills                                14.49%              17.58%          32.07%
CEO’s Office                                         6.89%               9.03%         15.92%
Regeneration and Development                       13.06%              12.35%          25.41%
Resources and Equality                             14.25%              12.35%          26.60%
Total                                               48.69%              51.31%           100%

Disability (DDA) by directorate as percentage of staff
Directorate                                        Disabled       Not Disabled            Total
Business and Skills                                  0.71%             31.35%          32.07%
CEO’s Office                                         0.00%             15.91%          15.91%
Regeneration and Development                         0.48%             24.94%          25.42%
Resources and Equality                               0.95%             25.65%          26.60%
Total                                                2.14%              97.86%           100%

Disability (Social Model) by directorate as percentage of staff
Directorate                                        Disabled       Not Disabled            Total
Business and Skills                                  0.95%             31.12%          32.07%
CEO’s Office                                         0.00%             15.91%          15.91%
Regeneration and Development                         0.71%             24.70%          25.42%
Resources and Equality                               1.66%             24.94%          26.60%
Total                                                3.33%              96.67%           100%

88      LDA Annual Report and Accounts 2005/2006
Age by directorate as percentage of staff
Directorate            Under 20 20 to 30 30 to 40 40 to 50 50 to 60     Over 60 Unknown             Total
Business and Skills      0.00%    5.46%     13.78%    7.36%     1.66%    0.48%          3.33%    32.07%
CEO’s Office             0.00%    5.46%     5.23%     2.38%     0.24%    0.00%          2.61%    15.91%
and Development          0.00%    4.04%     8.08%     6.18%     2.38%    0.24%          4.51%    25.42%
and Equality             0.00%    4.51%     8.31%     5.70%     3.09%    0.00%          4.99%    26.60%
Total                    0.00%    19.48%    35.39%   21.62%     7.36%     0.71%         15.44%      100%

Salary and consultancy fees 1 April 2005 – 31 March 2006
                          Permanent Staff     Board and Chair       Contracted and                   Total
                                   £’000               £’000          Agency Staff               All Staff
                                                                             £’000                 £’000
Salaries                          14,131                  220                       _             14,351
National Insurance                  1,366                  18                       _               1,384
Pension Contributions               1,715                                                           1,715
Pension Enhancement                   87                                                               87
Agency                                                                        2,996                 2,996
Seconded Costs                                                                    647                647
Total                             17,299                  238                 3,643               21,180

Consultancy fees
Audit Fees –Internal                 278
Audit Fees –External                 160
Marketing Resources                   96
Consultant Fees                      226
Legal Fees                            34
Total                                794

                                                     LDA Annual Report and Accounts 2005/2006         89
Openness and transparency
As a public body, we are continuously working to ensure that our policies and processes
are open and transparent. Improvements that we have started to develop and implement
• further work to embed our Stakeholder Care Policy and raise awareness of these issues
  amongst our staff
• updates to our induction programme for new staff incorporating a session on the
  Freedom of Information Act and related legislation overview.
• implementation of a Stakeholder Relationship Management system to make our
  enquiry management more efficient and effective
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 2005 to March 2006 we have responded to 7164
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 April 2005 to March 2006, we responded to 127 FOI requests for
information. We also received and responded to 27 complaints.

The LDA is committed to listening to its partners and stakeholders to ensure our strategies
reflect London’s economic development needs.
We consult on a wide range of issues from regional and business sector projects to
London-wide strategies, local regeneration and development plans.
We have a consultation framework to help us shape, inform and guide our future work in
order to meet the following LDA strategic consultation objectives:
• achieve high quality decision-making and resource allocation informed by the views
  and experience of our partners and stakeholders
• attract funding and support for London’s priorities from the many other players that are
  active in furthering London’s economic development
• actively engage London’s communities in their own economic development
• provide leadership in economic regeneration
• fulfill our statutory responsibilities
In addition to a wide range of community engagement for the Olympic delivery process
and the Public Inquiry for the Olympic, Lower Lea Valley and Legacy Compulsory Purchase
Order (see page 14 for further details), we also consulted with stakeholders on:
• Draft Disability Equality Scheme
• Eastway Cycle Circuit relocation
• Business Support Review
• Healthy and sustainable food for London: The Mayor’s Food Strategy
• Draft Corporate Plan 2006 to 2009
• Future Tourism Strategy for London 2006 to 2016 Consultation
• Future of Crystal Palace Park

90     LDA Annual Report and Accounts 2005/2006
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.
The average rent cost is £29.85 per square foot, with an annual service charge of
£15 per sq ft, which amounts to an annual rent of £1,748,436.
In Autumn 2006, we will be relocating to Palestra which is situated immediately opposite
Southwark Tube station in a major South London regeneration area. The average rent at
Palestra is £30.77 per sq ft, with an estimated service charge of £6 per square foot. The
expected annual rent is £1,843,007.

Green office
Our Green Office Group continued to implement our action plan to help us become an
exemplar organisation in relation to environmental issues.
The plan includes issues such as recycling, waste minimisation, green procurement,
energy efficiency and renewable energy and creating a sustainable travel plan. We have
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 currently share rented accommodation and this limits our ability to influence the
choice of energy supplier. However, we are working to ensure that our new location,
Palestra, is a flagship ‘green’ building. Since signing the lease for the building (which had
already been given a BREEAM rating), we have been looking at different improvements
to make Palestra more environmentally friendly, which have included installing wind
turbines and photovoltaic cells on the roof. We are also hoping to become the first building
to have a fuel cell which would mean all of our power would be generated from renewable

                                               LDA Annual Report and Accounts 2005/2006   91
       Statement of

92   LDA Annual Report and Accounts 2005/2006
Foreword to the Financial Statements
This foreword is intended to provide readers with an 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.
Following the announcement that London had secured the right to stage the 2012
Olympic Games and Paralympic Games, the Mayor directed the London Development
Agency (LDA) “to do all things necessary in relation to the exercise of its functions to
implement the LDA interim projects” prior to the establishment of the Olympic Delivery
Authority (ODA). The projects referred to include the undergrounding of powerlines and
the setting up of the interim body (iODA), which became the ODA. The funding for these
activities was separately identified by the Greater London Authority and the Department
of Culture, Media and Sport. The activities were ringfenced and accounted for separately
from the LDA’s normal activities but have been consolidated in these accounts.

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.

                                                LDA Annual Report and Accounts 2005/2006   93
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 for each area of activity:
London Development Agency
Cash outturn against cash available 2005/2006
Programme                                             Cash Available   Cash Outturn   Variance
                                                                 £m             £m         £m
Business and Skills                                          127.50          119.19     (8.31)
Regeneration and Development                                 279.16          292.10      12.94
Chief Executive’s Office                                        3.44           2.95     (0.49)
Resources and Equality                                          1.33           1.29     (0.04)
Total Programmes                                             411.43         415.53        4.10

Other Expenditure
Policy and Programme Support                                  29.54           29.47     (0.07)
Corporation Tax                                                 2.15           1.18     (0.97)
Unallocated Cash Utilised (including Bank Interest)             3.18           0.00     (3.18)
Totals                                                       446.30         446.18      (0.12)

The cash outturn of £446.18 million is different from the Net Cost of Services of
£347.69 million shown in the Consolidated Revenue Accounts (CRA) on page 107 for
the following reasons.
• The funding relating to iODA activities were funded from a separate source and not
  from LDA mainstream funding
• 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 107) reports the income and expenditure of the LDA and shows a surplus of
£2.1 million for the financial year.
This is attributable to:
• balances in the iODA accounts
• grant expenditure in relation to activity in quarter four of 2004/2005 that is required
  under accrual accounting to be recognised in the period in which the activity takes
  place but is met from the 2005/2006 cash budget

Sources of funding
The LDA receives the majority of its funding from the Department of Trade and Industry
(DTI) via the Government Office for London (GOL) and the Greater London Authority (GLA)
until November 2005 and, thereafter, from DTI via the GLA. However it also receives
funding from a growing range of sources. In addition, the Agency obtains sales receipts

94       LDA Annual Report and Accounts 2005/2006
from assets it owns in the furtherance of its regeneration objectives. The table below
provides a breakdown of the funding sources on a cash received basis.
London Development Agency funding sources
Core Grant (Note 1) (DTI/GOL)                                                             392.68
Department of Culture Media and Sport                                                       4.30
Office of the Deputy Prime Minister                                                        12.53
European Union Funding                                                                      8.47
Small Business Service                                                                      1.63
Capital Receipts                                                                           14.43
Other Grants                                                                                0.23
Other income sources (Note 2)                                                              12.03
Total                                                                                     446.30

Note 1: The LDA received £398.76 million Core Grant from DTI. The balance of
£6.08 million was paid to the iODA as part of its March 2006 grant claim. This will be
reimbursed by the GLA in 2006/2007.
Note 2: Other income sources include Revenue Receipts (rents received, revenue partner
contributions, bank interest on revenue receipts and miscellaneous revenue income),
LDA Bank Interest, security deposits received, cash available at 1 April 2005 plus the
balance on any recoverable VAT unclaimed at 31 March 2006.

Review of activities
Outputs achieved
Outputs are one of the measures of success that the Agency uses. These quantify the key
deliverables that the Agency is charged with.
Our performance targets are shown in the Review of the Year on page 11.

The Agency continues to invest in land and buildings. This activity consolidates existing
regeneration initiatives and supports emerging schemes. The majority of investment
in land in 2005/2006, was related to the delivery of the 2012 Olympic Games and
Paralympic Games and associated relocation of businesses. Further details of investments
can be found on pages 12 to 17 of the Annual Report.
The Agency also owns 3 Mills Studios, London’s largest studio complex. It is managed by
GVA Grimley and all the revenue from the studios is ringfenced for their maintenance and

Borrowing facilities
The Agency has no current borrowing facilities or capital borrowing. This position will
change between 2006/2007 to 2008/2009 when borrowing facilities will be used
to fund the bulk of land and remediation works for the 2012 Olympic Games and
Paralympic Games.

                                               LDA Annual Report and Accounts 2005/2006      95
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 Chartered Institute of Public Finance and Accountancy (CIPFA) and the
Accounting Standards Board. The Code constitutes the ‘proper accounting practice’ which
local authorities must comply with by statute. The 2005 Code includes the requirements
of the Accounts and Audit Regulations 2003.
As a GLA functional body, the LDA 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 (NDPBs) 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.

Statement of accounting policies
a) Basis of accounting
The financial statements of the London Development Agency have been prepared in
accordance with the CIPFA 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 out in paragraph (g).
Capital charges are made through the Asset Management Revenue Account and are based
on depreciation plus a notional interest charge of 3.5% per annum on the closing balance
of operating assets, excluding Land and Buildings and Assets Under Construction that
belong to the iODA. Capital charges have a neutral impact upon the Consolidated Revenue
Account as the cost of depreciation is ultimately borne by the Capital Financing Account.
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.

96     LDA Annual Report and Accounts 2005/2006
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 and independent valuers. GVA Grimley and 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
Principles 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 a year.

e) Leases
The Agency has not acquired any assets under finance lease agreements.

f) Capital receipts
Receipts from the 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
Portacabins (iODA)                                 3 years

Due to the planned move to the new Headquarters in the Autumn of 2006, the value of
the current office (Devon House) improvements has been written off over the anticipated
life remaining.

h) Investments and loans
Investments and loans receivable are shown net of provision for amounts considered
doubtful and of write-offs for amounts considered irrecoverable. Provision has been made

                                                LDA Annual Report and Accounts 2005/2006    97
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 2006, 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 LDA 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 LDA is funded primarily by government grants. In 2005/2006, the majority was
provided by the Department of Trade and Industry. In addition to other Government and
European funding normally received by the LDA, funding was received from DCMS in
respect of interim Olympic projects prior to the establishment of the ODA.

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.

o) Capital swaps with other Regional Development Agencies
During 2005/2006, the LDA received a total of £22 million from other RDAs in order to
finance Olympic obligations. This amount was added to the Agency’s 2005/2006 capital
and then reduced from the 2006/2007 grant. This is a normal facility between RDAs to
manage inter-year cashflows.

98     LDA Annual Report and Accounts 2005/2006
Statement of responsibilities for the statement of accounts
The Agency’s responsibilities
The Agency 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 Director of Finance
• 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 Director of Finance
The Director of Finance 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 LDA at the accounting
date, 31 March 2006, and its income and expenditure for the year ended 31 March 2006.
In preparing the Statement of Accounts, the Director of Finance 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

Jonathan Kalemera
Director of Finance                                                 Date: 6 September 2006

The Statement of Accounts for the year ending 31 March 2006, as signed by the
Director of Finance on 6 September 2006, were approved by the Performance and Audit
Committee at its meeting on 6 September 2006.

John Biggs
Chair, Performance and Audit Committee                              Date: 6 September 2006

                                                LDA Annual Report and Accounts 2005/2006   99
Independent auditor’s report to the Board of the
London Development Agency
Opinion on the financial statements
We have audited the financial statements of the London Development Agency for the
year ended 31 March 2006, under the Audit Commission Act 1998, which comprise the
Consolidated Revenue Account, the Consolidated Balance Sheet, the Statement of Total
Movements in Reserves, the Cash Flow Statement and the related notes. These financial
statements have been prepared under the accounting policies set out within them.
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 36 of
the Statement of Responsibilities of Auditors and of Audited Bodies prepared by the Audit

Respective responsibilities of the Chief Finance Officer and auditors
The Chief Finance Officer’s responsibilities for preparing the financial statements in
accordance with applicable laws and regulations and the Statement of Recommended
Practice on Local Authority Accounting in the United Kingdom 2005, are set out in the
Statement of Responsibilities.
Our responsibility is to audit the financial statements in accordance with relevant legal
and regulatory requirements and International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial statements present fairly the
financial position of the Agency in accordance with applicable laws and regulations and
the Statement of Recommended Practice on Local Authority Accounting in the United
Kingdom 2005.
We review whether the statement on internal control 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 comply with proper practices 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, nor have we considered, whether
the statement on internal control covers all risks and controls. We are also not required to
form an opinion on the effectiveness of the Agency’s corporate governance procedures or
its risk and control procedures.
We read other information published with the financial statements, and consider whether
it is consistent with the audited financial statements. This other information comprises
only the Explanatory Foreword. We consider the implications for our report if we become
aware of any apparent misstatements or material inconsistencies with the financial
statements. Our responsibilities do not extend to any other information.

Basis of audit opinion
We conducted our audit in accordance with the Audit Commission Act 1998, the Code of
Audit Practice issued by the Audit Commission and International Standards on Auditing
(UK and Ireland) issued by the Auditing Practices Board. An audit includes examination,

100    LDA Annual Report and Accounts 2005/2006
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 also
evaluated the overall adequacy of the presentation of information in the financial

In our opinion the financial statements present fairly, in accordance with applicable
laws and regulations and the Statement of Recommended Practice on Local Authority
Accounting in the United Kingdom 2005, the financial position of the London
Development Agency as at 31 March 2006, and its income and expenditure for the year
then ended.
Baker Tilly
Registered Auditor
Chartered Accountants
Lancaster House
Date: 6 September 2006

Conclusion on arrangements for securing economy, efficiency and effectiveness in
the use of resources

Agency’s responsibilities
The Agency is responsible for putting in place proper arrangements to secure economy,
efficiency and effectiveness in its use of resources, to ensure proper stewardship
and governance, and to regularly review the adequacy and effectiveness of these
Under the Local Government Act 1999, the Agency is required to prepare and publish a
best value performance plan summarising the Agency’s assessment of its performance
and position in relation to its statutory duty to make arrangements to ensure continuous
improvement in the way in which its functions are exercised, with regard to a combination
of economy, efficiency and effectiveness.

Auditor’s responsibilities
We are required by the Audit Commission Act 1998, to be satisfied that proper
arrangements have been made by the Agency for securing economy, efficiency
and effectiveness in its use of resources. The Code of Audit Practice issued by the
Audit Commission requires us to report to you our conclusion in relation to proper

                                               LDA Annual Report and Accounts 2005/2006   101
arrangements, with regard to relevant criteria specified by the Audit Commission for other
local government bodies. We report if significant matters have come to our attention
which prevent us from concluding that the Agency has made such proper arrangements.
We are not required to consider, nor have we considered, whether all aspects of the
Agency’s arrangements for securing economy, efficiency and effectiveness in its use of
resources are operating effectively.
We are required by section 7 of the Local Government Act 1999, to carry out an audit of
the Agency’s best value performance plan and issue a report:
• certifying that we have done so
• stating whether we believe that the plan has been prepared and published in
  accordance with statutory requirements set out in section 6 of the Local Government
  Act 1999 and statutory guidance
• where relevant, making any recommendations under section 7 of the Local Government
  Act 1999

We have undertaken our audit in accordance with the Code of Audit Practice and we are
satisfied that, having regard to the criteria for other local government bodies specified
by the Audit Commission and published in August 2005, in all significant respects, the
London Development Agency made proper arrangements to secure economy, efficiency
and effectiveness in its use of resources for the year ending 31 March 2006.

Best Value Performance Plan
We issued our statutory report on the audit of the Agency’s best value performance plan
for the financial year 2005/2006 on 19 October 2005. We recommended that the BVPI
outturn data within the best value performance plan should be amended for it to be in
accordance with statutory requirements.

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
Registered Auditor
Chartered Accountants
Lancaster House
Date: 6 September 2006

102   LDA Annual Report and Accounts 2005/2006
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 and 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
2006, 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 practice.

3. The internal control environment
The system of internal financial control is based on a framework of regular management
of 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:
• Board, Committee and Senior Management Team reporting and decision making
  structures which oversee the development and operation of LDA policies and
• 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 EDS
  providing the strategic cornerstone for performance management
• hierarchical structure for policy development and decision making

                                                 LDA Annual Report and Accounts 2005/2006   103
• 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 audit letter with recommendations for
  improvements to the internal control environment that have been identified during
  their annual audit
• Considering outcomes from self assessment reviews against Best Practice frameworks
  such as Corporate Governance Frameworks and use of resources
• The P&AC meets at least quarterly and receive regular progress reports on the action
  taken in response to outstanding recommendations made by the internal and external
• Review of progress against the Initial Performance Assessment action plan
• Review of lessons learnt reports and remedial action plans where significant
  breakdowns in the internal control environment have occurred
• The Executive Directors are ultimately responsible for ensuring the policies and
  procedures explicit within the internal control environment are adhered to

104    LDA Annual Report and Accounts 2005/2006
We have been advised on the implications of the result of the review of the effectiveness
of LDA’s system of internal control and a plan to address the weaknesses and ensure
continuous improvement of the system is in place.
The LDA is committed to ensuring that it adopts good Corporate Governance practices,
looking to continually strengthen and develop these as it responds to the significant
challenges and opportunities it faces. During the year, the LDA has sought to make
improvements in its internal control system. Many of these actions have been in response
to issues identified in previous internal audit and external audit reviews. In addition, the
LDA’s management, organisation and internal controls have needed to respond to the
risks and opportunities arising from London 2012, not least the LDA’s role as the interim
Olympic Delivery Authority, and its critical role in the Olympic Park Land Assembly. This
period of rapid change and activity has at times placed LDA systems of internal control
under pressure, necessitating remedial action being taken where deficiencies have arisen.
This year the LDA implemented a new interim management structure and has embarked
upon a challenging but necessary organisational structure review process which will be
completed in Autumn 2006.
Improvements made to the LDA’s internal control systems include:
• introducing a Whistleblowing and Anti-Fraud and Corruption response plan
• operating an improved budget setting and control process with all budgets confirmed
  and communicated to budget heads before the start of the financial year and
  subsequently monitored and controlled throughout the year
• increasing the LDA’s capability to manage financial, legal and procurement risks, by
  the engagement of specialist additional resources and external review activity to
  supplement internal resources particularly as a result of LDA’s new Olympic obligations
• appointing an interim Director of Procurement and an interim Director of Risk, to
  improve the senior management focus on improving the internal control framework
• implementing new staff appraisal and pay evaluation arrangements; introducing
  new project performance management arrangements through formalised monthly
  variation reporting by project managers and quarterly business milestone reporting
• implementing a systematic risk management process at Directorate level with Business
  Plan risk registers reviewed and updated on a quarterly basis
• undertaking a Strategic Risk Management project to identify the strategic risks
  profile for the LDA and clearly establish risk owners as a platform to drive a stepped
  improvement in the LDA’s risk management maturity in future years
• the formation of the Olympic Delivery Committee to govern LDA’s Olympic activities

                                               LDA Annual Report and Accounts 2005/2006    105
5. Significant internal control issues
The LDA is currently implementing the following action plans in 2006/2007 to further
develop the internal control environment.
• Risk Management – completing the Strategic Risk Management project and recruiting
  and appointing a Director of Risk to ensure the sustainability of new Risk Management
  systems and the embedding of risk management into the LDA
• Embedding improved performance management reporting arrangements across the
  Agency, covering both project and programme output and outcome delivery and staff
  objective setting and performance monitoring
• Implementing a re-configured project and programme value chain delivery model
  requiring a significant re-organisation of the LDA’s operations and project manager
• Implementing more standardised and consistent approaches to project development
  and management
• Completing the roll-out of new IT systems for e-purchase order and payments,
  implementing a stakeholder relationship management system and a major upgrade to
  our project performance management system
• Developing and implementing of Disaster Recovery and Business Continuity plans and
  overall Health and Safety reporting arrangements
• Improving LDA’s procurement capability by the embedding of procurement expertise
  within the project and programme development divisions and addressing the
  sustainable procurement agenda
• Implementing the action plans identified in the partnership risk review undertaken
  in 2005/2006, particularly in the area of due diligence review of potential partners,
  project monitoring and capacity support for our contracted partners

Manny Lewis                                      Mary Reilly
Chief Executive Officer                          Chair
Date: 6 September 2006                           Date: 6 September 2006

106   LDA Annual Report and Accounts 2005/2006
London Development Agency
Consolidated Revenue Account for the year ending 31 March 2006
                                                                                            Prior Year
                                                     Gross         Gross          Net              Net
                                                Expenditure      Income    Expenditure    Expenditure
                                                     £’000         £’000        £’000           £’000
Continuing Operations
Single Regeneration Budget                          64,702                       64,702           78,548
Single Programme                                   260,610         9,787       250,823        165,068
Olympic Delivery Authority                          35,726        35,688             38                0
Corporate and Other Services              1         32,123                       32,123           30,609
Net Cost of Services                               393,161       45,475        347,686        274,225

Pension Interest Cost and
Expected Return on Pensions Assets                                                 (38)             (32)
Asset Management Revenue Account          3                                        (66)            (127)
Interest and Investment Income            4                                     (1,504)           (1,155)
Net Operating Expenditure                                                      346,078        272,911

Appropriations from Capital Financing Account                                    83,501       104,506
Appropriation from Pension Reserve                                                (127)             (49)
Amounts to be met from Government Grants                                       429,452        377,368

Sources of Finance
Government Grants                                                             (434,410)      (398,993)
Net General Fund surplus                                                          4,958           21,625

Corporation Tax                          13                                     (2,820)           (1,977)

General Fund surplus for year                                                     2,138           19,648
General Fund balance brought forward     24                                        453        (19,593)
General Fund balance carried forward                                              2,591               55

                                                       LDA Annual Report and Accounts 2005/2006    107
London Development Agency
Balance Sheet as at 31 March 2006
                                                               31 March    31 March
                                                                   2006        2005
                                                      £’000       £’000       £’000
Fixed assets
Operational assets                         6
Other Land and Buildings                                407                       0
Vehicles Plant and Equipment                           2,019                  3,638
Assets Under Construction                              4,224                      0
                                                                  6,650       3,638
Long Term Investments                      7                          1           1
Total Long Term Assets                                            6,651       3,639

Current Assets
Development Property stock                 8         360,460                270,357
Debtors                                    9          21,119                 13,757
Cash at Bank and in hand                  24           4,533                  1,199
                                                                386,112     285,313

Current Liabilities
Pension liability                        1(d)          1,545                    745
Creditors falling due within one year     10          21,893                 14,661
Net Current Assets                                              362,674     269,907

Long Term Creditors                       11                      1,168         240
Provisions                                12                          0           0
                                                                  1,168         240
Total Assets less Liabilities                                   368,157     273,306

Fixed Asset Restatement Account           19                    (46,201)    (43,909)
Capital Financing Account                 20                    413,312     317,905
Usable Capital Receipts Reserve           21                          0           0
Pension Reserve                          1(d)                    (1,545)      (745)
General Fund                              22                      2,591          55
Total Equity                                                    368,157     273,306

M Lewis Chief Executive Officer
Date: 6 September 2006
Approved by Performance and Audit Committee
on 6 September 2006

108       LDA Annual Report and Accounts 2005/2006
London Development Agency
Statement of Total Movements in Reserves for period ending 31 March 2006
                                              Capital Reserves                  Revenue Reserves
                                   Fixed Asset     Capital Usable Capital
                                  Restatement Financing         Receipts Pension General
                                      Account    Account         Reserve Reserve     Fund      Total
              Note                         19           20            21     1(d)      24
                                        £’000       £’000          £’000   £’000    £’000     £’000
Balance as at 1 April 2005            (43,909)    317,905                0    (745)      453     273,704
Disposals                              (2,292)                                                     (2,292)
Revenue contribution
to capital outlay (Note 5)                        205,833                                        205,833
Deferred charge
write off (Note 2)                               (120,406)                                      (120,406)
Depreciation written back                          (1,926)                                         (1,926)
Capital receipts generated                                          11,906                         11,906
Capital receipts utilised                          11,906         (11,906)                              0
Revaluation                                                                                             0
Pension Reserve Movement                                                      (800)                 (800)
Capital expenditure written off                                                                         0
General fund
working balance for year                                                                2,138       2,138
Balances as at 31 March 2006         (46,201)     413,312                0   (1,545)   2,591     368,157

                                                        LDA Annual Report and Accounts 2005/2006    109
London Development Agency
Cashflow Statement for period ending 31 March 2006
                                                           31 March 2006   31 March 2005
                                                                   £’000           £’000
Revenue Activities                                 Notes
Cash outflows
Cash paid to and on behalf of employees                           24,074          19,614
Other operating cash payments                                    230,601         186,444
Total                                                           254,675         206,058

Cash inflows
Government Grants                                                224,787         169,300
Other cash receipts                                               11,925          10,991
                                                                236,712         180,291
Net Cash (Outflow) – Revenue                         23         (17,963)        (25,767)

Returns on Investments and Servicing of Finance
Cash inflows
Interest received                                                  1,480           1,155
Total                                                              1,480           1,155

Capital activities
Cash Outflows
Purchase of fixed assets                                           4,938           1,078
Development Stock Expenditure                                     92,298         124,314
Capital Grants                                                   133,830          96,721
Total                                                           231,066         222,113

Cash Inflows
Capital grants received                                          236,133         201,461
Other capital cash receipts                                       14,352          22,748
                                                                250,485         224,209
Net cash inflow – Capital                                         19,419           2,096

Net increase/(decrease) in cash                      24            2,936        (22,516)

110     LDA Annual Report and Accounts 2005/2006
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:
                                                                    2006                  2005
Board members                                                      £’000                 £’000
Board members’ Remuneration                                          220                   200
Pension Costs                                                           0                    0
National Insurance Contributions                                       18                   18
Total                                                                238                   218

Salaries and Wages inc. Overtime                                   14,131                11,133
Pension Costs                                                       1,715                 1,281
National Insurance Contributions                                    1,366                 1,067
Pension Enhancements                                                   87                  192
Total                                                             17,299                 13,673

Agency Staff                                                        2,996                 4,108
Seconded Staff Salary Costs                                          647                  1,188
                                                                    3,643                 5,296
Total Salaries and Wages                                          21,180                 19,187

                                              LDA Annual Report and Accounts 2005/2006    111
b) Board members
The Board members and their periods of appointment are as follows
Mary Reilly (Chair)                                                                  4 years
John Biggs (Vice Chair)                                                              4 years
Mick Connolly                                                                        4 years
Michael Frye                                                                         4 years
Tamara Ingram                                                      Resigned 31 December 2005
George Kessler                                                                       4 years
Jeremy Long                                                                          4 years
Lord Paul                                                                            4 years
Dame Sally Powell                                                                    4 years
Eric Ollerenshaw                                                                     4 years
Alison Wheaton                                                                       4 years
Yvonne Thompson                                                                      4 years
Charles Secrett                                                                      4 years
Rumman Ahmed                                                                         4 years
Steve Hitchins                                                                       4 years

All Board members were appointed effective from 1 August 2004, for a term of four years
or 10 days after the Mayoral elections in 2008.
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.
John Biggs is a member of the Greater London Authority and as such is not entitled to draw
a salary from the LDA.
Tamara Ingram resigned as a Board member effective from 31 December 2005.
John Stone and Prof Sir Roderick Floud were official Observers to the Board of the London
Development Agency during 2005/2006. Professor Sir Roderick Floud resigned as an
official Board Observer with effect from 31 March 2006 and was replaced by Professor
David S Latchman with effect from 1 April 2006. His appointment will run until
1 August 2008.

112     LDA Annual Report and Accounts 2005/2006
c) Salaries of staff
The number of employees whose remuneration during the period 1 April 2005 to
31 March 2006, excluding pension contributions, was £50,000 or more, in bands of
£10,000, together with the equivalent number for the previous year, were:
Remuneration Band                     Number of Employees                 Number of Employees
                             Paid in Year to 31 March 2006       Paid in Year to 31 March 2005
£50,000 to £59,999                                     22                                  16
£60,000 to £69,999                                     20                                  14
£70,000 to £79,999                                     10                                   5
£80,000 to £89,999                                      7                                   6
£90,000 to £99,999                                      4                                   2
£100,000 to £109,999                                    1                                   0
£110,000 to £119,999                                    0                                   1
£120,000 to £129,999                                    0                                   0
£130,000 to £139,999                                    1                                   1
£140,000 to £149,999                                    0                                   1
£190,000 to £199,999                                    1                                   0

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 2005/2006, employer’s contributions of £410,999 were payable to the PCSPS
(2004/2005 £390,299) 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,

                                               LDA Annual Report and Accounts 2005/2006   113
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 2005/2006, was 14.5%. Employer
contributions of £97,174 were paid in 2005/2006 (2004/2005: £108,098). 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 2005. FRS17 figures have been estimated
by the actuary on the basis of this full actuarial valuation.
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 2006
Rate of inflation                                                   2.80 (2.85 – 31 March 2005)
Rate of increase in salaries                                        4.80 (4.85 – 31 March 2005)
Rate of increase in pensions                                        2.80 (2.85 – 31 March 2005)
Rate for discounting scheme liabilities                             5.00 (5.40 – 31 March 2005)

The market value of the Scheme’s assets as at 31 March 2006 was £120.2 million. The
actuarial value of the liabilities as at 31 March 2006 is estimated to be £137.8 million.
This results in a net pension liability of £17.6 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 2005/2006 was 12.5 %. Members pay contributions of 6% of
pensionable earnings.

114     LDA Annual Report and Accounts 2005/2006
Employer contributions of £1,206,671 were paid in 2005/2006 (2004/2005: £782,274).
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 154 active members,
six deferred pensioners and one pensioner at 31 March 2005 to 180 active members,
19 deferred pensioners and one pensioner at 31 March 2006.
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 2006      31 March 2005
                                                                    £’000              £’000
Net Cost of Services:
Current service cost                                               (1,372)                 (787)
Curtailment and Settlements                                              –                  (76)
Net Operating Expenditure:
Interest cost                                                        (308)                  (72)
Expected return on assets in the scheme                               346                    104
Amounts to be met from Government Grants:
Movement on pensions reserve                                         1,334                   831

Actual amount charged against
Government Grant for pensions in the year:
Employer’s contributions payable to scheme                         (1,206)                 (782)

The underlying assets and liabilities for retirement benefits attributable to the Agency at
31 March 2006 are as follows:
                                                                       LPFA Scheme
                                                            31 March 2006      31 March 2005
                                                                    £’000              £’000
Estimated liabilities in scheme                                    (8,452)                (4,758)
Estimated assets in scheme                                           6,907                 4,013
Net asset/(liability)                                              (1,545)                 (745)

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 £1.545 million. This net
liability has only a minimal effect on the net worth of the Agency.

                                               LDA Annual Report and Accounts 2005/2006    115
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 2006     31 March 2005
                                                                                %                 %
Rate of inflation                                                             3.1               2.9
Rate of increase in salaries                                                  4.6               4.4
Rate of increase in pensions                                                  3.1               2.9
Rate for discounting scheme liabilities                                       4.9               5.4

Changes to the LPFA pension fund permit employees retiring on or after 6 April 2006 to
take an increase in their lump sum payment on retirement in exchange for a reduction in
their future annual pension. On the advice of our actuaries we have taken the view that
there is insufficiently reliable evidence to assume a level of take-up of the change in the
pension fund. Consequently, the valuation of the Agency’s retirement benefit liabilities as
at 31 March 2006, does not include any allowance for this change to the pension fund.
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 2006             31 March 200
                                              %           £’000           %         £’000         %
Equities                                    7.3           4,353        63.0         3,160      78.8
Bonds                                       6.0           1,315        19.0           434      10.8
Property                                    6.5            814         11.8           285       7.1
Cash                                        4.6            424          6.2           134       3.3
Total                                       6.8           6,907      100.0          4,013     100.0

The movement in the net pension asset/liability for the year to 31 March 2006 is as follows:
                                                                                       LPFA Scheme
Net pensions liability at 1 April 2005                                                        (745)
Movements in the year:
        • Current service cost                                                              (1,372)
        • Employers’ contributions payable to scheme                                          1,206
        • Contributions in respect of Unfunded Benefits                                          –
        • Retirement benefits payable to pensioners                                              –
        • Past service costs                                                                     –
        • Impact of Settlements and Curtailments                                                 –
        • Interest cost                                                                          –
        • Expected return on assets in the scheme                                               38
        • Actuarial gains/(losses)                                                            (672)

Net pension liability at 31 March 2006                                                      (1,545)

116        LDA Annual Report and Accounts 2005/2006
The actuarial losses identified as movements on the Pensions Reserve in 2005/2006
can be analysed into the following categories, measured as absolute amounts and as a
percentage of assets or liabilities at 31 March 2006.
                                                                               LPFA Scheme
                                                                    31 March 2006     31 March 2005
                                                                            £’000             £’000
Differences between the expected and actual return on assets                   781                    95
Value of assets                                                              6,907                 4,013
Percentage of Assets                                                         11.3%                  2.4%
Expected gains/(losses) on liabilities                                           –                   (72)
Total present value of liabilities                                           8,452                 4,758
Percentage of the total present value of liabilities                             –                 (1.5%)
Actuarial (losses) recognised in CRA                                         (672)                  (875)
Total present value of liabilities                                           8,452                 4,758
Percentage of the total present value of liabilities                        (8.0%)                (18.4%)

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 2006 is six. The total of loans outstanding at
31 March 2006 was £98,041. These loans result from advances of salary of £30,574, loans
for the purchase of season tickets of £67,347 and bicycle loans of £120.

f) Publicity 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 2006      31 March 2005
                                                                            £’000              £’000
Recruitment and Appointment                                                    519                   531
Marketing and PR                                                               579                   671
Total                                                                        1,098                 1,202

g) Audit fees
Fees payable for services provided by the appointed auditors of the LDA include:
                                                                           Year to            Year to
                                                                    31 March 2006      31 March 2005
                                                                            £’000              £’000
Fees payable in respect of Statutory Inspection
under section 10 of the Local Government Act 1999                               18                    85
Fees payable for the certification of Grant claims                               7                     5
Fees payable for the Statutory Annual Audit                                    115                   110
Total fees payable                                                             140                   200

                                                       LDA Annual Report and Accounts 2005/2006     117
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 2006     31 March 2005
                                                                   £’000             £‘000
Single Regeneration Budget                                         36,413            27,596
Single Programme                                                   83,993            67,599
                                                                  120,406            95,195
Deferred charges amortised to the CRA                           (120,406)           (95,195)
Balance at 31 March                                                     0                 0

3.      Asset Management Revenue Account – Transactions
                                                                  Year to           Year to
                                                           31 March 2006     31 March 2005
                                                                   £’000             £‘000
Income – Capital charges                                           (1,992)            (800)
Less – Expenditure/Depreciation                                     1,926               673
Net Income to Consolidted Revenue Account                            (66)             (127)

4.      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.

118     LDA Annual Report and Accounts 2005/2006
5.       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 2006        31 March 2005
                                                                                  £’000                £’000
Brought forward unfinanced creditors                                                  –                 1,081
Capital expenditure on assets being developed                                    92,396              124,744
Capital expenditure written off                                                       0                    0
Deferred charge expenditure                                                     120,406               95,195
Additions to fixed assets                                                          4,937                1,140
                                                                                217,739              222,160
Usable Capital Receipts                                                         (11,906)             (18,195)
Application of provision for credit liabilities                                                       (3,592)
Balance financed from revenue contribution to capital outlay                    205,833              200,373

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

6. Tangible operating assets
Movements in fixed assets during the period were as follows:
                                        Other Land       Vehicles Plant        Assets under
                                      and Buildings     and Equipment          construction             Total
                                             £’000               £’000                £’000            £’000
At 1 April 2005
Opening Balance                                     0            5,561                     0            5,561
Additions in year                                 439              357                4,224             5,020
Disposals in year                                   0              (42)                    0             (42)
At 31 March 2006                                  439            5,876               4,224            10,539

At 1 April 2005                                     0            1,923                     0            1,923
Charge for year                                    32            1,939                     0            1,971
Disposals in year                                   0               (5)                    0              (5)
At 31 March 2006                                  32             3,857                     0           3,889

Net Book Value
31 March 2006                                     407            2,019                4,224             6,650

Net Book Value
1 April 2005                                        0            3,638                     0            3,638

The interim Olympic Delivery Authority incurred £4.2 million of capital expenditure
in connection with the construction of tunnels to re-house power lines in the

                                                          LDA Annual Report and Accounts 2005/2006      119
Lower Lea Valley, as part of the preparation of the land for the 2012 Olympic Games
and Paralympic Games. This has been classified as Assets Under Construction in the
Consolidated Balance Sheet, as assets were not in operational use as at 31 March 2006.

7.       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.

8.       Development property stock
                                                                    Year to             Year to
                                                             31 March 2006       31 March 2005
                                                                     £’000               £‘000
Opening Book Value                                                    270,357          205,102
Revaluation                                                                            (44,657)
Additions in year                                                      92,396          124,744
Transfer from Fixed Assets                                                                1,064
Disposals                                                              (2,293)         (15,896)
Amounts written off                                                                          0
Closing Book Value                                                    360,460          270,357

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.
Existing Development Property Stock furthering the Agency’s Regeneration programme
include the following:
• 22 acres Three Mills Studios
• 7.4 acres St. Andrews Hospital site
• 30 acres former Royal Mail sorting office in West Ham
• 27 acres proposed industrial site in Greenwich
• 11 acres former stadium in Hackney
• six acres of vacant land and one 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
• landholdings around the Royal Docks

120     LDA Annual Report and Accounts 2005/2006
9.       Debtors
                                                                Year to            Year to
                                                         31 March 2006      31 March 2005
                                                                 £’000              £’000
Amounts receivable within one year:
Trade debtors                                                     3,017                  931
Prepayments                                                       5,836                 4,190
Other debtors                                                     3,007                  300
Government grant to cover Corporation Tax                         1,364                  691
VAT                                                               7,907                 7,645
Provision for doubtful debts                                        (12)                   0
Total                                                            21,119                13,757

10. Creditors: amounts falling due within one year
                                                                Year to            Year to
                                                         31 March 2006      31 March 2005
                                                                 £’000              £’000
Trade Creditors                                                  18,918                12,147
Corporation Tax due                                               2,330                  691
Prepaid Income                                                      645                 1,823
Total                                                            21,893                14,661

11. Creditors: amounts falling due after one year
                                                                Year to            Year to
                                                         31 March 2006      31 March 2005
                                                                 £’000              £’000
Retentions on Long Term Contracts                                 1,168                  240
Total                                                             1,168                  240

12. Provisions for liabilities and charges
                                                                Year to            Year to
                                                         31 March 2006      31 March 2005
                                                                 £’000              £’000
Provision brought forward                                             0                   25
Provision for year                                                    0                  (25)
Total                                                                 0                    0

                                            LDA Annual Report and Accounts 2005/2006    121
13. 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.
                                                                      Year to          Year to
                                                               31 March 2006    31 March 2005
                                                                       £’000            £’000
Total amount chargeable to Corporation Tax
for year ended 31 March 2006                                            9,382            6,588
Corporation tax at 30% charged to the CRA                               2,820            1,977

14. Deferred capital receipts
There were no deferred capital receipts received in year.

15. Operating leases
As at 31 March 2006 the Agency had annual commitments under operating leases as
                                                   Buildings          Others             Total
                                                      £’000           £’000             £’000
Leases expiring:
– within one year                                     3,037               36             3,073
– between two and five years                          8,436               18             8,454
– in over five years                                  7,834                0             7,834

The figures above include the costs relating to a five-year lease, entered into with effect
from 1 February 2006, of office premises in Beijing. The lease includes a break clause
exercisable after three years but it has been assumed that the lease will run for the full
five years.
Rental costs of operating leases are charged to the Consolidated Revenue Account on a
straight-line basis over the term of the lease.

16. Commitments
                                                               31 March 2006    31 March 2005
                                                                         £m               £m
Contractual Commitments                                                 1,040             412

Of the £1,040 million, £774 million relates to commitments in respect of the Olympic Land
Assembly Programme.

122     LDA Annual Report and Accounts 2005/2006
17. Related party transactions
During the year ending 31 March 2006, the Agency received Grant of £398.76 million
from the Department for Trade and Industry (DTI), via GOL and the GLA until November
2005 and, thereafter, via the GLA.

Board member transactions
Eric Ollerenshaw is a Councillor for the London Borough of Hackney, which received
funding from the LDA of £3,804,677 for various programmes including SRB schemes.
Rumman Ahmed is Community Relations Advisor to the Royal Borough of Kensington
and Chelsea, which received funding from the LDA of £301,679 for programmes including
SRB schemes.
Alison Wheaton is associated as a related party with Business Systems Group Ltd, who
have provided services to London 2012.
Charles Secrett provided consultancy services to the Future London programme, being
coordinated by the Greater London Authority, which received grant of £272,609 from
the LDA.
Steve Hitchins is a Director of the Association of London Government, which received
grant of £18,860 from the LDA. He is a Director of Greater London Enterprise, which
received grant of £1,556,412. He is a Board member of Central London Partnership, which
received grant of £510,083.
Mary Reilly is a Partner with Deloitte & Touche LLP, which received £144,262 for
professional services. She was a Board member of London 2012, which received grant of
£2,628,843 from the LDA for the Olympic bid.
John Biggs is the Deputy Chairman of the London Thames Gateway Development
Corporation, from which the Agency received a grant of £207,891.
Cllr Dame Sally Powell is a Councillor for the London Borough of Hammersmith and
Fulham, which received £4,178,289 from the LDA for its SRB programmes in addition
to other, associated funding streams. She is a non-executive Director of Greater London
Enterprise, which received grant of £1,556,412. She is a Non-Executive Director of
Business Link for London, which received Grant of £29,551,155. She was a Director of the
Park Royal Partnership, which received grant of £2,178,241. She is Director and Deputy
Chair of the Association of London Government, which received grant of £18,860.
Lord Paul was a Board member of London 2012, which received grant of £2,628,843 from
the LDA.
Mick Connolly is a member of the London East Learning and Skills Council, which received
a Grant of £45,451 from the LDA. He is a TUC Regional Secretary - the South East Regional
TUC received grant of £103,213 from the LDA.
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, Carpenters Road Properties Limited,

                                              LDA Annual Report and Accounts 2005/2006   123
Brand Technology Limited, Loopweave Limited, Kesslers International Group Limited and
Carpenters Road Holdings Ltd. These companies had interests in land in the Olympic CPO
zone or surrounding areas for the period 1 April 2005 to 31 March 2006. He is a trustee/
member of Kesslers International Limited Self Administered Pension Scheme, which has
interests in land in the Olympic CPO zone and surrounding areas. Negotiations for the
disposal of the land interests to the LDA for Olympic purposes were at an advanced stage
but had not been completed by the end of the financial year. He is a Business Leader on
the President’s Committee, a Board committee of London First which received a grant of
£909,288 from the LDA. Think London, which is a wholly owned subsidiary of London First,
received grant of £2,553,138.
Yvonne Thompson is President of the European Federation of Black Women Business
Owners, which received a grant of £5,000 from the LDA. She is Chair of the African
Caribbean Business Network Ltd., which received grant of £233,404.
Tamara Ingram is Chair of Visit London Ltd, which received from the LDA £19,485,624
in grant and £11,924 for services supplied. She resigned as an LDA Board member on
31 December 2005.
John Stone is an Official Observer to the LDA Board. He was Principal at Ealing
Hammersmith and West London College until 30 March 2005, which received a grant of
£143,500 from the LDA. He is Director of West London Business, which received grant of
£383,539. He is Director of Southall Regeneration Partnerships, which received SRB grant
of £1,294,804. He is a Director of the London Regional Aggregation Board, which received
grant of £101,333.
Professor Sir Roderick Floud was an official observer to the LDA Board. He is President of
London Metropolitan University, which received a grant of £1,059,390 from the LDA. He
resigned as an LDA Board observer on 31 March 2006.

18. Post balance sheet events
The Olympic Delivery Authority was officially launched in April 2006, bringing the LDA’s
responsibilities for setting it up to an end. Prior to the establishment of the ODA the LDA
entered into a number of large scale contracts on ODA’s behalf. The LDA is now in the
process of transferring these contracts to the ODA.

19. 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.

20. 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.

124    LDA Annual Report and Accounts 2005/2006
21. 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.

22. General Fund Reserve
The General Fund Reserve represents the cumulative surplus/deficit from the Consolidated
Revenue Account.

23. Reconciliation of Cash Flow Statement to Consolidated
Revenue Account
Reconciliation of Cash Flow Statement to Consolidated Revenue Account
                                                               Year ending        Year ending
                                                            31 March 2006      31 March 2005
                                                                     £’000              £’000
General Fund Surplus                                                 2,138                19,648

Less Non Cash Transactions
Net capital cash (inflow)                                          (19,419)               (2,096)
Provision for Bad and Doubtful Debts                                    12                (1,400)
Contribution to/(from) Provisions                                        _                  (25)
Transfer to/(from) Reserves                                              _                (3,592)

Less items included as Accruals
(Increase) in Debtors                                               (7,374)               (1,532)
Increase/(Decrease) in Creditors                                     8,160            (35,615)

Adjustment for sums accounted for elsewhere:
Interest received                                                   (1,480)               (1,155)
Net Cash Outflow from Activities                                  (17,963)            (25,767)

24. Analysis of changes in cash and cash equivalents during
the year
Cash at bank and in hand at 1 April 2005                                                   1,199
Net cash inflow for year                                                                   2,936
Three Mills working capital contribution                                                     398
Cash at bank and in hand at 31 March 2006                                                  4,533

The General Fund balance brought forward in the CRA (page 107) has been adjusted from
£55,000 to £453,000 to correctly reflect the working capital of £398,000 held by GVA
Grimley in respect of Three Mills.

                                               LDA Annual Report and Accounts 2005/2006    125
         Glossary of Accountancy Terms

Accounting Policies
Those principles, bases, conventions, rules and practices applied by an entity that specify
how the effects of transactions and other events are to be reflected in its financial
statements through:
  i.      recognising
  ii.     selecting measurement bases
  iii.    presenting assets, liabilities, gains, losses and changes to reserves
Accounting policies do not include estimation techniques.
Accounting policies define the process whereby transactions and other events are
reflected in financial statements. For example, an accounting policy for a particular type
of expenditure may specify whether an asset or a loss is to be recognised; the basis on
which it is to be measured; and where in the revenue account or balance sheet it is to be

Acquired Operations
Operations comprise services and divisions of service as defined in CIPFA’s Standard
Classification of Income and Expenditure. Acquired operations are those operations of the
LDA that are acquired in the period.

Actuarial Gains And Losses
For a defined benefit pension scheme, the changes in actuarial deficits or surpluses that
arise because:
  a. events have not coincided with the actuarial assumptions made for the last valuation
     (experience gains and losses)
  b. the actuarial assumptions have changed

Capital Charge
A charge to service revenue accounts to reflect the cost of fixed assets used in provision of

Capital Expenditure
Expenditure on the acquisition of a fixed asset or expenditure, which adds to and not
merely maintains the value of an existing fixed asset.

The principle that the accounting treatment of like items within an accounting period and
from one period to the next is the same.

126      LDA Annual Report and Accounts 2005/2006
Consolidated Revenue Account
The Consolidated Revenue Account reports the net cost for the year of the functions for
which the Agency is responsible, and demonstrates how that cost has been financed.

Contingent Asset
A contingent asset is a possible asset arising from past events whose existence will be
confirmed only by the occurrence of one or more uncertain future events not wholly
within the LDA’s control.

Contingent Liability
A contingent liability is either:
  a.    a possible obligation arising from past events whose existence will be confirmed
        only by the occurrence of one or more uncertain future events not wholly within
        the LDA’s control
  b.    a present obligation arising from past events where it is not probable that a
        transfer of economic benefits will be required or the amount of the obligation
        cannot be measured with sufficient reliability

For a defined benefit scheme, an event that reduces the expected years of future service of
present employees or reduces for a number of employees the accrual of defined benefits
for some or all of the future service. Curtailments include:
  a.    termination of employees’ services earlier than expected, for example as a result of
        closing a factory or discontinuing a segment of a business
  b.    termination of, or amendment to the terms of, a defined benefit scheme so that
        some or all future service by current employees will no longer qualify for benefits
        or will qualify only for reduced benefits

Deferred Charges
Expenditure which may properly be deferred, but which does not result in, or remain
matched with, tangible assets.

Defined Benefit Scheme
A pension or other retirement benefit scheme other than a defined contribution scheme.
Usually, the scheme rules define the benefits independently of the contributions payable,
and the benefits are not directly related to the investments of the scheme. The scheme
may be funded or unfunded (including notionally funded).

Defined Contribution Scheme
A pension or other retirement benefit scheme into which an employer pays regular
contributions fixed as an amount or as a percentage of pay and will have no legal or
constructive obligation to pay further contributions if the scheme does not have sufficient
assets to pay all employee benefits relating to employee service in the current and prior

                                               LDA Annual Report and Accounts 2005/2006   127
The measure of the cost or revalued amount of the benefits of the fixed asset that have
been consumed during the period.
Consumption includes the wearing out, using up or other reduction in the useful life of
a fixed asset whether arising from use, effluxion of time or obsolescence through either
changes in technology or demand for the goods and services produced by the asset.

Discretionary Benefits
Retirement benefits which the employer has no legal, contractual or constructive
obligation to award and are awarded under the authority’s discretionary powers, such as
The Local Government (Discretionary Payments) Regulations 1996, the Local Government
(Discretionary Payments and Injury Benefits), (Scotland) Regulations 1998, or The Local
Government (Discretionary Payments) Regulations (Northern Ireland) 2001.

Discontinued Operations
Operations comprise services and divisions of service as defined in CIPFA’s Standard
Classification of Income and Expenditure. An operation should be classified as
discontinued if all of the following conditions are met:
  a.    the termination of the operation is completed either in the period or before the
        earlier of three months after the commencement of the subsequent period and
        the date on which the financial statements are approved
  b.    the activities related to the operation have ceased permanently
  c.    the termination of the operation has a material effect on the nature and focus of
        the LDA’s operations and represents a material reduction in its provision of services
        resulting either from its withdrawal from a particular activity (whether a service
        or a division of service or its provision in a specific geographical area) or from a
        material reduction in net expenditure in the LDA’s continuing operations
  d.    the assets, liabilities, income and expenditure of operations and activities are
        clearly distinguishable physically, operationally and for financial reporting
Operations not satisfying all these conditions are classified as continuing.

All sums paid to or receivable by an employee and sums due by way of expenses
allowances (as far as those sums are chargeable to UK income tax) and the money value
of any other benefits received other than in cash. Pension contributions payable by either
employer or employee are excluded.

Estimation Techniques
The methods adopted by an entity to arrive at estimated monetary amounts,
corresponding to the measurement bases selected, for assets, liabilities, gains, losses and
changes to reserves.
Estimation techniques implement the measurement aspects of accounting policies. An
accounting policy will specify the basis on which an item is to be measured; where there

128    LDA Annual Report and Accounts 2005/2006
is uncertainty over the monetary amount corresponding to that basis, the amount will be
arrived at by using an estimation technique. Estimation techniques includes, for example:
  a.    methods of depreciation, such as straight-line and reducing balance, applied in
        the context of a particular measurement basis, used to estimate the proportion of
        the economic benefits of a tangible fixed asset consumed in a period
  b.    different methods used to estimate the proportion of debts that will not be
        recovered, particularly where such methods consider a population as a whole
        rather than individual balances

Exceptional Items
Material items which derive from events or transactions that fall within the ordinary
activities of the authority and which need to be disclosed separately by virtue of their size
or incidence to give fair presentation of the accounts.

Expected Rate Of Return On Pensions Assets
For a funded defined benefit scheme, the average rate of return, including both income
and changes in fair value but net of scheme expenses, expected over the remaining life of
the related obligation on the actual assets held by the scheme.

Extraordinary Items
Material items, possessing a high degree of abnormality, which derive from events or
transactions that fall outside the ordinary activities of the authority and which are not
expected to recur. They do not include exceptional items nor do they include prior period
items merely because they relate to a prior period.

Finance Lease
A lease that transfers substantially all of the risks and rewards of ownership of a fixed
asset to the lessee. Such a transfer of risks and rewards may be presumed to occur if at the
inception of the lease the present value of the minimum lease payments, including any
initial payments, amounts to substantially all of the fair value of the leased asset.

Fixed Assets
Tangible assets that yield benefits to the LDA and the services it provides for a period of
more than one year.

Going Concern
The concept that the authority will remain in operational existence for the foreseeable
future, in particular that the revenue accounts and balance sheet assume no intention to
curtail significantly the scale of operations.

Government Grants
Assistance by the Government and inter-government agencies and similar bodies,
whether local, national or international, in the form of cash or transfers of assets to an
authority in return for past or future compliance with certain conditions relating to the
activities of the authority.

                                                LDA Annual Report and Accounts 2005/2006   129
Investments (Non-Pension Fund)
A long-term investment is an investment that is intended to be held for use on a
continuing basis in the activities of the authority. Investments should be so classified only
where an intention to hold the investment for the long term can clearly be demonstrated
or where there are restrictions as to the investor’s ability to dispose of the investment.
Investments, other than those in relation to a pension fund, that do not meet the above
criteria should be classified as current assets.

Investments (Pension Funds)
The investments of a Pension Fund will be accounted for in the statements of that
Fund. However, authorities (other than local district councils in Northern Ireland) are
also required to disclose, as part of the transitional disclosures relating to retirement
benefits, the attributable share of pension scheme assets associated with their underlying

Liquid Resources
Current asset investments that are readily disposable by the authority without disrupting
its business and are either; readily convertible to known amounts of cash at or close to the
varying amount, or traded in an active market.

Long-term Contracts
A contract entered into for the design, manufacture or construction of a single substantial
asset or the provision of a service (or a combination of assets or services which together
constitute a single project) where the time taken substantially to complete the contract is
such that the contract activity falls into different accounting periods. Some contracts with
a shorter duration than one year should be accounted for as long-term contracts if they
are sufficiently material to the activity of the period.

Net Book Value
The amount at which fixed assets are included in the balance sheet, i.e. their historical cost
or current value less the cumulative amounts provided for depreciation.

Net Current Replacement Cost
The cost of replacing or recreating the particular asset in its existing condition and in its
existing use, i.e. the cost of its replacement or of the nearest equivalent asset, adjusted to
reflect the current condition of the existing asset.

Net Realisable Value
The open market value of the asset in its existing use (or open market value in the case of
non-operational assets), less the expenses to be incurred in realising the asset.

Non-operational Assets
Fixed assets held by the LDA but not directly occupied, used or consumed in the delivery
of services. Examples of non-operational assets are investment properties and assets that
are surplus to requirements, pending sale or redevelopment.

130    LDA Annual Report and Accounts 2005/2006
Operating Leases
A lease other than a finance lease.

Operational Assets
Fixed assets held and occupied, used or consumed by the LDA in the direct delivery of those
services for which it has either a statutory or discretionary responsibility.

Past Service Cost
For a defined benefit scheme, the increase in the present value of the scheme liabilities
related to employee service in prior periods arising in the current period as a result of the
introduction of, or improvement to, retirement benefits.

Post Balance Sheet Events
Those events, both favourable and unfavourable, which occur between the balance
sheet date and the date on which the Statement of Accounts is signed by the responsible
financial officer.

Prior Period Adjustments
Those material adjustments applicable to prior years arising from changes in accounting
policies or from the correction of fundamental errors. A fundamental error is one that is of
such significance as to destroy the validity of the financial statements. They do not include
normal recurring corrections or adjustments of accounting estimates made in prior years.

The concept that revenue is not anticipated but is recognised only when realised in the
form of cash or of other assets, the ultimate cash realisation of which can be assessed with
reasonable certainty.

Related Parties
Two or more parties are related parties when at any time during the financial period:
  i.     one party has direct or indirect control of the other party
  ii.    the parties are subject to common control from the same source
  iii.   one party has influence over the financial and operational policies of the other
         party to an extent that the other party might be inhibited from pursuing at all
         times its own separate interests
  iv.    the parties, in entering a transaction, are subject to influence from the
         same source to such an extent that one of the parties to the transaction has
         subordinated its own separate interests
Examples of related parties of an authority include:
  i.     central Government
  ii.    local authorities and other bodies precepting or levying demands on the Council Tax
  iii.   its subsidiary and associated companies

                                                 LDA Annual Report and Accounts 2005/2006   131
  iv.     its joint ventures and joint venture partners
  v.      its members
  vi.     its chief officers
  vii. members of the close family, or households of members and chief officers
  viii. partnerships, companies, trusts or other entities in which the individual, or a
        member of their close family or households, has a controlling interest
  ix.     its pension fund
Examples of related parties of a pension fund include its:
  i.      administering authority and its related parties
  ii.     scheduled bodies and their related parties
  iii.    trustees and advisors
These lists are not intended to be comprehensive.

Related Party Transaction
A related party transaction is the transfer of assets or liabilities or the performance of
services by, to or for a related party irrespective of whether a charge is made. Examples of
related party transactions include:
  ii.     the purchase, sale, lease, rental or hire of assets between related parties
  ii.     the provision by a pension fund to a related party of assets of loans, irrespective of
          any direct economic benefit to the pension fund
  iii.    the provision of a guarantee to a third party in relation to a liability or obligation of
          a related party
  iv.     the provision of services to a related party, including the provision of pension fund
          administration services
  v.      transactions with individuals who are related parties of an authority or a pension
          fund, except those applicable to other members of the community or the pension
          fund, such as Council Tax, rents and payments of benefits
This list is not intended to be comprehensive.
The materiality of related party transactions should be judged not only in terms in their
significance to the authority, but also in relation to its related party.

Residual Value
The net realisable value of an asset at the end of its useful life. Residual values are based
on price prevailing at the date of the acquisition (or revaluation) of the asset and do not
take account of expected future price changes.

132      LDA Annual Report and Accounts 2005/2006
Retirement Benefits
All forms of consideration given by an employer in exchange for services rendered by
employees that are payable after the completion of employment. Retirement benefits do
not include termination benefits payable as a result of either (i) an employer’s decision
to terminate an employee’s employment before the normal retirement date or (ii) an
employee’s decision to accept voluntary redundancy in exchange for those benefits,
because these are not given in exchange for services rendered by employees.

Scheme Liabilities
The liabilities of a defined benefit scheme for outgoings due after the valuation date.
Scheme liabilities measured using the projected unit method reflect the benefits that the
employer is committed to provide for service up to the valuation date.

An irrevocable action that relieves the employer (or the defined benefit scheme) of the
primary responsibility for pension obligation and eliminates significant risks relating to
the obligation and the assets used to effect the settlement. Settlements include:
  a.    a lump-sum cash payment to scheme members in exchange for their rights to
        receive specified pension benefits
  b.    the purchase of an irrevocable annuity contract sufficient to cover vested benefits
  c.    the transfer of scheme assets and liabilities relating to a group of employees
        leaving the scheme

The amount of unused or unconsumed stocks held in expectation of future use. When
use will not arise until a later period, it is appropriate to carry forward the amount to
be matched to the use or consumption when it arises. Stocks comprise the following
  a.    goods or other assets purchased for resale
  b.    consumable stores
  c.    raw materials and components purchased for incorporation into products for sale
  d.    products and services in intermediate stages of completion
  e.    long-term contract balances
  f.    finished goods

Total Cost
The total cost of a service or activity includes all costs, which relate to the provision of the
service (directly or bought in) or to the undertaking of the activity. Gross total cost includes
employee costs, expenditure relating to premises and transport, supplies and services,
third party payments, transfer payments, support services and capital charges. This
includes an appropriate share of all support services and overheads, which need to
be apportioned.

                                                 LDA Annual Report and Accounts 2005/2006   133
Unapportionable Central Overheads
These are overheads for which no user now benefits and should not be apportioned
to services.

Useful Life
The period over which the LDA will derive benefits from the use of a fixed asset.

Vested Rights
In relation to a defined benefit scheme, these are:
  a.    for active members, benefits to which they would unconditionally be entitled
        on leaving the scheme
  b.    for deferred pensioners, their preserved benefits
  c.    for pensioners, pensions to which they are entitled
Vested rights include where appropriate the related benefits for spouses or
other dependants.

134    LDA Annual Report and Accounts 2005/2006
Appendix 1

Economic Development Strategy
Implementation Report

                  LDA Annual Report and Accounts 2005/2006   135
Purpose of this document
The Mayor’s Economic Development Strategy (EDS) ‘Sustaining Success’ was launched
in January 2005. It is the Mayor’s economic plan for London. Thanks to the consultative
approach taken in its creation, it is also a platform for collective action by leading
economic development organisations, groups and businesses in London.
It seeks to support the successes of London and tackle the many challenges the city faces,
such as widespread inequality and a lack of affordable housing. This report monitors
the implementation of this Strategy, but should be read in conjunction with the latest
London Economic Development Snapshot. The six-monthly Snapshot report examines the
progress London is making towards the key objectives set out in the EDS. It presents the
latest data on London’s economy and comments on performance and priorities.
This report complements the Snapshot by reporting on the contributions that the London
Development Agency and other organisations in London have made towards the EDS
objectives. It keeps under constant review the validity of the EDS analysis as a platform for
action in the context of changes at a local, national and global level.

Since the publication of the EDS, London has experienced two events of significance
and potential major economic impact. First, London’s victory in the competition to host
the 2012 Olympic Games and Paralympic Games, an event that confirmed the current
strengths of London, its pivotal role in the global economy, and the hopes for the city’s
future. Second, and only one day later, the bombings in central London which abruptly
drew our attention back to the many complex challenges that the city faces.
In spite of these events the external environment for London remains relatively
unchanged. The UK economy is growing at, or around historical trend rates, and global
economic conditions are, at the moment, relatively favourable, notwithstanding the risks
posed by high energy prices, the large US Current Account deficit and the continuing
terrorist threat. Attention has increasingly focussed on the opportunities, and threats,
offered by the emerging economies of China, India and Russia.
In late 2005, the Government asked for views on extending the powers of the GLA and
the Mayor. This process led to the Government’s decision, in July, to give the Mayor an
enhanced role on housing and adult skills in London; a strengthened role over planning
in the capital; and additional strategic powers in a wide range of policy areas including
waste, culture and sport, health, climate change and appointments to the boards of the
functional bodies.
While positive social and economic outcomes have underpinned regeneration activity
over recent decades, the environmental agenda has only more recently begun to
be addressed. Sustainable economic growth cannot be achieved at the expense of
the environment. Improving resource efficiency and protecting and enhancing our
environmental assets must go hand in hand with work to promote positive economic
and social outcomes. Embedding the issues of equality, sustainability and health in all
economic development programmes and projects is critical to delivering the Mayor’s
vision for London to create a sustainable world city based on strong long-term economic
growth, social inclusion and environmental improvement.

136    LDA Annual Report and Accounts 2005/2006
Investment in infrastructure and places
Much progress has been made towards these objectives. Analysis in the latest Snapshot
report1 shows that current targets on housing completions are being met, and that
many key infrastructure projects are on track to deliver the improved and expanded
transport capacity that London needs. However, Crossrail, which will link up four of the
UK’s economic powerhouses, City of London, Canary Wharf, the West End and Heathrow,
providing a backbone to the areas of most rapid job growth, is essential to London and
needs further progress.
London’s opportunity to host the 2012 Olympic Games and Paralympic Games has
boosted the ambitions set out in the EDS. London 2012 will act as a catalyst to regenerate
one of the most deprived parts of the UK, as well as having broader economic benefits
in London and the UK. Additionally, the scale of the public investment will help give
the private sector the confidence to invest the billions of pounds required to realise the
ambitious Thames Gateway regeneration project.

Objective 1 – Support the delivery of the London Plan, to
promote sustainable growth and economic development
1.1     Apply London Plan policies to help deliver a sustainable pattern of
development in London
The ‘Zero-Carbon Development’ project has been initiated as a result of a Mayoral
commitment to zero-carbon policies, and to promote zero-carbon development in each
local authority. To enable the development to progress as quickly as possible, a site has
been identified at Gallion’s Park, and the LDA have carried out a feasibility study to identify
technology options to allow a tendering process to appoint a development partner to
begin. Shortlisting of development partners is underway. A steering group has been set up,
with representatives of the GLA family and Greenpeace, to oversee the project.
There has been continued strong growth on sites in the east of London, most notably
at Woolwich Arsenal and Gallions Reach. The extension of the DLR across the river to
Woolwich Arsenal will provide further impetus for regeneration in this area.
At one of the key regeneration sites in inner London – Dalston and Hackney – major
developments moved significantly forward. Planning permission was secured for the
Dalston Junction interchange and the Dalston Lane South site and Barratt East London Ltd
has been chosen as the development partner. Work on the East London Line station at the
site begins in September 2006.
In December 2005, the Mayor asked Transport for London (TfL) to work up the preferred
plan for the renewal of the gyratory road scheme at Tottenham. Detailed modeling has
now been completed, allowing the detailed design of the project to begin. The new scheme
could be implemented as early as 2010.
A planning framework for Crystal Palace Park was produced setting out a vision for its
future rejuvenation and how this could act as a catalyst for wider regeneration. The
framework formed the basis for a broad consultation event resulting in significant support
for the majority of the proposals. The LDA is now progressing a masterplan for the park
which will form the basis of a planning application in the spring/summer of 2007.
1 London Economic Development Snapshot, London Development Agency/GLA Economics, Issue 3, July 2006.

                                                               LDA Annual Report and Accounts 2005/2006   137
The LDA has assisted in implementing various sections of the Blue Ribbon Network
through investing in individual projects. Some examples include the following.
• Opening up previously inaccessible stretches of Riverside Walk (Thames Path) around
  Thamesmead, Woolwich Dockyard and Royal Arsenal
• Creating a departure point at Woolwich Pier for the Thames Clipper Commuter Service
• Working with the Port of London Authority and the Greater London Authority to
  safeguard vacant wharves. The LDA will use its powers, if landowners are unwilling, to
  act in accordance with the London Plan
• Involvement in the development of Dagenham dock in partnership with the London
  Boroughs of Barking and Dagenham. A sustainable industrial park could include
  projects with potential to transport waste by river

1.2     Coordinate strategy development and delivery across London
The GLA has been reviewing the policies in the London Plan. GLA Group organisations
have contributed by funding a number of studies which inform this review, which include:
logistic and wholesale market needs, small area employment projections and children’s
play facilities.
The five Sub-Regional Development Frameworks were completed in May 2006. In
addition, Sub-regional Economic Development Implementation Plans were drawn up by
the five London sub-regions, in consultation with London-wide bodies and sub-regional
The LDA has started assisting boroughs to develop site specific planning guidance. The key
sites that the LDA is involved in include:
• Mill Hill East
• Park Royal
• Colliers Wood and South Wimbledon

1.3    Ensure adequate supply of homes and workspace
Since the publication of the EDS in January 2005, there have been a number of key
achievements contributing to greater and more effective housing delivery in London.
The London Housing Board, comprising of the LDA, GLA, Housing Corporation, Association
of London Government, Government Office for London and English Partnerships,
published the second London Housing Strategy in July 2005. This made the case to
Government for additional resources for London. Subsequently some £1.3 billion was
allocated by the Housing Corporation in March 2006 to deliver 17,000 new homes which
will be funded in the 2006 to 2008 financial years.
The Mayor’s Housing Capacity Study, published in 2004, provided the rationale for a new
31,000 annual target, up from the previously identified minimum target of 23,000. In
2004/2005, London’s housing output was 27,364 homes, in excess of the Mayor’s London
Plan minimum target. In the event of the Mayor’s new housing target being adopted, a
sustained increase in housing delivery in east London will be required as approximately
half of London’s housing capacity is located in the London Thames Gateway.

138    LDA Annual Report and Accounts 2005/2006
The LDA made significant headway in the construction of major new housing
developments at the Royal Albert Basin and Royal Arsenal. Together these developments
will deliver over three thousand housing units.
Additionally, the LDA brokered housing developments at both the Wembley and Ashburton
Grove stadium developments that will provide a further 6,200 housing units.

Objective 2 – Deliver an improved and effective infrastructure
to support London’s future growth and development
2.1    Make the case for investment in London’s infrastructure and ensure
delivery of projects critical to supporting London’s growth
GLA Economics continued to produce influential reports that support the case for
investment in London with the publications ‘Growing Together: London and the UK
Economy’ and ‘Our London. Our Future. Planning for London’s Growth II’.
The GLA Group are working collectively to present the case for investment in London to the
Government as part of the 2007 Comprehensive Spending Review.
In March 2006, the GLA Group submitted a response to the Department for Transport
request for potential candidate schemes for Transport Innovation Fund productivity
programme investment. The submission included a list of important transport projects
that would deliver national productivity gains through investment in London, including
Crossrail. This submission has subsequently been supported by the London Business
The LDA has continued to support TfL in Public Inquiries where the case for the transport
projects relates directly to the regeneration of an area. These include the Thames Gateway
Bridge Inquiry and Transport Works Act DLR extension to Stratford inquiry.

2.2     Maximise economic, social and environmental benefits from infrastructure
The LDA has undertaken a strategic review of the economic impact of major development
projects, ranging from Olympics and major events to transport investments, and including
case studies of LDA supported projects, such as Wembley. The review will provide best
practice lessons and advice on ‘what works’ in the design of economic development
interventions to maximise the impact and benefits of the LDA’s programmes and
infrastructure projects.
Olympic stakeholders are working together to develop a robust, integrated impact
evaluation and delivery framework for the London 2012 Olympic Games and Paralympic
Games. Scoping research has been commissioned to help align the International Olympic
Committee (IOC), London and UK stakeholder requirements to deliver economic and
socio-economic benefits from the London Games. There is an aspiration to create a lasting
legacy for the IOC and the Olympic movement around benefits realisation where a London
model can shape the way in which impact assessment is conducted for future Games.

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LDA legacy initiatives include the following.
• The Local Employment and Training Framework as a requirement of planning
  permission for Olympic developments. This is a practical toolkit to deliver the
  sustainable regeneration of east and south east London by equipping people and
  businesses located closest to the main Olympic development with the skills, knowledge
  and expertise to take advantage of not only the Olympic project; but also the
  comprehensive regeneration of the Thames Gateway over the next 20 years
• Measures in the ODA and LOCOG procurement policies that maximise opportunities for
  London-based businesses, including SMEs and minority owned businesses to access
  Olympic and Paralympic-related development contracts
The Sustainable Design and Construction toolkit, which was completed late last year, has
been developed to raise awareness and understanding of sustainability issues amongst
development and regeneration practioners, and improve the integration of high standards
of sustainable design and construction in LDA developments. During 2006/2007 the
toolkit is being tested on a number of LDA schemes – St Andrews, Landmark and
masterplanning at West Ham. The toolkit will bring higher standards in sustainable design
and construction and help deliver more exemplary schemes. During the next few years the
LDA will be monitoring the effectiveness of the toolkit and consider broader roll-out across
the LDA and its partners.

2.3     Identify infrastructure needed to support bidding for the 2012 Games,
and ensure a lasting legacy for London
As a result of winning the Olympic Games and Paralympic Games, transport infrastructure
in the Lower Lea Valley and the wider Thames Gateway will dramatically improve – with
extensions, refurbishments and upgrades to the Docklands Light Railway, East London and
Jubilee Underground lines and the North London line.
This EDS action will be replaced with ‘Build the infrastructure for the 2012 Olympic
Games and Paralympic Games and ensure delivery in ways that maximise the lasting
legacy for London’.

Objective 3 – Deliver healthy, sustainable high quality
communities and urban environments
3.1    Support delivery of the Mayor’s environmental strategies
The importance of recycling in London has meant increased investment in developing
London’s waste recycling infrastructure and reprocessing sector. The London Recycling
Fund distributed almost £50 million over four years and leveraged an additional £50
million investment. The Waste and Resources Action Programme (WRAP) and the
LDA have invested in developing the reprocessing sector, which includes a plastics
reprocessing plant at Dagenham Dock and establishing the Enhance programme, run by
London Remade.
Climate change has become an increasingly important issue in London, with a wide range
of activities to address both in terms of mitigation and adaptation. A number of boroughs
have energy requirements within their planning policies and the Mayor’s London Energy
Partnership has led work on establishing four pilot energy action areas in Merton, Barking,
Brent and Southwark.

140    LDA Annual Report and Accounts 2005/2006
We also set up the London Climate Change Agency which is a key delivery mechanism for
the Mayor’s Energy Strategy. The Agency recently announced the selection of a preferred
bidder, EDF Energy, for the establishment of a London Energy Services Company (ESCO).
The company will tackle climate change by developing local sustainable energy solutions
to London’s power, heating and cooling needs. It will identify and develop sites across the
capital where investment in sustainable energy technology would reduce carbon dioxide
and other greenhouse gas emissions contributing to global warming.
The GLA has also set up the London Energy Partnership and the London Hydrogen
Partnership which bring together a breadth of stakeholders to promote sustainable energy
and the move towards a renewable hydrogen economy.

3.2     Support improvements in design and management of the public realm
Green and open spaces are a critical part of the environmental infrastructure of London
and the south east. The Green Grid and Green Arc concepts seek to link up and enhance
existing green space (and green belt land outside London) to create a multifunctional
infrastructure that promotes opportunities for local food production, flood control,
recreation, biodiversity/ecology, wildlife conservation, alternative transport networks
(cycling and walking), and contributes to the heath, well being and amenity of Londoners.
Green Grid/Green Arc can also be an important contributor to the broader regeneration
of an area.
The LDA continues to support the Mayor’s 100 Spaces for Londoners initiative. Last year
the Agency provided funding towards the GLA’s ‘Civilising Spaces’ exhibition that show-
cased new and proposed spaces being promoted as part of this project. We also used
our Design Advisors to assist on the development of designs and concepts for a number
of these 100 Spaces and public realm projects. The LDA is seeking to deliver those 100
spaces that are within its development areas as part of our commitment to this project.
As well as the green space infrastructure, a range of other services are required to deliver
quality of life. Work to develop a Social Infrastructure Framework for the Thames Gateway
is underway, funded by Department for Communities and Local Government (DCLG).
This work will identify the range of education, health and other facilities required to
support sustainable communities in the Gateway. In addition, the London Healthy Urban
Development Unit, set up by the GLA, LDA and NHS, seeks to ensure that appropriate
health service provision is built in at the early stages of new developments.

Investment in people
The EDS sets out to improve economic inclusion and enable all Londoners to fulfill
their potential. It also establishes the employment rate as the best indicator for
measuring progress on this. The latest analysis in the Snapshot report shows that
London employment remains near the bottom of regional employment rates, some nine
percentage points lower than neighbouring regions the south east and east of England.
Moreover, the targets of raising the employment rates in key disadvantaged groups and in
areas of concentrated disadvantage show little signs of progress.
However, employment itself is growing steadily, at an average 0.9% per annum, and focus
is increasingly being put on the difficulty in resolving the issues that surround persistent
economic inactivity.

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The lack of affordable childcare is a key barrier to employment for parents in London.
To address this, the LDA runs a Childcare Affordability Programme (CAP), which has proved
successful in providing subsidised childcare places for thousands of Londoners.
The Olympic and Paralympic Games will also significantly boost efforts to tackle the
concentration of disadvantage in east London. It will bring particular focus on the five host
‘Olympic Boroughs’ Greenwich, Newham, Hackney, Tower Hamlets and Waltham Forest.
These boroughs have some of the lowest employment levels in the UK. The public, private
and voluntary sectors need to work together to capitalise on the opportunities of the
Games to tackle these concentrations of disadvantage.

Objective 4 – Tackle barriers to employment
4.1     Improve the accessibility, affordability and availability of childcare
The Childcare Affordability Programme continues to exceed targets. The programme
started in November 2005, and has supported over 6,400 childcare places, achieving
over 64% of its three years lifetime outputs in six months. The Treasury Project ‘Helping
Women Returners back into the Workforce’ Pilot ‘Area 1’ began in February 2006. The
target audience is women with children under the age of five, living in Tower Hamlets,
Hackney and Newham.

4.2     Make employment more accessible by increasing Tax Credit receipts
CAP is a mix of demand and supply-side funding. In order for parents to maximise from
the benefits of CAP they need to claim the childcare tax credit element of Working Tax
Credits (WTC). There is already a noticeable increase in uptake of tax credits by parents
participating in the programme.

4.3    Work with employers to promote equality in the workplace
Support is being provided to employers through a range of publications including the
Good Practice guide, ‘Profiting from Diversity’, and the Action Plan tool where consultants
are provided on-site to work directly with employers to produce their Diversity Action Plan.
The Diversity Works for London programme has supported businesses by piloting a
Diversity Dividend diagnostic tool. This pilot programme has involved 25 companies. Work
will soon commence to scale-up activity and engage with hundreds more companies
across London.

4.4    Improve the quality and quantity of Basic Skills provision
A regional strategy has been developed by the LDA, LSC and Basic Skills Agency, to increase
the supply of qualified literacy, numeracy and ESOL teachers. It will be launched in 2006.
The UK Careers Academy Foundation was supported to enable the expansion of its
network of London Academies of Finance to each borough and to establish five new
I.T. academies.
Embedding basic skills in London’s local authorities – Croydon, Kingston, Merton, Sutton,
Camden, Southwark, Wandsworth, Haringey, City of London, Newham and Tower Hamlets
will help support their workforce and provide basic skills needs.

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4.5     Raise awareness and take-up of in-work benefits
Parents on the CAP programme receive support from participating nurseries in relation to
in-work benefits. These nurseries are providing an advice and signposting service through
‘in-work benefit’ champions. The Treasury pilot will also work with beneficiaries prior to
returning to work, to develop an understanding of what in work-benefits individuals are
eligible for.

4.6     Encourage the expansion of family-friendly and flexible employment
Both CAP and women returner’s pilots encourage family friendly and flexible working
practices by enabling parents to access affordable and flexible childcare places. The LDA
will be working with SureStart to deliver Workplace Nurseries supporting SMEs.
The LDA also contributed significantly to the criteria for the government childcare
workforce pilot, the Transformation Fund.
The Treasury Pilot ‘Area 1’ began in February 2006 where the main target audience is
women returning to work.

4.7    Support the development of voluntary and community sector training
A comprehensive programme of capacity-building for voluntary and community sector
training providers has been developed by the LDA. It will assist them in developing a full
range of core capabilities required to build effective organisations, and aims to build their
operational effectiveness, quality and sustainability.
In addition, the LDA’s Opportunities Fund, Round 2, will look to invest in additional
projects which will support the capacity-building of community-led organisations.

Objective 5 – Reduce disparities in labour market outcomes
between groups
5.1    Ensure employment programmes benefit disadvantaged groups
LDA-led area programmes continue to work towards improving outcomes for
disadvantaged groups. For example, the City Fringe Skills and Employment Programme
has now successfully supported 440 people into jobs and 2,000 people to obtain skills
training, with over 60% of beneficiaries from BAME communities.
Agencies are already working to maximise the opportunities of direct employment on the
Olympic project for local people, and remove the barriers they face in getting and keeping
a job. The huge mobilisation of volunteers that the 2012 Olympic Games and Paralympic
Games needs will contribute substantially to this objective. It will provide a unique
opportunity for people to contribute to London 2012 and to receive training and work
experience, which will help them progress in the labour market. The Olympic Park will be
fully accessible, enabling all Londoners to access these opportunities.
The Thames Gateway Jobnet was developed to provide brokerage services to help local
people access opportunities and to support local employer’s recruitment processes. The
London ESOL plan was also developed for stakeholders to improve and make provisions
more work-focused. Delivery of the Global Grants programme has proven to be a success
in working in partnership with small community groups.

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There were many other projects to combat worklessness, for example the National
Institute of Adult Continuing Education developed promotional strategies for adult
learning such as Adult Learners’ Week Plus and The Southwark Workless pilot supported
people with disabilities and people on incapacity benefit back to work.

5.2     Reduce and where possible eradicate barriers to key target groups entering
high-level employment
There are 25 of the largest companies in the UK taking part in the pilot Diversity Dividend
project launched in January 2006 as part of the Diversity Works programme. This
programme helps companies to implement a supplier diversity programme and puts
diversity into company appraisal processes.
The Science, Technology, Engineering and Materials (STEM) Network was established
to raise awareness of related subjects and careers, through staff development, industry
tasters and co-ordination of London-wide initiatives.
Working in partnership with the Financial Services Sector Skills Council, the City of London
Corporation and City Fringe Partnership, the LDA has developed projects that will support
the skills and employment needs of the financial services sector by providing new entry
routes to employment for young people and pre-employment training for adults to
broaden the recruitment pool. The projects are employer-led and will support the sector to
tackle critical skills shortages and diversify the workforce.

5.3    Address labour market barriers faced by particular groups, and support
increasing single parent employment
The London Riverside Equality Access Programme supports people with disabilities
and other health-related issues in the London boroughs of Barking and Dagenham and
Havering who wish to get back into employment. It is run by Tomorrows People with
partners including the two London Boroughs, Jobcentre Plus, and the Disablement
Association of Barking and Dagenham. The project provides individuals with one to one
confidential services, including basic skills assessment to explore options and training
needs. A bespoke pre-placement programme is delivered to improve employability,
followed by the opportunity to undertake a work placement.
People with a range of health related problems were supported back into employment,
through LDA2 and the LDA Opportunities Fund. Additionally, a targeted programme aimed
at supporting people back into work, in the Hospitality, Leisure, Travel and Tourism (HLTT)
sector was developed by the LDA.
See also sections 4.5 and 4.6.

5.4    Ensure all employers are ready to implement Part III of the Disability
Discrimination Act 1995
The Diversity Works for London Programme encourages employers across voluntary
and commercial sectors to adapt their practices in line with Part III of the Disability
Discrimination Act 1995.

144    LDA Annual Report and Accounts 2005/2006
Objective 6 – Address the impacts of the concentrations of
6.1    Ensure housing developments lead to balanced, healthy and sustainable
The LDA with the Greater London Authority commissioned a strategic study to consider
how the regeneration potential of the Canning Town and Royal Docks could be maximised.
The study considers how the objectives of quality design can be delivered within
the framework of the Mayor’s London Plan and the Government’s wider sustainable
communities agenda. The study is due to be finalised in Autumn 2007.
The LDA supported a number of schemes to encourage sustainable communities. In the
Forest Gate and Plaistow areas, which have poor education levels and high unemployment,
the Building Sustainable Communities Single Regeneration Budget (SRB) programme
came to an end in 2005. A new organisation called Passmore Urban Renewal was established
through the SRB scheme to continue the task of creating a stable, self-sustaining and
diverse community. Its programme includes a large housing project that acquires,
renovates and re-lets properties to key workers at affordable rates, and a number of
substantial and ambitious training and community projects that are greatly valued locally.

6.2    Increase participation and attainment of disadvantaged students
The Centre for Engineering and Manufacturing Excellence (CEME) gives students from
schools in Barking and Dagenham and Havering the opportunity to use state-of-the-art
protyping and design equipment in their GCSE studies and promotes career opportunities
in engineering.

6.3    Ensure disadvantaged young people are able to participate fully in society
The LDA supports a number of projects which aim to use innovative ways to engage
young people in, or at risk of falling into the NEET (not in employment, education or
training) group. For example, the LDA supports ‘Detached Youth Projects’ operational in
the deprived neighbourhoods of South Canning Town in Newham and Manor House in
Hackney. The project employs staff who work in neighbourhoods to engage young people
via sports and cultural activities to build confidence and skills, and work towards assisting
young people into training and employment.
The LDA-funded ‘Get Set Go!’ project provides a series of workshops for groups of potential
young learners and recruits to the hospitality industry with a “ready, steady, cook” theme.
The workshops are held twice a year using the facilities of local hotels, with chefs cooking
and fitness instructors training. The chefs and leisure staff answer questions from the
attendees about employment and progression opportunities in the industry with a brief to
enthuse and inspire the audience. This is then followed up by job taster and job placement
activity for up to 250 people leading to either apprenticeship or NVQ training for 50 young
people wanting to pursue a career in the HLTT industry.
As part of winning the bid to stage the 2012 Games, over 64,000 young people from
east London took part in 26 different Olympic and Paralympic activities, funded by up
to £1 million of Government money. The young people have benefited socially as well as
physically, with after-school clubs offering additional sporting activities aimed at reducing
crime, and helping young people gain qualifications to work in sport.

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London Youth Support Trust was initially set up to tackle two serious problems facing
young entrepreneurs receiving support from the Prince’s Trust. First, the failure of at least
one in five of Prince’s Trust sponsored businesses to commence trading, because of their
inability to find affordable business premises. Second, concern about the effectiveness of
business support and the belief that a more formal, on-site, business support programme
would not only improve survival rates, but also create growth. There are currently two
centres in operation, one in Hackney and one in Deptford, providing affordable subsidised
business incubation units (for up to three years) and on-site business support/personal
mentoring. The LDA funds these in partnership with the Rank Foundation, Workspace plc,
the Peter de Haan Trust and the Prince’s Trust.
The Young Entrepreneurs Project which ended in March this year was designed and
solely funded by the LDA and delivered by the Prince’s Trust in partnership with Right
to Write and Leonard Cheshire workability (both providing business training to people
with disabilities). This project successfully engaged young people from both BAME and
disabled backgrounds with the Prince’s Trust Business Programme. Through the funding
of a Regional Inclusion Manager, the project also significantly increased young and
ex-offender participation and developed a partnership with the RETAS programme, a
business course for young refugees.

Investment in enterprise
Analysis in the Snapshot report shows reasonable progress. London continues to be
seen as an excellent city to do business in, and workers in London are significantly more
productive than the average worker in the UK as a whole. However, the net start up
rate of businesses is worrying and we have seen a recent upswing in the number of
businesses reporting skills as a problem (see London Economic Development Snapshot
Issue 3, July 2006).
Increasing attention is being paid to the fast-growing economies of India and China,
particularly given the unique link between Beijing and London as hosts of the next two
Olympic Games and Paralympic Games. The Mayor recently opened offices in Beijing and
Shanghai. A major new initiative is in development between the LDA and the GLA on a
significant engagement programme with large business reflecting their importance to
London’s economy.
In April 2005, the LDA assumed responsibility for the management of the Business
Link branded Information, Diagnosis and Brokerage (IDB) service from the DTI’s Small
Business Service. The LDA undertook a Business Support Review to ensure that the new
arrangements facilitate the delivery of the EDS and that the LDA’s business support better
meets the needs and challenges facing London’s businesses. During spring 2006 the
LDA competitively tendered the Business Link branded contract to obtain improvements
in the service and deliver better value for money. A new provider was chosen to run the
service from April 2007. The Small Business Service simplification programme to remove
duplication and overlap in business support will have important consequences on all
publicly funded business support.
There will be an unprecedented demand for people with the right skills to help deliver the
Olympic project. A crucial element of the Olympic offer will be the provision of training
and support services that can help raise individual aspirations and develop career paths.
Businesses will be able to get information and support in becoming ‘ready’ to compete

146    LDA Annual Report and Accounts 2005/2006
for contracts through a dedicated Olympic Intelligence Unit and targeted supply chain

Objective 7 – Address barriers to enterprise start-up, growth
and competitiveness
7.1     Increase the supply of affordable and accessible workspace for SMEs
The LDA undertook research into the London SME premises market to understand better
when it is appropriate for the public sector to intervene and how this should be done in a
cost effective way. This research has shown no widespread market failure in the provision
of premises, although there are some specific sectoral and local market failures. LDA policy
will evolve to reflect this and focus more on addressing clear market failures.

7.2    Improve access to enterprise start-up and growth finance
The LDA launched the London Technology and Creative Capital Funds to create
investments of at least £40 million in technology and creative firms with a minimum of
£20 million private leverage.

7.3   Simplify and improve the delivery and accessibility of enterprise support
The LDA Business Support Review proposed six recommendations as a framework to
improve business support:
• improve the customer experience and journey
• better allocate public sector resources to need and opportunity
• ensure that appropriate business support reaches certain businesses and communities
• improve the quality of publicly funded business support
• make better use of the private sector to deliver support
• more effective strategic leadership and management by the LDA
The proposals went out to consultation with London’s business community and other
Serco were selected by the LDA for the three year Business Link branded Information,
Diagnosis, Brokerage (IDB) service, following a tendering process and will take over
responsibility in April 2007. New priorities in business support include: increasing
awareness of advisory services for small business through IDB service; improving the start-
up offer to entrepreneurs through an enhanced pan-London service; business coaching/
mentoring to high growth start ups; encouraging supplier diversity by both the public
and private sectors and ensuring that London SMEs gain fair access to Olympic and other
procurement opportunities.

7.4    Ensure enterprise support services address barriers faced by particular
clients groups and build the capacity of minority owned enterprise to bid for local
government tenders
Since 2005, the LDA has pursued investment strategies to develop and grow business
support to enable SMEs and BAME businesses to become ‘fit to supply’ and is on target
to achieve 25,000 businesses supported by 2009. The Procurement Development
Programme was launched in March 2005 and formed the basis for developing and

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delivering the Value Chain and Supply London programmes that have been successfully
targeting BAME and SME businesses, providing diagnostic toolkits, business support and
Meet the Buyer events.
Since April 2006 and the introduction of the Mayors ‘Policy on Sustainable Procurement’
the LDA has refocused its activities to provide ‘fit to supply’ businesses that can be
matched with the GLA family tendering opportunities.
The LDA launched London’s BAME Business Support Action Plan and developed London’s
Women’s Enterprise Support Plan.
The LDA is working to implement the Mayor’s Sustainable Procurement Code and build
supplier diversity and promotion of equality into its commissioning and procurement
processes wherever possible.

7.5    Raise awareness and take-up of in-work benefit schemes for self-employed
Research to date does not suggest that the take-up of in-work benefits is a particular
problem for the self-employed. This action will not be reported on in future
implementation reports.

Objective 8 – Maintain London’s position as a key enterprise
and trading location
8.1    Maintain London’s position as a key inward investment destination
The LDA’s work in inward investment and business retention directly created or
safeguarded over 6,000 jobs in 2005/2006 in areas across the whole of Greater London.
Think London and the five sub-regional partner agencies were critical in this success.
In April 2006, the GLA opened an office in Beijing, China to develop opportunities for
inward investment, trade, tourism and education links. There will be a strong focus in
2008, in working with Beijing who will be hosting the Olympic and Paralympic Games
that year.

8.2    Retain enterprises in London where economically efficient and feasible
In 2005/2006, the LDA inward investment programme secured 119 new business
investments from overseas owned companies creating over 3,300 new jobs. This business
retention programme helped retain 158 businesses and safeguard over 3,000 jobs. Ford
announced a £169 million investment in its diesel engine plant in Dagenham, supported
by a DTI £4.5 million grant. The LDA and London East LSC agreed to contribute up to £13
million to this investment so that 1,800 people could receive comprehensive training.

8.3    Maximise trade potential for London firms
UK Trade and Investment (UKTI) London Region, works with commercial teams located in
embassies around the world and Government departments across Whitehall, providing
integrated support services for London companies engaged in trade and foreign
businesses focused on the UK as an inward investment location.
The UKTI London Region Trade Team acts as the international trade arm of the LDA and
forms part of the business support infrastructure in London. It is currently developing
closer working arrangements with the LDA to enhance this relationship and support
London based companies entering new international markets and sustain success.

148   LDA Annual Report and Accounts 2005/2006
Passport to Export is the UKTI flagship assessment and skills based programme that
provides new and inexperienced exporters with the training, planning and ongoing
support they need to succeed overseas. It encourages changes in business behaviour, is
entirely customer centered and utilises existing and new services to offer a comprehensive
tailored service for companies. In 2005/2006, 261 companies signed up to the Passport to
Export programme. UKTI also helped 360 companies become New Exporters (a potential
exporter that has achieved ‘significant’ proactive international business as a result of UKTI
assistance) and helped companies enter 602 ‘New Markets’ (a geographical market to
which it has not exported within the previous 12 months).

Objective 9 – Improve the skills of the workforce
9.1    Improve the standard and accessibility of training and enterprise support
to meet the complex needs of the wider community
The LDA is investing £3.5 million into skills projects in the HLTT sector based on extensive
research carried out in 2004/2005.
A model for ESOL training delivery was developed, specifically focused on people wishing
to access employment in the health sector. This is a national action research project
involving DfES, Strategic Health Authorities and the Sector Skills Council with the aim
of mainstreaming improved provision to support routes into employment in the health
sector for refugees.
The Land Based Industry Training Strategy Development project aimed to improve the
quality of learning experience offered in land-based and related areas across London.
The 2012 London Employment and Skills Taskforce (LEST) was created and a Pre-
Volunteer Programme (PVP) for the London 2012 is currently in development. Research
is now underway into the expected employment and skills implications of hosting the
Games. The Regional Skills for Life forum produced key report to ensure there is an
adequate focus on Skills for Life needs to inform the Olympics business planning process.

9.2     Support training for those returning to work, and promote skills
progression routes for those in employment
The Skillcity 2005, interactive careers fair took place, supported by the LDA, London
First, Corporation of London and the London Learning and Skills Partnership. This was
the UK’s largest interactive careers fair held at the Excel Centre in July 2005. It provided
information, advice and practical have-a-go experiences that enabled visitors to discover
the range of skills based training and jobs that are available; and to plan their future
career paths. Over 150 organisations exhibited at the event, grouped within a series of
themed districts.
An additional £17 million European Social Fund funding was secured to enhance the
Regional Skills Partnership, Opportunities Fund and STEP programmes, and is currently
negotiating Grants with a further 88 projects delivering across similar themes.
The LDA-funded NHS Skills Escalator continues to assist career development within the
NHS. The LDA Opportunities Fund provides investment in green skills including through
developing London’s waste recycling sector.
The Metropolitan Police Service is developing a London-wide infrastructure for
volunteering in to improve support provided to volunteers. The programme formalises
induction procedures and training and improves the employability of volunteers.

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The LDA is working to improve the skills of the current and potential workforce in London’s
key sectors by supporting the regionalising of key sectors skills agreements, and delivering
specific sector based projects including projects to address the shortages of qualified
construction tutors and craft training in the construction sector.
One Railway is establishing a customer service academy in Stratford to provide training
opportunities for the organisation’s existing workforce, recruiting and training new
employees and providing training opportunities to the wider business and resident
The London Stansted Employment Partnership with Jobcentre Plus, British Airports
Authority and local boroughs is enabling unemployed people in the Thames Gateway and
North London to access the employment opportunities at Stansted Airport.

9.3    Ensure London enterprises are engaged in identifying skills needs and
developing provisions and initiatives to address them
The Regional Skills Partnership Productivity Programme was developed with employers in
construction, financial services, automotive, tourism, ICT, science and engineering, health
and transport and key agencies. A key objective is to ensure that the Learning and Skills
Council’s ‘Train to Gain’ skills brokerage service for London’s businesses is integrated with
the Business Link IDB service.
A Greater South East ESF round for construction skills development was held.
A pan-London service to support and improve the strategic implementation and
utilisation of ICT amongst micro businesses and SMEs was developed by a partnership of
the LDA and other agencies, including Sector Skills Councils (SSC), and Learning and Skills
Councils (LSC).
The Lean Learning Academy was launched in 2005, supporting the business improvement
skills of managers and their workforce. Also, the LDA’s Union Learning Representatives and
Basic Skills project has been incorporated in Trades Union Congress’ (TUC) UnionLearn to
help unions open up a wide range of learning opportunities for their members. This will
both promote their personal progression and develop their trade union role, strengthening
workplace organisation.
Other successes included the:
• delivery of the Automotive Upskilling training and development programme in
  partnership with the LSC, to upskill 2000 staff at Ford’s Dagenham Engine Plant and to
  assist them in securing the production of new DV4 suite of engines
• launch of the London and East of England Spoke of the Automotive Academy (LEESAA)
  at CEME to support best practice in developing and delivering education and training
  services for the automotive sector
• delivery of the Energy Efficiency Project to research skills needs with employers in the
  energy sector in relation to training provision and recommend ways of addressing
  skills needs

150    LDA Annual Report and Accounts 2005/2006
Objective 10 – Maximise the productivity and innovation
potential of London’s enterprises
10.1 Increase the take-up and pursuit of product, process and service
The LDA’s SME Innovation Support Programme for Objective 2 Regions has proved to be
successful in providing valuable support for these businesses to increase competitiveness
and grow. Phase 2 of the programme has just launched and will build on its initial success.
The recently launched British Library Business and IP Centre (see page 47) will further
support London’s businesses to be able to protect their knowledge assets in order to
develop new products, processes and services.

10.2 Develop and deliver appropriate sector interventions that address market
London’s Manufacturing Advisory Service (MAS) continues to deliver effective practical
support to manufacturers. The contract has recently been expanded to a new £9 million
contract over three years. The LDA’s Gateway to Investment (G2i), investment readiness
programme is supporting technology based businesses that need support in getting
their businesses ready for investment and facilitating winning external monies. The
programme has recently reached its halfway point with 15 months to run and has secured
over £2.5 million in private equity to technology businesses.

10.3 Promote effective collaboration between enterprise and Higher Education
Institutions (HEI’s)
A new Science and Industry Council known as Catalyst was launched. This strategic body
will shape the future of London’s science base and boost the role it plays in the capital’s
economic development. It is part of the Mayor’s vision to establish London as the world’s
leading centre for science, technology, design and innovation and is supported by the LDA,
London universities and several leading companies.
Our first Jumpstart Programme has helped to promote effective collaboration between
businesses and the HEI knowledge Base. Over the year, 78 collaborations were developed,
bringing the total to 128 over the two year programme. The SME Innovation Support
Programme has also contributed to this action. Future initiatives are being developed,
as knowledge transfer as a mechanism to deliver innovation, is becoming increasingly

10.4 Promote the business case for resource efficiency including energy, water
and waste management in enterprises
The LDA has carried out detailed research into the demand and supply sides for provision
of environmental advice. Building on the national Business Resource Efficiency and Waste
(BREW) programme, the LDA is now setting up regional coordination for environmental
advice to businesses to ensure all businesses have easy access to high quality advice.
In addition, the LDA is funding a range of projects to deliver environmental advice and
support to London’s business sectors, with a focus on improving productivity and cutting

                                               LDA Annual Report and Accounts 2005/2006   151
The Mayor’s Green Procurement Code provides advice and guidance to businesses
on buying recycled content product. During the first three years of the Code, 450
organisations have signed up, including a number of large corporations and all the London
boroughs. Year three saw a nine-fold increase in spend on recycled content products over
year two.

Investment in marketing and promotion
Marketing and promoting London as one of the world’s greatest cities is one of the
cornerstones of the EDS. The structures, partnerships and initiatives that have developed
or been established during the lifetime of the EDS have been fundamental in London’s
successful Olympic bid, our decisive response to the terrorist attacks of July 2005, and in
our ability to meet future challenges of globalisation and increased competition.
Competing in and winning the race for the 2012 Olympic Games and Paralympic Games
has already enhanced London’s brand. London’s position as a leading business location
has also risen in 2005, and it remains the favourite business location in Europe2. Four-
fifths of businesses expect London’s profile to improve as a direct result of the Games3.

Objective 11 – Ensure a coherent approach to marketing and
promoting London
11.1 Counter negative perceptions of London and develop shared marketing and
promotional resources
Building on the work of Team London, London Unlimited was established in September
2005 at Visit London, bringing together key partners to develop a shared and strategic
approach to marketing and promoting London as the best city in the world in which to
invest, visit, study and conduct business. Initial London Unlimited activities have focused
on emergency recovery following the July bombings, emerging market research into
China, Russia and India, as well as detailed planning and successful implementation for
the Mayoral visit to China in April 2006.

11.2 Invest in and deliver new products to support effective international
marketing and promotion
The LDA secured approval from central Government for Visit London’s £41 million grant
for three years (2004 to 2007) and applied for a new four year, £64 million funding
agreement in January 2006 which was approved in June 2006 (subject to a review of
performance after two years).
In 2004/2005, the return on investment delivered from Visit London’s marketing activity
translated into an additional economic benefit of £317 million.

11.3 Strengthen and promote London’s role as a gateway to the rest of the UK
Work has progressed on London’s gateway role. Visit London has developed effective
working relationships with Visit Britain and regional tourist boards to strengthen and
promote London’s gateway brand and status with a new focus on business tourism.

2 European Cities Monitor, 2005, Cushman and Wakefield, Healey and Baker
3 London Business Survey, December 2005, CBI

152      LDA Annual Report and Accounts 2005/2006
11.4 Ensure a strategic approach to marketing London
London Unlimited was initiated in 2005 to promote and reinforce London’s brand
position, promoting better clarity and consistency to London’s overall brand message.
It has particularly focused on developing London’s share of the tourism, business travel,
investment and overseas study markets in the three priority emerging economies of China,
India and Russia.
Individually, the LDA has worked with London Unlimited and the sector specific agencies
Visit London, Think London, London Higher and Film London to deliver targeted marketing
activity. Visit London delivered world class marketing and promotion of London with an
average return on investment in 2005/2006 of 23:1. Think London continues to deliver
pan-London Foreign Direct Investments (FDI) in to the capital, ensuring that sub-regional
offerings are lined up behind one successful, recogniseable FDI identity for London.

11.5 Market London to specific groups
In 2006 the Mayor’s Office, in conjunction with the LDA and London Unlimited, opened an
office in Beijing, China to exploit the opportunities for London of this emerging economic
powerhouse and capitalise on the links between the next two host cities of the Olympic
Games and Paralympic Games. An additional presence for London is being developed in
Delhi, Mumbai and Moscow.
Visit London ran substantial campaigns in the priority markets of the USA, Japan, Europe
and the UK.
The USA is also a primary target market for Think London, London’s inward investment
agency. In early 2006, they opened an office in New York, seeking to exploit the already
close relationship between the London and New York economies.
The Study London website was launched in 2004 to attract international students to

Objective 12 – Co-ordinate effective marketing and
promotion activities across London
12.1 Support mechanisms to bring together the private sector, boroughs and
Much progress has been made in bringing together the activities of the private and
public sector. Visit London acts as the voice of the tourism industry and has grown its
membership bases and increased private sector engagement leveraging £7.4 million of
in-kind support in 2004/2005. The LDA’s Sub-Regional Tourism Network programme has
delivered effective cross working by sub-regional partners, Visit London and boroughs.

12.2 Use Olympic bid to provide a focus for marketing London
The Olympic Games and Paralympic Games provides an impetus to co-ordinate and refine
the marketing and promotion of London. Since the announcement in July 2005, much
progress has been made with Visit London and London Unlimited leading on embedding
London’s brand values into the London Olympic brand. The new London Tourism Vision
and Action Plan covers 2006 to 2016 to ensure that maximum benefit can be achieved
for the visitor economy in the build-up and duration of the Games and the post Olympics

                                               LDA Annual Report and Accounts 2005/2006   153
This action will be changed to ‘Use the hosting of the Olympic Games and Paralympic
Games to provide a focus for marketing London’.

Objective 13 – Maintain and develop London as a top
international destination and principal UK gateway for
visitors, tourism and investment
13.1 Respond to and counter unexpected downturns in the tourism and
Much progress has been made under the objective to maintain and develop London as a
visitor destination. During the lifetime of the EDS, Visit London has evolved into a world
class marketing organisation which can respond flexibly and innovatively to changing
market conditions or external shocks. Close monitoring of the impact of incidents like the
July bombings by both the LDA and Visit London has ensured a timely response both in
terms of marketing and industry support.

13.2 Increase the appeal of less visited parts of London as a destination
The LDA’s Sub-Regional Tourism Network programme has established close working
relationships with the LDA, sub-regional partners, Visit London and the boroughs. Each
sub-region now has its own tourism strategies and market research has identified the
consumer perceptions and tourism offers of each of the sub-regions to inform future
marketing and encourage visitors and Londoners to experience the less visited areas of the

13.3 Improve the quality and accessibility of visitor accommodation
Work has been undertaken to develop the quality of London’s tourism infrastructure.
Quality and accessible visitor accommodation are vital to the success of the visitor
economy now and during the Olympics. The LDA has been developing a tourism business
support programme to address these issues including a quality toolkit for tourism
businesses and will build on the recent agreement of common quality standards for

13.4 Develop London’s capacity to compete for enterprise and convention
tourism and to host major events
There has been a step-change in London’s capacity to compete for business tourism
and major events. Visit London has developed a dedicated convention bureau service
to attract the lucrative business tourism visitor, and in 2005 confirmed bookings worth
£638 million. The Mayoral Commission recommended that London should have an
International Convention Centre in a central London location. Work has progressed since
then on selecting its site location. A Major Events Strategy and Unit is under development
to enable London to improve its ability to bid for and win the opportunity to host major
events and showcase London’s international strengths.

13.5 Build on London’s diversity and international strengths
London Unlimited, which was initiated in 2005, aims to develop a global brand for
London that positions London as the best city in the world in which to invest, visit, study
and conduct business. London Unlimited’s programme of activities will seek to promote
and reinforce London’s brand position as ‘Globally Inclusive’ consistently across a range

154    LDA Annual Report and Accounts 2005/2006
of sectors to multiple audiences including businesses, tourists and students. The brand
development work is being carried out in conjunction with the London 2012 brand
London’s success in attracting the 2012 Olympic Games and Paralympic Games and
2007 Grand Départ of the Tour de France illustrates the existing appeal of the capital as a
destination for some the world’s largest and highest profile events.
A Major Events Strategy was developed by the LDA, GLA and Visit London to capitalise
on these and make London ‘the world’s leading major events destination…a destination
that creates, develops and attracts ‘world class’ major events for the benefit of London’s
residents, businesses, and visitors’. As a result there has been sustained and increased
sponsorship and input into key diversity and cultural events, including GLA events which
are focused on celebrating diversity.

Objective 14 – Work in partnership to deliver this action plan
14.1 Increase the resources available to implement the Strategy and Action Plan
The decision to award the 2012 Olympic Games and Paralympic Games to London led to
an increase in resources for developing the Lower Lea Valley, the majority of which will be
directly spent on Games-specific infrastructure projects. The budget for the LDA over the
period 2006 to 2008 has grown significantly because of Olympic-related commitments.
At a European level, organisations in London worked together to submit a joint response
to the Government’s proposals for the UK National Strategic Reference Framework for
EU Structural Funds for the period 2007 to 2013. This document argued the case for
investment in London from EU funds in line with the EDS.
In the sub-regions, each of the five Sub-Regional Partnerships were supported by the LDA
to develop sub-regional engagement programmes. These focused on bringing together
key stakeholders, from all the sectors in each sub-region, to respond to mayoral priorities
and develop Sub-Regional Economic Development Implementation Plans. These plans
aim to encourage investment into the sub-region in order to help deliver the Mayor’s EDS.
The Government decided in July 2006 to give the Mayor an enhanced role on housing,
adult skills; planning; and additional strategic powers in a wide range of policy areas
including waste, culture and sport, health, climate change and appointments to the
boards of the functional bodies.
Through 2006/2007 the Government will review its long-term spending plans in the
Comprehensive Spending Review. London’s position in this process will be built on the
case for investment detailed in the EDS, that is that London must have increased levels of
investment in its places and infrastructure, its people, its enterprise and its marketing and
promotion. This is essential to accommodate the projected growth of the city, keep costs
for residents and businesses down, capitalise on high productivity, get more Londoners
into work and build a transport system fit for the 21st century.

                                                LDA Annual Report and Accounts 2005/2006   155
14.2 Build and develop a shared understanding of what works in economic
The GLA Group has commissioned research into strategically important areas of activity,
such as tackling worklessness, with a view to informing all stakeholders on what works in
economic development.
The LDA is embedding an evaluation and learning cycle into each stage of planning
and delivery. The LDA ‘What Works’ programme is helping to define key lessons learned
through programme and project delivery. These developments, coupled with continued
wider analysis on the cost-effectiveness of different intervention options and thorough,
regular, examinations of the state of London’s economic development, e.g. through the
London Economic Development Snapshot, will enable more effective prioritisation of
LDA resources.

14.3 Ensure joined up implementation of the Strategy by key partners
The London Economic Development Snapshot provides the latest data on London’s
Economic Development. This will help steer efforts across London towards addressing the
most important and outstanding challenges in London’s economic development.
The Government’s new Local Enterprise Growth Initiative awarded two London boroughs,
Croydon, and Barking and Dagenham funds to develop business support in their areas. The
LDA and GOL jointly developed regional guidance for this. Linked to this the LDA, GOL and
the ALG are to work with local authorities on their emerging Local Area Agreement’s block
on encouraging local enterprise.
The GLA Group is working towards better integration of its activities both strategically and
operationally. Making more efficient use of resources in the GLA Group across operational
areas such as e-government, research and sustainable procurement is a priority.

14.4 Co-ordinate interventions across EDS themes
The GLA Group co-ordinates interventions that fall under multiple EDS themes on many
levels and across multiple projects. Large-scale development and regeneration projects
such as the Olympics and the Lower Lea Valley, and the wider Thames Gateway are
multi-dimensional and involve many agencies co-operating to produce benefits for
London’s businesses and for Londoners. The Mayor and the GLA Group provide strategic
leadership, and often funding, to these projects and others such as the London Sustainable
Development Commission, London Unlimited and the London Skills Commission.
At the London Economic Summit in February 2006, leaders of key public agencies,
boroughs, businesses and voluntary sector organisations came together to discuss
London’s economic development.

14.5 Embed key delivery principles including equalities, sustainability and
health impacts into all economic development activities
The LDA uses the principles outlined in the EDS as the basis for planning all of its activities.
It also works to influence other organisations in the same vein. An example of this is the
recent training course developed by the LDA in the rationale for public sector intervention,
promoting the concept of ‘market failure’ as the primary reason for public sector
investment. This course has been offered to other stakeholder organisations.

156    LDA Annual Report and Accounts 2005/2006
Sub-Regional Economic Development Implementation Plans are working to support the
Mayor’s cross-cutting themes. These and other areas of work being undertaken, as part of
the wider sub-regional engagement programmes, by each Sub-Regional Partnership are
being reviewed to ensure a clear focus for the future progression of sub-regional working
in line with the revised London Plan.
Economic development should be an inclusive process, where everyone can influence the
process of economic growth and have a stake in the benefits. However, London’s economic
development is undermined by a persistent inequality of opportunity. The LDA’s Equality
Impact Assessment (EIA) process builds positive impacts for minority groups into all its
strategies, policies and projects from the start. The LDA have commissioned external
organisations to carry out more high profile EIAs, for example, a ground breaking EIA was
carried out of the Compulsory Purchase Orders of the Olympic and Paralympic lands and
under-grounding of the powerlines. The LDA worked with the Home Office to pilot the
evaluation of impacts of RDA work on Community Cohesion.
Health and sustainability impact assessments are conducted on all projects and activities
before approval. The Health and Sustainability Advisory Group of the LDA Board have a
critical role in scrutinising our activity and progress against stated objectives. Members of
the group include the London Sustainable Development Commission, the London Health
Commission and the Environment Agency.
The LDA Board approved the Faith and Communities Engagement Strategy which outlines
how it aims to work with faith groups to deliver on priority areas of work. In 2005, the LDA
set up an Independent Disability Group to assist in the development of our first Disability
Equality Scheme and its second Race Equality Scheme was published in June 2006. The
LDA’s progress on all equality issues was recognised in an independent audit carried out
by a Dialog approved consultant which rated the LDA at Level 5 of the Local Government
Equality Standard. We are now awaiting ratification from our independent auditors.

14.6 Produce annual report to the Mayor
This report, in conjunction with the London Economic Development Snapshot, comprises
the formal reports required by the Mayor.

                                                LDA Annual Report and Accounts 2005/2006   157
The most recent data shows that overall economic development in London has
progressed moderately well compared with the targets set out in the EDS4. Investment in
infrastructure projects has been sustained, and been given a boost by the winning of the
Olympics for 2012, although importantly the funding for Crossrail remains unresolved.
Strategic objectives related to enterprise appear to be on course, with the exception of
some of the growing concern about skills provision in the capital. And in marketing and
promoting London we have seen marked improvements and a demonstration of the
resilience of the appeal of London in the face of significant setbacks. In spite of growing
employment, and the success of a number of schemes such as the Childcare Affordability
Programme to encourage Londoners into work, the employment rate in London remains
low. Economic inactivity, particularly in certain groups and in areas concentrated in inner
London continues to be widespread.
Huge efforts have been made since 2005 to build on London’s economic successes and to
tackle the challenges. The most prominent success was the winning of the London Games.
As a direct result of this London will have more housing, more jobs, more business activity,
better transport and a better environment. It will also have more competitive, more
innovative, more diverse businesses and its profile abroad will greatly improve, bringing
more visitors and investment.
London won the right to host 2012 Olympic Games and Paralympic Games for a number
of reasons. Chief among these was the way that London worked together to submit a
world-beating bid. This is compelling evidence of what London and Londoners can achieve
when we agree a goal and work in partnership to deliver it. The Economic Development
Strategy is the plan for London to sustain the successes in the economy and tackle the
barriers and challenges. Delivering the 2012 Olympic Games and Paralympic Games does
not just fully support this plan, it will in fact play a central role.
The consensus is that this analysis remains accurate and appropriate for London and
that the Economic Development Strategy retains the relevance that it had at its launch
in January 2005. It builds on and seeks to help deliver the Mayor’s vision for London. This
is a vision of a prosperous, dynamic, inclusive, sustainable world city, able to confront the
challenges of the 21st century and capitalise on the opportunities.

4 London Economic Development Snapshot, London Development Agency/GLA Economics, Issue 3, July 2006

158      LDA Annual Report and Accounts 2005/2006
Appendix 2

Glossary of terms

                    LDA Annual Report and Accounts 2005/2006   159
Access: This term refers to the methods by which people with a range of needs (such
as disabled people, people with children or people whose first language is not English)
discover and use services and information. For disabled people, access in London means
the freedom to participate in the economy, in how London is planned and in the social and
cultural life of the community.
Affordable housing: Housing designed to meet the needs of households whose incomes
are not sufficient to allow them to access decent and appropriate housing in their
borough. Affordable housing comprises social housing, intermediate housing and, in some
cases, low cost market housing.
Areas for regeneration: These areas are the wards in greatest socio-economic need,
defined on the basis of the 20% most deprived wards in the London Index.
Black, Asian and minority ethnic (BAME): Denotes ethnic categories of London
residents based on the 2001 Census, noting that as described under ‘minority ethnic’
certain ethnic categories of residents (for example, Sikhs and Jewish people) were defined
as faith groups in the Census.
Biodiversity: This refers to the variety of plants, animals and other living things in a
particular area or region. It encompasses habitat diversity, species diversity and genetic
diversity. Biodiversity has value in its own right and has social and economic value for
human society.
Disabled people: The social model of disability defines a disabled person as someone
who has an impairment, experiences externally imposed barriers and self-identifies
as a disabled person. Some key external barriers are those preventing people taking up
employment. The Disability Discrimination Act defines a disability as ‘a physical or mental
impairment which has a long term and substantial adverse effect on an individual’s ability
to carry out normal day to day activities’.
Diversity: The differences in values, attitudes, cultural perspectives, beliefs, ethnic
background, sexuality, skills, knowledge and life experiences of each individual in any
DTI: Department of Trade and Industry.
EDS: Economic Development Strategy.
Energy efficiency: This is about making the best or most efficient use of energy in order
to achieve a given output of goods or services, and of comfort and convenience. This does
not necessitate the use of less energy, in which respect it differs from the concept of energy
Equality: This is the vision or aim of creating a society free from discrimination, where
equality of opportunity is available to individuals and groups, enabling them to live their
lives free from discrimination and oppression.
Minority ethnic community: An ethnic group that is numerically smaller than the
predominant white group in Britain. This includes groups distinguished by their skin
colour, as well as Irish, Turkish, Cypriot, Kurdish, travelling people, Jewish and Sikh people
(the latter two categories being defined as faiths in the 2001 Census).

160    LDA Annual Report and Accounts 2005/2006
Greater London Authority (GLA) group: The GLA group consists of the Mayor, the
London Assembly and four organisations that look after transport, the police, the fire
brigade and economic development for London. They are:
• Transport for London
• Metropolitan Police Authority
• London Fire and Emergency Planning Authority
• London Development Agency
The Mayor sets the budget for the GLA group and appoints people to the boards of the four
organisations. Several of the Board members are chosen from the London Assembly.
GLA economics: Part of the GLA that provides economic analysis and a firm statistical,
factual and forecasting basis for policy decision making by the GLA and the GLA group.
London 2012: Olympic Bid company.
London First: A business campaign group supported by over 300 of the capital’s major
businesses, as well as higher education institutions, further education colleges and NHS
Trusts. It engages the business community in promoting and improving London, using the
vision, energy and skills of business leaders to shape and secure the capital’s future.
London Housing Board: Its role is to produce regional housing strategies and advise
ministers on the allocation of funding from the Single Regional Pot for housing
investment. It comprises Government Office for London, GLA, Housing Corporation,
Association of London Government, LDA and English Partnerships.
LSC: Learning and Skills Council.
Opportunity areas: London’s few opportunities for accommodating large scale
development to provide substantial numbers of new employment and housing, each
typically more than 5,000 jobs and/or 2,500 homes, with mixed and intensive use of land
and assisted by good public transport accessibility.
Public realm: This is the space between and within buildings that are publicly accessible,
including streets, squares, forecourts, parks and open spaces.
RDA: Regional Development Agency.
Recycling: Recycling involves the reprocessing of waste, either into the same product
or a different one. Many non-hazardous wastes such as paper, glass, cardboard, plastics
and metals can be recycled. Hazardous wastes such as solvents can also be recycled by
specialist companies, or by in-house equipment.
Renewable energy: Energy derived from a source that is continually replenished, such
as wind, wave, solar, hydroelectric and energy from plant material, but not fossil fuels or
nuclear energy. Although not strictly renewable, geothermal energy is generally included.
SBS: Small Business Service.
SME: Small and medium-sized enterprises.
Social inclusion: The position from where someone can access and benefit from the
full range of opportunities available to members of society. It aims to remove barriers

                                               LDA Annual Report and Accounts 2005/2006   161
for people or for areas that experience a combination of linked problems such as
unemployment, poor skills, low incomes, poor housing, high crime environments, bad
health and family breakdown.
Sub-regions: The primary geographical features for implementing strategic policy at the
sub-regional level.
The sub-regions are composed of:
• Central – Camden, Islington, Kensington and Chelsea, Lambeth, Southwark,
  Wandsworth and Westminster
• East – Barking and Dagenham, Bexley, City, Greenwich, Hackney, Havering, Lewisham,
  Newham, Redbridge and Tower Hamlets
• South – Bromley, Croydon, Kingston, Merton, Richmond and Sutton
• West – Brent, Ealing, Hammersmith and Fulham, Hillingdon, Harrow and Hounslow
• North – Barnet, Enfield, Haringey and Waltham Forest
Sustainable development: This covers development that meets the needs of the present
without compromising the ability of future generations to meet their own needs.
Thames Gateway: This is an area extending from the Blackwall Tunnel eastwards, both
north and south of the Thames, into Kent and Essex.
Thames Gateway Strategic Partnership: This partnership focuses on the whole of the
Thames Gateway London area, articulating at London and national levels the opportunity
which the Thames Gateway presents and the pressing needs which it must address to be
able to live up to its potential.
Think London: Think London is the official inward investment agency for London,
providing free, confidential and comprehensive advice to help international businesses set
up and succeed in London.
Transport for London (TfL): One of the GLA group organisations, accountable to the
Mayor, responsible for delivering an integrated and sustainable transport strategy for
Urban renaissance: Urban renaissance is the rediscovery of the opportunities offered
by cities to accommodate a changing population, work and leisure patterns, through the
creation of practical, attractive, safe and efficient urban areas that offer a vibrant and
desirable quality of life.
Visit London: The official visitor organisation for the capital, funded by the LDA. It aims
to promote London as the world’s most exciting city by marketing to domestic and
overseas leisure and business visitors, as well as to Londoners themselves. Visit London is a
partnership organisation which also acts as a voice for the London tourism industry. It was
formerly known as the London Tourist Board.
World city: A globally successful business location paralleled only by two of the world’s
other great cities, New York and Tokyo, measured on a wide range of indicators such as
financial services, Government, business, higher education, culture and tourism.

162    LDA Annual Report and Accounts 2005/2006
LDA Annual Report and Accounts 2005/2006   163
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