North London LEP

A Local Enterprise Partnership for North London

Introduction On behalf of north London businesses we are pleased to submit an expression of interest for a north London Local Enterprise Partnership. This proposal is business lead and demonstrates the determination and commitment of the private sector to work in partnership with the public sector to build on our strengths and drive forward the creation of private sector employment in north London. Covering an important part of London’s economy the partnership will focus on opportunities for growth, removing barriers and encouraging innovation thereby assisting London’s secure economic future.

The principal objective of the LEP in North London will be to drive investment into the area to deliver long term betterment by increasing the supply of local jobs and housing. The LEP will support enterprise to grow the number of private sector jobs at all skill levels. We will set ambitious targets for the LEP. The central target for the North London LEP will be the creation of 3,200 private sector jobs in to 2015 and a further 30,000 to 2030.

It will raise the profile of the area focussing on:  Promote inward investment from the business and property investment sectors;  Support existing business to retain and support their growth;  Create job opportunities for local people, particularly those with low or no skills;  Be a strong advocate for the area to ensure that policies and strategies locally and regionally are aligned to support business and secure strong employment growth.

The North London LEP builds on the solid foundations of the North London Business (NLB) and the North London Strategic Alliance (NLSA), working increasingly closely together.

We consider our approach is consistent with the Mayor of London’s Economic Development Strategy (May 2010). The proposal will evolve before a final submission at the end of the year. Further discussions are needed with businesses and elected representatives on the final format of a north London LEP. Not least, within the London context, there is still a need to come to a clearer conclusion on what is best delivered at the local, sub-regional and regional level.

North London North London1 plays a significant role in the life and economic vitality of the capital. With a population of over 2.5 million, of which over 1 million are in work, and the location for over 670,000 jobs, North London has an economy which is larger than most European cities and a growth agenda which will see a population increase of more than 10% over the next 10 years.

North London is part of an international city with its own global connections. It is home to businesses serving international markets, as well as a skilled population working in global finance, business support and media sectors. North London has a close economic relationship with Central London, providing a large proportion of the workers for the City and West End. 1 comprising the London boroughs of Barnet, Brent, Camden, Enfield, Hackney, Haringey, Harrow, Islington, Redbridge and Waltham Forest North London’s LEP page 1 of 6 Within the north London sub-region we have two functional economic areas:

 Upper Lee Valley/M11 Corridor, comprising the boroughs of Enfield, Haringey, Hackney, Redbridge and Waltham Forest and Islington at the southern tip. The Upper Lee is London’s largest designated opportunity area with links to the Olympic Park and Stratford City in the south and Stansted airport in the north;

 The A5/Edgware Road Corridor, comprising the boroughs of Barnet, Brent, Camden and Harrow, and out into Hertfordshire. It contains some of London’s largest future mixed use development at Brent Cross and Wembley with good transport links into Kings Cross and the centre of London.

Between them, these two corridors contain at least 50% of North London jobs and they have great potential for future economic growth. The two corridors are in a position, with a private sector push, to lead the much needed economic recovery which will come by supporting and expanding the SME base and make use of the talent pool that already exists. A north London Local Enterprise Partnership (LEP) would work to these two geographies. The two areas have quite different economic profiles and the LEP will be structured to meet their different requirements.

London has a complex, interlinked geography and economy. Boroughs may choose to be in more than one LEP, as they sit in more than one functional area. In the past the Mayor of London has stated that he is happy for boroughs to choose to belong in more than one sub-regional grouping. We believe this is the most realistic approach to London’s complex economic geography with different LEPs providing different support to boroughs. We would look to develop formal agreements with adjacent LEPs in such cases, as well as those outside London.

Opportunities There are significant prospects to grow the North London economy based on existing opportunities and with active private sector engagement and leadership.

North London is the location for major employment corridors and centres. For example, Barnet is home to headquarters and business service operations. The Upper Lee Valley is a longstanding manufacturing and distribution centre. Major retail destinations and town centres such as Brent Cross, Wood Green, Enfield and Ilford all draw significant spending power from beyond North London’s boundaries.

There is a strong enterprise culture in north London, with the economy dominated by small businesses (for example 94.2% of the businesses in Haringey), while the self-employment rate in Barnet is 13.6%, higher than both the London and national figure.

North London has a series of clear opportunities to support the growth in private sector employment: 1. Land Availability. With significantly lower land values north London has been identified in the London Plan as a growth area with a target of 58,000 new homes by 2017, a growth of 10%. It provides an opportunity for expansion without the constraints of Central London. 2. Proximity to markets and transport links. North London is part of the wider global city, and the greater south east, and has an extensive transport network

North London’s LEP page 2 of 6 to this growing economy. It has strong global links with growing airports at Stansted and Luton. 3. People. A diverse and growing population, with overall high skills levels and strong entrepreneurial background. 4. Olympics. The 2012 Olympics in the Lower Lea Valley is the Europe’s most significant growth corridor and largest regeneration project.

The two growth corridors proposed for the North London LEP are centred on the areas with the highest levels of deprivation and also, as opportunity areas, the highest growth potential.

Functions of the North London LEP

1) Attracting investment. North London needs to improve its inward investment profile as a good business location and investment opportunity developing a strong offer responsive to the needs of business and the investment community. The LEP, with UKTI and pan-London agencies, will work to attract international and UK investors and help indigenous investors. As well as direct engagement it will build the strategic case for specific sector clusters. It will also intervene in the planning process to ensure the economic case for development is heard. The LEP would work to renew and bring into active use the area’s underutilised office space.

The LEP will build on and extend the achievements of the NLB/NLSA partnership to date: . Assisted over 12,000 businesses to locate in the area creating over 3,600 jobs; . Added almost £80m into the local economy; . Created a business network of over 15,000 businesses; . Created a pipeline of jobs forward to 2030 of over 30,000; . Positioned north London as a business friendly area creating strategic business boards/forums in our boroughs.

2) Promote Growth. Large mixed-use schemes will not only provide much needed housing but also provide significant numbers of jobs. For example, Brent Cross will provide 27,000 new jobs and 7,000 homes by 2030, Tottenham Hale 800 new jobs and 2,500 homes, the new Spurs stadium 800 new jobs and 300 homes and the development at Meridian Water (Central Leeside) will generate 1,500 jobs and up to 5,000 homes. The LEP will continue to support mixed used development, promoting the area and providing advice to investors and planning authorities.

The LEP will build on and extend the achievements of the NLB/NLSA partnership to date: . Assisted most major regeneration schemes in the area that have generated over £5bn of investment; . Promoted private sector investment via privately funded conferences, representation at MIPIM, as well as promotional visits and web-based information; . Assisted in the development of numerous master plans, support on economic appraisals and expert design information; . Attended and provided evidence to numerous planning committees and provide cross- boundary co-ordination around planning and investment; . Helped secure major investment such as Growth Area Funding.

North London’s LEP page 3 of 6 3) Enterprise and innovation. As well as being the location for multinationals such as Coca Cola, McDonalds, Aesica and Bombardia Transportation, the vast majority of businesses in north London are SME and micro businesses. Many of these SMEs are closely connected to specific ethnic communities.

The LEP, working in partnership with other agencies, will provide support to start-ups and existing businesses, including access to finance and new markets, skills, premises and other business support, as well as possible a business mentoring schemes. It will also continue to develop and promote ERDF and other bids.

It will develop a strong relationship with further and higher education to support knowledge transfer and promote innovation. North London has good transport links to London’s world class universities and land/office availability to support business incubation.

The LEP will build on and extend the achievements of the NLB/NLSA partnership to date: . Provided geographically based networks to support local business, for example around town centres; . Provided sector based networks to promote access to new markets and business support, for example around food; . Work with the third sector, including possibilities for social enterprise; . Lobbied successfully for a reduction in the Crossrail Business Levy, as well as more devolved delivery for skills and business support;

4) Transition to a low carbon economy. The proposed £3.7 bn contract for waste handling in north London is a unique opportunity to develop a stronger economy based on resource recovery and use this to power a decentralised heat network which, in turn, will be a major opportunity for businesses with high energy needs. The north London LEP will be uniquely placed to bring landowners, commercial and not for profit businesses together and create a positive planning environment which will encourage further investment and growth in this key sector. In addition, the LEP will support stronger links with HE to support innovation and knowledge transfer to make businesses in the sub-region less demanding on natural resources and lower their production of greenhouse gas.

The LEP will build on and extend the achievements of the NLB/NLSA partnership to date: . Attracted external funding to investigate the potential for energy distribution networks; . Worked with the North London Waste Authority on the regeneration potential of its investment; . Investigated and made the case for a north London Green Enterprise District and will continue to do so.

5) Making and moving. Transport is key to the future success of north London businesses. The LEP will therefore continue to lobby strongly for improvements to the West Anglia Line, Thameslink and North London Line, together with better strategic orbital road routes. This will be central to a strategy which builds on current strengths of freight, logistics and manufacturing as well as emerging sectors, particularly those associated with resource recovery and the transition to a low carbon economy.

The LEP will build on and extend the achievements of the NLB/NLSA partnership to date: . Successful secured major investment in our rail and strategic road network and continued to make the case for Crossrail to be implemented across the planned route;

North London’s LEP page 4 of 6 . Continued to make the strategic case for sub-regional transport investment; . In London’s second largest industrial area supported a business led freight quality partnerships.

6) Supporting people. As a business-led partnership the north London LEP will ensure close links between businesses and the new Work Programme. The LEP will build on the success of the Apprenticeship Company which has been formed by the College of Haringey, Enfield and North East London to create more private sector opportunities for young people in the area, specifically in SMEs. It will also build on the work done by boroughs and groups of boroughs in tackling worklessness, for example North London Pledge. We would wish to promote greater links including as linking business leaders with schools and Colleges.

The LEP will build on and extend the achievements of the NLB/NLSA partnership to date: . Attracted ERDF and LDA funded work programs to raise skill levels across the area and put people into work; . Co-ordinated and managed these programs to ensure maximum value; . Provided networks between the private and education sectors; . Forging stronger links with the London Skills and Employment Board (Chaired by the Mayor), the Skills Funding Agency and the Young People’s Learning Agency

We note this approach is consistent with the Mayor’s view that boroughs will play an enhanced role in skills and employment (GLA Proposals for Devolution, June 2010).

Worklessness, Skills and Public Sector employment It should be noted that the sub-region has specific concentrations of deprivation and worklessness which the LEP will help to challenge.

There is significant polarisation of skills in North London with 41.2% of the population with level 4 or above qualifications (compared to 38.6% for London), while 17.4% of the population has a level 1 or below (compared to 12% for London). This has a significant impact on the individuals’ employability. Raising the skills levels of those furthest from the labour market will be a continuing priority.

The public sector provides 29% (279,800) of employment in North London compared to a national figure of 21% (ONS, 2008). This figure is projected to contract by up to 1.3 - 2% to 2012, therefore an additional 2,800 workplaces will be required to maintain current levels of employment (GLA Economics, June 2010). However this may be an underestimation as boroughs are significant purchasers of local goods and services, which will also shrink.

Public Sector Jobs % Public Sector Jobs Number of Jobs Barnet 30% 32,900 Brent 25% 23,400 Haringey 29% 18,000 Enfield 31% 29,000 Waltham Forest 32% 17,900 Harrow 27% 18,000 Redbridge 34% 23,700 Islington 20% 37,600

North London’s LEP page 5 of 6 ONS, 2008

The Third sector plays a significant role in London employing around 250,000 people - 6.5% of London's working population (London Voluntary Service Council, June 2010). This sector provides a vital service in the outreach to a very diverse community and is facing loss of employment due to funding cuts.

Business Engagement The Haringey Business Board, the Waltham Forest Business Board, the Enfield Strategic Business Forum and the Barnet Town Centre Forums have a combined membership of nearly 300 members. Via these and other Enterprise Boards, including the current and emerging Business Improvement Districts, the North London LEP will be well placed to represent the needs of the area’s diverse business base. NLB itself already has a database of almost 12,000 local businesses and through its Connect magazine/Business Directories/Website has a ready made communication vehicle.

Governance & Efficiency The LEP be business lead overseen by an independent Board largely made up of business leaders representing the whole area. This reflects the current business lead board of NLB. The LEP will also have Local Authority politicians, GLA, education and voluntary sector representation. Both Growth Corridors would have its own private sector Chair responsible for driving progress in that specific geographical area.

The North London LEP builds on the solid foundations of the North London Business (NLB) and the North London Strategic Alliance (NLSA), who will be working increasingly closely together. They respectively have boards composed of leading business people and borough Lead members.

There will a major focus on delivering efficiency savings for public sector investment. The LEP will rigorously monitor activity to ensure a strong focus on value for money and investment in real results. The LEP will draw together what is already happening and simplify the delivery architecture where possible.

The organisation will have three specific delivery sub-committees: The Investment Committee. This will consist of key property investors from across the area and Local Authority Directors responsible for economic development or its planning/place shaping part. The objective of this Board will be to ensure that the area is well placed for future investment.

The Finance and Enterprise Committee. One of the underlying problems of North London is that it has a low profile amongst the financing community. The Finance Sector Board will consist of the Area Directors of major banks together with some principal property financiers/funds from Central London and its remit will be to lead on innovative ways that promotes the area as a haven for investment and support enterprise and growth in the sub-region.

Skills and Employment Committee. This will be made up of business leaders, education and training providers and local authorities. It will focus on ensuring business has access to a trained workforce and local communities have links and skills to access employment.

North London’s LEP page 6 of 6