Title: The London Plan A tale of two Mayors
1The London PlanA tale of two Mayors?
- Dr Helen Hill
- December 2009
2A tale of two Mayors?
- Does Boris have different priorities?
- No major difference in vision except crime
and safety more prominent a central pillar of
Boris Johnsons Mayoralty, clear from his vision
for London - Families in safety
- Ever safer parks and transport
- Both
- Improve quality of life - and enhanced prosperity
- for Londoners
- Tackle social and economic exclusion
- Sustainability
- Infrastructure transport
- Long-term economic growth
- London Plan - to set the framework to enable this
to happen
(Evening Standard, 11/11/09)
3Londons Economy Boris and KenDemand and
supply of office space - London Review
Panel - Strategic employment locations (e.g.
Croydon)Arts Culture Creative
IndustriesImproving ICT InfrastructureKnowledge
Transfer and FE/HE TourismEmerging Green
Economies SustainabilitySkills and Employment
Opportunities for all - LSEB - low skills
- barriers to employment e.g. BAME and
childcare priorities
Boris Retail Diverse small shops
4Have the circumstances changed?
- Politics is obscuring economics and will
continue to do some for some - considerable time (post-Election 2010)
- Recession/Recovery and fiscal policy - both pre
and post-Election danger for - London in terms of investment - Crossrail and
London Underground - Structural investment that business needs the
government central, - regional, local - to deliver
- Mayor recognises strong natural population growth
in London, coupled - with immigration (despite national level changes)
means likely Londons - population will continue to grow, reaching 8.89m
by 2013 (from 7.6m now) - So London is full huge impact on transport ,
public services, leisure services - and housing
5What does business want?
- Of the following quality of life issues, which do
you think has the greatest impact - on Londons attractiveness as a business
location?
(LCCI/ComRes, London Business Leaders Panel
(LBLP), November 2009)
6Of the following corporate environment issues,
which do you think has the greatest impact on
Londons attractiveness
(LCCI/ComRes, LBLP, November 2009)
7Over all, which are the most important in
determining Londons attractiveness as a business
location?
(LCCI/ComRes, LBLP, November 2009)
8InfrastructureOver 85 per cent of LCCI members
and over 96 per cent of ICE members consider
London's infrastructure to be very or somewhat
important in encouraging businesses to locate in
the capital (LCCI/ICE, Engineering London's
Success, December 2009)
Infrastructure
Infrastructure
9Confidence in forward planning in terms of
future capacity the Victorians and the Tube
- Transport glue that binds the City if it does
not deliver, nor will any other - policy or strategy
-
- Reliable/efficient
- Safe
- Capacity room to move
- Well connected within and out of London (UK and
international) - Efficient in terms of planning and timely
construction
10- LCCI transport and infrastructure priorities
- London Underground/Overground upgrades
- Crossrail 1 (and 2)
- Airport Capacity Heathrow R3 versus Thames
Estuary Airport -
- High speed rail
- Improved connectivity in outer London
- Completion of Thameslink upgrade
- Minimum disruption to road network
- London 2012 Olympic and Paralympic Games and
their legacy - Social and affordable housing
- (not ranked in priority order)
11- Not forgetting the less attractive Cinderella
services - London Tideway Tunnels
- Sufficient water and energy provision dont let
the lights go out! - Improved ICT infrastructure provision to improve
working life and - quality of life
- Data transfer from London to UK and international
markets - Solutions include flexible working to reduce
transport congestion - Retrofitting and commitment to tackling effects
of climate change cross - party priority but for Boris and for Ken
because this is an opportunity for - London to accommodate expansion of green business
sector Mayors Green - Enterprise Districts in Thames Gateway
12- London Plan does refer to the need for
partnerships to lobby for - greater investment more revenue raising powers
innovative - approaches such as tax increment financing
- Large scale convention centre capacity in or
around CAZ - - both Mayors have championed this
- Boris sees business tourism as a priority which
is good - how do we get it back?
13Competitiveness
- Mayors role is to use the bully-pulpit with
central government and Europe - Mayor has been praised by business community for
speaking out against 50 - pence tax and central London being hardest hit
by business rate increases - and now tax increment finance initiatives
- And in Europe the AIFM proposal to clamp down
on hedge funds/private - equity houses
-
14Mayors work overseas is important to the
business community LCCI campaigned for Boris to
save Kens offices overseas London firms
clearly believe that Londons international
offices are important and offer good value for
money 67 per cent of LCCI companies supported
the GLAs policy of operating offices in India
and China (LCCI/ComRes, LBLP, June
2008) Closing the offices in India and China as
part of a cost-cutting exercise would have been
short-sighted and sent entirely the wrong signals
to potential investors and importers in two of
Londons most important potential markets If
the Mayor is not out there promoting London,
someone else will be promoting New York, Paris,
or Sydney instead - again this is a priority for
both Boris and Ken These areas of
competitiveness encroach on MTS and EDS, but
cannot look at these in isolation as Mayor
recognises
15Private sector central to success of London
recognised by Mayor London Plan is based on
London experiencing a cyclical recovery
post-recession, followed by longer-term positive
job growth thereafter A city with an economy
as dependent upon the private sector as London
also needs growth to ensure its fabric receives
the public investment it requires. If it does
not, London will not be able to go on making a
significant net contribution to the national
exchequer. No reason why London will not
continue to grow and continue to make this
contribution Londons net contribution to the
UK is between 14.3bn and 19.4bn(LSE/City of
London Corporation Londons Place in the UK
Economy 2009-2010) 4.68m jobs in 2007, rising
to 5.45m by 2031 an increase on 750,000 jobs
Business and financial services will make up
38 of the new jobs
16Where will the jobs be? Employment has grown
fastest in central and inner London Outer
London may not be realising its full potential in
contributing to Londons success? Role of Outer
London Commission (OLC) to support outer London
in contributing to its own and London plcs
success (LCCI representation on OLC)
17- Londons Economy
- London Plan complements EDS and providing the
basis for continued - growth and economic development is a key theme of
the Plan - Encourage a strong and diverse economy
- Provide suitable work space
- Drive Londons transition to a low carbon economy
- Promote OL as an attractive location for national
government and business - Support the distinctive and crucial contribution
to Londons economic success made by central
London and its specialist clusters of economic
activity - Sustain the continuing regeneration of inner
London and redress its persistent concentration
of deprivation - Emphasise the need for greater recognition of the
importance of enterprise and innovation - Promote London as a suitable location for
European and international agencies and
businesses we support Mayors (and Lord
Mayors) promotion overseas - incredibly
important -
18Transport Connectivity MTS
but included in London Plan Sustainable
transport methods important to both
Mayors Car dependency must be reduced in favour
of public transport, cycling, walking
sustainable transport methods again both Mayors
in agreement here. Ken planned Velib scheme and
Boris is implementing it Boris - cycle
superhighways Congestion charge Boris has
scrapped WEZ but he is certainly not about to
abandon the charge in central zone Nonetheless
it is good to see the car is no longer demonised
Mayor recognises urgent need to smooth traffic
flow and reduce congestion and traffic levels
e.g. looking at OL park and ride However the
Plan allows the Mayor to examine road-user
charging as a demand management tool (if other
ideas unsuccessful) business must not become a
cash cow!
19- Transport Connectivity
- Freight - efficient distribution of freight
including the river (2012) - Cross-London and orbital rail links Again
outer London is a priority for Boris and a change
in direction from Ken Mayor is investigating
the possibility of additional river crossings in
East London both Mayors have done this but will
it really happen? - Additional river crossing is unlikely to be
prioritised at present possibility of major
retrenchment and spending cutbacks post-May
(March?) 2010 - A decade of conservatism
20Aviation And heres where we really disagree
with Boris and Ken (albeit latterly) Boris
recognises that adequate airport capacity
serving a wide range of destinations is critical
to the competitive position of London in a global
economy But strongly opposed to R3 at
Heathrow Who would pay for Boris Island?
LCCI survey of London firms found that 63 per
cent of those questioned did not think the
airport could be built within the next twenty
years, while just 28 per cent said it could be
built in time (LCCI/ComRes, LBLP, April 2009)
21Planning Sustainability Mayors planning
powers were extended in 2007 We must plan for
continued growth in London Mayor wants a new,
more consensual approach to planning agreed and
shared objectives agencies in London working
with those in East and South-East England
Business wants expediency and certainty LCCI
lobbying in earnest for Crossrail since
1989LCCI wants to see continued support and
funding for the Infrastructure Planning
Commission (IPC), including under any new
government, to streamline decision-making on
major projects key recommendation in LCCI/ICE
infrastructure report
22Over 62 per cent of engineers and businesses
believe central government does not take a
sufficiently long-term view on major London
infrastructure projects (LCCI/ICE, Engineering
London's Success, December 2009)
23- London Plan aims to ensure that all of London
can benefit from the growth How? - How do we regenerate outer London? Do the more
affluent and families choose to leapfrog outer
London to reside in Kent, Essex and the wider
South East or to dwell in the inner London
boroughs? - Drive low carbon goods and services and support
innovation But how will this take place and what
will it look like? - A future for manufacturing in London?
- Mayor will continue to support financial and
business services leisure services and retail
whilst at same time provide the conditions for
other sectors to develop? But how do we avoid
picking winners? Workspace London Plan
recognises that the overall provision is
sufficient, but in CAZ may need mixed use
development but how do we determine this?
Should we not let the market decide?
24LP should set the conditions for the market to
provide e.g. allow mixed use development
retain land for commercial activity empty
property rate relief Trends circumstances -
Flexible working/hot desking will we need more
office space? Through OLC, there could be
benefit in boroughs providing good quality
affordable office space in outer boroughs to help
regenerate local economiesPlan states that
boroughs can manage change of surplus office
space to other uses, provided overall capacity is
sustained to meet Londons long-term office needs
Or should the priority be housing? but
housing alone will not regenerate outer London
25- But how will the boroughs know?
- How will they achieve this? They will have to
prioritise attracting businesses to their - localities if they want economic regeneration
-
- We could move swathes of the civil service to
outer London boroughs such as Croydon - regeneration of local economies and save the
taxpayer a fortune -
- Very difficult to get the balance right and make
decisions that will have potentially huge - impact on boroughs
- Night time economy is important to Mayor
boroughs are encouraged to have an - evidence based approach to managing night time
economy through integrated range of - measures - planning, licensing, policing,
transport and street cleaning -
- Again difficult balance for boroughs but a hugely
important aspect of London life in - economic terms
-
26- In summary
- LCCI supports the Mayor(s) in the London Plan
Economic Development - Strategy and the Mayors Transport Strategy
- Support long-term perspective of 20-25 years but
at the same time London - needs flexibility to mitigate specific economic
conditions and adapt to economic - and political cycles
- Plan must not be too prescriptive it must set
the framework and provide the - necessary infrastructure within which the markets
can decide - A balanced approach across the boroughs but not
at the expense of the - centre
27- Mayor is supportive of SMEs and we welcome this
- Skills difficult nut to crack, but business
does want to see good education and - solutions for worklessness
- Quality of life issues are important to business
e.g. good quality, affordable - housing tacking crime public services, health,
education etc -
- Good business consultation and engagement from
the GLA on the plans - Support Mayor in championing London over party
politics e.g. 50 pence tax - Difficult times ahead a decade of conservatism
- Private sector will pull the UK out of recession
and we need to provide the - conditions to enable it to do so!