BOARD MEETING, LONDON ECONOMY 11 FEBRUARY 2009
ITEM 5
CENTRAL LONDON BOROUGHS’ ECONOMIC INITIATIVES TO
TACKLE THE RECESSION
SUMMARY AND RECOMMENDATIONS
1. This report for the CLF Board draws together the initiatives the central
London authorities are taking to support local businesses, and to help
communities and mitigate the impact of the recession. It summarises these
two sets of measures and also looks forward to other measures which will
help to foster London’s longer term recovery. The report is firmly rooted in
discussions with the central authorities. It covers initiatives both under way
and also offers a menu of further possible actions, and highlights actions
which might best be progressed jointly and collectively.
2. Initiatives have been grouped into three: supporting business –
strengthening business support, assisting cashflow, opening up SME
opportunities, improving the business environment, championing central
London; helping people – helping people back into work, keeping costs
down for Londoners, supporting vulnerable people and deprived
communities, meeting household needs, communicating and making
contact; and positioning London for long term recovery: securing
competitiveness, quality of life and delivering large investment projects.
Initiatives to support business include:
 Enhancing competitiveness of key business sectors, notably FBS,
and the City’s role in setting up the London Financial Services Body
 Supporting property search
 Assisting cashflow: speedy invoice payments, small business rates
relief, empty buildings rates relief, minimising rents for authorities’
own premises, working with LDA on deployment of £10m Economic
Recovery investment Fund
 Working with Business Link and setting up local enterprise agencies
 Providing advice to SMEs, promoting Train to Gain
 Improving the business environment: soften regulation and
enforcement e.g. parking, improve BIDs, upgrade management of
1



commercial/retail centres, use front line staff e.g. environmental
health, to report on business concerns and priorities
Enhanced programme of small works to improve public realm,
squares and streets, together with enhanced maintenance
programmes. Enhanced energy efficiency retrofitting programmes
Improving infrastructure, negotiating with utilities, planning data
centres
Championing central London, campaigning on behalf of the visitor
economy with Visit London
Initiatives to help people include
 Area based programmes to tackle worklessness, promoting training
programmes, lobby Government to devolve JCP roles more to
authorities with influence over funding priorities
 Develop apprenticeship programmes
 Coordinate construction training
 Hold/reduce costs and charges e.g. council tax, entry charges to
facilities
 Support CAB and local bodies on benefit etc advice
 Promote credit unions
 Ensure debt collection is sensitive
 Encourage housing benefit take-up, campaign for repossession
transfer to renting, work with HCA on purchase by RSLs and others
of unsold stock
 Strong local programmes to give help and advice on Councils’
websites, run benefit take up campaigns.
Positioning London for long term recovery
 Enhance investment in cultural services and visitor attractions
 Ensure timely and effective preparation of central London for
Olympics and Queen’s Golden Jubilee
 Continue major programmes to upgrade labour force quality
 Strengthen range of business sectors e.g.: green technologies
 Rebuild reputation and confidence in FBS sector
 Continue strong transport improvement programme, especially
Crossrail, allied with public realm improvements and in air quality to
demonstrate commitment to improving liveability
Key joint actions: these are for consideration by the CLF authorities
I.
Publicise the range of entitlements and benefits that are available
and how to attain them using imaginative approaches to make
aware those who require need most.
II. Joint statement on measures to keep households facing mortgage
payment difficulties/repossession in their homes.
2
III. Joint meeting with RSLs, HCA, house builders on maintaining
development progress and also provision of affordable housing.
IV. Expand range of smaller scale financial sources including
consideration of authorities’ pooling resources to create loans fund
and relate to the new Government Enterprise Finance Guarantee
Scheme for SMEs.
V. Each authority to champion a business sector.
VI. Foster multi-area employer partnerships with major central
London employers.
VII. Joint declaration on speedy payments.
VIII. Joint declaration on procurement and simplifying tendering and
contracting arrangements.
IX. Exploit Local Authority Business Growth Initiative (LABGI) scheme
under new sub regional arrangements proposed by Government.
X. Engage with Visit London on securing maximum gains for local
economies from tourism and, in particular, the 2012 Games.
XI. Continue to invest in energy efficiency retrofitting, small works,
maintenance and public realm programmes to increase
employment and to improve the quality and presentation of central
London.
XII. Prepare an audit of capital investment realities across the Central
Activities Zone.
XIII. Invest in CCHP; support the expansion of viable green energy
networks.
3. This is still work in progress and local authorities will refine their
programmes both individually and collectively. This report also includes at
Appendix 1 economic indicators which show trends in the economy; this
data comes from GLA Economics.
4. Recommendation: the Board is invited to consider whether this is a fair
summary of progress and programmes to date and to indicate where
further action may be required.
3
INTRODUCTION
5. The recession has developed both rapidly and deeply with a particularly
sharp GDP fall, 1.5%, in Q42008. GDP estimates for 2009 vary but a fall
of at least 2.5% seems likely. Previous Government projections that the
economy would begin to recover during the latter part of 2009 are now
widely regarded as too optimistic. The continuing constrained credit flow
and the consequent major difficulties for businesses, the employment
market, falls in consumer and business confidence, all point to a wide
range of challenging circumstances for individual households, businesses,
investment and development.
6. For London with its key FBS business sector the damage to the reputation
of financial services businesses is particularly serious. Job losses in some
important parts of this sector are likely to be severe, others such as
insurance are likely to be more resilient. There are important London
business sectors – retail, visitors, tourism - which can benefit from the
falling exchange rate.
7. The interaction of national and international economic forces have to be
considered and dealt with by Governments. Local authorities, their local
businesses and communities, cannot play significant roles here. Further,
boroughs’ resources and powers are dependent on the framework set by
Government. London, however, is and remains one of the few world cities,
with a strong and diverse economy, with an elected Mayor to provide
leadership and with considerable resources under his control. The local
authorities also control major resources and spending power at local level,
and are able to carry out a wide range of initiatives and programmes to
support local businesses and communities.
8. There are a number of reports, not least the Mayor’s Economic Recovery
Plan, which set out measures to promote recovery and this review of the
central boroughs’ initiatives fully acknowledges and relates to these. The
Mayor’s Economic Recovery Plan groups initiatives to support business;
to help Londoners; and to position London for long term recovery. We find
it helpful to follow that grouping. This report also draws on the growing
number of reviews of the London economy and the recession prepared
over the last few months which propose local authority action. These
include reports from:





London Assembly
London Councils
Local Government Association
Solace
New Economics Foundation
4
9. The central authorities, together with partners from the GLA and the
London Business Board, have set up Central London Forward to embody
their joint work on the economy and other key issues. This report has a
distinctive focus on central London and potential collaborative activity by
the CLF boroughs whose areas make up the Central Activities Zone –
Camden, City of London, Islington, Kensington and Chelsea, Lambeth,
Southwark, Westminster. It is based on discussions with those authorities
and is supplemented by a longer paper, the survey report (not yet
circulated), which gives more detail about CLF members’ actions. Actions
summarised here both address immediate concerns, and others are
aimed at putting us in a stronger position as growth returns. This is a
snapshot of work in progress and it will evolve as circumstances, policies
and funding change.
5
CONTEXT
10. We need to distinguish between the cause and effect of current economic
problems:
 primary cause – lack of inter-bank lending, with knock on
implications for those wanting to borrow and invest in businesses,
homes, etc., i.e. credit crunch;
 secondary effects – fall in value of investments, with knock on
implications for companies, jobs, income, savings, spending,
pensions, etc., i.e. recession.
11. We also need to distinguish between necessary actions:
 to resolve the credit crunch. This requires action at national and
international levels. Local authorities can lobby the Government
and others, by highlighting the knock-on effects within their
communities;
 to reduce the severity of recession and mitigate its impacts on businesses, communities, and individuals. This requires action
at all levels both to address specific system failures (e.g. mortgage
famine) and to alleviate pressures on businesses and households.
Local authorities can undertake initiatives themselves and lobby
others to do so, acting on their own or in partnership as appropriate
12. Economic recovery depends on resolution of the credit crunch. This report
focuses on the realities of recession and identifies where action by local
authorities, individually and collectively can make a difference.
13. It is not all doom and gloom. A low pound attracts tourists and shoppers
from abroad, and boosts exports. Some businesses are unaffected by the
downturn, others benefit as premises costs fall. There is a world beyond
recession, and central London must emerge with its competitive
advantage intact and enhanced. We must plan for the upturn at the same
time as mitigating the downturn.
14. We need to foster central London’s key attributes and maintain its
international competitiveness especially in financial and business services,
cultural services, creative and film sectors, and the visitor economy,
including retail. London benefits from a diverse, mobile and skilled labour
force and high productivity in a range of sectors.
15. London’s diversity includes many vulnerable communities with low
employment rates and household incomes. The impacts of recession will
challenge communities and social cohesion and local authorities need to
offer local leadership and to be seen to be doing so, through for example
their LSPs. Service provision will need to be adapted to meet these new
6
pressures while maintaining services to all. Responses and services need
to be speedy and compassionate. Key services include redundancy and
jobs advice, debt and financial support, mortgage arrears and home
repossession. Good communication is essential including websites and
links to Government services.
Lessons from Previous Recessions for Central London
16. Lessons from previous recessions include

Maintain flexibility and transfer between budgets and funding streams
to meet new priorities.

Maintain effective engagement with businesses, residents and partners
to help develop effective responses to changing needs and
perceptions. Collect, analyse and use local information and
intelligence.

Invest through the recession, e.g. Crossrail, to ensure that central
London is internationally competitive in the long term

Decide where local mitigation / economic recovery package of
initiatives should be co-ordinated within the local authority, and identify
who will drive the package of initiatives

Continue to nurture the setting up and consolidation of new
businesses, through availability of low rent premises, capital and
business advice. Encourage social enterprise.

Use current partnerships and programmes and adapt, rather than rush
to set up new structures

Maintain and enhance standards in the physical environment – keep
streets bright through gloomy times

Talk London up, not down

Be ready for the upturn … start planning for central London after the
recession.
17. This paper brings together suggestions for initiatives, grouped under three
headings:
 supporting business
 helping Londoners
 positioning central London for long term recovery
7
SUPPORTING BUSINESS
18.
We identified four areas of activity to support business either already
undertaken by some authorities (details in survey report) or where they
see local government having a role to play

Strengthening business support

Assisting cashflow, opening up opportunities (SMEs)
Improving the business environment

Championing central London

19. Actions which may be more effective if central London authorities
collaborate are highlighted. A selection of these, which seem to be worth
serious consideration, appear at the beginning of this report.
Strengthening business support
20. The main activities are:



Support to financial and business services (FBS).
Support for small and medium sized enterprises (SMEs)
SME workspace provision
Strengthening business support in London – menu of initiatives
Actions which may be more effective if central London authorities collaborate are highlighted.
a) Maintain competitiveness of financial and business services (FBS) industry, through
representation by the City of London Corporation at the highest levels of policy-making
and creation of a London Financial Services Body, which the City Corporation has agreed
to fund.
b) Ensure that the infrastructure necessary to support the City’s financial services
and other sectors can be delivered – for example, that electricity supply is
sufficiently resilient and provision is made for data centres to support long-term
growth.
c) Work with the Mayor’s proposed London Business Advisory Council which is
being set up to assess the needs of London’s economy and to tackle emerging
issues.
d) Work with LDA to clarify Business Link role and interface with boroughs. Work
with Capital Enterprise, the new trade body for Enterprise Agencies and Business
Support groups in London.
e) Use regulatory service officers (trading standards, environmental health, fire safety and
licensing) to signpost initiatives aimed at supporting the business community, e.g. small
business rate relief scheme, Train to Gain programme
f)
Investigate options for delivering pro-active and integrated “business recovery
8
service” initially through discussion with Capital Enterprise (London Councils)
g) Publicise SME support / financial relief / employment subsidy that is available
across central London and locally; facilitate provision of SME premises.
h) Set up feature on home page of Council website. Provide web links to relevant agencies
and programmes. Offer a ‘recession relief’ hotline and referral service for anxious and
failing businesses
i)
Lobby Government on the part of Supplementary Business Rate coming directly to
individual local authorities
Assisting cashflow, opening up opportunities (SMEs)
21. The main activities are:

Rents and other payments

Invoice payment target

Loan schemes

Local procurement

Energy efficiency / carbon footprint
Assisting cashflow, opening up opportunities (SMEs) – menu of initiatives
Actions which may be more effective if central London authorities collaborate are highlighted.
a) Improve cash-flow for suppliers, particularly SMEs and third sector, where possible by
paying in advance rather than in arrears
b) Sign up all central London to target the payment of SME and Third Sector
suppliers within 10 days of receipt of invoice
c) Lobby to return empty property business rates to 50% from the new 100% rate,
which is having a damaging impact on SMEs and on the ready availability of low
cost commercial space.
d) Provide / encourage flexible rents for small businesses and retailers, e.g. more frequent
payment options, especially where the landlord is the local authority. Help SMEs to
exploit the Enterprise Finance Guarantee scheme.
e) Encourage take-up of small business rate relief
f)
Assess potential to use pooled investment savings to fund lower loan costs or loan
guarantees for SMEs (London Councils)
g) Establish mechanisms to engage with LDA and maximise funding to central
London businesses from its £10 million Economic Recovery Investment Fund; £1.5
million Gateway to Investment programme (to help growing SMEs); and Access to
Finance Programme
9
h) Expand the range of smaller-scale ‘friendly’ sources of finance, ranging from credit
unions to Community Reinvestment Trusts and Community Development Finance
Institutions, which provide vital consumer credit and finance for small businesses
i)
Use local authority / public sector purchasing power to support procurement and simplify
tendering and contract procedures to foster SME business opportunities.
j)
Help organisations cut their fuel bills by supporting building retrofit programmes,
decentralised energy, low-carbon transport and new build.
Improving the business environment
22. The main activities are:

Ease regulation and business feedback

Business Improvement Districts

Town centres / retail

Local Authority Business Growth Initiative
Improving the Business Environment – menu of initiatives
Actions which may be more effective if central London authorities collaborate are highlighted.
a) Review application of local regulation and enforcement procedures so as not undermine
viable businesses made vulnerable at this time.
b) Use regulatory services officers (trading standards, environmental health, fire safety and
licensing) to report back on business perceptions and needs.
c) Lobby government to require property owners, as well as lessees, to be
contributors to BIDs, as is the case in the United States
d) Offer rate relief package to companies in trouble - e.g. spread business rates over 12
months instead of 10, where requested; business rate holiday for limited period of time
e) Devise best practice approach for management of local retail environments
through the recession, including town centres, shopping parades and street
markets. Promote schemes to support local shopping and independent retailers.
f)
Exploit Local Authority Business Growth Initiative scheme under new sub regional
arrangements proposed by Government.
10
Championing central London
23. The main activities are:

Sector champions

Tourism / visitor management

Inward investment

International marketing
Championing London in the UK and overseas – menu of initiatives
Actions which may be more effective if central London authorities collaborate are highlighted.
a) Identify lead boroughs to champion and co-ordinate support across central
London for key sectors, e.g. City – Financial and Business Related Services;
Westminster - Property / Offices; K&C - small retail, etc
b) Support Mayor’s campaign to attract leisure and business visitors from the UK and
Europe and encourage domestic visitors and spending in London
c) Engage with Visit London on securing maximum gains for local economies from
tourism
d) Celebrate and market central London on back of high profile international events,
e.g. cultural Olympiad and Queen’s golden jubilee. Define and deliver legacy to
central London from 2012 Games.
e) Strengthen joint global partnership between City of London and GLA to co-ordinate
activities overseas and stimulate inward investment by promotion of central London
abroad.
11
HELPING PEOPLE
24.
We identified five areas of activity to help people either already
undertaken by some authorities or where they see local government
having a role to play

Helping people back into work
Keeping costs down for Londoners

Supporting vulnerable people, deprived communities

Meeting housing needs


Communicating and making contact
Helping people back into work
25. The main activities are:

Worklessness

Skills training

Redundancy support

Construction work and training

Apprenticeships

Recruitment partnerships with employers

Social housing partnerships
Helping people back into work through skills training, brokerage and large
investment projects – menu of initiatives
Actions which may be more effective if central London authorities collaborate are highlighted.
a) Lobby government for area-based programmes based on estates to address
worklessness
b) Work with LDA to help families access childcare through Childcare Affordability
Programme
c) Support the Mayor in promoting the London Living Wage to ensure that work pays
d) Work with partners to maximise the training and employment opportunities from
major capital projects, including London 2012, Crossrail, transport investment and
renewal of colleges in London.
e) Offer short intensive adult education courses to assist reskilling
f)
Give priority to unemployed when recruiting.
g) Refer people to appropriate programmes, such as LSC’s Skills for Jobs and Train to Gain
programmes, and apprenticeship opportunities.
h) Lobby government for devolution of JobCentre Plus activities to local government
12
so we can better influence and develop local employment and economic growth
i)
Support the Mayor in seeking more flexible use of the 2007-13 European Social
Fund (ESF) programme in London to be able to respond better to the downturn
j)
Provide and publicise joined-up support for those made redundant, in terms of
counselling; advice on financial management, retraining, etc
k) Encourage residents who are unable to find a job, unemployed or made redundant to
remain mentally and physically active, through promotion of :
 free or low-cost local facilities, eg libraries, swimming pool, classes
 volunteering opportunities
l)
Provide cross skilling services not just upskilling to help entry into new businesses. In
some boroughs this will require services that focus on higher skill redundancies
especially from finance and business services (London Councils)
m) Co-ordinate construction employment and training across central London
n) Develop an apprenticeships programme and increase number of apprentices.
o) Encourage apprenticeships within SMEs by transferring the risks of managing the
apprenticeship programme from the SME to the local authority
p) Develop multi-area employer partnerships with central London employers,
including major retailers
q) Create housing partnerships of local authority, social landlords and JobCentrePlus,
particularly at estate level, to increase employment
Keeping costs down for Londoners
26. The main activities are:

Council tax freeze / refund

Efficiency savings

Energy saving assistance

Support post office, local banking system
Keeping costs down for Londoners – menu of initiatives
Actions which may be more effective if central London authorities collaborate are highlighted.
a) Minimise Council tax burden by for example: freezing Council tax levels or providing timelimited ‘council tax holidays’ or rebates; investigate Council tax rescheduling for those
made redundant.
b) Release to media report on efficiency savings by councils / across public sector in
central London to coincide with announcement of Council tax charges for 2009/10
13
c) Review charging policies that impact on the most badly hit, e.g.: school meals.
d) Accelerate collaboration in public service delivery to cut cost and improve services.
(London Councils)
e) Ensure that people are aware of their entitlements in terms of welfare rights; promote
cost-saving ideas in day to day living
f)
Run fuel efficiency advice campaigns and develop practical retrofitting
programme.
g) Negotiate with utilities companies flexible ways of paying for energy to prevent, at
start of new contract period, dramatic change in charge to residents of homes with
communal heating and lighting.
h) Create a secure, accessible local banking system for people by growing the role of
the Post Office
Supporting vulnerable people, deprived communities
27. The main activities are:

Financial advice

Credit Unions

Coordinating advice services and supporting the voluntary sector
Supporting vulnerable people, deprived communities – menu of initiatives
Actions which may be more effective if central London authorities collaborate are highlighted.
a) Hold money advice surgeries, open to both residents and local workers (including
Council employees), covering topics such as mixed term mortgages coming to an end;
partners at risk of redundancy; investments and pensions
b) Retrain council staff in managing debt, including mortgage arrears advice
c) Consider offering a ‘recession relief’ hotline / service for anxious individuals or those in
distress
d) Process benefits in timely manner, providing additional support in anticipation of rising
demand to meet targets
e) Support the establishment of a credit union to help those on low incomes or those
families who struggle to get credit
f)
Further develop volunteering initiatives as vehicle to keep people “work ready” (London
Councils)
g) Work with and support voluntary organisations subject to increasing demands on their
services, by e.g.:
 maximising use of Council premises (out of hours; subsidized rent)
14

increasing funding to the Citizens Advice Bureau and other key advice agencies
h) Co-ordinate employment and finance advice with other public services especially
Job Centre Plus and LDA. (London Councils)
i)
Review debt collection policies to ensure that households and individuals hit by the credit
crunch are handled with sensitivity
j)
Promote financial literacy education in schools and colleges
k) Lobby government to bring forward future years’ spending on Working
Neighbourhoods Fund
Meeting housing needs
28. The main activities are:

Home loss prevention

Housing the homeless

Help to first time buyers

Maintaining housing supply
Meeting the housing needs of Londoners – menu of initiatives
Actions which may be more effective if central London authorities collaborate are highlighted.
a) Encourage housing benefit take-up.
b) Lobby for a moratorium on crash-related home evictions and rebuild the UK’s
stock of social housing by taking homes facing repossession into the stock of
public housing.
c) Provide assistance to people facing homelessness, including support at court, mortgage
rescue packages
d) Work with Mayor and HCA to promote institutional investment in private rented
housing.
e) Work with Registered Social landlords and others to develop new approaches to
meet the challenges in the housing market, such as using public sector investment
and assets to share development risks with the developers.
f)
Use and coordinate land assets; exploit emerging Government proposals on new
housing development to increase local housing supply.
15
Communicating and making contact
29. The main activities are:

Home page feature / links on help available

Outreach through local organisations / venues

Benefits entitlement campaigns
Communicating and making contact – menu of initiatives
Actions which may be more effective if central London authorities collaborate are highlighted.
a) Devise and implement a communications strategy to inform people what support, advice
and entitlements are available, and to ascertain what their needs and priorities are. This
should include web-based support with links to national and regional programmes e.g.
grants assistance at Direct Gov.
b) Publicise the range of entitlements and benefits that are available and how to
attain them, using imaginative approaches to make aware those who require need
most – including to heat homes and eat well.
c) Provide signposting to appropriate advice agencies / programmes, delivered in venues
and formats which will encourage take-up by those most at risk
16
POSITIONING CENTRAL LONDON FOR LONG TERM RECOVERY
30. We identified two areas of activity to help business either already undertaken
by some authorities (details in survey report) or where they see local
government having a role to play:

Securing London’s competitiveness and quality of life
Delivering investment projects for London

Securing London’s competitiveness and quality of life
31. The main activities are:
Promoting London as an international location

Economic regeneration

Strategic role

Securing London’s competitiveness and quality of life – menu of initiatives
Actions which may be more effective if central London authorities collaborate are highlighted
a) Maintain investment in cultural services and visitor attractions
b) Continue to invest in the public realm in central London
c) Prepare a sub-regional economic assessment of central London; use this
assessment to understand the opportunities and threats presented by the
recession.
d) Pool / jointly commission research into aspects of the London economy - GLA
family, including GLA Economics, City of London, Bank of England, London First,
etc.
e) Consider ways to help diversify London’s economy
f)
Assess and monitor the impact of the recession on the most deprived
communities and respond to the needs of areas of multiple deprivation
g) Devise set of common economic indicators for monitoring economic data and
impact of interventions at borough level and across central London
h) Maintain investment in education and skills through the downturn
17
Delivering investment projects for London
32. The main activities are:
Transport

Planning and development

Public realm

Green energy

Delivering investment projects for London – menu of initiatives
Actions which may be more effective if central London authorities collaborate are highlighted
a) Lobby government to bring forward large-scale capital programmes and projects
to stimulate activity and create jobs, including (London Councils)

Cross Rail funding and other transport schemes

programmes such as polyclinics and the Building Schools for the Future

utilities infrastructure
b) Use major infrastructure projects, such as the 2012 Olympic and Paralympic games and
Crossrail to boost London’s economy.
c) Prepare a belowground infrastructure strategy across central London, building on
work undertaken in the City of London.
d) Prepare a central London response to key strategies, e.g. London Plan
consultation; LDA investment strategy.
e) Review local planning priorities to encourage investment by developers

Ensure planning applications are processed as quickly as possible

Prepare to be flexible over phasing of planning obligations, or modify if
considerations of quality and sustainability are not put at risk

Safeguard and enhance the quality of the built environment
f)
Consider use of asset backed development vehicles and new development/
innovative funding models (London Councils).
g) Enable ‘local bonds’ as a secure investment vehicle for savers that also helps to finance
essential investment and new infrastructure for a more environmentally sustainable
Britain.
h) Prepare an audit of capital investment realities across the Central Activities Zone:
what is being brought forward/ could be, can’t be / is stalled, under threat?
i)
Promote development through renegotiation of S106 agreements, partnership deals, etc.
j)
Bring forward sustainable investment in regeneration and infrastructure.
k) Continue to lobby for central government to support Homes for London, the
London Councils led initiative to protect up to 10,000 homes now in development,
and their associated jobs, by spending £350m on failing schemes and creating
more homes for fixed term rent (London Councils).
l)
Investigate options for infrastructure investment (e.g. schools, link roads, health
18
centres). Increase small works, energy efficiency retrofitting, maintenance and
public realm programmes to increase employment and to improve presentation of
central London.
m) Invest in CCHP; support the expansion of viable green energy networks.
19
APPENDIX 1
ECONOMIC INDICATORS
Extracted from GLA Economics ‘London’s Economy Today’, January 2009
1. Increase in moving average of passenger numbers
 The most recent 28-day period is from 9 November 2008 to 6 December 2008. London’s
Underground and buses had 268.5 million passenger journeys; 179.9 million by bus and
88.6 million by Underground.
 The moving average of passengers every period increased to 254.5 million from a
downwardly revised 254.2 million. The moving average for buses was 171.0 million. The
moving average for the Underground was 83.6 million.
 The methodology used to calculate the number of bus passenger journeys was changed
by TfL from 1 April 2007. For a detailed explanation please see LET issue 58 (June
2007).
20
2. Average annual growth rate of passengers continues to decrease
 The moving average annual rate of growth in passenger journeys decreased to 3.3%
from a downwardly revised 3.6% in the previous period.
3. Claimant count unemployment
 The rate of claimant count unemployment (the percentage of resident working age
population unemployed and claiming Jobseekers’ Allowance) in London was 3.2% in
December 2008.
 There were 160,000 unemployment claimants in London in December 2008 compared
with 131,100 in December 2007.
 The claimant count unemployment rate of London remains above that of the UK.
21
4. Annual output growth eases in London
 London’s annual growth in output decreased to 1.3% in Q2 2008 from a downwardly
revised 2.7% in Q1 2008.
 Annual output growth in the South East decreased to 1.6% in Q2 2008 from a
downwardly revised 2.6% in Q1 2008.
 Annual output growth in the Eastern region decreased to 1.4% in Q2 2008 from a
downwardly revised 2.5% in Q1 2008.
5. Falling house prices
 Nationwide reported that house prices in London fell at their fastest year-on-year rate
since Q1 1991 in Q4 2008.
 Annual house price inflation in London was –15.1% in Q4 2008, down from –9.4% in Q3
2008 (and -14.7% and -10.3% respectively in the UK)
22
6.
Weak airport passenger numbers
 9.0 million passengers travelled through London’s airports in December 2008.
 The number of passengers using London’s airports decreased by 6.7 per cent from
December 2007 to December 2008.
 The year-on-year percentage change in passenger numbers using London’s airports was
negative for most of 2008.
7. Synovate Retail Traffic was extremely weak for much of 2008
 The Synovate Retail Traffic Index of shoppers in London was 94.9 in the second week of
January compared to 102.2 in the previous week.
 Compared to previous years the index was extremely weak between mid-September and
the third week of December 2008. However, since then the index has been above or
similar to previous years.
 Synovate’s Retail Traffic Index measures the number of shoppers and does not
necessarily reflect the level of spending.
23
8. London’s business activity decreasing
 London firms decreased their output of goods and services in December 2008.
 The Purchasing Managers’ Index (PMI - an indicator of the economic health of the
manufacturing industry) f business activity recorded 42.7 in December compared to 41.7
in November.
 A rate of below 50 on the index indicates a decrease in business activity from the
previous month.
9. London’s employment has poor December
 The PMI shows that the level of employment in London firms decreased in Dec 2008.
 The PMI for the level of employment was 39.7 in December compared to 44.7 in Nov.
 A rate of below 50 on the index indicates a decrease in the level of employment from the
previous month.
24
10. New orders in London drop
 December 2008 saw a fall in new orders for London firms.
 The PMI for new orders recorded 39.9 in December compared to 41.5 in November.
 A rate of below 50 on the index indicates a decrease in new orders from the previous
month.
Sources
1. Transport for London, January 2009
2. Transport for London, January 2009
3. Claimant Count, Nomis, January 2009
4. Experian Business Strategies, January 2009
5. Nationwide, January 2009
6. Civil Aviation Authority, January 2009
7. Synovate, Mid-January 2009
8. RBS/Markit Economics, January 2009
9. RBS/Markit Economics, January 2009
10. RBS/Markit Economics, January 2009
25