Date: 8 th September 2008
Subject: Investments to support Harrow Road following the closure of Post Office at 272 Harrow Road W9
 On 14th August 2008, the Cabinet Member for Communities and Economic
Development resolved that the City Council should spend £310,000 to support the post offices at 272 Harrow Road and 12 Formosa Street to keep them open in the light to proposals by the Royal Mail to close them. In the event, this level of funding proved insufficient and the post office at 272
Harrow Road subsequently closed and the Formosa Street post office is due to close in September.

In particular, the loss of the post office at 272 Harrow Road is a severe blow to the area, at a time when the results of the Council’s investments, and those of its partners, are beginning to show improvements to the area. Two new City Academies have opened, major refurbishment of City West
Home’s housing has been completed, Westbourne Green open spaces are to be improved and imaginative proposals to re-use the crypt at St Mary
Magdalene church have been devised.
 The loss of the post office that provides an essential resource to local residents, many of whom use it to collect benefits, and local businesses who use its banking facilities is likely to seriously affect the local economy.
It is also in a parade of shops, and its loss could lead to those and other shops in the area suffering reduced trade as customers take their trade elsewhere in having to travel to find an alternative post office. Potentially this could lead to some other shops being unable to remain viable.
 Having committed funding to the post offices which unfortunately will now not be spent, it is proposed that that £100,000 of this money be allocated to two projects that will help the local economy and reduce the impact of the closure of the post office:
1. Expansion of the existing Harrow Road street frontage improvement programme, providing shop front grants for Harrow Road Bourne Terrace
Local Shopping Centre (see Appendix 1) and training to help Harrow Road traders become more successful businesses.
2. Expansion of the existing Youth Enterprise project to develop a more enterprising culture amongst young people in the renewal areas of North
Westminster.

1. That
£100k is allocated to help fund the following 2 projects that will aid the local economy and stimulate enterprise in the Harrow Road area:-
 £60k for the expansion of the existing Harrow Road street frontage improvement programme, providing shop front grants for Harrow Road
Bourne Terrace Local Shopping Centre and training to help Harrow Road traders become more successful businesses.
 £40k for the expansion of the existing Youth Enterprise project to develop a more enterprising culture amongst young people in the renewal areas of
North Westminster.
2. Subject to approval of the above recommendations, th at £210,000 – the remainder of the £310,000 of Local Authority Business Growth Incentive
(LABGI) resources currently allocated to support the post offices be returned to the Economic Development Reserve to support the delivery of future projects that will benefit the economy in Westminster in line with the Council’s
One City objective ‘An Enterprising City’ and the Council’s Economic
Development Strategy 2008-11 priorities.

Report to: Cabinet Member for Communities and Economic
Development
Date: 8 th September 2008
Classification: For General Release
Title of Report: Investments to support Harrow Road following the closure of the post office at 272 Harrow Road
Report of: Deputy Chief Executive (Built Environment)
Wards involved: Westbourne
Policy context: The closure of the Harrow Road post office will adversely affect enterprise in the area. The expansion of the Harrow Road Street Frontage programme and Youth Enterprise project will help to stimulate enterprise and improve the health of this local shopping centre.
Financial summary: This report proposes to commit £100,000 from the
Economic Development Reserve to provide funding for street frontage improvements and
Youth Enterprise. The funding will assist businesses following the closure of the Harrow
Road post office in a district shopping centre identified as in decline through the Council’s district shopping centre health checks.
Report Author: Matthew Blades
Planning and City Development Department
Contact details: Matthew Blades
Telephone 020 7641 2336
E-mail mblades@westminster.gov.uk

1.1 The loss of the post office at 272 Harrow Road is a severe blow to the area, at a time when the results of the Council’s investments, and those of its partners, are beginning to show improvements to the area. Two City Academies have recently opened, major refurbishment of City West Home’s housing has been completed,
Westbourne Green open spaces are to be improved and imaginative proposals to re-use the crypt at St Mary Magdalene church have been devised.
1.2 The post office was located in a parade of shops
– part of the Harrow
Road/Bourne Terrace Local Shopping Centre. The post office was a key generator of footfall, attracting people to the area and benefiting other businesses in the shopping centre. Its loss could lead to those and other shops in the area suffering reduced trade as customers take their trade elsewhere, travelling to find an alternative post office. Potentially this could lead to some shops being unable to remain viable.
1.3 The post office provided an essential resource to local residents, many of whom used it to collect benefits, and local businesses who used its banking facilities.
This aspect was highlighted by the Federation of Small Businesses in its res ponse to the Government’s consultation paper that set in train the review of post offices, emphasising the role that post offices play in serving local businesses.
1.4 In order to mitigate the impact of the post office closure at 272 Harrow Road, it is rec ommended that £100,000 is used to expand two of the Council’s existing Civic
Enterprise Fund projects to assist local traders and stimulate enterprise in the area.
2.1 These projects will aid the local economy and stimulate enterprise in the area.
Th e proposed £100,000 resource will enable:
 Expansion of existing Harrow Road Street Frontage Improvement
Programme, providing shop front grants for Harrow Road Bourne Terrace
Local Shopping Centre and training to help Harrow Road traders become more successful businesses. Appendix 1 shows the location of the current street frontages programme, and the proposed area in which to expand the programme.
 Expansion of the existing Youth Enterprise project to develop a more enterprising culture amongst young people in the renewal areas of North
Westminster.
Harrow Road Street Frontage Improvement Programme
2.2 Funded through the Council’s Civic Enterprise Fund, this project is run by
Groundwork London with Paddington Development Trust as the accountable body. Due to limited resources, at present, only traders within the Harrow Road
District Shopping Centre are eligible for support.

2.3 It is recommended that an additional £60,000 is allocated to the project. This will enable the Council to implement the street frontages project in the Harrow
Road/Bourne Terrace Local Shopping Centre where the post office was located.
This extra resource will also enable the provision of business support training to traders along Harrow Road. Training will identify missed opportunities for traders, and guidance on practical steps they can take to make their businesses more profitable e.g. visual merchandising training and implementation.
2.4 The objectives of the street frontages project are:

To improve trade on the Harrow Road
 To support local traders who want to improve the image of their premises and attract more customers

To improve the shopping environment for new and existing customers
 To help attract new commercial investment into the area
2.5 The project is an integral part of the neighbourhood renewal work taking place in the Harrow Road ward as detailed in the Harrow Road Neighbourhood Plan. The street frontages scheme forms part of a wider approach to improve the Harrow
Road and should complement other projects such as Civic Streets and the
Prince of Wales Junction improvements.
2.6 ‘Street Frontages’ include the frontages of commercial premises (e.g. signage, canopies, and pavement display stands) and other elements of the street environment that have a negative impact on the shopping area.
Youth Enterprise Project
2.7 The Youth Enterprise Scheme is funded through the City Council’s Civic
Enterprise Fund and is based at the Stowe Centre. The project is run by an award winning Westminster based social enterprise called Hardcore Is More
Than Music (HIMTM), in conjunction with Paddington Development Trust who are also the accountable body.
2.8 At present, funding has been made available to run the project for 2 years from
April 2008 until March 2010. It is recommended that an additional £40,000 is allocated to the project which will enable it to continue for another year, until
March 2011.
2.9 In delivering this project, PDT and HIMTM are working with a number of key partners, including: 14-19 Manager & Economic Development Manager, WCC - providing support and ensuring joined up working with other wider WCC work,
Westminster Academy - providing students and possible teacher support as required, Vital Regeneration - ensuring young people are informed about the project and linking with the work undertaken at Beethoven Centre around new media and creative industries, North Learning & Employability Network - assisting with pathways for any young people who engage and assisting with getting the information out.
2.10 Young people will receive accreditation for the learning they undertake. The project consists of a number of initiatives and events including:

 “Young Business Club”, providing workshops and master-classes with industry leaders, including Peter Jones workshop with Rubicon PR and Head of Advertising at the BBC
 “The Cut” Newspaper project - Youth led enterprise run by Youth Board of
Directors
 Fashion Enterprise project - production and sale of T-Shirts and accessories
 Providing a series of workshops and seminars around the theme of starting your own enterprise etc
 Dragon’s Den event with bursaries and mentoring from industry professionals
3.1 Delivery agreements between the Council and PDT are already in place for the
Harrow Road Street Frontage and Youth Enterprise projects. The extension of these projects can therefore be achieved quickly and efficiently to ensure the local area benefits as quickly as possible.
3.2 Subject to approval of recommendations contained within this report, the City
Council will work with PDT as the accountable body to agree delivery agreements
(including revised outputs etc) to extend the street frontages and youth enterprise projects. The delivery of these agreements will be monitored by the Council’s economic development team through existing mechanisms established through the Civic Enterprise Fund.
4.1 On 14th August 2008 , the City Council resolved to spend £310,000 from the City
Council’s Local Authority Business Growth Incentive (LABGI) resources to support the post offices at 272 Harrow Road and 12 Formosa Street, to keep them open in the light of proposals by the Royal Mail to close them. This resource was allocated from the Economic Development (Civic Enterprise)
Reserve. After long discussions and despite the best efforts of the Council and its partners, in the event, this level of funding proved insufficient and the post office at 272 Harrow Road subsequently closed and the Formosa Street post office is due to close in September.
4.2 It is therefore recommended that £100,000 of the £310,000 reserved to support post offices be allocated to the street frontages and youth enterprise projects.
4.3 The remainder of the £310,000 (£210,000) currently allocated to support the post offices will be returned to the Economic Development Reserve to support the delivery of future projects that will benefit the local economy in line with the
Council’s One City objective ‘An Enterprising City’ and the Council’s Economic
Development Strategy 2008-11 priorities.

5.1 Section 2 of the Local Government Act 2000 gives every local authority a power to do anything which they consider is likely to achieve the promotion or improvement of the a) economic well-being of their area b) the social well-being of their area and c) the environmental well-being of their area. This power can be used for the benefit of the whole or any part of a local authority’s area or all or any persons resident or present in a local authority’s area.
5.2 Extending the projects outlined above is considered to be likely to achieve the promotion or improvement of both the economic and social well-being of the
Westbourne and Harrow Road wards and their surrounding areas for the reasons as set out in section 2 of this report.
5.4 The City Council has an agreement with PDT as a preferred supplier of regeneration programme management services for the north west of
Westminster. This approach has been approved by Contracts Review Board
(agreed 25 th September 2007). Therefore, the proposed use of PDT to work with partners to extend these projects does not require a tendering exercise. PDT will be accountable for its expenditure of these funds, and will be required to meet with the City Council and submit quarterly reports to ensure the appropriate expenditure of these funds.
6.1 Ward members have been consulted on the proposals but no responses have been received.
7.1 The Council considers the closure of the post office at 272 Harrow Road to pose significant risks to the local economy, and particularly the financial viability of shops along the Harrow Road/Bourne Terrace Local Shopping Centre. The proposed expenditure of £100,000 for the expansion of two key local projects
(Harrow Road Street Frontages Programme and Youth Enterprise Scheme) will help to mitigate the impact of the post office closure on the local economy, and both are in line with the Council’s plans, and those of its partners, to continue to improve the Westbourne area and Harrow Road economy.
Appendices
1. Map of Harrow Road street frontages programme and proposed expansion

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Westminster City Council Economic Development Strategy 2008 – 2011
The Westminster City Plan 2006-2016
‘Supporting the Post Offices at 272 Harrow Road and 12 Formosa Street’ Report to Cabinet Member for Communities and Economic Development dated 6 August
2008
‘Framework agreements for Paddington Development Trust & Cross River
Partnership to deliver regeneration programme management services in a north
Westminster Enterprise Zone & south Westminster (2007/08 – 2010/11)’ Report to Contracts Review Board dated 25 th September 2007