Public Document Pack

Committee Agenda

City of Westminster

Title: Cabinet

Meeting Date: Monday 8th April, 2019

Time: 7.00 pm

Venue: Room 18.01 and 18.02, 18th Floor, 64 Victoria Street, London, SW1E 6QP

Members: Councillors:

Nickie Aiken (Chairman) David Harvey Ian Adams Tim Mitchell Richard Beddoe Rachael Robathan Iain Bott Andrew Smith Heather Acton Paul Swaddle

Members of the public are welcome to attend the meeting and listen to the discussion Part 1 of the Agenda

Admission to the public gallery is by ticket, issued from the ground floor reception at City Hall from 6.00pm. If you have a disability and require any special assistance please contact the Committee Officer (details listed below) in advance of the meeting.

An Induction loop operates to enhance sound for anyone wearing a hearing aid or using a transmitter. If you require T any further information, please contact the Committee Officer, Reuben Segal, Acting Head of Committee and Governance Services.

Tel: 7641 3160; Email: [email protected] Corporate Website: www.westminster.gov.uk

Note for Members: Members are reminded that Officer contacts are shown at the end of each report and Members are welcome to raise questions in advance of the meeting. With regard to item 2, guidance on declarations of interests is included in the Code of Governance; if Members and Officers have any particular questions they should contact the Director of Law in advance of the meeting please.

AGENDA PART 1 (IN PUBLIC)

1. WELCOME

2. DECLARATIONS OF INTEREST To receive declarations by Members and Officers of the existence and nature of any personal or prejudicial interests in matters on this agenda.

3. MINUTES (Pages 3 - 14) To approve the minutes of the meeting held on 25 February 2019.

4. OXFORD STREET DISTRICT - BUSINESS CASE AND (Pages 15 - 150) INVESTMENT APPROVAL Report of Executive Director, Growth, Planning & Housing and Director of Place Shaping & Town Planning.

5. CORPORATE ENFORCEMENT POLICY (Pages 151 - 168) Report of the Executive Director of City Management & Communities.

6. CONNECTED LIBRARIES - REPORT OF THE INDEPENDENT (Pages 169 - 196) ADVISORY BOARD ON LIBRARIES TO WESTMINSTER CITY COUNCIL Report of the Director of Libraries, Archives & Registration Service.

Stuart Love Chief Executive 29 March 2019

Agenda Item 3

MINUTES CITY OF WESTMINSTER

Cabinet

MINUTES OF PROCEEDINGS

Minutes of a meeting of the Cabinet held on Monday 25th February, 2019, Room 18.01-18.03, 18th Floor, Westminster City Hall, 64 Victoria Street, London, SW1E 6QP.

Members Present: Councillors Nickie Aiken (Chairman), Ian Adams, Richard Beddoe, Iain Bott, Heather Acton, David Harvey, Tim Mitchell, Rachael Robathan and Andrew Smith

Apologies for Absence: Councillor Paul Swaddle OBE

1 WELCOME

1.1 The Leader welcomed everyone present.

2 DECLARATIONS OF INTEREST

2.1 There were no declarations of interest.

3 MINUTES

3.1 The Chairman, with the consent of the Members present, signed the minutes of the meeting held on 10 December 2018 as a true and correct copy of the proceedings.

4 2019/20 BUDGET AND COUNCIL TAX REPORT

4.1 Councillor Rachael Robathan, Cabinet Member for Finance, Property & Regeneration introduced the report highlighting that the budget sets out how over the next 12 months, the Council must achieve savings of c£36m to meet growing demand for services and further reductions in funding.

4.2 Dave Hodgkinson, Deputy Section 151 Officer, stated that the budget aligns with the Capital Strategy and is both robust and balanced. He referred to the draft cash limited budgets for each General Fund service with overall net expenditure for 2019/20 of £180.436m. He advised that the draft budget had been subject to thorough equality impact assessments and consultation where appropriate.

1 Page 3

RESOLVED:

That Cabinet recommended to full Council:

1. that the local element of Council Tax for 2019/20 is increased by 2.1% (CPI inflation as at December 2018) for a Band D equivalent household;

2. the 2019/20 budget, as set out in the report and recommend to the Council, the Tax levels as set out in the Council Tax resolution at Annex C to the report;

3. that local element of Council Tax is increased by 2% in respect of the Adult Social Care Precept as permitted by Government and anticipated in their Core Spending Power assumptions;

4. that as a consequence of the 2.1% change in Council Tax and the 2% increase in the Adult Social Care precept, the local element for Band D properties be confirmed for 2019/20 as £433.34;

5. that subject to their consideration of the previous recommendation, the Council Tax for the City of Westminster, excluding the Montpelier Square area and Queen’s Park Community Council, for the year ending 31 March 2020, be as specified in the Council Tax Resolution in Annex C to the Cabinet report (as may be amended). That the Precepts and Special Expenses be as also specified in Annex C for properties in the Montpelier Square and Queen’s Park Community Council;

6. that the Council Tax be levied accordingly and that officers be authorised to alter the Council Tax Resolution as necessary following the final announcement of the Greater London Authority precept;

7. that the Council approves the budget proposals presented to Council on 7 November 2018 which were approved in principle pending the completion of relevant external consultations as outlined in Paragraph 10.17 of the report.

8. that the views of the Budget and Performance Task Group set out in Annex A of the report be considered as required;

9. that the draft cash limited budgets for each General Fund service with overall net expenditure for 2019/20 of £180.436m (as set out in Schedule 3 of the report) be noted;

10. that the Section 151 officer be required to submit regular reports as necessary on the implementation of the savings proposals and on the realisation of pressures and mitigations as part of the regular budget monitoring reports;

11. that the Section 151 officer be delegated responsibility for any technical adjustments required to be made to the budget (in line with the Council’s Financial Regulations);

2 Page 4 12. that the cost of inflation, pressures and contingency be issued to service budgets if and when the need materialises, to the limits as contained within Schedule 4d signed off by the Section 151 officer;

13. that the views of consultees and consultation approach, as set out in section 10 of the report, be considered by Council;

14. the Council continues as previously agreed to make recurrent additional £4m contributions as part of the on-going annual contributions as set out in paragraph 7.6 of the report;

15. that the previously approved use of new capital receipts be used under the freedoms of the Flexible Capital Receipts regulations be used to fund revenue expenditure on City Hall, Digital Programme and Pension Deficit Recovery programmes which lead to future ongoing savings (and subject to review at year end to determine the actual costs, savings and financing by the Section 151 officer) be recommended to Council for approval;

16. that the proposed use of new capital receipts be used under the freedoms of the Flexible Capital Receipts regulations to finance future revenue expenditure on other relevant and applicable programmes which arise in the future during the duration of the regulations and which lead to ongoing savings (and subject to review at year end to determine the actual costs, savings and financing by the Section 151 officer);

17. that the Section 151 officer be delegated responsibility to transfer any potential surplus Business Rates revenue into a reserve to mitigate the potential impact of business rates volatility and to support future years’ revenue budgets;

18. that to the extent that the Council is unable to mitigate the CCG funding reductions through novating contracts across to the NHS, through service contracts coming to the end of their natural term, or through allocation from the social care support grant or business rates levy grant, then Council reserves may be used in 2019/20 to offset the pressure and balance the Council’s budget;

19. the Council continues the Westminster Community Contribution to allow the most expensive (Band H) properties in the city to voluntarily contribute towards supporting discretionary services that support the three priorities of youth services, helping rough sleepers off the streets and helping people who are lonely and isolated;

20. that the Equality Impact Assessments included in Annex B to the report be received and noted to inform the consideration of the budget after approval;

3 Page 5 Reasons for Decision

1. The preparation of the budget is the final stage of the annual business planning cycle leading to the approval of the Council Tax for the forthcoming financial year. There is a statutory requirement to set a balanced budget and submit budget returns to the Ministry of Housing, Communities and Local Government (MHCLG). Approval of the revenue estimates constitutes authority for the incurring of expenditure in accordance with approved policies.

2. It should be noted that a set of budget proposals were presented to Cabinet in October 2018 and then to Council in November 2018, this offered an early opportunity to note and approve budget changes in principle for 2019/20. These proposals were assessed at the time as to whether they required consultations and equality impact assessments (EIA). Completed EIAs were made available to all members.

5 CAPITAL STRATEGY REPORT - 2019/20 TO 2023/24

5.1 Councillor Rachael Robathan, Cabinet Member for Finance, Property & Regeneration, introduced the report which set out the Capital Strategy for the next 15 years. She stated that the Strategy is hugely important and ambitious and aims to deliver the City for All ambitions for the whole of the city and in particular the provision of much-needed affordable homes. She thanked finance officers for all of their work in developing the strategy.

5.2 David Hodgkinson, Interim Section 151 Officer, considered the Capital Programme to be robust, deliverable and affordable. He referred Cabinet to the risks to the programme as set out in Section 12 of the report and how these would be managed.

RESOLVED:

That Cabinet recommended that full Council:

1. Approve the capital strategy as set out in the report.

2. Approve the capital expenditure for the General Fund as set out in Appendix A to the report for 2019/20 to 2023/24 and future years to 2032/33.

3. Approve the capital expenditure forecasts for the General Fund as set out in Appendix A to the report for 2018/19 (Period 8).

4. Approve the expenditure forecast for 2018/19 (Period 8) for the HRA as set out in Appendix B to the report.

5. Approve the capital expenditure for the HRA for 2019/20 to 2023/24 as in accordance with the 30 year HRA Business Plan and as included in Appendix B to the report.

4 Page 6 6. Approve the financial implications of the HRA capital programme including the references to the debt cap and the level of reserves as detailed in Section 8 to the report.

7. Approve that in the event that any additional expenditure is required by a capital scheme over and above this approved programme the revenue consequences of this will be financed by revenue savings or income generation from relevant service areas.

8. Approve that all development and investment projects, along with all significant projects follow the previously approved business case governance process as set out in paragraphs 5.1 and 6.5 to 6.14 to the report.

9. Approve that no financing sources, unless stipulated in regulations or necessary agreements, are ring fenced.

10. Approve that contingencies in respect of major projects are held corporately, with bids for access to those contingencies to be approved by the Capital Review Group (CRG) in the event that they are required to fund capital project costs, as detailed in Sections 12.11 to 12.14 to the report.

11. Approve the council plans to continue its use of capital receipts to fund the revenue costs of eligible proposals (subject to full business cases for each project). This comes under the MHCLG Guidance on the Flexible Use of Capital Receipts (FCR), if considered beneficial to the Council’s finances by the City Treasurer at year-end. (The Council’s strategy for flexible use of capital receipts is outlined in section 11 to the report).

12. Note the continued use of flexible use capital receipts (as approved at November Council) to fund revenue costs associated with City Hall, Network and Telephony Transformation and Technology Refresh projects as detailed in section 11.9 and 11.14 to 11.28 to the report.

13. Note the Council’s proposal to make use of £400m of forward borrowing to finance the capital programme and subsequently reduce the longer-term revenue impact, as approved by Full Council in November 2018.

14. Approve the financing of the capital programme and revenue implications as set out in paragraphs 14.1 to 14.30 to the report.

15. Approve the financing of the capital programme being delegated to the City Treasurer at the year end and to provide sufficient flexibility to allow for the most effective use of Council resources.

Reasons for Decision

The Council is required to set a balanced budget, and the capital programme, together with the governance process, which monitors and manages the programme, forms part of this process.

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6 HOUSING INVESTMENT STRATEGY AND HRA BUSINESS PLAN 2019/20

6.1 Councillor Rachael Robathan explained that the Housing Investment Strategy and HRA Business Plan had been the subject of considerable extra work this year due to the relaxation of the HRA borrowing cap. The Council has planned to take advantage of this to deliver much needed additional affordable housing by increasing borrowing whilst protecting the sustainability of the overall business plan.

6.2 Stephen Muldoon, Interim Deputy Section 151 Officer, advised that in relation to the above, additional borrowing of £92.5m is planned over the first five years of the HRA Capital Programme to deliver the plans within the investment strategy.

6.3 Mr Muldoon stated that the Strategy and Business Plan had taken into account the decision by Cabinet to bring its Arms’ Length Management Organisation CityWest Homes back into the Council.

RESOLVED:

That Cabinet recommended that the full Council:

1. Approve HRA capital programme budgets for 2019/20 to 2023/24 (Appendix B) to the report.

2. Approved the HRA revenue budget for 2019/20 (Sections 8,11 and Appendix C) to the report.

3. Approved the adjustment of HRA capital budgets in 2018/19 to match the assumptions within this Business Plan (Appendix B to the report).

Reason for decision

The plans outlined in this report will enable the Council to invest in maintaining and improving the existing stock of homes and neighbourhoods within its management, while also delivering wider benefits to the City’s residents and businesses. The financial plan will ensure the housing stock continues to meet the housing needs with which the city is faced; and ensure the HRA remains sustainable and viable over the long term.

7 TREASURY MANAGEMENT STRATEGY STATEMENT 2019/20 - 2023/24

7.1 Stephen Muldoon advised that there were little changes to the Treasury Management Strategy since it was last submitted to Cabinet in November.

RESOLVED:

That Cabinet recommended to full Council:

 the Treasury Management Strategy Statement;

6 Page 8  the borrowing strategy and borrowing limits for 2019/20 to 2023/24 set out in sections 5 to 7 to the report;

 the prudential Indicators set out in section 8 to the report;

 the Annual Investment strategy and approved investments set out in Appendix 1 to the report;

 the Minimum Revenue Provision Policy set out in Appendix 2 to the report.

Reasons for Decisions

To comply with the Local Government Act 2003, other regulations and guidance and to ensure that the Council’s borrowing and investment plans are prudent, affordable and sustainable and comply with statutory requirements.

8 INTEGRATED INVESTMENT FRAMEWORK 2019/20

8.1 Councillor Rachael Robathan commented on the importance of considering the whole of the Council’s financial investments in the round which is being delivered through a comprehensive strategic, integrated investment framework.

8.2 Stephen Muldoon advised that the integrated investment framework now sets out that the Council would not aim to make investments in property purely for investment returns, with other strategic factors needing consideration.

8.3 Councillor Robathan thanked David Hodgkinson and Stephen Muldoon for their thorough and professional work in their capacities as Interim Section 151 Officer and Interim Deputy Section 151 Officer respectively.

RESOLVED:

1. That Cabinet recommended that full Council:

a) approve and implement the Integrated Investment Framework set out in the report;

b) approve that the target for the overall return on Council investments should aspire to match inflation;

c) approve that the benefits of investing in the Pension Fund should be used as a benchmark when evaluating other investments;

d) adopt the asset allocation percentages set out in the Framework and work towards achieving these;

e) agree that the overarching objective of this Framework is to achieve an overall return on Council investments aspiring to match inflation and to reduce costs and liabilities, whilst maintaining adequate cash balances

7 Page 9 for operational purposes, and not exposing the capital value of investments to unnecessary risk;

f) approve that investments allocated to out-of-borough property developments should be considered individually and should outweigh the benefits of investing in-borough (which can have a number of non- commercial benefits, e.g., place making) and in a diversified property portfolio (acquisitions will be made out of borough only on an exceptional basis). Individual decisions should be subject to Cabinet Member approval;

g) approve that the property and alternative asset allocation should focus on in-borough, with out of borough options being explored on an exceptional basis and subject to Cabinet Member approval;

h) the Investment Executive to implement, monitor and report on the investment strategy.

Reasons for Decision:

To manage the Council’s finances prudently and efficiently.

9 PAY POLICY 2019-2020

9.1 Lee Witham, Director of People Services, introduced the report and referred to the changes to deferred salary to posts at Band 6 and Band 7 and the Chief Executive. This will result in the Council fully consolidating the 10% deferred pay into the monthly salary of senior managers and the Chief Executive for the reasons set out in the Pay Policy attached as Appendix A to the report.

9.2 Mr Witham referred to the statutory duty to publish senior pay data every year in line with the Local Government Transparency Code 2015. He explained that the Council had previously published both 90% and 100% figures for senior officers (salaries with and without deferred pay). He advised that the Council would, in future, only publish the 100% figures for transparency.

RESOLVED:

That Cabinet recommended to full Council:

1. The Pay Policy for 2019/20, attached as Appendix A to the report.

Reason for Decision

The Council is required to publish its Pay Policy by 31st March every year. All pay data in the Pay Policy takes a snapshot of the data as at 31st March 2018. The proposed Pay Policy for 2019/20 is appended.

8 Page 10 10 OXFORD STREET DISTRICT - PLACE STRATEGY AND DELIVERY PLAN CONSULTATION RESULTS AND UPDATED STRATEGY

10.1 Councillor Richard Beddoe, Cabinet Member for Place Shaping and Planning, introduced the report which outlined the results of the public consultation on the Oxford Street District - Draft Place Strategy and Delivery Plan which took place between the 6th November and 16 December 2018.

10.2 Councillor Beddoe advised that the consultation generated the highest number of responses to a Council led consultation exercise. There were a total of 2,154 completed consultation responses. 66% of overall respondents stating they supported the Place Strategy principles with 73% support from resident respondents. There was broad support for a fresh approach for the design of the whole area.

10.3 The Cabinet Member asked Cabinet to approve the updates to the Place Strategy and Delivery Plan which had been made as a result of the consultation feedback. These included: (i) revising some of the overarching place-based principles and removing the numbering to show that they are all of equal importance; (ii) including additional information in a number of areas but in particular in relation to air quality and (iii) changes to the delivery plan.

10.4 Councillor Beddoe advised that subject to Cabinet’s approval for the Strategy and Delivery Plan, a business case would be developed to support the Council’s £150 million investment which will be presented at the next Cabinet meeting on 8th of April 2019. The intention was for modelling works to begin in the spring with physical works to follow in the autumn.

10.5 Barbara Brownlee, Executive Director for Growth, Planning & Housing, commented that people are anxious to see more details regarding the scheme. She referred Cabinet to the programme governance outlined in the report which set out arrangements for keeping members informed.

RESOLVED: That Cabinet: a) acknowledged the results of the public consultation; b) approved the updates to the Place Strategy and Delivery Plan made as a result of the consultation feedback; c) noted the development of a business case to support the Council’s £150m investment which will be presented at the next Cabinet meeting on 8th April 2019; d) agreed the Governance arrangements for the project and the reporting to monitor progress of the programme’s delivery.

Reasons for Decision

(a) The Council’s commitment to the Oxford Street District is to create a long term and ambitious vision for the whole of the district that will strengthen its world-

9 Page 11 renowned status as a great place to live, work and visit. Its strategy will support the ambition and respond to the big challenges that the district faces, including: a rapidly evolving retail environment; a place that can cater to greater numbers of people; providing more attractions; and for Oxford Street to be a better neighbour to the wider district, including the residential neighbourhoods. In the wake of strong competition from retail hubs like Westfield; online shopping; increased business rates; and interest rates, the retailers and businesses in the district are finding the trading environment very challenging.

(b) One of the reasons for adopting a place-based approach is to ensure that the variety exhibited throughout the district is celebrated and enhanced. The analysis demonstrates the complexity of the district, while the principles and example projects illustrate why a more place specific approach should be taken. This was emphasised during the engagement phase where both residents and key stakeholders reinforced the need for a more localised approach. Consequently, the strategy also pulls together the many ambitions of our stakeholders for their specific areas, including residents associations and neighbourhood forums, and starts to bring these together along with new ideas for the district.

(c) The Council believes that the district would benefit from adopting a place- based approach to determine how to deal with the current and future opportunities and issues. Owing to the complexities of the district, a more responsive approach to developing a range of solutions across the area needs to be adopted. The Council supports the need for a mixed use district and one that places strong emphasis on the amenity of its local residential communities. All this is essential if the district is to continue to thrive. The Council has now developed a Place Strategy and Delivery Plan for the Oxford Street District which has taken on the views of stakeholders via the recent consultation exercise.

(d) The Council recognises that investment in the district is required in order to retain its status as the nation’s high street and a world-renowned destination for domestic and international visitors. The coherent and district wide programme will ensure that the Oxford Street District strengthens its reputation. It is also essential that investment helps to improve the liveability of the district and provide a greater amenity for our residents. On 7th November 2018, full Council approved the Capital Strategy including allocation of £150 million towards the delivery of the final adopted Place Strategy and Delivery Plan (subject to approval to spend supported by a business case providing a strong rationale for investment). The Council will take responsibility for delivering an ambitious set of projects that will help to bring about a significant change to counter some of the external factors that the district currently faces. Additional funding to support the delivery of the projects listed in the Place Strategy will be required from external sources.

(e) The updated Place Strategy clearly outlines the rationale for why a place- based approach will achieve both the collective ambition of the Council and its stakeholders, to improve the district and help to ensure its long-term future.

10 Page 12 Key to this is a set of 15 overarching place principles that will be delivered by the projects listed in the Delivery Plan.

(f) The consultation has confirmed majority support for the principles outlined in the Place Strategy and Delivery Plan. The strategy has been updated to reflect comments and concerns. The recommendations in this report are for the Cabinet to approve the updates to the Place Strategy and Delivery Plan and for the supporting business case to be developed.

11 LUXBOROUGH STREET PETITION

11.1 Councillor Rachael Robathan set out the background to the Luxborough Street Kickabout site and referred to the planning permission for a mixed use scheme which was granted in 2014 which included a community space in a form of a library. She explained that due to a change in requirements the approved scheme did not proceed. This decision released the site for a future alternative use and that the site had been boarded up since 2014.

11.2 She thanked organisers of the petition who wished to see it remain as open space. She stated that alongside the public consultation the petition demonstrated the strength of varying opinions regarding the future use of the site.

11.2 Councillor Robathan stated that early engagement on progressing a new scheme had taken place with local residents and stakeholders in October 2018. She stressed that the Council is committed to developing a mixed-use site incorporating affordable housing and community space. She referred to the late representations that had been submitted by the Marylebone Forum which recognised that the emphasis would be on delivering affordable rather than luxury housing. She advised that there is a significant need for affordable housing for low income families and those requiring social rented properties in Westminster and in particular in this area.

11.3 The Executive Director for Growth, Planning and Housing advised that the Council is exploring a range of community functions in developing proposals for this scheme.

11.4 Councillor Iain Bott stated that as one of the local ward Councillors he was aware that the development of this site is a major issue in the ward and that there are differing views on the future of the site. He stated that he looked forward to working with the Cabinet Member to represent the views of the local community in order to achieve the best outcome.

RESOLVED:

That Cabinet:

(a) Noted the submitted petition and acknowledges the concerns of those who have signed it regarding the Luxborough Street site.

11 Page 13 (b) Acknowledged the need to consider development opportunities on this site as it is currently an under-utilised space and provides the potential to deliver much needed homes in the area, contributing to the Council’s City For All priorities to deliver an increase in levels of affordable housing for the residents of Westminster.

(c) Supported the continued investigation into a provision of community space as part of this development project.

(d) Committed to engaging with the local community and ward members on any proposed development and the next steps.

Reasons for Decision

(a) A balance needs to be made between the protection of open space within Westminster and the need for more housing within the borough.

(b) There are clear advantages to assess development opportunities on this site as, on balance, it is considered that the potential benefits of the scheme, notably the delivery of new homes including affordable homes, may substantially outweigh the policy conflict with regards to protecting open space.

(c) The development supports the overall key objectives of Westminster City Council’s adopted City Plan.

The Meeting ended at 7.21pm.

CHAIRMAN: DATE

12 Page 14 Agenda Item 4

Cabinet Report

Decision Maker: Cabinet

Date: 8th April 2019

Classification: For General Release

Title: Oxford Street District – Business Case and Investment Approval

Wards Affected: West End, Bryanston and Dorset Square, Marylebone High Street and Hyde Park

Key Decision: Yes

Financial Summary The Capital Strategy was approved by Council on 6th March 2019 and includes a budget of c.£150m for the Oxford Street District. This report sets out the rationale for the Council’s investment in to the programme supported by a Business Case.

The Place Strategy and Delivery Plan was approved by Cabinet on 25th February 2019. The cost of delivering this (option 4) is £232m which is the preferred option within the business case, therefore additional funding will need to be secured from the private sector.

This report requests approval to spend of c.£21m

Report of: Barbara Brownlee, Executive Director, Growth, Planning and Housing

Deirdra Armsby, Director of Place Shaping and Town Planning

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1. Executive Summary

1.1 Following a public consultation exercise Cabinet approved the Oxford Street District Place Strategy and Delivery Plan on 25th February 2019. The Place Strategy promotes a set of 15 overarching place-based principles and delivery of 96 projects to help deliver the ambition for the district. These place-based projects are specifically aimed at improving and enhancing the whole district, including its residential neighbourhoods, while securing its future as a global destination, with an unrivalled experience and visitor offer

1.2 A business case has been developed setting out the justification for the Council’s investment. The case for change is both urgent and compelling. The creation of the Elizabeth Line will bring additional people which will intensify the existing issues in the district including inadequate public realm, significant levels of pedestrian congestion and road safety issues and poor air quality. To ensure the district remains globally competitive investment is required. The Council is the highway authority, the planning authority, the statutory authority for wider issues such as trading standards and street trading and the street lies entirely within the area of Westminster. At the same time there is fragmented land ownership which makes large scale improvements challenging without the Council’s intervention.

1.3 The Business Case has been based around four options. All options show very high value for money compared to a do nothing scenario with a cost benefit ratio of between 9.09 and 12.57. Option 4 is the preferred option as detailed below, however the Council is able to fund option 3 if private sector funding is not secured:

 Option 1 – Do nothing

 Option 2 – Oxford Street only (c.£100m Council investment) This is not deliverable due to the displacement impacts of undertaking the changes to Oxford Street without prior improvement to district streets

 Option 3 – Oxford Street and related enabling works (c.£150m Council investment) There is a clear rationale for implementing option 3, the Council’s capital budget allocation of £150m could fund this option. It delivers against the strategic rationale for the programme and has strong and robust economic performance, delivering very high value for money. However, it does not fully deliver the aspirations of the Place Shaping Strategy.

 Option 4 – Oxford Street and all projects identified in the Place Shaping Strategy (£150m Council investment and c.£82m investment by the private sector) PREFERRED – This fully delivers the Place Shaping Strategy and secures the maximum benefit for the district. It would play a key role in improving connectivity across the district, therefore supporting intensification of economic activity where there is the most potential to do so. However, this requires private sector funding to be secured. It is important to note that through initial conversations

Page 16 with stakeholders there is a clear expectation that elements of option 3 will be funded from the private sector. Council investment can then support both option 3 and option 4. A Funding Strategy will be fully developed so that external funding can be formally secured.

2. Recommendations

2.1 This report provides a summary of the Business Case, the rationale for investment and proposes the following recommendations:

a) That Cabinet approve the Business Case which demonstrates high value for money and provides a robust justification for the £150m investment by the Council for the Oxford Street District programme.

b) That Cabinet approve spend against the project of c.£21m focussed on the design, surveys and other feasibility related work for the programme, this includes a contingency element.

c) That Cabinet approve Option 4 as the Preferred Option which delivers the Place Shaping Strategy as approved by Council on 25 February 2019 and has an estimated cost of £232m. To deliver this option additional funding will be required from the private sector.

d) That Cabinet approve the development of a Funding Strategy which sets out how the council will work to secure the funding required to deliver Option 4 of c.£82m.

e) That decisions are delegated to the Cabinet Member for Place Shaping and Planning and the Cabinet Member for Finance, Property and Regeneration in consultation with the Oxford Street Steering Group including:

o Approval for projects to enter the delivery phase (individual projects will be grouped into work packages and approved over the course of the programme) and hence approval to spend against budget o Acceptance of external funding and to respond to stakeholders.

3. Background, including Policy Context

Policy Context

3.1 The Policy context relating to this report includes the Council’s City for All and adopted and emerging City Plan policies. The Oxford Street District Place Strategy and Delivery Plan approved by Cabinet on 25th February 2019 reflects these policies and will contribute to delivering these over the lifetime of the project - for example the strategy aims to create a city that is healthier and greener which is a theme in the City for All vision.

3.2 The Place Strategy is fully cognisant of the relevant strategic policy frameworks such as the Mayor’s draft London Plan, Transport Strategy and TfL’s Healthy Streets approach. For example, the Mayor’s Transport Strategy promotes active, inclusive and safer travel which is a key aspect of the Place Strategy proposals.

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Background

3.3 The business cases is broken down into 5 different aspects which are interconnected but distinct. It sets out that the programme:  is supported by a robust Case for Change – the Strategic Case;  optimises Value for Money – the Economic Case;  is commercially viable – the Commercial Case;  is financially affordable – the Financial Case; and,  can be delivered successfully – the Management Case.

Strategic Case

3.4 Oxford Street is one of the world’s most celebrated retail streets, it is visited by millions of people each year and is an essential part of the West End and London offer. The streets setting means it sits alongside several distinctive and historic neighbourhoods, including Fitzrovia, Marylebone, Mayfair and Soho, that provides a richness and vibrancy that cannot be matched. This is why it is important that Oxford Street is considered as part of a diverse district, integrated into the wider West End, where it can provide world class retail, commercial, culture and leisure opportunities, and is a good neighbour for local residents. Celebrating and amplifying the different elements will reinforce its continuing status as London’s primary shopping street and support its development into a vibrant centre for civic life and commerce.

3.5 The need for intervention

The case for change is both urgent and compelling – Oxford Street’s current condition does not match its importance and status. Preparations for the Elizabeth Line have already brought significant change and its opening will intensify conditions across the district. The two West End stations are projected to bring an additional 60 million people annually; increasing the 200 million annual visits to the district by almost a third. The economic opportunities that this will bring are accompanied by the challenge of adapting congested streets and spaces to accommodate greatly increased pedestrian movement. In order to ensure the long-term success of the district, the Council must confront the challenges it now faces:

Inadequate public realm - Poor quality public realm and limited amenities mean that the current pedestrian environment is no longer fit for purpose for residents and visitors to the district and connections between the street and its surroundings are often unclear. A good pedestrian environment is crucial to the ease with which visitors, residents and workers move through and enjoy the Oxford Street District.

Pedestrian congestion - Pedestrians using Oxford Street and parts of the surrounding district experience high levels of congestion and discomfort during certain periods of the day. The street environment is cluttered and in some places constrained. It is anticipated that the number of pedestrians in the Oxford Street District will increase overall as a result of the opening of the Elizabeth Line stations, with some areas experiencing very significant growth in pedestrian

Page 18 movement. If not addressed, the issues of pedestrian over crowding within the Oxford Street district will become more acute and this may lead to impacts on pedestrian safety.

Poor air quality - Oxford Street and the surrounding district is one of the most polluted areas in the UK. The majority of harmful emissions are released from road traffic. The current levels of traffic congestion, quantity of freight movements during busy periods of the day and high volumes of polluting diesel vehicles need to be addressed by a holistic programme of measures. Conditions in the future can be greatly improved by reducing the amount of traffic and ensuring that the remaining vehicles adopt low emission technology as rapidly as possible across the entire district.

Poor road safety - The issue of road safety is of critical concern for the Oxford Street District programme. With the expected increase in pedestrians as a consequence of the Elizabeth Line, it is even more critical that the road safety issues on Oxford Street and throughout the district are addressed.

Poor street environment blighted by an excessive number of vehicles - The streets around Oxford Street are very heavily utilised by waiting and parked vehicles, detracting from the quality of the public realm. Many of the vehicles have an important purpose but the most convenient location for them to stop is often where it causes the greatest impact, blocking sight-lines, causing obstructions, making crossing movements more difficult and dangerous, and dominating the street environment.

Evolving retail trends and global competition - In an age of online shopping, high street retail is increasingly moving away from traditional commerce, towards an approach that includes leisure, entertainment and experience. In addition, Oxford Street’s competitors – both within London and further afield – are providing attractive shopping destinations. Oxford Street should thrive as part of a diverse district, better integrated into the wider West End, to build upon a unique mix of retail, workspace, homes, culture and leisure, delivering economic growth and responding to the rapid evolution of retail and working life.

3.6 Rationale for Council investment

The street lies entirely within the City of Westminster. The Council is the highway authority responsible for the management and maintenance of the street and wider area, the planning authority responsible for determining planning and listed building applications on and around the street and the statutory authority for things like trading standards, street trading, noise and air pollution, road safety and, with the Metropolitan Police, crime and anti-social behaviour. Unlike other parts of the West End, within the district there is fragmented land ownership, which makes large scale improvements challenging. This is why the Council is showing the necessary civic leadership in order to set out a unifying vision that can act as a catalyst and drive improvements on the ground. The significant funding that the Council has made available within the Capital Programme is a kick start to make this a reality and will encourage partners to commit their support.

Page 19 3.7 Scope

A district has been defined that includes all of Oxford Street, including the gateways at Marble Arch and Tottenham Court Road, and a substantial wider area. The initial criteria was to include streets and spaces at a minimum of two blocks either side, all of the garden squares, and the new Elizabeth Line stations. The district’s edges are broadly defined as reaching Portman Square and Mortimer Street to the north and extending to Grosvenor Street and Broadwick Street in the south, including parts of the historic neighbourhoods of Marylebone, Mayfair, Fitzrovia and Soho. A district-wide approach to the Place Strategy realises the area spatially as a series of nine character areas or zones from Marble Arch to Tottenham Court Road which have been sensitively considered to reflect the diverse demographic of users, their heritage, garden squares, the varied range of uses, traffic networks and major gateways into the district and wider West End.

3.8 Objectives

The Place Strategy and Delivery Plan provides a mechanism to knit together the area’s diverse projects. The strategy has a multi-layered approach, responding to the complex nature of the area and recognising that multiple aspects need to be addressed to create meaningful change. The Place Strategy contains proposals for these elements: mix of land uses; streets and spaces; proposed operational approach; transport including: walking; buses; cycling; air quality; vehicle access; road safety; coaches; taxis (not including private hire vehicles); general traffic; goods vehicles; servicing and deliveries; accessibility for all; management; wayfinding and legibility; amenity; play; architectural quality; materials; lighting; landscape; culture and public art.

The Place Strategy promotes 15 overarching place-based principles, which, when applied to specific places and locations, will help to generate a set of solutions that meet the needs of the local residents and stakeholders. Each principle is designed to add to the character and function of the existing places within the district and help to determine the scope for any new projects.

In developing this the Council has listened carefully to those who know best – those who live, work, visit and do business in the area; that has helped shape our understanding of what makes the place so special and what we should seek to augment. In summary the objectives for the overall programme are set out below.

Page 20

Economic Case

3.10 There will be transport benefits associated with the strategy. For the purposes of the economic case quantification has focussed on these transport impacts, as they are more immediate and readily quantifiable based on available data. However, this should not be interpreted as meaning that the outcomes that the strategy seeks to achieve are primarily transport-related. Rather, improvements to transport are simply an enabler, that will contribute to the higher-level vision for the district.

3.11 Option Development

Every street in the district has been studied in regard to how it works currently, and how it might be included as part of the improvements. This was approached through the application of criteria set out in the principles and in the detailed area analysis that was undertaken. The process also included a review of other previous strategies and ideas for Oxford Street and the wider district. There have been many excellent and detailed ideas developed for the area, over many years.

Meetings were held with a broad cross-section of residents’ groups, retailers, businesses, interest groups and landowners, to discuss priorities and ideas for the Oxford Street District. Workshops were also held with the Westminster Youth Council and workers from across the district. This process continued throughout the consultation period.

The work above identified a large number of projects on streets across the district. As such, the subsequent step has involved prioritising the interventions that were identified. A phasing workshop session was held in with input from relevant contractors and representatives. This structured process considered priorities in relation to the following requirements:

Page 21  Enabling works  Traffic management  Stakeholders  Adjacent scheme dependencies  Requirements to develop projects in partnership with third parties

Based on this, each project was assigned to a delivery phase, which form the basis of the options considered in this business case.

Projects have initially been selected for inclusion in phase 2 (the delivery of option 3) on the basis of those that provide the best value for investment and deliver the core objectives of the scheme (which include improvements to road safety, walking, cycling, air quality and public realm).

Further projects are required to ensure that the transport network operates effectively and so that potential impacts are avoided. These projects have also been included within phase 2. Projects that improve the movement of people and vehicles will be prioritised within the phase 2 delivery programme so that the capacity of the transport network is enhanced early in the construction process to minimise construction impacts. This will also create a good foundation for other place based projects that are identified in later phases.

Projects that directly benefit local residents and stakeholders and address the concerns raised in the strategy consultation have also been prioritised for delivery in phase 2. It is likely that some of the most beneficial phase 3 schemes may be brought forward into phase 2 as the project moves forward subject to the identification of further funding.

3.12 Business Case Options The options considered in the business case are based on combinations of projects in the delivery phases discussed above. Four options were considered for the business case:-

Option 1 (Do Nothing) - This option is the ‘Do Nothing’ option and represents the most likely future situation if the OSD strategy was not implemented. It therefore differs from the current situation on the ground (‘as is’), as it includes schemes that are under construction and committed. All of the other options are therefore considered relative to this option.

Option 2 (Phase 2 – Oxford Street) - This option solely involves measures along Oxford Street itself. This option will see major improvements at key locations along Oxford Street with the creation a new public piazza at Oxford Circus. The carriageway width will also be reduced to two lanes (one in each direction) and the footways will be widened and decluttered at key locations to maximise the available space for pedestrians. Other improvements in this option will be additional tree planting and installation of new iconic and future proofed lighting columns on Oxford Street between Marble Arch and Tottenham Court Road.

Page 22 Option 3 (Phase 2 – Total) - In addition to what is included in Option 2, this option includes additional measures on various district streets which form the remainder of Phase 2. These include those that are required to make Option 2 feasible to implement. The district streets included in this option are shown on the map at Appendix 2a, and various levels of interventions will be applied to these streets, which may change during the design process after consultation with Stakeholders.

 High (Significant or Major public realm project): For example, new pedestrian spaces or key walking routes, including new trees and / or street furniture. Allows for granite paving and kerbs, bespoke lighting, significant tree and street furniture intervention.  Medium (Streetscape enhancement): For example, a mixture of granite or Yorkstone paving and kerbs, bespoke lighting, some tree and street furniture intervention.  Low (Minor alterations): For example, Yorkstone paving and kerbs, bespoke lighting.  Do minimum / traffic operation change: Low intervention, for example minor interventions to facilitate traffic operation changes

This option will implement improvements in the district, with the provision of more street trees and green spaces. The quality of the public spaces on and around Oxford Street will be significantly improved to restore and enhance the character of the district. This option would see the creation of various pedestrian zones and traffic free areas along Oxford Street, such as the northern end of Binney, Gilbert and Davies Streets but also the southern section of James Street.

In addition, this option includes a new Northern Cycling Alignment. Whilst this route uses existing streets, the proposed improvements will create a new connected east- west routes that will use interventions to achieve a low traffic environment complemented by measures such as early release traffic signals for cycles.

Option 4 (All Phases) - In addition to all of the projects included in Option 3, this option also includes additional district streets that fall under Phase 3, as marked on the map at Appendix 1. This option will see the full implementation of the Oxford Street Place Strategy and Delivery Plan and its unifying vision, which will act as a catalyst and drive improvements on the ground. A highly collaborative approach to the development of this option will be needed, with funding contribution from external parties.

This option will include major improvements at key location, such as a reinvigorated gateway to the West End at Marble Arch. It will also provide additional and improved areas to rest with seating and shade, upgrade paving and accessibility throughout the district. This option will fulfil the appetite identified from key stakeholders during the public consultation, by having a district wide approach and improving multiple streets and places.

This option also includes a Southern Cycling Alignment, with the implementation of an east west route at the south of Oxford Street, with improved facilities for

Page 23 cyclist and pedestrians (such advance stop lines, signalised junctions and crossings improvement).

3.13 Methodology

The project will deliver direct public realm and transport benefits that will make the area a more attractive and better-connected place to visit and spend time in, especially for pedestrians. These urban realm benefits have been monetised for the Economic Case, along with the benefits associated with a reduction in road collisions. These benefits have been estimated using standard and accepted approaches, prepared in line with Transport for London’s Business Case Development Manual and the Department for Transport’s WebTAG guidance. As traffic modelling of the business case options is not yet available, highways impacts, bus passenger impacts, and air quality impacts have been assessed qualitatively using professional judgement at this point. However, the detailed work around this is progressing and will form part of the decision making process for approval of work packages and drawdown of further funding. The transport impacts associated with the project will enable a range of wider economic benefits such as supporting employment and GVA growth in a diverse range of sectors. There will also be benefits in terms of increased tax revenues and land value uplift impacts. As these effects would be indirectly enabled by the project (in conjunction with many other measures, such as planning policy), it would be difficult to robustly attribute a precise portion of these effects to the OSD strategy. Nevertheless, they do form part of the overall economic case, and should be considered within an overall assessment of Value for Money, alongside the cost- benefit analysis. The approach is summarised in the table below.

Diagram 1: Impacts included in Cost Benefit Analysis

Transport benefits Wider impacts

Private sector / inward investment

Commercial property impacts • Increased floorspace • Increased rents

Increased Land value uplift Economic impacts Public realm enhancement attraction of OSD • Agglomeration • Labour supply Urban realm benefits • Jobs • GVA Externalities • Tax • Collisions • Travel times Retail impacts • Air quality (NOx) Increase overseas visitor • Increased footfall retail spend Key • Increased dwell times Increase domestic spend Included in CBA Impact considered qualitatively / illustratively Private sector / inward investment Second order benefit Catalytic effect

Page 24 The economic appraisal has been based on the following key assumptions:  An opening year of 2023. For the purposes of comparative appraisal, we have employed the same assumed opening year and appraisal period for Options 2, 3 and 4.  An appraisal period of 30 years from opening. This is consistent with MHCLG appraisal guidance and reflects the likely asset life of the infrastructure;  Discount rate of 3.5%, in line with the Treasury Green Book and Departmental guidance;  Values of accidents, value of time and growth in values of time based on DfT’s WebTAG;  An optimism bias rate of 44% applied to the capital cost estimates, in line with DfT guidance;  All discounted costs and benefits have been converted to 2010 prices and values, in line with DfT guidance; and  The impacts above are all presented relative to Option 1 (Do Nothing).  For option 2 there is a cost of c.£100m and for option 3 there is a cost of c.£150m. For option 4 there is a cost of c.£232m – it is assumed that the additional cost above option 3 is funded by the private sector.  The increased management costs for the district are £3.4m per annum, which is assumed to be externally funded.  The present value benefits are based on net social benefits (public realm, accident reductions) and private sector funding for capital and other costs. The present value costs are based on public sector funding for capital costs

Various impacts were considered in the Economic Case, as described below:  TfL’s Ambience Benefits Calculator has been applied to monetise the pedestrian and cyclist ambience benefits associated with each scheme. Conservative assumptions have been used, which means that the benefits associated with the district street improvements are likely to be understated. The number of pedestrians affected has been estimated using observed count data, and by taking into account impacts such as the opening of the Elizabeth Line and population and employment growth.  As traffic interventions included in the scheme have not yet been designed in detail, modelling of the vehicle journey time or bus passenger journey time impacts is not yet completed. However, advisors have assessed based on their professional judgement that Option 2 will displace traffic from Oxford Street. For Option 3 and 4, there is an overall neutral impact on vehicle journey and bus passenger journey times.  Similarly, our advisors have assessed that Option 2 will have a negative impact on air quality as traffic will be displaced to district streets. For Option 3 and 4, this impact will be neutral, with potential positive impacts for Option 4.  The reduction in traffic collisions associated with each option is based on a thorough review of collision records and Royal Society for the Prevention of Accidents collision saving forecasts. These reductions have been monetised based on the estimated severity of the casualties saved, to which casualty valuations from WebTAG guidance have been applied.

Page 25  Case studies have been used to estimate what the impact of the freight measures included across all options could be. As traffic modelling is still in progress, these benefits have not been monetised.  Economic impacts such as GVA growth have been discussed qualitatively. Sources such as Arup’s West End Good Growth and Volterra’s Oxford Street District: An Economic Assessment have been used to illustratively demonstrate the potential economic impacts of the project.

3.14 Cost Benefit Analysis

The costs benefit analysis is demonstrated in the table below.

Table 1: Appraisal Summary Table Option 2 (Relative to Do Option 3 (Relative to Do Option 4 (Relative to Do Nothing) (2010 PV £m) Nothing) (2010 PV £m) Nothing) (2010 PV £m) Present Value Benefits – based on Green Book principles and Green Book Supplementary and Departmental guidance A Net social benefits (users) 1,420 1,520 1,790

Private Sector Costs -54 -54 -145 Present Value Public B 109 161 161 Costs / (Surplus) Net Present Value [A -B] C Net social benefits 1,258 1,305 1,483

Benefit-Cost Ratio [A/B] D Net social benefits 12.57 9.09 10.15 Likely vehicle journey Likely neutral air quality, time and bus passenger vehicle journey time and impacts; potentially bus passenger impacts positive air quality Potentially negative air Some contribution to impacts Significant non- quality, vehicle journey achieving employment Strong contribution to E monetised impacts time and bus passenger intensification in a achieving employment impacts diverse range of intensification in a economic sectors, diverse range of increasing GVA and economic sectors, business rates increasing GVA and business rates Value for Money (VfM) Very High value for Very High value for Very High value for F Category money money money Very High value for Very High value for Very High value for money is achieved, and money is achieved, and money is achieved, and Switching Values and this remains robust this remains robust this remains robust G rationale for VfM under a range of under a range of under a range of category sensitivity tests sensitivity tests sensitivity tests

As analysis of the risks will continue as design H Risks progresses. Key financial risks are detailed in section 5 Not feasible to implement in isolation, I Other issues due to unmitigated N/A N/A impacts from displaced traffic and buses

Page 26 3.15 Summary of findings

The key finding from the economic analysis is that all options represent overall very high value for money based on their economic performance against Option 1. Key points include:  There is a very strong quantified case for the implementation of all options, with a cost benefit ratio between 9.09 and 12.57. A score greater than or equal to 4 is categorised as very high value for money by the Department for Transport. All options exceed this benchmark, even based on the non-exhaustive range of benefits that have been included in the quantified assessment at this point.

 Conservative assumptions have generally been taken to the quantification of benefits, meaning that the case remains robust even if further detailed work results in changes to some of the input data used. In addition, sensitivity analysis has been undertaken assessing the impact of a 25% reduction in public realm benefits and a delay to project opening of two years. This continues to maintain a positive BCR in each option of more than 7.

 Option 2 however has significant negative non-monetised impact and in practice it would not be feasible to implement the improvements to Oxford Street without undertaking the complementary changes to the rest of the district (that are included in Option 3). This is due to the following reasons:

 Buses: The creation of the piazza areas to the west and east of Oxford Circus would mean that buses divert onto other streets to continue their journeys. Currently the adjacent road network is not designed to accommodate these movements and the diversion routes would be prohibitively long with unacceptable increases to journey times.  Traffic: Traffic will be displaced from Oxford St and with no mitigation or management of it traffic consultants would expect in increased traffic congestion and the impact of the congestion is likely to be felt on sensitive streets (such as narrow residential streets).  More generally, this will not deliver the wider benefits against the programmes objectives. This includes limited impact on improving the reputation of the district; a narrower multiplier and pump priming affect given that both the office and retail markets require good environments to attract and retain talent; less extensive land use changes which are required given the weakening of the retail market; an impact on air quality and also benefits would last for a shorter period of time.

Therefore option 2 needs to be discounted.

 It is clear that both Options 3 and 4 would contribute to maintaining and growing a diverse economy in the district, by enabling (along with other measures) intensification of employment across the district. This has not been quantified, given the difficulty of reliably isolating the contribution that the options would make, but if it were possible to include this impact in the BCR calculations then the value for money case would be even stronger.

Page 27  What is evident though is that Option 4 would make a larger contribution compared to Option 3, particularly because it will enable intensification in the outer part of the district, where there is likely to be more opportunity to achieve this. Given that the Outer OSD is generally further away from transport nodes (such as the existing Underground stations and future Elizabeth Line stations), realising the potential of the OSD is particularly dependent on created attractive high-quality links between these transport hubs and the Outer OSD. This is only fully achieved in Option 4, suggesting that the projects included in it will be a key enabler in terms of achieving the levels of jobs and GVA growth suggested by the Volterra economic assessment.

 As traffic modelling in ongoing, certain impacts (including vehicle journey times, bus passenger impacts and air quality) have not been quantified. Based on professional judgement, these impacts are considered to be generally neutral in Options 3 and 4, with a potentially positive air quality impact in Option 4.

There is a clear rationale for implementing option 3, this delivers against the strategic rationale for the programme and has a strong and robust economic performance, delivering very high value for money. The Council’s investment of £150m into the district can fund this. But to obtain the maximum benefit for the district the Council should also ensure that private sector funding is secured so that the whole strategy (Option 4) can be delivered. The analysis presented here demonstrates how it would play a key role in improving connectivity across the district, therefore supporting intensification of economic activity where there is the most potential to do so. In conclusion, option 4 is the preferred option, but with the ability for option 3 to be progressed if private sector funding cannot be secured.

Commercial case

3.16 Procurement strategy

To realise the ambition in this high profile and challenging environment, and given the scope of public realm works required, a design and build contract is considered most appropriate. The proposed procurement exercise for the Oxford Street District programme will ensure focus on reaching the best commercial arrangement with a quality service provider of suitable experience and compliance within relevant procurement regulations.

A significant Soft Market Testing exercise was held with potential bidders that included discussion on partnership, sub-contracting, contract packaging, stakeholder engagement, evaluation criteria (Price/Quality ratios) and performance indicators. The intention was to be open and transparent with potential bidders to attract market interest from individual providers or from a consortium of providers and to ‘de-risk’ the procurement as much as possible from project commencement.

The approach the Council are taking for this procurement is to use the flexibility and allowed negotiation included in the competitive procedure with negotiation (CPN) in the Public Contracts Regulations 2015. This procedure has already been approved is supported by a Cabinet Member report. Other options were considered including procure through existing highway contract and use of construction framework arrangements and routes to market including open, restricted and competitive

Page 28 dialogue – but this was considered the most appropriate. This procedure is similar to the Restricted route but allows for negotiation as part of the process. This is only applicable where the works or services in question include design or innovation where there are technical, complex, financial or legal matters that require clarification and discussion with the bidders before the contract can be awarded. Negotiation under this procedure is not mandatory.

The Council remains open as to how bidders approach this commercial opportunity whether via Special Purpose Vehicles (SPVs), partnerships or other arrangements. The procurement strategy seeks to drive innovation, creative thinking and a commercial approach that achieves delivery within reasonable timescales and ensures stakeholder management and, particularly public liaison, are of the highest quality.

The contract scope is to deliver Initial Designs, Detail Design stages and the construction of high-quality public realm and highway improvements across the District. The contract will allow the use of specialist sub-contractors who have significant experience in complex traffic modelling, urban design, landscape architecture and architecture.

Given the technical nature and challenging timescales of the procurement, the Council has, via the Compliance and Audit Services contract, retained the services of advisors to prepare the technical specifications, pricing schedules and provide support with the evaluation of the submitted bids. In addition, there is external legal support to the internal legal team.

3.17 Financial case – This is covered in the financial implications at section 5

Management case

3.18 Programme Governance

Central to the delivery of the Place Strategy and Delivery Plan is robust programme governance. There is a Cabinet Member Steering Group chaired by the Cabinet Member for Place Shaping & Planning and attended by the Cabinet Member for Environment and City Management and the Cabinet Member for Economic Development, Education and Skills. This group meets monthly and will be responsible for approving delivery to commence on work packages, decisions will be formalised through Cabinet Member reports. There is also a project board chaired by the Chief Executive and attended by senior responsible officers which meets weekly.

3.19 Programme Resourcing

A programme of this scale and ambition requires a dedicated team of resources across directorates to manage the programme of activity and ensure successful delivery of the many projects outlined in the strategy, an allowance has been included within the programme costs. There will be a combination of senior and experienced individuals performing the client role supported by consultancy input as required which will support the multi-disciplinary nature of the programme. it will be led by a dedicated Programme Director experienced in world class projects. The

Page 29 approval of the funding outlined in this report will allow the full appointment of the Programme team to commence.

3.20 Implementation timescales

A phasing workshop provided the basis for the construction sequencing completed, by assigning a delivery phase to each individual project based on traffic management, stakeholder, adjacent scheme dependency and TfL approval requirements. Each project has been included as part of Phase 2 or 3 reflecting the existing Phase 1 works safety and maintenance works already underway.

Several assumptions, detailed below, were made to inform the development of this draft programme.  Enabling works – No allowance has been made for delays by any of these activities. This does not include projects within the scope considered enabling works themselves for other parts of the scheme.  Feasibility Design of the OSD scheme has started, with Preliminary Initial Design to commence from Spring 2019;  Projects have been scheduled as per agreements and discussions made following a several phasing workshops undertaken in November 2018 including input from WCC and other project partners. The phasing assignment is driven by a combination of traffic management delivery priorities as assessed by traffic consultants, priority assessed as part of the Place Strategy, also considering key WCC or stakeholder priority projects as noted during the delivery review. Individual projects have subsequently been assigned to prospective phases based on a combination of safety, traffic and pedestrian comfort levels;  Construction works are assumed to commence in Autumn/Winter 2019;  Construction works are assumed to occur on weekdays only (i.e. no night or weekend works);  Works would be suspended during Westminster City Council’s Christmas moratorium period (which has been assumed as a 4-week period from early / mid-December until early January each year)  No allowance is presently made for design, contracting or street access capacity although it is recognised this may provide constraints on schedule and will require review as the programme advances.

The table below provides an overview of the implementation timescales:

Project Stage Dates Cabinet presented with the results of the consultation and 18th February 2019 updated Place Strategy and Delivery Plan Cabinet business case - £150m investment 8th April 2019 Design development April 2019 onwards Stakeholder engagement April 2019 onwards Traffic modelling completion June 2019 Traffic model audit by TfL July 2019 Traffic Management consultation to commence September 2019 Phase 2 delivery to commence Autumn 2019

Page 30 The project has multiple constraints and inter-dependencies as it is arguably the most complex city centre transformation project in the United Kingdom. There are also various dependencies for the project, with the key ones being; the reduction of the volume of buses on Oxford Street and traffic volume in general, the coordination of all highways and construction schemes across the wider West End to minimise disruption for all users, and the ownership complexity of the area. These will be actively managed by the project team to prevent delays in delivering the project. 3.21 Communications and Stakeholder Management

The positive engagement with key stakeholders including residents, land owners, BIDs and the business community will continue and they will be encouraged to contribute to the design process via working groups that will be setup and will be focused on the projects within zones or groupings of zones that are relevant to them. These zonal working groups would be encouraged to input into the development of the design process. Engagement with local stakeholders will take place throughout the design and delivery of the projects.

A broad range of communication activities have been and will continue to be used to raise awareness of the Place Strategy and the related delivery including:

 Media coverage in the national, regional, trade, local and community media;  Regular social media activity and posting across all WCC channels;  Working with local and community organisations to promote the project through their channels and newsletters;  A dedicated website which will be kept up to date with the latest information to help keep stakeholders up to date (www.osd.london);  Information about the project will be included in council publications, such as the My Westminster newsletter; and  Regular e-newsletter updates.

3.22 District Management There has been substantial feedback that the ongoing management of the district to the desired standard is of high priority for stakeholders. It is vital that there is world class management to reflect the transformation of the district and to best exploit sustained investment in the area.

The Council is committed to maximising the use of existing resources, utilising technology and influencing the public realm design to ensure efficient maintenance. The key areas of focus will be:

 Intelligence and insight – There is a plethora of data collected within the Oxford Street District area from air quality to pedestrian counts however the active use of this data is limited. The aspiration is that this data is brought together and shared with all key partners to enable predictions of hot spots of activity and therefore allowing resources to be flexed in line with demand.  Improving safety and security –It is important that resources utilised across the district have a multi-disciplinary focus which includes engagement, compliance, enforcement, ambassadorial as well as enforcement. To note there

Page 31 will need to be different regime of management during the transition period as this will bring with it unique challenges during the delivery phases.  Improving the environment - There is a key role of design in ensuring that the area remains clean and provides a pleasant experience for all visitors. For example materials will be utilised that reduces maintenance and management requirements.  Engagement - Cultivating a sense of shared-ownership will be an important part of sustaining improvements to the district and can form a cost-effective, lower maintenance management approach to the upkeep of public spaces. The ambition is to encourage proactive engagement through fostering a sense of joint ownership and pride of place, rather than necessarily through compliance and enforcement. This will, help to create a distinct personality and generate a strong relationship between people and place.  Animation and activation – To utilise the space to the best affect it is important that the space is animated and activated for key activities. There needs to be a dynamic and flexible use of the space to attract visitors and tourists and therefore positively encouraging investment into the area, whilst carefully balancing the amenity for local residents.

This is not totally within the Council’s control. No single agency can achieve the aspirations and therefore it is important that there is a partnership approach to district management with key stakeholders such as the Metropolitan Police, major land owners, the New West End Company Businesses Improvement District, and businesses, working closely with local residents. Some of the challenges experienced in the area are outside of the Council’s control and therefore there will be an ongoing need to lobby central government to address the root causes. Also, there is the funding element that remains a challenge as outlined at section 5.5 and 5.6.

3.23 Risk management

The key risks of the programme are outlined in the table below. These are being actively managed by the programme team:

Risk Risk Mitigation Actions Category Close liaison and adequate resources Procurement work stream delivery across departments to ensure this Procurement timeline - new contractor in place by work stream progresses according to Autumn 2019 the proposed programme. Officers in regular contact / External Crossrail delays impact on the place engagement with Crossrail delivery approval strategy team and are being updated on progress. Project team to evaluate the need for an area study Workstreams such as freight/services Resources proposed to help deliver Design and street trading do not progress and this workstream the inhibits delivery of the Strategy Close liaison between the project team and relevant departments

Page 32 Shallow services are regularly encountered throughout Westminster Coordination of design development and Central London. These may Utilities (water, with utility companies. Contractor to impact on installing gullies and electricity, gas, coordinate for the stages they are foundations to lighting columns, BT, comms) commissioned to deliver for each greening, posts, gullies, bollards work package. requiring redesign or further utility works Existing services are found to be damaged during the works - requiring Utilities (water, protection, reconstruction or other Contingency and risk allocations electricity, gas, works. Costs for protection and included in the budget to cover BT, comms) diversion of existing services will not unexpected costs be known until the relevant quotations are obtained. All works applications in the Oxford Progression of works may be Street District to be considered by the Other Works impacted by applications from third Council for the potential impact on the parties to carry out works project Close engagement with neighbouring Works may be hindered by existing schemes Other Works scaffolding, diversions, suspensions, Include as much information as closures, access requirements possible in the contract documents Close engagement with neighbouring Impact on neighbouring schemes on schemes Other Works proposed works Include as much information as possible in the contract documents Working group already setup which Lack of funding for the management includes representation from across Management plan which will impact the long term WCC departments. operation of the strategy Revenue element to form part of the funding strategy

See section 5.7 for financial risks.

4. Reason for Decision

4.1 The Council’s commitment to the Oxford Street District is to create a long term and ambitious vision for the whole of the district that will strengthen its world- renowned status as a great place to live, work and visit. This strategy will support that ambition and respond to the big challenges that the district faces, including: a rapidly evolving retail environment; a place that can cater to a greater number of people; providing more attractions; and for Oxford Street to be a better neighbour to the wider district, including the residential neighbourhoods. In the wake of strong competition from national and international retail destinations, increased online shopping; increased business rates; and interest rates, retailers and businesses in the district are finding the trading environment very challenging.

4.2 The business case provides a compelling rationale for the Council to invest in the area to ensure that it retains its status as the nation’s high street, a world- renowned destination for domestic and international visitors, characterised by vibrant and historic neighbourhoods. On 6th March 2019, full Council approved the Capital Strategy including allocation of c.£150 million towards the delivery of the final adopted Place Strategy and Delivery Plan. The programme now needs approval to spend against the budget in order to progress. The Council will take responsibility for delivering an ambitious set of projects that will help to bring about

Page 33 a significant change to counter some of the external factors that the district currently faces. Additional funding to support the delivery of the projects listed in the Place Strategy will be required from other external sources.

5. Financial Implications

5.1 Capital Costs

As detailed in the business case there are three phases. Option 3 covers phases 1&2, option 4 covers phases 1, 2 and 3 (option 1 & 2 have now been discounted)  Phase 1 involves immediate maintenance and safety related works  Phase 2 involves delivery of proposed changes to Oxford Street, plus any related enabling works that will need to take place across the district streets.  Phase 3 involves work on the wider Oxford Street District to deliver the strategy in full.

The estimated costs are demonstrated in the table below:

Table 5.1 – Programme costs £m £m £m £m Area Phase 1 Phase 2 Phase 3 Total Construction 3.0 75.6 43.9 122.5 Utilities Costs - 11.3 6.6 17.9 Professional Design and - 11.3 6.6 17.9 Survey Costs Client, Management Costs - 6.7 3.4 10.1 Indexation - 10.9 2.7 13.6 Risk & Contingency - 34.2 19.1 53.3 TOTAL 3.0 150.0 82.3 235.3

The outline cost estimate shows an indicative total project cost of £235.3m (£232.3m excluding phase 1 which is funded separately) to complete implementation of all elements of the programme on presently available information and assumptions (outlined below). Of which option 3 costs £150m (plus an additional £3m for the immediate maintenance and safety related works).

5.2 Assumptions

An outline costing for the project has been undertaken. Alongside this, an indicative implementation phasing plan has been developed based on location, priority and scale of works to produce an estimated spend profile for the works. Cost estimates are currently at a high level, these will continue to be refined as the design phases progress.

District wide projects - Outline cost estimates for district-wide projects beyond Oxford Street itself have been developed using existing areas of footway and carriageway area combined with the potential level of intervention indicated by the Place Strategy and subsequent workshops. The areas covered by the projects

Page 34 noted in the Delivery Plan have been used to calculate the potential costs to deliver these projects.

As the projects are at an early stage of design, an indicative costing scale has been applied. These provide a rate per m2 of footway for high, medium and low levels of intervention:

 High (Significant or Major public realm project) = £900/m2 – For example, new pedestrian spaces or key walking routes, including new trees and / or street furniture. Allows for granite paving and kerbs, bespoke lighting, significant tree and street furniture intervention.  Medium (Streetscape enhancement) = £700/m2 – For example, a mixture of granite or Yorkstone paving and kerbs, bespoke lighting, some tree and street furniture intervention  Low (Minor alterations) = £500/m2 – For example, Yorkstone paving and kerbs, bespoke lighting.  Do minimum / traffic operation change = £225/m2 – Low intervention – for example minor interventions to facilitate traffic operation changes

Northern and southern alignments - In line with the latest concept proposals, the northern and southern cycle alignments have been costed using the same approach as for the district streets, assuming a ‘do minimum / traffic operation change’ level of intervention to footways plus carriageway resurfacing.

Other assumptions

Category Assumption Utilities An allowance of 15% on the construction costs has been included in the costing estimate for utilities. This is commensurate with allowances that WCC make in their estimates at this stage of project development. Professional An allowance of 15% on the construction costs has been design and included for professional fees, surveys and other costs survey associated with the development and implementation of a costs design. This is commensurate with allowances made by our advisors in previous business case exercises and allowances that TfL make in their estimates. WCC staff Allowance for Westminster City Council staff and professional and costs is included at £10.1m based on the total estimated professional design and construction value. Also included in this amount for costs phase 2 is the approved funding for development of the Place Strategy. Indexation The base date of the Oxford Street District Project Estimate is FY 18/19, with an 8.2% indexation added to construction, utilities and design costs (reflecting the 2014 start date for Westminster’s existing Highways Services Contract). Future inflation is applied at an estimated 2% for each subsequent financial year. Indexations applied on a projected spend forecast which will require review as the scheme develops further and both costs and phasing are revisited.

Page 35 Risk and A Quantitative Cost Risk Assessment (QCRA) has yet to be contingency carried out. An assumed allowance of 10% risk and 20% contingency of the combined construction, utilities, design, and surveys and indexation has been included. This is commensurate with allowances made by WSP in previous business case exercises and allowances WCC make in their estimates when a scheme is at this stage of design and business case development.

5.3 Approvals required

The project to date has approval to spend £2.5m for developing the Place Strategy and Delivery Plan and progressing the scheme to a Business case. This included costs in relation to the consultation, surveys and design work. This spend has been fully committed hence the requirement for a further approval of £21m.

Table 5.2: Approvals required Category £m Professional Design and Survey Costs 11.3 Client, Management Costs 4.7 Risk & Contingency (30%) 4.8 TOTAL 20.8

In addition, there has been approval of £3m for the delivery of phase one for maintenance and safety related works on Oxford Street.

5.4 Capital Funding

To complement the cost estimation, the identified works associated with the Oxford Street District scheme have been reviewed to develop an indicative construction phasing profile, developed based on a series of assumptions plus input from WCC and project partners.

The Council has capital funding of £150m as approved by full Council on 6 March 2019 as part of the Capital Strategy Report. This has also been approved at project level by Cabinet on 25th February 2019 subject to the approval of a business case. This is sufficient to fund option 3 of the business case. The expected profiling of costs against the budget is demonstrated in the table below:

Table 5.3: Phasing and funding overview

Year £m 2018/19 2019/20 2020/21 2021/22 TOTAL* Capital budget as per Capital Programme 2.5 27.5 80 40 150 Estimated Capital Cost 2.1 27.9 80 40 150 Net Surplus/(Deficit) 0.4 -0.4 - - 0

*There is also a £3m budget in 2019/20 for Safety and Maintenance related issues on Oxford Street (Phase 1). This is not included in the above.

Page 36 To note of the £150m, £15m will be funded from the infrastructure reserve, with the remaining being funded from General Fund resources.

The cost to deliver the full strategy will exceed the Council’s budget allocation of £150m therefore funding will need to be secured from external stakeholders to support the delivery of the Place Strategy.

Table 5.4: Funding of Option 4 (delivery of full strategy) £m Total project cost 232.3 Less approved capital programme allocation -150 Net funding required from external parties 82.3

This gives a funding shortfall of c.£82m to deliver every proposal in the Place Strategy and Delivery Plan. This is expected to be funded from the private sector and there have been initial and constructive discussions with a number of stakeholders.

Note the Council’s allocation of funding against phase 2 is indicative – further detail is provided below.

Ongoing maintenance costs will be funded out of the annual Planned Preventative capital budget. The call on this budget will be less than Option 1 ‘do nothing’ scenario however design of the street is important to ensure that the call on the Council’s capital budgets are minimised.

5.5 Sources of Funding

The council’s ambition is unambiguously to deliver option 4 which delivers the full Place Shaping Strategy. It is well understood that residents and businesses feel that improving just Oxford Street is not enough. The Council’s capital expenditure £150m will be initially directed to fund option 3 of the business case, which focuses on the major changes to Oxford Street itself and the required enabling works in the surrounding district that will support the world class improvements along its entire length. This commitment provides assurance to potential funders that real change will be taking place and will act as a catalyst to generate significant additional investment from the private sector. But in order to generate the additional funding required to do all the planned district wide work, it is necessary to begin by focusing the council’s funds where it will have the most impact, which initially means the length of Oxford Street and its immediate environs. However, the council is confident that this clear commitment would draw in new and additional private funding that will allow the council to quickly refresh and update its programme as to where it plans to spend its money. For example, private investment that comes forward for certain locations on Oxford Street, that supports the delivery of the strategy, will mean that the portion of the council’s £150m that was to have been spent there can be swiftly redirected and reapportioned elsewhere across the district.

Page 37 It is also important to note that works proposed for phase two and three could also run in parallel, dependent upon the additional partner funding that is raised so that improvements can start to be felt district wide. The council’s programme will also integrate with other public realm projects and work undertaken by third parties in the district. The project team are liaising with these delivery partners and will ensure the high level of coordination continues during all phases of the delivery of the strategy. As a result, there will be an ongoing and transparent review within the projects governance structure of the funding profiling of projects and the proposed delivery timetables to ensure that the most effective and efficient use is being made of all the funds, private and public, that come on stream through the lifetime of the project. As indicated in the section 3.13 there may be some increase in rateable area and the investment is likely to result in more intense use of the existing space and increases in land values leading to business rates revaluation growth which the Council could financial benefit from but it is difficult to quantify the benefit at this stage because of the expected reform of business rates retention. It is acknowledged that there are challenges with attracting external funding:  Funding is required for both capital and revenue elements  The current economic climate linked to uncertainty around Brexit as well as challenges for High Streets across the country as consumers are increasingly choosing online avenues  There is fragmented land ownership particularly along Oxford Street itself  High business rates in the area and BID levies resulting in businesses perceiving investment should be funded via these income streams. Business may conclude that investment will happen with or without their contribution

To address these, a comprehensive funding strategy is in development and this will set out an approach that will form the basis of a detailed and integrated implementation plan. The key elements proposed to provide additional capital and revenue funds to deliver the strategy and ensure the district is well managed and maintained are below: i. Seek partner contributions through a targeted programme of engagement about funding for specific schemes and locations as well as ongoing management costs. ii. Lobby for financial freedoms to generate additional resources for the City Council iii. Horizon scan for new funding opportunities from public and private sector

5.6 Revenue costs

The revenue financing costs in relation to the investment are c£9m per annum. This consists of Minimum Revenue Provision (MRP) and interest costs. MRP is based on 30 year useful economic life (UEL). This is thought be an accurate estimate of the UEL because there will be a strong focus on ensuring longevity during the design process, this is also consistent with MHCLG appraisal guidance and reflects the likely asset life of the infrastructure given the significant

Page 38 investment. This is fully budgeted for as part of the capital programme. This expenditure represents c.6% of the Council total capital programme.

There have been recent improvements in the management of the area, this includes the multi-agency district team, improved highways maintenance, emerging street entertainment policy and improved street cleaning.

Throughout the consultation process there has been clear feedback that more resources are required for the Oxford Street District given the challenges, which will be exacerbated by the opening on the Elizabeth Line. Indicative assessments have an estimated an additional cost of £3.4m per annum which covers increased service delivery of highways cleaning and maintenance; park security and maintenance; management and upkeep of public realm such as planters; HVM asset management; improved rough sleeping service; and enhanced multi-skilled team to include city inspector, enforcement and engagement elements.

However, the Council has fully committed its revenue funding to the area and therefore additional resources and funding are needed. This will require input and collaborative working with private sector partners as well as the active engagement of those who live, work and visit the area.

5.7 Key financial risks

A risk register has been produced for the Oxford Street District project, identifying the key risks and providing an assessment of probability and impact against each risk. Consideration has also been given to appropriate mitigating actions. As part of the Oxford Street District Place Strategy and Delivery Plan a number of projects are referenced. As outlined above the delivery of the strategy will exceed the Council’s £150m budget allocation and therefore funding will need to be secured from external parties. It is acknowledged that in the scenario some private sector funding is secured, but not sufficient to cover the delivery of option 4, the Council will review the projects and fit these within the funding envelope available. In addition, revenue funding is required to deliver high quality management of the district. An inability to secure funding will mean that the Oxford Street District will continue to face challenges and lose ground against its competitors. The projects are at varying stages of development with some at an early concept stage, an understanding of how and when these will be delivered, and the cost associated with these will be an iterative process. As this is a Design and Build contract once the contractor is procured they will work alongside the project team to fully work these up. There may also be additional costs linked to proposed design changes impacting on existing utilities which require diversions. Providing a clear scope on a project by project basis will prevent cost increases and ensure value for money however, contingency and risk of 30% has been allocated to cover unexpected costs. In addition, a key risk for the project is resourcing for all stages of the project including modelling, design and construction. A team structure has been

Page 39 developed and recruitment will progress once approval for further funding drawdown, as part of this report, has been approved.

6. Staffing Implications

6.1 Staffing implications are outlined at section 3.12.

7. Legal Implications

7.1 The Director of Law has considered the report and does not have any legal comments.

8. Consultation

8.1 There has been full and thorough consultation on Oxford Street District programme internally and externally to the Council. Consultation has taken place with stakeholders throughout the process including ward members, residents, businesses, land owners and BIDs. The results were acknowledged by the Cabinet at its meeting on 25th February 2019.

9. Equalities Implications

9.1 Equalities implications have been considered. There are no equalities implications in relation to this report and the recommendations proposed. Each phase of the project will have an EQIA carried out as part of the design process.

Appendices

Appendix 1 – Business Case Appendix 2a – Map outlining the options Appendix 2b – Project summary by option

Background Papers

Oxford Street District – Project Approach, Cabinet Report and Decision, 9th July 2018. Cabinet Member Report – Oxford Street Phase 1, 5th October 2018. Cabinet Report – Capital Programme 2019/20 to 2023/24, 15th October 2018. Cabinet Member Report – Oxford Street District, Procurement Strategy, 16th October 2018. Cabinet Report – Oxford Street District, Public Consultation on the Draft Place Strategy and Delivery Plan, 25th October 2018. Capital Programme – March 2019 Cabinet Report - Oxford Street District – Place Strategy and Delivery Plan Consultation Results and Updated Strategy – 25th February 2019

For further information regarding this report please contact the Oxford Street District Team on [email protected]

Page 40

Westminster City Council

Oxford Street District - Business Case

8th April 2019

Page 41 Westminster City Council Oxford Street District - Business Case 8th April 2019

Westminster City Council

Oxford Street District - Business Case

Working Draft

8th April 2019

Reviewed and approved by: Signature(s):

Name(s):

Job Title(s):

Date:

Page 42 Westminster City Council Oxford Street District - Business Case 8th April 2019

Contents

1 Oxford Street District ...... 1 1.1 Revitalising One of London’s Great Districts ...... 1 1.2 The Case for Change ...... 1 1.3 Place Strategy and Delivery Plan ...... 3 1.4 Custodians for the Oxford Street District ...... 4 2 Strategic Case ...... 7 2.1 Oxford Street District’s Importance to the City of Westminster ...... 7 2.2 Strategic Context ...... 14 2.3 The wider role of the West End ...... 15 2.4 The Need for Intervention ...... 16 2.5 The Place Strategy and Delivery Plan ...... 25 2.6 Vision, Objectives and Principles for Oxford Street District ...... 28 2.7 Stakeholder Engagement ...... 30 2.8 Key Risks ...... 31 2.9 Constraints and Dependencies ...... 31 3 Economic Case ...... 34 3.1 Introduction ...... 34 3.2 Options Development Process ...... 34 3.3 Business Case Options ...... 36 3.4 Cost-Benefit Analysis – Guidance and Overview of Monetised and Non-Monetised Benefits and Impacts ...... 46 3.5 Cost-Benefit Analysis – Approach to Analysis ...... 48 3.6 Economic Performance: Cost-Benefit Analysis ...... 61 3.7 Sensitivity and Optimism Bias ...... 66 3.8 Key Findings ...... 68 4 Commercial Case ...... 72 4.1 Delivery Model ...... 72 4.2 Procurement Strategy ...... 72 4.3 Implementation Timescales ...... 74 4.4 Contract Management Approach ...... 75 5 Financial Case ...... 76

Page 43 Westminster City Council Oxford Street District - Business Case 8th April 2019

5.1 Capital costs ...... 76 5.2 Assumptions ...... 76 5.3 Phasing Overview ...... 78 5.4 Capital Funding ...... 79 5.5 Sources of Funding ...... 80 5.6 Revenue costs ...... 81 5.7 Financial Risks and Responsibilities ...... 82 6 Management Case ...... 84 6.1 Governance and Organisational Structure ...... 84 6.2 Project Management Approach ...... 86 6.3 Programme Plan...... 87 6.4 Communication and Stakeholder Management ...... 87 6.5 District Management ...... 88 6.6 Risk Management Strategy ...... 89 6.7 Monitoring and Evaluation ...... 91

Appendix A: Selection of relevant policies and strategic

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1 Oxford Street District

1.1 Revitalising One of London’s Great Districts Oxford Street is one of the world’s most celebrated retail streets. One of its most important strengths is its vitality, which comes from its eclectic nature and continual newness; from the ebb and flow of commercialism, movement, complexity, contrast and constant change. It is both international and local. It is for residents, workers, and visitors of all ages. It is a microcosm of London. Oxford Street is recognised as a leading retail destination, visited by millions of people each year and is an essential part of the West End and London offer. The Street’s setting means it sits alongside several distinctive and historic neighbourhoods, including Fitzrovia, Marylebone, Mayfair and Soho, that provides a richness and vibrancy that cannot be matched. That is why it is important that Oxford Street is considered as part of a diverse district, integrated in to the wider West End, where it can provide world class retail, commercial, culture and leisure opportunities, and to be a good neighbour for local residents. It is a street, not a shopping mall, with shops that have sides, backs and spaces in between them. It is a thoroughfare and a distributor of movement, but most importantly it is an intrinsic part of a street network that connects historic residential neighbourhoods and the wider West End. Oxford Street has character, authenticity and identity. Celebrating and amplifying these elements will reinforce its continuing status as London’s primary shopping street and support its development into a vibrant centre for civic life and commerce. The district is unique as a meeting point of Great Estates, international retailers, long-established neighbourhood forums and some of the UK’s most important businesses and investors, all of whom have over time developed ideas and proposals for its streets and spaces. There is an incredible richness and heritage to the district that gives it its unique character. It is a place that is defined by historic neighbourhoods that each have their own clearly-defined attributes. This is what sets the area apart from all national and international rivals. Its connectivity to the commercial, cultural and unrivalled leisure offer of the wider West End provides endless opportunities that simply cannot be matched elsewhere.

1.2 The Case for Change The case for change is both urgent and compelling – Oxford Street’s current condition does not match its importance and status. Pedestrian safety and air quality must be urgently addressed, requiring the balance of vehicular and pedestrian movement to be transformed. Management and maintenance across the district is a key concern, affecting conditions today but also any proposed changes. The retail landscape is rapidly evolving and is currently challenging, with the importance of an enhanced environment more critical than ever.

1 Page 45 Westminster City Council Oxford Street District - Business Case - Working Draft 25th February 2019

Figure 1.1: Oxford Street’s location at the heart of London’s longest shopping street Page 46 Page

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Westminster City Council Oxford Street District - Business Case 8th April 2019

The creation of the Elizabeth Line has already brought significant change and its opening will intensify conditions across the district. The two West End stations are projected to bring an additional 60 million people annually; increasing the 200 million annual visits to the district by almost a third1. The economic opportunities that this will bring are accompanied by the challenge of adapting congested streets and spaces to accommodate greatly increased pedestrian movement. The Elizabeth Line stations do not open out onto Oxford Street directly, but to Dean Street, Hanover Square and Davies Street, significantly altering the way people will move across the district.

1.3 Place Strategy and Delivery Plan The Place Strategy and Delivery Plan for Oxford Street District, which underpins the proposals set out within this Business Case, builds on the momentum of change being brought by both the delivery of the Elizabeth Line and renewed thinking about Oxford Street, and provides a mechanism to knit together the area’s diverse projects. In developing this work, the Council has listened carefully to those who know best – those who live, work, visit and do business in the area; that has helped shape our deep understanding of what makes the place so special and what we should seek to augment. The district is busy and is intense. It is an extraordinary place but also somewhere we want people to be proud of and where they relish going about their day-to-day lives, be that shopping, going to work, simply meeting friends, or families and children being able to play. Enhancing all of these things is as vital as just focusing on improving the public realm. That is why the Place Strategy is all encompassing and addresses all the elements that will make the Oxford Street District a successful place. It is crucial that it is well understood that the area is also an economic powerhouse for London and the UK and is one of the largest employment centres in the capital. The goal is to be able to share the prosperity and success of the district across the city. But this needs to be achieved in a sustainable and sensitive fashion. The challenges the district faces are clear, as set out within this Business Plan, and the ambition is to bring all the available public and private resources to bear to tackle them head on and future proof the district’s ongoing success which is vital for Westminster and London as a whole.

1.3.1 The Scale of Ambition The purpose of the Place Strategy is to unify, not to homogenise – to respect the diverse and often contrasting characters of different parts of the street and the wider district. It aims to reflect and maintain Oxford Street’s character of inclusivity and eclecticism, and to provide the setting and amenities that will allow its activity and diverse economies to flourish. This calls for a holistic strategy encompassing all aspects of the built environment as well the critical elements of transport and movement. The starting point is to build from its assets; its urban form, its complexity of use and harness the many great ideas that have been advanced for its future. The strategy is pragmatic in addressing the diverse needs of the area but highly ambitious in setting

1 Oxford Street District: An Economic Assessment, Volterra, 2018

3 Page 47 Westminster City Council Oxford Street District - Business Case 8th April 2019

out a vision for a programme of extensive improvements to a fully functioning and complex district, elevating its civic amenity, greenery, play, cultural programme, art, lighting and the quality of the public realm. The aim is to create a greener, cleaner environment where people enjoy spending time supported by interesting routes, ample amenities and outstanding public space. The restoration of spectacle and delight is a primary objective – it should still be intense and dynamic especially at certain times of the day, but the range and scale of retail and experiences on Oxford Street and the diversity of its surrounding neighbourhoods offers endless possibilities to explore places of varying characters and intensities.

1.3.2 Celebrating Diversity of Use The Oxford Street District does many things – It is a residential area, with Mayfair, Marylebone, Fitzrovia and Soho separated by Oxford Street, and an international shopping area. It also is a successful commercial office district with 51% of the area’s employment within professional services, and 20% in retail2. The street itself is both a thoroughfare and a distributor, providing access to these neighbourhoods, particularly east of Oxford Circus. A successful strategy will be one that ensures that all of these elements thrive; that accommodates the shared aims of residents, workers and visitors and businesses; that makes the area a more enjoyable place to be. Oxford Street and the wider district changes significantly through the different seasons of the year and also from daytime to night reflecting this diversity of use, with an intense peak in the late afternoon and early evening as many different types of use converge and shoppers and workers are using public transport at the same time. The Place Strategy is built upon a key principle of working with the patterns of use of the street and wider district – to make sure that pedestrian space is prioritised and also maximised when it is most needed and that essential servicing movements take place at appropriate times.

1.3.3 A Blueprint for Change The Place Strategy and Delivery Plan sets out an incremental and cumulative approach, with 88 projects that together form an ambitious proposal for the whole 2km-long district to bring radical and long-lasting change. Some of the projects are modest, some are long held ambitions, many are complex, all are put forward as proposals that will bring meaningful improvement. The Delivery Plan lists all projects and work is underway to schedule how to bring them forward in the most efficient and logical way to keep the area moving and working throughout.

1.4 Custodians for the Oxford Street District The street lies entirely within the City of Westminster. Westminster City Council is the highway authority responsible for the management and maintenance of the street and wider area, the planning authority responsible for determining planning and listed building applications on and around the Street and the statutory authority for things like trading standards, street trading, noise and air pollution, road safety and, with the Metropolitan Police, crime and anti-social

2 Oxford Street District: An Economic Assessment, Volterra, 2018

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behaviour. Oxford Street is defined as a ‘Strategic Road’, which means that it is of strategic importance for the whole of London. In this respect the Mayor of London and Transport for London are responsible for the public transport (buses, Underground, taxis and private hire vehicles) that service the street and its environs. The current proposals for the Oxford Street District are the latest in a long line of public realm and transformative projects that the council has initiated, developed and implemented over the past 30 years. With regard to Oxford Street, in the 1990s the western section of Oxford Street (Oxford Circus to Marble Arch) was significantly refurbished with wider pavements, de-cluttering, improved lighting and street furniture. In 2012 the eastern section of the Street (Oxford Circus to Tottenham Court Road) saw investment as part of the Northern Line Upgrade and preparation for the Elizabeth Line at Tottenham Court Road. Between 2009 and 2011 the ‘Oxford Circus Diagonals’ were installed; doubling the pedestrian capacity at this busy junction. Other transformative schemes, led by Westminster Council, that impact on the wider Oxford Street District include the recently completed Baker Street Two-Way working and public realm improvements and Bond Street public realm improvements, which form part of a wide suite of public realm projects within the district, as shown in Figure 1.2 overleaf. Camden’s West End/ Tottenham Court Road Two-Way project will also impact significantly on the eastern edge of the Oxford Street District. However, there is a lack of investment on Oxford Street itself. Unlike other parts of the West End, within the district there is fragmented land ownership which is why the Council is showing the necessary civic leadership in order to set out a unifying vision that can act as a catalyst and drive improvements on the ground. The significant funding that the Council are also making available is a massive kick start to make this a reality and will encourage private and public partners to commit their support. We believe that no other major city has sought to refresh a whole district in such a comprehensive and ambitious fashion.

5 Page 49 Westminster City Council Oxford Street District - Business Case 8th April 2019

Figure 1.2: Existing major public realm projects Page 50 Page

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Westminster City Council Oxford Street District - Business Case 8th April 2019

2 Strategic Case

2.1 Oxford Street District’s Importance to the City of Westminster

2.1.1 Significant economic importance The Oxford Street District is an area running from Marble Arch station in the west to Tottenham Court Road in the east, encompassing Oxford Street itself (see Figure 2.1). It is located at the heart of the West End and is classified as an international shopping district in the London Plan. The street and the surrounding neighbourhoods are home to many residents and businesses which help to make up this vibrant mixed-use district. The district is multi-faceted in its character and combines residential, commercial and retail uses in close proximity to each other. It therefore greatly influences what it is like to visit, live and work in the City of Westminster. The economic importance of the Oxford Street District to the City of Westminster is vast. Analysis undertaken by Volterra shows that the Oxford Street District has an employment density that is significantly higher than the Westminster average and contains some 155,000 jobs. As shown in Table 2.1, while the district only makes up 8% of the physical land area of Westminster, it accounts for 21% of the borough’s total employment.3

Table 2.1: Employment within Oxford Street District (2016) Area (ha) Employment Employment density (jobs per ha) Inner OSD 75 85,000 1,130 Wider OSD 162 155,000 960 Westminster 2,100 730,000 340 London 157,000 5,200,000 33 Source: adapted from Volterra (2018), figures are rounded The analysis by Volterra found that the two largest employment sectors in the Oxford Street District are Professional services and Retail & Wholesale, accounting for an estimated 51% and 20% of total employment in the district respectively, as of 2016. Although the size of the retail sector is consistent with the perception of parts of Oxford Street District being heavily retail dominated, the fact that the professional services sector is more than twice as large in employment terms highlights the diverse nature of the area. It also shows the importance of the district in relation to providing both a source of accessible employment opportunities for local residents and higher value jobs that underpin Westminster’s significant economic output.

3 Oxford Street District: An Economic Assessment, Volterra, 2018

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Figure 2.1: Oxford Street District Page 52 Page

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Westminster City Council Oxford Street District - Business Case 8th April 2019

Figure 2.2: Breakdown of employment by sector in the Oxford Street District area

Oxford Street District’s importance as a key employment location in Westminster is further evidenced by recent growth trends. Volterra has calculated that between 2009 and 2016 employment in the district increased by approximately 17%, which was above the overall rate for Westminster of 15%. However, it is worth noting in terms of the potential current constraints on the district’s growth (see Section 2.9), that the employment growth rates for the West End and London as a whole were both higher at around 21%.

The scale of employment and sectoral split within and around Oxford Street mean that the district is crucial to the Westminster economy. It is estimated that the Oxford Street District generates £13 billion in Gross Value Added (GVA) annually, compared to £56 billion for Westminster as a whole. This equates to 23% of the Westminster total, while, as identified above, the district represents 8% of the physical land area and accounts for 21% of total employment.4 The density of employment is a key factor driving the district’s contribution to the Westminster economy, but the nature of employment and size of the professional services sector also plays a role in Westminster having amongst the highest levels of productivity in the UK. 5

4 Oxford Street District: An Economic Assessment, Volterra, 2018 5 Subregional productivity: labour productivity indices by UK NUTS2 and NUTS3 subregions, ONS, 2019

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Table 2.2: Estimated GVA (2016) GVA % of Westminster GVA per job Inner OSD £7bn 12% £82,000 Wider OSD £13bn 23% £84,000 Westminster £56bn - £77,000 Source: adapted from Volterra (2018), figures are rounded

Oxford Street District’s economic contribution to Westminster is likely to be even larger once indirect and induced multiplier effects from supply chain expenditure and employee spend are taken into account. The Homes and Communities Agency Additionality Guide identifies local area multiplier benchmarks of 1.21 for retailing and 1.29 for office uses (i.e. for every £1 of direct GVA generated a further 21p or 29p will be created in the local economy).6 Some of this multiplier effect will already be accounted for in the employment and GVA figures above; however, businesses in Oxford Street District will also be helping to support activity elsewhere within Westminster. Unsurprisingly, given the scale of economic activity in the area, Oxford Street District is responsible for a significant proportion of the business rates payable within Westminster. As shown in Table 2.3, based on the estimates calculated by Volterra, in 2017/18 businesses in the district provided approximately 34% of the total rates generated in Westminster.

Table 2.3: Estimated business rates (2017/18) Inner OSD Outer OSD Westminster Office £160m £340m £1.2bn Retail, restaurants and cafes £215m £295m £625m Industrial £690k £1.6m £5.0m Other £5.5m £13m £100m Total £380m £655m £1.95bn Source: Volterra (2018), figures may not sum due to rounding

Overall, it is estimated that Oxford Street District generated £655 million in business rates in 2017/18, of which around £200 million was retained by Westminster. This is 12% more than all businesses in Camden and 60% more than all businesses in the whole of Birmingham. As highlighted by Volterra, it represents “a very considerable contribution being made by a relatively small area, emphasising its economic importance to Westminster, the West End, London and indeed the UK”. 7 If the Oxford Street District is able to accommodate even more growth than it has in the past, it could generate between 1,600 and 7,200 new jobs each year across the district, further increasing the area’s contribution in terms of GVA and business rates. Estimates are wide-ranging due to a

6 Additionality Guide 4th Addition, Homes and Communities Agency, 2014 7 Oxford Street District: An Economic Assessment, Volterra, 2018, p.24

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multitude of variables that could be used to hypothesise this scenario; for example the impact of the Elizabeth Line, or continued changes to the nature of retail.

2.1.2 A place to live and visit, as well as work Despite the high levels of employment, the district is also home to many residents, with an estimated 12,500 people living within the area. There are four neighbourhood forums that cover parts of the district, including Marylebone Neighbourhood Forum, Soho Neighbourhood Forum, Mayfair Neighbourhood Forum and Fitzrovia Neighbourhood Forum. Each of these forums represents both residents and businesses. There are also around a further 230,000 residents in the rest of Westminster, for whom the Oxford Street District provides an important destination for recreation, retail and leisure. The mix of land uses within the district is shown in Figure 2.3 overleaf, demonstrating the broad role of the area. There are significant transitional spaces or thresholds that signify a change of character between Oxford Street and the neighbouring areas in the district. These transitions are particularly clear between Oxford Street and Soho to the south side of the street. This threshold and change of character is often defined by a change in the use, scale and grain of the buildings; as in the case of Berwick Street in Soho, where there is distinct change to a finer architectural grain and change in use from high street retail to specialist shops, cafés and restaurants and local shops such as hairdressers. However, larger retailers, particularly the flagship stores, have also recently started to include a variety of additional uses nested within their stores. For example, Topshop’s flagship includes a café and hair and beauty salons, Nike Town organises a running club, and Lush is home to a spa and ‘hair lab’. For all four stations within the Oxford Street District, the PM peak is the busiest period of the day, with the PM peak being between 35% and 65% busier than the AM peak period, in contrast to the pattern across the entire London network, which on average experiences only a 5% increase in use in the PM peak period compared to the AM peak. The reason for this is likely because of Oxford Street District’s importance both as a major employment location – to and from which workers travel during the peak periods – and as a leading leisure and tourism destination, to which shoppers and tourists tend to arrive and leave at different times throughout the day, including during the PM peak period. This means that the transport capacity is being thoroughly utilised in serving the area throughout the whole day. Fitzrovia and Soho have a variety of places to eat, drink and socialise, and provide much of the activity within the area during the evening. However, the life of these areas is highly influenced by licensing policy. Pubs in Fitzrovia tend to close at midnight, whereas many of Soho’s bars and venues remain open much later. Oxford Street itself has a scarcity of restaurants, bars and cafés, with the majority located in clusters within areas to the north and south of the street. These include St. Christopher’s Place, Market Place, Rathbone Place, Great Marlborough Street, Carnaby Street and Soho. Hotels are located throughout the area, with a clear cluster towards the western end of Oxford Street, around Marble Arch. Oxford Street has a history of spectacle, and entertainment, theatres, concert halls and pubs once lined the streets. Forms of entertainment can still be found along the street and within the wider area, and a number of temporary uses and events take place in the area, many of which are seasonal or linked to city-wide events. Oxford Street, Oxford Circus or Regent Street are

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occasionally closed to traffic for a specific show or event, such as the 2016 and 2018 Lumiére light festivals and the annual Christmas light switch-on.

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Figure 2.3: Oxford Street District Page 57 Page

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Westminster City Council Oxford Street District - Business Case 8th April 2019

2.2 Strategic Context The Westminster City Plan is undergoing a refresh. The Council consulted on a new draft Plan in November to December 2018. The new draft plan aims to enable our high streets to adapt to changing circumstances and to thrive in the future. The new policy includes a change in approach to how we manage our high streets and would aim to create a lot more flexibility for change of use in response to the changing nature of retail. It will seek to make our high streets a destination for leisure and entertainment as well as shopping, whilst still maintaining the retail focus of the area. This will help our shopping centres to face the unprecedented challenges posed by online retail, falling sales figures and customer expectations for exciting destinations and experiences. Oxford Street is an international shopping centre and expectations for the quality and range of retail and entertainment offers are that they should be world class. The new draft City Plan will help to deliver this. The transformation of the Oxford Street District is seen as a key component of creating an improved retail and leisure experience that responds to innovation and change in the sector. The Plan identifies the aspiration for Oxford Street to include ‘a more diverse and interesting mix of uses and better quality public realm that prioritises pedestrians, enhances the shopper experience, and makes it a more attractive place to visit and enjoy.’ As part of achieving this vision, the Plan emphasises the need for comprehensive proposals for the future of the area to respond to the changes facing the retail sector, with a key focus on user experience. Soho is a unique area within the wider West End and therefore we are determined to enhance it. We have worked closely with the Soho Society and Soho Neighbourhood Forum to identify the issues and root causes of the unwelcome changes we are seeing in Soho. The new City Plan includes a draft policy to address some of these – for example workspace for small and medium- sized enterprises (SME) particularly in the creative sector, housing that meets the needs of those working in the area, restricting the size of new hotels and a diversity of leisure and evening / night time venues. The draft policy also aims to conserve and improve the existing green spaces in Soho. The consultation on the City Plan attracted a large number of responses giving a wide range of views on the suite of new draft policies. These consultation responses are being analysed and the policies amended accordingly before a second round of formal consultation takes place. Westminster City Council’s ambition to create a city that benefits all its residents is further outlined within a City for All (2018/19). This follows five themes:  City of opportunity  City that offers excellent local services  Caring and fairer city  Healthier and greener city  City that celebrates its communities The ambition is to create a City for All where people are born into a supportive and safe environment, grow and learn throughout their lives, build fantastic careers in world-leading

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industries, have access to high quality, affordable homes and retire into the community with dignity and pride. As part of achieving this ambition, City for All identifies that the Council’s will work with residents to develop new proposals for the Oxford Street District, which includes the reduction of pollution levels, control of deliveries, protection of resident parking bays, ensuring traffic will not ‘rat run’ down residential roads and effective management of pedestrian areas and surrounding streets. Details of further existing and adopted Westminster and Greater London Authority policy and guidance is set out within Appendix A.

2.3 The wider role of the West End The West End is the most visited and economically prosperous area in the UK. Welcoming over 18.8 million visitors per annum, the area produces greater economic output than anywhere else in the country, generating £51 billion of GVA per year. In comparison, the City of London produces £43.9 billion per year while the West End’s GVA per year is almost as large as the country of Wales (£52 billion). As a consequence, the West End creates higher tax revenues than anywhere else in the UK. At more than £17 billion per annum, the tax revenues generated in the area have important redistribution benefits for the whole of the UK.8 The West End is the main commercial and entertainment centre of the capital. According to JLL’s Global Retail Market Maturity index, London is defined as a “Global Retail City”, which has ‘mature, established markets with the greatest appeal to international retailers’9 and the West End is a major driver of London’s international standing. Spanning Covent Garden, Trafalgar Square, Soho, Chinatown, Leicester Square, the shopping streets of Oxford Street, Regent Street and Bond Street, the West End is comparable to other well-established economic hubs internationally such as Midtown Manhattan in New York City or Causeway Bay in Hong Kong. In 2018, London retained its position as the best-performing retail centre in Europe, with visitors spending over £12.2 billion, mainly due to the importance of the West End and, in particular, Oxford Street. Covering an area of only 6.3 hectares, the West End contains the most employment dense areas of both Westminster and Camden. Second only to the City, the West End’s employment density rate is well above the average among London boroughs – 350 jobs per hectare, which is 9.5 times higher than the average density in London (38 jobs/ha). Moreover, the area is the largest employment zone in the UK, with over 120,000 businesses employing more than 650,000 people.10 In comparison, the City employs 438,000 people. The West End is a global leader in a number of sectors including advertising, digital technology, media and entertainment. The positive spillover effects of these sectors in the West End are far- reaching and can impact areas across the UK. For example, tourism is one of the West End’s largest sectors and it is estimated that for every £1 spent by international visitors, an additional £1.20 is generated in supply chains outside of London.

8 Ten Years of Tax, Centre for Cities, 2016 9 London City Report, JLL, 2018 10 BRES Employment Data, 2017

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The well-established connections and knowledge in the industries within the West End can incentivise investment in the area which can be exported throughout the UK. By way of example, while the West End remains the advertising capital of Europe, less than one third of its employees are London-based, with a significant proportion being outside of London. West End businesses rely heavily on people that live outside of London in cities such as Birmingham and Manchester that have a thriving advertising sector and have grown as a direct consequence of the West End’s success and global reputation. There is a strong “ripple effect” within these sectors with a steady flow of people leaving London to work in the regions generating additional highly-skilled and highly-paid jobs, raising productivity levels and driving growth. Accessible to visitors and workers by four underground stations – Marble Arch, Bond Street, Oxford Circus, Tottenham Court Road – transport connectivity is one of the key attributes to the economic prosperity in the area. The opening of the Elizabeth Line, serving both Bond Street and Tottenham Court Road, will further increase the connectivity of the area. The economic prosperity, high employment and limited floorspace within the West End have resulted in the area being characterised by low vacancy rates and the highest asking rents of any market in the UK. The average office rent in the West End amounts to £65 per sqft per year. That is around 15% higher than in Midtown and 18% higher than in the City. The ‘West End Good Growth’ report produced by Arup shows that ‘55% of space has been leased to tenants from business services, financial institutions and retailers while retail estate tenants account for around 10% of transactions in terms of space’.11 At more than £2 billion, the area’s business rates account for 9% of all business rates nationally. The Westminster City Plan (2019 – 2040) acknowledges the West End as the ‘jewel in our commercial crown’, with the vision for it to be ‘the place to go for leisure, because it will offer everything; a place where people can shop, socialise and be entertained’. One of the core objectives of the Plan is to enhance the West End as London’s primary retail, leisure and visitor destination. By doing so, the intensification of the West End Retail and Leisure Special Policy Area is projected to create at least 3,000 new jobs and 150 new homes. However, the Plan also recognises the issues and challenges faced by the West End due to its mix of uses and level of activity, highlighting the importance of improving the pedestrian environment and making visiting the area a more pleasurable experience. The West End Partnership’s Delivery Plan also highlights the uniqueness of the West End as a ‘resourceful, busy, diverse and productive’ area but warns that as ‘a magnet for millions of visitors and hundreds of thousands of jobs’ the West End places huge demand on London’s infrastructure. With over 120,000 employees per square per kilometre, the area is one of the world’s densest employment hubs and 750,000 people pass through the West End stations on a typical weekday. The WEP identifies several interlinking issues such as congestion, air pollution, self-reliance and job opportunities which are critical to the long-term economic success of the area.

2.4 The Need for Intervention In order to ensure the long-term success of the district, the Council must confront the challenges that it now faces. These challenges include inadequate public realm; pedestrian congestion; poor

11 West End Good Growth, Arup, 2018

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air quality; poor street environment blighted by an excessive number of vehicles; poor road safety; and evolving retail trends and global competition. Addressing all of these issues is of paramount importance. While the Oxford Street District has a number of attributes that make it successful, alongside this there are a range of challenges that require solutions if the collective aspirations of the Council and its stakeholders are going to be achieved.

2.4.1 Inadequate public realm

Key challenge: poor quality public realm and limited amenities mean that the current pedestrian environment is no longer adequate or pleasant for residents and visitors to the district and connections between the street and its surroundings are often unclear. A good pedestrian environment is crucial to the ease with which visitors, residents and workers move through and enjoy the Oxford Street District.

The Oxford Street District has one of the greatest concentrations of green squares in London, with Hyde Park in the far western edge providing an important amenity and visual relief in a relatively densely built up area. However, connections between Oxford Street and Hyde Park do not facilitate easy movement between the two, as pedestrians and cyclists must navigate Marble Arch and Park Lane, which are heavy with traffic. Public spaces across the district are varied, with several well-used courtyard spaces like Rathbone Place, oasis spaces like Ramillies Street and Brown Hart Gardens; formal spaces with programmed uses like Berwick Street Market; and informal street spaces like Hills Space, used by shoppers and visitors who sit on the pavement and eat lunch. Aside from the high quality green spaces of the local garden squares, the public realm is generally inconsistent in quality. The pavements are often narrow making the accommodation of street trees difficult, and a lack of street cleanliness has a negative effect on the public realm, being both unsightly and obstructing movement. Oxford Street currently lacks sufficient seating provision, and people therefore perch to rest on window ledges, utility boxes and cycle racks. Much of the existing seating is positioned in such a way that it impedes pedestrian movement on and around Oxford Street, or it is located behind kiosks where it is not immediately visible from Oxford Street itself. Off Oxford Street, outdoor seating and tables associated with outside dining are prevalent along some streets like Duke Street, James Street and St. Christopher’s Place. These objects serve a clear purpose, however they can impede movement through the area. Many of the kiosks on Oxford Street are typically located at the entrance to district streets, selling food and drinks or souvenirs. Kiosks can appear to dominate some spaces, therefore blocking sightlines and movement through the area. Art and sculpture can be found across the district, with statues, monuments and fountains in its streets, parks and squares. The area is also home to contemporary works by major artists, including Barbara Hepworth’s Winged Figure at John Lewis, and Anthony Gormley’s ROOM in Brown Hart Gardens. As part of the public works to upgrade and revitalise Bond Street, Elizabeth Frink’s Horse and Rider sculpture was restored and relocated from Dover Street to a more prominent position on New Bond Street.

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Formal play provision is currently very limited in the Oxford Street District, and Westminster City Council has identified much of the district as deficient in both formal and informal play space. By designing streets that are suitable for use by children, we improve the quality of the urban environment for all users. The Draft New London Plan (Policy S4) states that incidental, playable space should be incorporated into large-scale public realm developments The quality of public realm is an important feature of any global city but the poor quality of the current public realm in the Oxford Street District makes the pedestrian environment unpleasant. The West End’s public realm is rated amongst the worst of other leading cities and is a negative factor in London’s performance in global league tables. In the PwC’s 2017 City of Opportunity Report London was ranked 13th, behind competitor cities such as Paris, Stockholm and Milan, based upon safety, security and health largely due to overcrowding, poor quality public realm and poor air quality. Most of the West End’s international competitors have implemented or invested in their public realm to improve the pedestrian and visitor experience. Savills Global Retail Destination Index ranked the West End 2nd out 7 overall in a list of global comparable centres, behind New York. However, it was ranked in 5th place, taking into account the quality of its public realm. The report concluded that the poor quality of the Oxford Street District’s public realm will continue to have a negative impact on visitor numbers and spend unless action is taken.

2.4.2 Pedestrian congestion

Key challenge: pedestrians using Oxford Street and parts of the surrounding district experience high levels of congestion and discomfort during some periods of the day. The street environment is cluttered and in some places constrained. It is anticipated that the number of pedestrians in the Oxford Street District will increase overall as a result of the new Elizabeth Line stations, with some areas experiencing very significant growth in pedestrian movement. If not addressed, the issues of pedestrian over crowding within the Oxford Street district will become more acute and this may lead to impacts on pedestrian safety.

Oxford Street and some areas within Oxford Street District currently suffer from high levels of pedestrian congestion and crowding, which results in an uncomfortable environment for walking, particularly from midday onwards to early evening (with a peak around 5pm on most parts of the street). During the summer months and towards the end of the year, these problems worsen due to increased visitors and shoppers to the district. The designated pedestrian pavements are too narrow to accommodate the large numbers of UK-based and international visitors to the area. Footways are often cluttered by obstacles, poorly sited street furniture and the lack of pedestrian permeability further increases journey times. Moreover, Oxford Circus station is one of the busiest stations in London with the highest number of entry and exit per year among all stations with no mainline interchange. In 2015, the Oxford Circus tube station was closed for an average of 1 in every 3 days due to overcrowding. The opening of the Elizabeth Line stations presents the Oxford Street District with important opportunities for growth and will increase accessibility especially for those people with mobility issues who will benefit from their step-free design. However, the increased visitor capacity that the Elizabeth Line will enable is likely to exacerbate the overcrowding of the District.

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Figure 2.4: Passenger demand forecast for stations on Oxford Street (March 2018) Page 63 Page

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Westminster City Council Oxford Street District - Business Case 8th April 2019

The opening of the West End Elizabeth Line stations is a critical catalytic event in the area’s history but, whilst this presents a tremendous opportunity for the area, it also presents significant challenges. The Oxford Street District is already severely overcrowded and struggles to safely accommodate peak demand. This will have a direct impact on economic performance due to reduced dwell time (and spend) in the area. There is an urgent need to ensure that these extra people can use the area in safety and choose to stay and spend more money in the area. The increased transport capacity could result in more than three times the number of people visiting Tottenham Court Road station per day, although the Oxford Street District already struggles to safely accommodate visitors during the district’s peak hours. The accident record for Oxford Street is concerning, with one pedestrian involved in a fatal collision with a vehicle each year on average. With the anticipated increase in pedestrians as a result of the Elizabeth Line opening, there is a significant probability that the number of collisions will increase without the introduction of measures to reduce the risks of accidents. A good pedestrian environment is crucial to the ease with which pedestrians move through the Oxford Street District. The health and environmental benefits of walking and cycling are promoted in Westminster City Council’s Walking Strategy (2017) and the Mayor’s Transport Strategy (2018), which includes the Healthy Streets agenda. Both documents emphasise the importance of improving streets and the public realm to encourage the use of active travel for all.

2.4.3 Poor air quality

Key challenge: Oxford Street and the surrounding district is one of the most polluted areas in the UK. The majority of harmful emissions are released from road traffic. The current levels of traffic congestion, quantity of freight movements during busy periods of the day and high volumes of polluting diesel vehicles need to be addressed by a holistic programme of measures. Conditions in the future can be greatly improved by reducing the amount of traffic and ensuring that the remaining vehicles adopt low emission technology as rapidly as possible across the entire district.

It is well understood that air quality in the Oxford Street District is poor. The primary source of air pollution is vehicular traffic. The current congestion issues often result in a dangerous and illegal build-up of harmful air pollutants in the district, especially during peak hours. During 2016, Oxford Street experienced 146 instances of exceeding the EU limit value for NO2 air pollution levels and had two major ‘pollution incidents’. London breached the annual air pollution limit by the fifth day of January in 2017. Although the introduction of the Ultra-Low Emission Zone in central London in 2019 will improve the situation, it is anticipated that Oxford Street, and some of the surrounding network, will still fail to meet required standards. Evidence presented to WCC’s Air Quality Task Force Group suggested that poor air quality was responsible for the equivalent of 29,000 premature deaths in the UK (extrapolated to almost 100 in Westminster) due to breathing in tiny pollution particles. This is higher than the number of UK premature deaths from alcohol and obesity. Behind smoking, poor air quality is the most significant public health challenge.12

12 WCC, Report of the Air Quality Task Group, 2017

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A 2015 GLA study (by King’s College, London) showed that in 2010 there were the equivalent of 5,900 deaths across London associated with NO2 long term exposure and 3,500 deaths associated with particulate pollution PM2.5 – combined equivalent deaths of 9,400. The majority of these have origins in the Oxford Street District, as the West End’s busiest area. Peak pollution levels were found by the Government’s Air Quality Expert Group to relate to increased hospital admissions and premature death of older and other people with respiratory and cardiovascular illness. Air pollution was identified as the number one concern for residents in a recent Westminster City Council opinion poll. The Kings College/Policy Exchange report ‘Up in the Air’ states that 12% of London’s total area, in effect central London, exceeded legal limits for nitrogen dioxide (NO2) in 2010. This central area contained a workplace population of 3.8 million people, as well as 979 schools attended by a quarter of London’s school population. Westminster has 30,000 school pupils within 100 metres of a location with NO2 concentrations above EU limit values (the highest of any borough in London) and Camden has almost 24,000 such pupils near a pollution hot spot. The poor air quality has adverse health effects as well as wider negative impacts on the climate. It also has a negative impact on the visitor experience and ultimately the economic success of an area, deterring people from visiting the area, discouraging people from choosing to work in the district and also potentially deterring investment. Measures to improve air quality in the Oxford Street area will have a disproportionate positive impact on air quality across the West End and Westminster due to the scale of Oxford Street, its high concentration of businesses and officers, and its use as the main traffic highway through the West End.

2.4.4 Poor street environment blighted by an excessive number of vehicles

Key challenge: the excessive number of vehicles moving around and through the district contributes to poor air quality, road safety issues, traffic congestion and limits the space that can be provided to pedestrians and the public realm, however the presence of stationary vehicles is also a challenge. The streets around Oxford Street are very heavily utilised by waiting and parked vehicles, detracting from the quality of the public realm. Many of the vehicles have an important purpose but the most convenient location for them to stop is often where it causes the greatest impact, blocking sight-lines, causing obstructions, making crossing movements more difficult and dangerous, and dominating the street environment.

The Oxford Street District is the most visited area in the UK and it suffers from serious congestion and safety issues. Detracting from the public’s overall experience of the area, congestion in the area lengthens journey times considerably during peak hours and has a negative impact on the district’s air quality and productivity. It is one of the country’s busiest areas for commuters and this is set to increase as a result of the opening of the Elizabeth Line and further increases to visitor numbers and London’s population. Surface traffic congestion is at an all-time high which increases journey times, reduces pedestrian safety and has a negative impact on productivity, business competitiveness and the long-term attractiveness of the area as a place to live, work, visit and invest in. Leaders from across London have called for action to address the increasing traffic congestion levels, and the problems that it

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generates. This was also identified by the West End Commission as being a key priority for the West End and London. The current road network throughout the Oxford Street District does not provide a coherent, comfortable and safe environment for cycling and improvement is greatly needed. Existing and proposed cycle routes do not fully cross the district, meaning that there is a significant gap in cycle route provision. This gap will be partially addressed by the proposed cycle quietway scheme currently under development from Pimlico to Fitzrovia. This route provides a north-south cycle connection but does not address east-west cycling movement for which there is currently no high- quality route within the district. Oxford Street itself is currently not an attractive route for cycling. Although Oxford Street provides a continuous east-west route across a large part of the West End, there are relatively few cyclists that choose to use it compared to other parallel routes, particularly west of Regent Street. This is because the environment is generally uncomfortable for cycling and the presence of large numbers of buses means that the street is intimidating and difficult to navigate.

2.4.5 Poor road safety

Key challenge: The issue of road safety is of critical concern for the Oxford Street District project. With the expected increase in pedestrians as a consequence of the Elizabeth Line, it is critical that the road safety issues on Oxford Street and throughout the district are addressed as part of the Oxford Street District project.

On average one pedestrian per year is involved in a fatal collision with a vehicle on Oxford Street. Given that the number of pedestrians on Oxford Street and within the wider district is expected to rise in the future as a result of the improved access provided by the Elizabeth Line, it is essential that the proposals brought forward as part of the Oxford Street District project include measures to reduce the risk of collisions and reduce the severity of injuries. A strategy for road safety has been developed. A detailed review of all recorded collisions within the last five years has been undertaken to understand the causes of collisions and to identify the measures required to address them. A number of measures have been identified that can be delivered in the short term to address some of the existing problems, with the objective of ensuring that the risk of accidents on Oxford Street does not increase as a result of the expected opening of the Elizabeth Line. The delivery of these measures is currently underway with footway repaving, localised footway widening, and reduced delays at pedestrian crossings at key locations.

2.4.6 Evolving retail trends and global competition

Key challenge: In an age of online shopping, high street retail is increasingly moving away from traditional commerce, towards an approach that includes leisure, entertainment and

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experience. In addition, Oxford Street’s competitors – both within London and further afield – are providing attractive shopping destinations. Oxford Street should thrive as part of a diverse district, integrated into the wider West End, to build upon a unique mix of retail, workspace, homes, culture and leisure, delivering economic growth and responding to the rapid evolution of retail and working life.

Although the Oxford Street District is the leading destination for the 19 million overseas visitors into London, retail trends are changing with an increasing emphasis on the overall visitor experience. New global consumer trends and fierce competition from e-commerce are forcing retail areas such as Oxford Street to place greater emphasis on the overall visitor experience including cultural, leisure and entertainment activities across the day and evening. The retail and wholesale sector in the Oxford Street District area has experienced a decline of 4% in the last five years. This is not symptomatic of a larger decline in the District as other sectors such as the professional services sector have experience strong growth during the same period. Without transformational change, the Oxford Street District will be highly unlikely to retain its global shopping reputation, with negative consequences for the West End and UK economy. To remain internationally competitive, Oxford Street must adapt, reducing the number of traditional retail units and creating more entertainment, leisure, food and beverage and office spaces. Other global cities, that are competitors with the Oxford Street District, are investing heavily in their urban infrastructure. Many European cities including Amsterdam, Dublin and Zurich are already moving ahead with public realm and other infrastructure improvements – making them better equipped to meet the needs of visitors who are increasingly moving towards a more integrated offer and away from traditional high street retail models. If the Oxford Street District is to retain its international status as the world's leading retail experience against increasing competition both internationally and online, it needs to adapt and invest in ways to accommodate changing consumer trends. The expansion of the evening economy presents an opportunity to increase footfall after peak times. The NWEC argues that the current evening economy in the district is limited, particularly on Oxford Street itself where there is a lot of inactivity once the major retailers close for the evening13. A diverse evening and night time economy will enrich visitor’s experience, increase spending and economic activity in the area and support more jobs, without necessarily requiring additional floorspace.

13 Draft London Plan 2018 NWEC Response, New West End Company, 2018

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Figure 2.5: Issues and opportunities Page 68 Page

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Westminster City Council Oxford Street District - Business Case 8th April 2019

2.5 The Place Strategy and Delivery Plan

2.5.1 Overview The Place Strategy is for the future of the Oxford Street District and its streetscape and landscape revitalisation. It is a strategy about the place in its entirety, of which movement and transport are a critical part. Our commitment is to a project for the whole district that is exciting, holistic, ambitious and deliverable. The strategy aims to restore one of London’s greatest streets, revitalising its connections by expanding the area of intervention to encompass an entire Oxford Street District. The district- wide approach defines the area spatially as a series of nine zones, carefully considered to reflect the variations in character from Marble Arch to Tottenham Court Road. The Place Strategy and Delivery Plan has been developed around 15 overarching principles that outline the approach to Oxford Street and the wider district and a holistic set of elements that form a comprehensive, multi-faceted approach to achieve the ambitions for the whole area. The strategic principles, when applied to specific places and locations will help to generate a set of solutions that meet the needs of the local residents and stakeholders. Each principle is designed to add to the character and function of the existing places within the district and help to determine the scope for new projects. This strategy has a multi-layered approach, responding to the complex nature of the area and recognising that multiple aspects need to be addressed to create meaningful change. The Place Strategy contains proposals for these elements: mix of land uses; streets and spaces; proposed operational approach; transport including: walking; buses; cycling; air quality; vehicle access; road safety; coaches; London taxis (not including private hire vehicles); general traffic; goods vehicles; servicing and deliveries; accessibility for all; management; wayfinding and legibility; amenity; play; architectural quality; materials; lighting; landscape; culture and public art. The Delivery Plan identifies 88 streets and spaces with 9 district-wide projects, with the aim of improving and enhancing the area as a place to live and work, while securing its continued position as a leading international retail destination. Delivery has been included in this strategy as it is clear that the improvements required to safeguard the future of Oxford Street and the wider district need to be implemented immediately, building upon existing project momentum and in preparation for the arrival of the Elizabeth Line. The 10 example sites show how the overarching principles could be applied in specific places. These are not concept designs but a clear illustration of the approach to the streets and spaces and outline the type of improvements that could be applied to the other sites listed in the Delivery Plan for the whole district. These spaces will be designed, like the others in the district, in consultation with stakeholders.

2.5.2 A district-wide approach A district-wide approach to the Place Strategy realises the area spatially as a series of nine character areas or zones from Marble Arch to Tottenham Court Road which have been sensitively considered to reflect the diverse demographic of users, the historic heritage, garden squares and

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parks, the varied range of uses, traffic networks and major gateways into the district and wider West End. The nine zones are as follows: A. Marble Arch, a historic asset for the district, is the gateway to Oxford Street, Hyde Park, and the west, playing a critical role in movement through the centre of London. B. A number of flagship stores are located here, as well as hotels, connecting with neighbouring residential areas. C. Home to the Selfridges department store, Oxford Street connects Baker Street and the north Mayfair streets of Duke Street and North Audley Street. D. Connects south Marylebone with the heart of Mayfair, Bond Street and the new Elizabeth Line, it is characterised by a fine-grain network of historic streets. E. The Cavendish Square to Hanover Square connection – providing links to green spaces and the new West End gateway of the Elizabeth Line. F. Oxford Circus, the set-piece joining Oxford Street and Regent Street, is an iconic destination and arrival point for many visitors to the district. G. Characterised by the concentration of flagship stores it also provides connections through its district streets to East Marylebone into the north and Soho in the south. H. This zone plays a key role in connecting Soho and Fitzrovia, and facilitating movement across the district and beyond with its new connections to the Elizabeth Line, with finer grain and a diverse range of smaller shops and cafés. I. This is a primary gateway to Oxford Street and arrival point from the Elizabeth Line, linking the district with Tottenham Court Road and Bloomsbury, New Oxford Street, Holborn, St Giles, Seven Dials, Covent Garden and Charing Cross Road.

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Figure 2.6: District approach Page 71 Page

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Westminster City Council Oxford Street District - Business Case 8th April 2019

2.6 Vision, Objectives and Principles for Oxford Street District

2.6.1 Vision and objectives A vision has been identified for the Oxford Street District, together with a set of core strategic objectives that reflect the comprehensive nature of the intervention required:

VISION To strengthen the world-renowned status of the entire Oxford Street District; to ensure it will be a great place to live, work and visit; and to secure its long-term future

Objectives

Economic Experience Environment

Economic growth - Better spaces and places - An accessible district - Support growth Create beautifully designed Make the district across the district - streets, gateways and diversity accessible, safe and promoting of public spaces liveable that balances innovation and Safer place for all road users – the needs of all users diversity Make the district better for A greener environment pedestrians, cyclists and road - Improve health and users wellbeing by improving An amazing experience – air quality, reducing

Create a spectacular Oxford St traffic and ensuring and enrich the cultural life of effective management the district of the area

2.6.2 Place Strategy principles The Place Strategy promotes 15 overarching place-based principles, which, when applied to specific places and locations, will help to generate a set of solutions that meet the needs of the local residents and stakeholders. Each principle is designed to add to the character and function of the existing places within the district and help to determine the scope for any new projects. The 15 principles are set out in turn below.

Make the district inclusive, accessible and liveable

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Such an intensively-used district at the heart of a World City needs to cater for the many varied users: for all who live in, work, visit and pass through the area at all times of the day and night. It is therefore an essential overarching principle that everyone will have easy access to beautiful, safe, clean, well-managed and enhanced civic amenities.

Improve air quality Poor air quality is recognised as a significant issue across the district with vehicular traffic being the major contributor to emissions.

Improve safety Improvements in safety will be fundamental to the perception – and experience – of the Oxford Street District as a place which is inclusive, liveable and welcoming and a pleasure to visit by day or by night.

Take immediate steps to address management Feedback from stakeholders has highlighted a number of issues regarding the existing management of the district and has reinforced the need to have a collaborative approach to managing and keeping the district safe.

Prioritise pedestrians and value every space The strategy recognises and prioritises walking as the primary form of movement within and across the district.

Make the district better for cycling Westminster City Council supports the growth of cycling as an active, zero-emission mode of transport and is committed to make cycling across the borough practical, enjoyable and safe.

Support economic growth across the district and promote innovation and experimentation Investment in the Oxford Street District is important to protect and develop the area as a major employment district and to catalyse the inward investment and improvements that will support its continued status as an international shopping street.

Design for flexibility There is a finite amount of space to be shared between competing uses – a flexible approach should be used to create a design and management system that responds to the life of the district.

Build from existing and connect the whole district The district is a remarkable place, with many existing assets and a history of creative thinking by landowners, neighbourhood forums, retailers and developers. The strategy sets out to enhance and build on the area’s existing qualities and harness its population’s enthusiasm, vision and expertise.

Create beautifully-designed streets, gateways and a diversity of public spaces across the district

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The district’s streets and spaces are some of London’s most historic, handsome and internationally recognized, yet their current condition does not always reflect their quality and status. This strategy seeks to unlock the full potential of the existing urban realm and its built fabric; to reveal, connect, and upgrade the environmental conditions, whilst respecting the distinctive character and identity of the local historic neighbourhoods, making well-connected and enhanced civic amenity for all users.

Take every opportunity to add additional trees and planting, creating new green spaces and revitalise the garden squares Creating linked green spaces through the district will enhance biodiversity, increase local amenity, create valuable habitats for wildlife and improve the environment for all.

Enrich the cultural life & identity of the district This strategy aims to celebrate and build on the district’s cultural and artistic assets whilst developing a programme of events which gives a reason to celebrate – and to visit – all through the year.

Diversify land use and extend the life of Oxford Street Retail is changing and evolving. The economic vitality of Oxford Street will be strengthened by its ability to adapt and experiment and offer a range of attractions and ancillary, complementary uses that support the retail and commercial activities of the district.

Make Oxford Street spectacular Oxford Street has a long tradition of celebration and spectacle. The aim is to celebrate the daily urban theatre of its existing retail and leisure uses whilst creating settings for events at every scale.

Embrace Oxford Street’s role as an important sustainable transport corridor for the West End Oxford Street transports people and traffic within, to and from the West End, either to visit Oxford Street or the surrounding district. A balance must be struck between the clear need for an improved pedestrian environment and this important city function.

2.7 Stakeholder Engagement The public consultation on the Draft Oxford Street District Strategy and Delivery Plan opened on the 6th November 2018 for 6 weeks until the 16th December 2018. It employed a number of ways to engage with people and receive feedback including: a dedicated website; exhibition events across the district, a pop up shop and presentations to key stakeholders. The online survey was opened to the public and responses came from a wide range of people including; residents, local workers and those visiting the district who were asked to respond to a set of open and closed questions inviting feedback on the Place Strategy. The strategy was generally supported with 63% of respondents strongly supporting or tending to support the principles, while 28% either strongly opposed or tended to oppose the principles.

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In October 2018, Cabinet granted approval for the Place Strategy and Delivery Plan to go to public consultation, for the principles, proposals and ideas to be put forward for discussion and testing as part of an open conversation about the future of the Oxford Street District. The public consultation took place from 6th November to 16th December 2018 and involved: a dedicated website; several consultation events across the district; a pop up exhibition space; presentations to resident associations and key stakeholders and a survey for everyone to provide their feedback. There were a total of 2,154 completed consultation responses*. 66% of overall respondents stating they supported the Place Strategy principles, with 73% of resident respondents stating they supported the Place Strategy principles. The majority of stakeholders (resident and business groups) responded positively to the strategy, putting forward detailed responses. Air quality, management and the quality of the streets and spaces are the critical areas for improvement, and to make meaningful change the volume of vehicular traffic in the area must be addressed. There were also detailed comments that are directly relevant to the next design stages – these comments have been collated and will be revisited throughout the design process.14 This was comprised of 1,800 questionnaires either completed online or paper copies posted to the council and completed at consultation events, as well as 354 completed through face to face fieldwork. During the consultation Westminster City Council met with stakeholder organisations. The most frequent comments from stakeholders regarding the strategy included the following:  Support for the strategic approach to the district  Potential programme and phasing  Request for ongoing stakeholder consultation  Further detail of proposals requested  Support for diversification of land use on Oxford Street  Operational and servicing requirements  Management  Residential amenity For detailed consultation analysis see ‘Oxford Street District Strategy consultation analysis January 2019’ which was appended to the 25th February Cabinet Report for this project.

2.8 Key Risks A risk register has been produced for the Oxford Street District project, identifying the key risks and providing an assessment of probability and impact against each risk. Consideration has also been given to appropriate mitigation actions, as set out in Section 6 (Management Case).

2.9 Constraints and Dependencies

14 This was comprised of 1,800 questionnaires either completed online or paper copies posted to the council and completed at consultation events, as well as 354 completed through face to face fieldwork.

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2.9.1 Constraints A main constraint for the project is the availability of private sector funding. Other identified constraints include:  The need to minimise the impact of temporary bus route relocations and traffic from Oxford Street to neighbouring communities  Planning policies will need to balance the requirement for housing and affordable housing, in particular, with supporting growth and providing the policy framework for the Oxford Street District transformation. Westminster City Council issued its draft City Plan (2019-2040) for public consultation between 12th November and 21st December 2018 and is currently reviewing comments received and amending the Plan as necessary.

2.9.2 Dependencies The project has multiple inter-dependencies and is undoubtedly the most complex city centre (or equivalent) transformation project in the UK. The key dependencies for the project are:  Reduction of the volume of buses on Oxford Street and traffic volume in general (including goods and commercial vehicles).  Commissioning of works for OSD to commence on-site – with all essential project planning, design and procurement being undertaken in advance of this period;  Implementation and co-ordination of all works programme for the West End, including Baker Street Two-way, Tottenham Court Road Two-way, the Elizabeth Line and Crossrail 2 and largescale development works;  Approval of planning, highway and other major consents to be granted in time to allow the project to proceed;  Utilities and statutory undertakers - requirement to provide multiple consents to move assets and invest in upgrades;  The implementation of the agreed Hostile Vehicle Mitigation(HVM) measures for key locations in the district. Bespoke solutions that complement the overall look and feel of the district and its public realm might be required  Programme and coordination plan of all major traffic and highways across the wider West End to minimise disruption for all users;  The consultation programme is ongoing and the project may need to be revised to incorporate feedback from residents and other stakeholders, as schemes develop such as on the traffic modelling, traffic management, amenity and the impact of construction works. The programme has the flexibility to incorporate reasonable changes to the preferred scheme where there is a strong rationale;  The project and land owners – land owners will need to work with the different project team to ensure that property development/investment are coordinated to minimise disruption;

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 Unnecessary delays and/or costs. The coordination of all works (public realm and development) will be managed by the contractor(s) with the contract administration provided by the council’s Term Highways contractor;  Procurement exercise to appoint a term contractor for the delivery of the projects in Oxford Street District; and  Programme and coordination plan for all major private development in the area.

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3 Economic Case

3.1 Introduction This section sets out the economic case for investment in the OSD. The benefits as highlighted in this section build upon the evidence included in the Strategic Case. At this point, design and analysis of the options is still ongoing. As such, this Economic Case makes use of the information that is currently available. Where there are information gaps, it has been necessary to rely on professional judgement from relevant expert advisors. Whilst this means that the specific values presented are likely to change as more detailed work is undertaken, it would require a significant change in the underlying data for the overall thrust of this case to be materially altered. There will be clear transport benefits associated with the strategy, and these are therefore addressed in this chapter. Quantification has focussed on transport impacts, as these are more immediate and readily quantifiable based on available data. However, this should not be interpreted as meaning that the outcomes that the strategy seeks to achieve are primarily transport-related. Rather, as noted in the Strategic Case improvements to transport are simply an enabler, that will contribute to the higher-level vision for the district.

3.2 Options Development Process

3.2.1 A district-wide approach For improvements that will benefit residents, visitors and workers the options development process has considered the district as a whole, rather than Oxford Street alone. What happens on Oxford Street affects surrounding neighbourhoods, and it is critical to be mindful of this in any changes to the street. Moreover the great strength of the West End is that it is made up of historic and dynamic neighbourhoods – and strong connections to the wider West End will continue to give vitality to this part of London. The Oxford Street District is a complex place of mixed ownership, which makes large-scale improvements challenging, the strategy is therefore a mechanism to bring together diverse interests and priorities into a single and effective improvement project. A district has been defined that includes all of Oxford Street, including the gateways at Marble Arch and Tottenham Court Road, and a substantial wider area. The initial criteria were to include streets and spaces at a minimum of two blocks either side, all of the garden squares, and the new Elizabeth Line stations. The district’s edges are broadly defined as reaching Portman Square and Mortimer Street to the north, and extending to Grosvenor Street and Broadwick Street in the south, therefore including parts of the historic neighbourhoods of Marylebone, Mayfair, Fitzrovia and Soho. The definition of the district has remained flexible throughout the process, to allow for response to studies and ideas. The definition of the district was also part of the consultation that was undertaken, open for comments on its potential boundary.

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3.2.2 Project process In July 2018, WCC’s Cabinet approved the decision to develop a Place Strategy and associated Delivery Plan for the Oxford Street District. WCC commissioned Publica and Norman Rourke Pryme (NRP), with additional supporting work from Volterra and WSP to create the strategy. This work was informed by the views of local residents and key stakeholders, and built upon the existing comprehensive technical evidence base. The project was driven by the need to be:  Inclusive – opening up the conversation to as many people as we can, including many who did not take part in the previous consultations.  Swift – to ensure momentum is retained and the delivery of this project is prioritised.  Efficient – to build upon the studies and technical work of previous projects and to ensure that work is not repeated.  Effective – setting out proposals to deliver change quickly and where it is needed most.  The previous scheme focused on the pedestrianisation of the street. The Oxford Street District proposals spread further geographically and encompass areas and streets not included in the previous scheme due to the plan to concentrate on Oxford Street. The proposals ensure the long-term liveability of the area for local residents is considered alongside the vision for the future of the district. The first part of re-setting the necessary work to improve Oxford Street was to review all aspects of the previous project and the detailed comments made in the public consultation processes to understand what the emerging priorities should be, and how these could be incorporated in a district-wide project. The second was to develop an evidence-based approach, surveying the area and building upon the studies undertaken for the previous project to understand the range of issues and opportunities. NRP and Publica have built upon the significant work undertaken as part of the Oxford Street Transformation Scheme project. They collected a lot of information regarding conditions within the district and this has been used to allow rapid progress in the development of the Oxford Street District Place Strategy. The consultation process for the previous proposals has provided a wealth of detailed information about specific issues and the viewpoints of stakeholders and residents. The Place Strategy project team used this information to inform the development of new strategic ideas and to build on the successful elements of previous work. The detailed technical consideration of transport issues and impacts has helped to develop the new approach, as outlined in this document. Every street in the district has been studied in regard to how it works currently, and how it might be included as part of the improvements. This was approached through the application of criteria set out in the principles section of this document and in the detailed area analysis by the project team. The process also included a review of other previous strategies and ideas for Oxford Street and the wider district. There have been many excellent and detailed ideas developed for the area, over many years, therefore it is a key principle of this project to build on these studies and concepts.

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Meetings were held with a broad cross-section of residents’ groups, retailers, businesses, interest groups and landowners in August and September 2018, to discuss priorities and ideas for the Oxford Street District. Workshops were also held with the Westminster Youth Council and workers from across the district. This process continued throughout the consultation period. In October 2018, Cabinet granted approval for the Place Strategy and Delivery Plan to go to public consultation.. The public consultation took place from 6th November to 16th December 2018 and involved: a dedicated website; several consultation events across the district; a pop up exhibition space; presentations to resident associations and key stakeholders and a survey for everyone to provide their feedback. There were a total of 2,154 completed consultation responses15. 66% of overall respondents stating they supported the Place Strategy principles, with 73% of resident respondents stating they supported the Place Strategy principles. The majority of stakeholders (resident and business groups) responded positively to the strategy, putting forward detailed responses. Air quality, management and the quality of the streets and spaces are the critical areas for improvement, and to make meaningful change the volume of vehicular traffic in the area must be addressed. There were also detailed comments that are directly relevant to the next design stages – these comments have been collated and will be revisited throughout the design process.

3.2.3 Prioritisation and delivery phases The work above identified a large number of projects on streets across the district. As such, the subsequent step has involved prioritising the interventions that were identified. Various phasing workshops have been undertaken with input from project partners. This structured process considered priority in relation to the following requirements:  Enabling works  Traffic management  Stakeholders  Adjacent scheme dependencies  Requirements to develop projects in partnership with third parties Based on this, each project was assigned to a delivery phase, which form the basis of the options considered in this business case. Projects have initially been selected for inclusion in phase 2 (the delivery of option 3) on the basis of those that provide the best value for the Council’s investment and deliver the core objectives of the scheme (which include improvements to road safety, walking, cycling, air quality and public realm). Further projects are required to ensure that the transport network operates effectively and so that potential impacts are avoided. These projects have also been included within phase 2. Projects that improve the movement of people and vehicles will be prioritised within the phase 2

15 This was comprised of 1,800 questionnaires either completed online or paper copies posted to the council and completed at consultation events, as well as 354 completed through face to face fieldwork.

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delivery programme so that the capacity of the transport network is enhanced early in the construction process to minimise construction impacts. This will also create a good foundation for other place based projects that are identified in later phases. Projects that directly benefit local residents and stakeholders and address the concerns raised in the strategy consultation have also been prioritised for delivery in phase 2. It is the council’s intention that the projects that are allocated into phase 3 (delivery of option 4) will be delivered in due course. It is likely that some of the most beneficial phase 3 schemes may be brought forward into phase 2 as the project moves forward subject to the identification of further funding

3.3 Business Case Options The options considered in the business case are based on combinations of projects in the delivery phases discussed above. Four options are considered here. (i) Option 1 (Do Nothing) This option is the ‘Do Nothing’ option, that represents the most likely future situation if the OSD strategy was not implemented. It therefore differs from the current situation on the ground, as it includes schemes that are under construction and committed. All of the other options are therefore considered relative to this option. (ii) Option 2 (Phase 2 – Oxford Street) This option solely involves measures along Oxford Street itself. This option will see major improvements at key locations along Oxford Street.The carriageway width will be reduced to two lanes (one in each direction) and the footways will be widened and decluttered at key locations to maximise the available space for pedestrians. Other improvements in this option will be additional tree planting and installation of new iconic and future proofed lighting columns on Oxford Street between Marble Arch and Tottenham Court Road. However, it should be noted that in practice it would not be feasible to actually implement the improvements to Oxford Street without undertaking the complementary changes to the rest of the district (that are included in Option 3). This is due to the following reasons:  Buses: The creation of the piazza areas to the west and east of Oxford Circus means that buses need to divert onto other streets to continue their journeys. Currently the adjacent road network is not designed to accommodate these movements and the diversion routes would be prohibitively long with unacceptable increases to journey times.  Traffic: Traffic will be displaced from Oxford St and with no mitigation or management of it, traffic consultants would expect increased traffic congestion and the impact of the congestion is likely to be felt on sensitive streets (such as narrow residential streets). As such, this option has been included for comparison purposes only, as it would not be a viable option on its own due to potential displacement impacts of undertaking the changes to Oxford Street without prior improvements to district side streets.

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(iii) Option 3 (Phase 2 – Total) In addition to what is included in Option 2, this option includes additional measures on various district streets which form the remainder of Phase 2. These include those that are required to make Option 2 feasibility to implement. The district streets included in this option are shown Fig 3.1 below, and various levels of interventions have been applied to these streets for costing purposes:  High (Significant or Major public realm project): For example, new pedestrian spaces or key walking routes, including new trees and / or street furniture. Allows for granite paving and kerbs, bespoke lighting, significant tree and street furniture intervention.  Medium (Streetscape enhancement): For example, a mixture of granite or Yorkstone paving and kerbs, bespoke lighting, some tree and street furniture intervention.  Low (Minor alterations): For example, Yorkstone paving and kerbs, bespoke lighting.  Do minimum / traffic operation change: Low intervention, for example minor interventions to facilitate traffic operation changes This option will implement improvements in the district, with the provision of more street trees and green spaces. The quality of the public spaces on and around Oxford Street will be significantly improved to restore and enhance the character of the district. This option will see the creation of various pedestrian zones and traffic free areas along Oxford Street, such as the northern end of Binney, Gilbert and Davies Streets but also the southern section of James Street. In addition, this option includes a new Northern Cycling Alignment. Whilst this route uses existing streets, the proposed improvements will create a new connected east-west routes that will use interventions to achieve a low traffic environment complemented by measures such as early release traffic signals for cycles. (iv) Option 4 (All Phases) In addition to all of the projects included in Option 3, this option also includes additional district streets that fall under Phase 3, as marked on Fig 3.1 below. The interventions on these district streets fall under the same categories described above.

This option will see the full implementation of the Oxford Street Place Strategy and Delivery Plan and its unifying vision, which will act as a catalyst and drive improvements on the ground. A highly collaborative approach to the development of this option will be needed, with funding contribution from external parties.

This option will include major improvements at key location, such as a reinvigorated gateway to the West End at Marble Arch. It will also provide additional and improved areas to rest with seating and shade, upgrade paving and accessibility throughout the district. This option will fulfil the appetite identified from key stakeholders during the public consultation, by having a district wide approach and improve multiple streets and places.

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This option also includes a Southern Cycling Alignmentwith the implementation of an east west route at the south of Oxford Street, with improved facilities for cyclist and pedestrians (such advance stop lines, signalised junctions and crossings improvements) . (v) Summary The schemes included in Options 2, 3 and 4 are summarised in Table 3.1 below, along with the phasing and level of intervention of each scheme. It should be noted that work on developing the schemes is ongoing in parallel with the development of this business case. This means that there are some minor discrepancies between the specific list of streets in each phase presented here (and that has formed the basis of this economic case), and the streets that are currently included in each phase based on the latest WCC work. Given the pace at which the phases are evolving, it would not be proportionate to constantly revise the economic case. As such, this economic case is based on the definition of the phases as of January 2019, which has now been superseded. However, the differences in the definitions of the phases are so minor that they would have an almost imperceptible impact on the analysis and conclusions presented here.

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Table 3.1: Schemes included in each option

Intervention Option Option Option Zone ID Name Phase Level 2 3 4 B 1 Great Cumberland Place to Orchard Street Significant 1    C 2 Between Orchard Street and Duke Street Significant 1    D 3 Duke Street to James Street Significant 1    D 4 James Street to Stratford Place (outside Bond Street station) Significant 1    D 5 Stratford Place to New Bond Street Significant 1    D 6 Junction Bond Street / Vere Street / Oxford Street Significant 1    Page 84 Page E 7 New Bond Street to Holles Street Significant 1   

E 8 Junction Harewood Place and Holles Street Significant 1    E 9 Holles Street to John Princes Street Significant 1    F 10 Oxford Street, John Princes Street to Great Portland Street Major 1   

Oxford Street G 11 Great Portland Street to Winsley Street Significant 1    G 12 Winsley Street to Poland Street Significant 1    G-H 13 Poland Street to Great Chapel Street Significant 1    H 14 Great Chapel Street to Dean Street Significant 1    H 15 Dean Street to junction of Soho Street and Rathbone Place Significant 1    I 16 Soho Street to Tottenham Court Road Significant 1    I 17 Junction of Tottenham Court Road / Oxford Street / Charing Cross Road Significant 1    18 Marble Arch Islands Streetscape 2  19 Great Cumberland Place Streetscape 2  A 20 Bryanston Street Do minimum 2  21 Old Quebec Street Significant 2  22 Seymour Street Do minimum 2 

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Intervention Option Option Option Zone ID Name Phase Level 2 3 4 23 Brook Street Do minimum 2  24 North Row Do minimum 1   25 Park Street Do minimum 1   B 26 Portman Street Do minimum 1   27 Portman Square surrounds Do minimum 2  28 Portman Mews South and Granville Place Streetscape 2  29 Orchard Street Significant 1   30 Grosvenor Square surround Streetscape 2  31 Grosvenor Square Gardens Significant 2 

Page 85 Page 32 North Audley Street Do minimum 1   33 Balderton Street Streetscape 2  34 Brown Hart Gardens surrounding streets Do minimum 2  35 Lumley Street Streetscape 2  36 Manchester Square surround Do minimum 2  C 37 Duke Street (south) Do minimum 2  38 Duke Street (north) Do minimum 2  39 Picton Place Streetscape 2  40 Barrett Street Significant 2  41 Bird Street Significant 2  42 James Street Significant 1   43 Binney Street Do minimum 1   44 Gilbert Street Do minimum 1   45 Stratford Place Significant 2  D 46 Davies Street Minor 1   47 Weighhouse Street and St Anselm’s Place Do minimum 1  

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Intervention Option Option Option Zone ID Name Phase Level 2 3 4 48 Henrietta Place Significant 1   50 Wigmore Street Do minimum 1.5  51 Marylebone Lane (South) Significant 1   52 South Molton Street Do minimum 2  53 South Molton Lane Streetscape 2  54 Woodstock Street Do minimum 2  55 Vere Street Significant 2  56 Chapel Place Significant 2 

Page 86 Page 57 Old Cavendish Street Significant 1   58 Holles Street Significant 1   E 59 Cavendish Square and Gardens Major 2  60 Cavendish Place Minor 1   61 Margaret Street Do minimum 1   62 John Prince’s Street Significant 1   63 Great Castle Street (west) Streetscape 1   F 64 Great Castle Street (east) Streetscape 1   65 Princes Street Streetscape 2  66 Little Portland Street Significant 2  67 Argyll Street and Place Do minimum 2  68 Ramillies Street and Place / Hills Place Significant 1.5  69 Great Marlborough Street / Noel Street / Hollen Street Significant 2  70 Market Place Minor 2  G 71 Great Portland Street Streetscape 1.5  72 Great Titchfield Street Streetscape 1.5  73 Eastcastle Street Significant 1.5 

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Intervention Option Option Option Zone ID Name Phase Level 2 3 4 74 Mortimer Street Do minimum 1.5  75 Winsley Street Significant 2  76 Adam and Eve Court Significant 2  77 Wells Street Streetscape 2  78 Poland Street Do minimum 2  79 Berwick Street Streetscape 2  80 Berners Street Significant 1   81 Wardour Street Minor 2  82 Great Chapel Street Do minimum 1  

Page 87 Page H 83 Newman Street Do minimum 1   84 Rathbone Place Do minimum 1   85 Soho Street Streetscape 2  86 Soho Square and Gardens Significant 2  I 87 Hanway Street and Place Significant 1.5  88 Southern alignment cycle grid Do minimum 2  ALL 89 Northern alignment cycle grid Do minimum 1  

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Page 88 Page

Figure 3.1: Projects included in each option

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Page 89 Page

Figure 3.2: Level of intervention on each street

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3.4 Cost-Benefit Analysis – Guidance and Overview of Monetised and Non- Monetised Benefits and Impacts The project will deliver direct public realm and transport benefits that will make the area a more attractive and better-connected place to visit and spend time in, especially for pedestrians. This will in turn deliver wider economic benefits such as supporting employment and GVA growth in a diverse range of sectors. There will also be benefits in terms of increased tax revenues and land value uplift impacts. The approach is therefore informed by relevant guidance, including the DCLG Appraisal Guide, the Department for Transport WebTAG appraisal guidance and TfL’s Business Case Development Manual. These guidance documents are consistent with the Treasury Green Book, which provides overarching guidance for appraisal and evaluation of publicly funded projects across Government. In developing this approach we have carefully considered the interaction between project benefits, where these are additional (or displaced) in nature and hence whether specific categories of benefit impact are legitimate for inclusion within the economic analysis. In this context we identify ‘impacts’ that we expect the project to result in, but highlight where these represent downstream effects of benefits that we do capture, and hence should not be considered as additive. We also highlight a number of benefits of the project that relate directly to the strategic rationale for the project, but that are difficult to meaningfully quantify within the economic appraisal. Nevertheless, they do form part of the overall economic case, and should be considered within an overall assessment of Value for Money, alongside the benefit-cost analysis. The benefits and impacts related to the enhancement of the public realm that we have considered are shown in the diagram below.

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Transport benefits Wider impacts

Private sector / inward investment

Commercial property impacts • Increased floorspace • Increased rents Page 91 Page Increased Land value uplift Economic impacts Public realm enhancement attraction of OSD • Agglomeration • Labour supply Urban realm benefits • Jobs • GVA Externalities • Tax • Collisions • Travel times Retail impacts • Air quality (NOx) Increase overseas visitor • Increased footfall retail spend Key • Increased dwell times Increase domestic spend Included in CBA Impact considered qualitatively / illustratively Private sector / inward investment Second order benefit Catalytic effect

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3.4.1 Transport benefits We have estimated transport-related benefits and impacts using standard and accepted approaches to the appraisal of transport impacts (including of public realm), prepared in line with TfL’s Business Case Development Manual and DfT’s WebTAG guidance. The largest transport benefits relate to public realm improvements. These benefits are based on willingness to pay for improvements to the public realm from TfL stated preference research. The economic appraisal case includes the following benefits and impacts:  Public realm - valuation of public realm improvements, based on TfL’s Business Case Development Manual (BCDM) to “monetise” improvements to pedestrian ambience, such as increased pavement widths, improved street lighting and street furniture, and cycle ambience, such as greater segregation from motorised traffic.  Road safety - valuation of benefits of reductions in road traffic collisions, based on changes to the road network associated with the scheme. As traffic modelling of the business case options is not yet available, highways impacts, bus passenger impacts and air quality impacts have been assessed qualitatively using professional judgement at this point.

3.4.2 Other economic benefits The OSD scheme will result in a range of economic effects, as a range of economic actors respond to the opportunities created by the project. These economic actors include individuals (workers, shoppers, visitors), existing firms (commercial businesses, retailers, leisure), landowners, developers and investors. Depending on the nature of the response, the resulting economic impacts could be net additional, wholly or partially displaced (geographically e.g. between the West End and other parts of London), and a transfer effect (e.g. taxation, or between landowners who ‘gain’ and businesses who ‘lose’ from increased rents). As these effects would be indirectly enabled by the OSD strategy (in conjunction with many other measures, such as planning policy), it would be difficult to robustly attribute a precise portion of these effects to the OSD strategy itself. We have therefore discussed them qualitatively using the available evidence, presenting illustrative calculations where possible. These economic impacts include increased employment and GVA.

3.5 Cost-Benefit Analysis – Approach to Analysis In addition to Treasury Green Book guidance and associated DfT guidance, as described above, the economic appraisal has also been undertaken in line with TfL guidance relating the valuation of specific transport and public realm-related benefits. The economic appraisal has been based on the following key assumptions:

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 An opening year of 2023. For the purposes of comparative appraisal, we have employed the same assumed opening year and appraisal period for the Do Minimum and Do Something;  An appraisal period of 30 years from opening. This is consistent with DCLG appraisal guidance and reflects the likely asset life of the infrastructure;  Discount rate of 3.5%, in line with the Treasury Green Book and Departmental guidance;  Values of accidents, value of time and growth in values of time based on DfT’s WebTAG;  An optimism bias rate of 44% applied to the capital cost estimates, in line with DfT guidance;  All discounted costs and benefits have been converted to 2010 prices and values, in line with DfT guidance; and  The impacts above are all presented relative to Option 1 (Do Nothing).

3.5.1 Scheme Costs Within Appraisal (i) Capital costs The base capital costs for each of the options is as set out in the Financial Case. For the purposes of the economic appraisal we have profiled the costs based on the WCC’s programme (see Management Case). The capital costs used within the appraisal are summarised in the table below. Table 3.2: Capital costs used within the economic appraisal Scheme option Total cost (£m) Option 2 (Oxford Street) 101 Option 3 (Phase 2) 150 Option 4 (All phases) 236 Within the economic appraisal we have also applied a ‘market price adjustment’ of 19% to all costs (this reflects the average rate of indirect taxation) to ensure that costs and benefits are in the same unit of account.

(ii) Revenue costs Maintenance and renewal costs are expected to reduce in Options 2, 3 and 4 in comparison to the Do Nothing option, as the replacement of old and worn materials with new materials across the OSD area is likely reduce the need for upkeep and renewals. Notwithstanding this, we have applied a conservative approach and assumed that the change in maintenance and renewals costs (relative to the Do Nothing) in Options 2, 3 and 4 is zero.

There is expected to be an increase in management costs in comparison to the Do Nothing option. The need for improved management of the OSD area was highlighted during public consultation; therefore, the same increased level of management will be implemented across Options 2, 3 and 4. The management costs used within the appraisal are summarised in the table below. This is high level estimate which will be refined as design progresses.

Table 3.3: Management costs used within the economic appraisal

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Category Cost (per annum) £’000 Enhanced blended team (including city inspector, 870 enforcement and engagement elements) Rough Sleeping Service 100 HVM Asset Management and Maintenance 533 Waste and Cleansing 1,440 Parks Maintenance and Security 245 Management and upkeep of planters, water 100 fountains etc. Air Quality Monitors 92 TOTAL 3,380

This results in an operating cost of £3.38m per annum for Option 2, 3 and 4, which is applied from the opening of the scheme (2023). The costs for an enhanced blended team and Rough Sleeping Service (totaling £970,000 per annum) are also applied during the construction period (2019 to 2022). These nominal figures will increase in the future due to inflation.

As WCC does not have any funding to cover these additional management costs, private sector funding will be sought to cover them (iii) Opportunity costs Given that the schemes involve changes to the public highway, opportunity costs (related to the alternative use of land) are not applicable.

3.5.2 Public realm benefits (pedestrians and cycles) In order to quantify and value pedestrian user impacts of the project, we have employed the 2017 version of TfL’s BCDM. The BCDM has been developed by TfL to provide objective, evidence-based justifications for investment, and includes valuation of changes to pedestrian ambience. In monetising some of the less tangible benefits of better streets and spaces, BCDM enables them to be considered on equal terms with conventional time-saving, safety and other benefits, in summary:  We identified the number of pedestrians on each street. This is based on observed count data for different sections of each location. For streets where count information is not available, then we have made assumptions based on nearby counts. This has been converted into the annual number of visitors on each street.  Future year flows have been estimated based on growth factors extracted from TfL’s Railplan model, that consider the impact of the Elizabeth Line. Distance decay functions have been applied, so that growth is strongest on pedestrian links closest to Elizabeth Line station entrances. In addition, a background growth in pedestrian flows of 2% per annum has been applied, to account for population and employment growth in London.

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 Using TfL’s Ambience Benefits Calculator spreadsheet, we identified relevant pedestrian ambience attributes that would be affected by each scheme. This has enabled us to value the impacts on pedestrian ambience. Overall, conservative assumptions have been used, which means that the benefits associated with the district street improvements are likely to be understated. The results of the public realm valuation are presented in the Economic Appraisal results section. A similar approach was taken to ambience benefits for cycles. (i) Additionality The public realm benefits are benefits perceived by pedestrians from the enhanced pedestrian environment. The basis of transport appraisal is that these ‘first order’ benefits are net additional – existing users who experience a better pedestrian environment are undergoing the same activity as in Option 1, so no displacement effects are relevant. The same applies to benefits to cyclists from an enhanced cycling environment.

3.5.3 Impacts on general traffic As the traffic interventions included in the scheme (the minor interventions to facilitate traffic operation changes) have not yet been designed in detail, NRP are unable to carry out modelling of the vehicle journey time impacts. However, as there is no significant rerouting of traffic included in any the scheme options, based on their professional judgement they have assessed that there will be a neutral impact on vehicle journey times across the Oxford Street District area. Based on this, vehicle journey time impacts have not been quantified or monetised at this point. However, NRP have used their professional judgement to assess that Option 2 will have the following impacts on general traffic:  Buses: The creation of the piazza areas to the west and east of Oxford Circus mean that buses will need to divert onto other streets to continue their journeys. The adjacent road network is not currently designed to accommodate these movements and the diversion routes would be prohibitively long with unacceptable increases in journey times.  Other traffic: Traffic will be displaced from Oxford Street and with no mitigation or management of it, there would be an increased in congestion. The impact of congestion is likely to be felt most on narrow residential streets. This highlights that Option 2 is not feasible. For Options 3 and 4, displacement takes place but the changes to the surrounding network improve the capacity required to mitigate this. Therefore, it is likely that there will be no increase in overall congestion across the Oxford Street District area under Options 3 and 4.

3.5.4 Benefits of reductions in road traffic collisions The reduction in traffic collisions has been estimated based on a thorough review of all recorded personal injury collusions with the immediate area affected by changes to the highway network as a consequence of the scheme. This analysis used collision records for a 60-month period as a

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starting point. Royal Society for the Prevention of Accidents (RoSPA) collision saving forecasts we used, to estimate collision savings based on the changes to the road network associated with each scheme. It also encompassed a review of expected changes to traffic composition, alterations to junction configurations and on-board bus passenger casualties. Compared to Option 1, there is expected to be a reduction in casualties of 35 per year in Option 2, 62 per year in Option 3 and 84 per year in Option 4. These reductions have been valued based on the estimated severity of the casualties saved, to which casualty valuations from WebTAG guidance have been applied. (i) Additionality The theoretical basis for the estimating of transport accident benefits is that the overall benefit is net additional. Within this overall net additional impact, there will be distributional effects as some roads experience less traffic (and reduced accident rates) whereas others will experience more traffic. However, as outlined above, NRP have assessed that there will be a neutral impact on road traffic, as there is no significant rerouting of traffic included in any of the scheme options. As the traffic interventions included in the scheme (the minor interventions to facilitate traffic operation changes) have not yet been designed in detail, NRP are unable to carry out modelling of the displacement of traffic and road traffic collisions. NRP are therefore unable to state the specific streets where displacement will occur at this stage, as their traffic modelling is not currently available. However, they have assessed that traffic will be displaced from Oxford Street to the district streets. We would therefore expect the net impact on road safety to be additional, as traffic is being displaced from a busier road to streets with less incidents of conflicts. There is a fundamental conservatism in this approach, as it relates solely to the immediate area affected by highway network changes. It should be noted that from a scheme and policy perspective the policy priority and imperative of WCC is to enhance the quality of the pedestrian environment and public realm, and to reduce levels of vehicular traffic within Westminster. This will further reduce the likelihood of collision migration.

3.5.5 Impacts on air quality As explained in Appendix XX, detailed air quality modelling is not yet available for the business case options. However, traffic consultants have drawn upon previous air quality modelling to make informed estimates of the likely benefits and impacts that the scheme will have on vehicle emissions and therefore air quality. These potential impacts are summarised in Table 3.4 below. Table 3.4: Potential air quality impacts

Option Oxford Street Wider district Option 1 Based on previous analysis, it is expected that ‘the Do Nothing (2021) (due to anticipated changes in the vehicle fleet associated with ULEZ, Euro VI buses and zero emission taxis) will create a significant benefit in reducing exposure, for residents, employees and pedestrians’ Option 2 Significant further reduction in vehicle emissions Increased vehicle emissions in the surrounding on Oxford Street over and above those achieved area relative to Option 1 caused by the lack of by Option 1 mitigation of reassigned traffic and the expected traffic congestion that would occur.

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Option 3 Significant further reduction in vehicle emissions Largely neutral impact on the surrounding area on Oxford Street over and above those achieved relative to Option 1 as for the most part by Option 1 potential traffic reassignment impacts would be mitigated Option 4 Significant further reduction in vehicle emissions Scope for improved emissions across the wider on Oxford Street over and above those achieved district as additional, local schemes that seek to by Option 1 more than mitigate potential reassignment impacts would be developed and delivered.

Source: NRP In addition to the above, under all options WCC is committed to the following measures to address the issues of poor air quality across the district that would be anticipated to further build upon the measures already in progress that form the basis of Option 1:  Improve the street environment to encourage walking and cycling and reduce the general need for vehicle trips in and through the district.  Work with landowners, BIDS, local businesses and stakeholders to minimise, consolidate and manage the movement of freight and servicing more efficiently in order to reduce vehicle movements.  Accelerate the adoption of zero-emission buses, taxis, private hire vehicles, and ultra-low commercial goods vehicles throughout the district; setting an ambitious schedule for banning highly polluting vehicles from Oxford Street.  Investigate and support the adoption of innovative ideas and technologies including porterage and cargo bike schemes, kerbside monitoring, flexible use of kerbside space (e.g. loading permitted at some times of day, pedestrian space at others), geo-fencing areas for ultra-low emission vehicles, restricted parking zones and pedestrian zones.  Monitor air quality throughout the implementation of the proposed strategy and Delivery Plan and post-scheme, and ensure this information is publicly accessible.

3.5.6 Impacts on bus passengers As noted above, traffic consultants have assessed that there will be a neutral impact on vehicle journey times across the Oxford Street District area, including the impact on buses. They have therefore assessed that the overall impact on bus passenger journey times will be neutral. Based on this, journey time impacts on bus passengers have not been quantified or monetised at this point.

3.5.7 Impacts on freight The comprehensive package of freight measures included in Option 2, 3 and 4 would have a number of benefits, with the most readily quantifiable being a reduction in freight vehicle trips, which in turn would reduce overall delays on the road network. Whilst it can be difficult to precisely determine what the impacts of such measures are, we have drawn on case studies from elsewhere in order to estimate what the impacts of the measures could be. Based on this, it was estimated that the freight measures could reduce freight vehicle traffic in the OSD by 6%.

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(i) As traffic modelling is still in progress, the benefits of this potential reduction in freight vehicle traffic have not been monetised at this point. Additionality As with other transport benefits, the theoretical basis for their estimation is that they are net additional.

3.5.8 GVA Impacts As noted in the Strategic Case, there are a number of challenges that face the district. Tackling these will therefore be necessary in order to realise the potential of the area and achieve the vision that has been set out. Arup’s West End Good Growth report identifies three future growth scenarios for the West End. Whilst this is a broader area than the OSD, it is still useful to refer to these to understand the overall potential trajectories that the OSD may take in the future, along with the factors that influence which scenario ultimately eventuates. These are:  Decline of Sorts: This sees the West End failing to adapt and respond to change. Growth is restricted and policies don’t allow business to innovate or invest successfully. There is a long term decrease in commercial space but some increase in high end residential.  Chequered Growth: This assumes no major change in economic conditions being experienced at present and somewhat limited change to planning policy. Due to supply-side constraints, investment activity in the West End will be primarily focused on redevelopment of existing buildings. The amount of commercial space falls marginally. The West End only modestly draws on the opportunities Crossrail presents.  Good Growth: The West End is able to grow and take maximum advantage of public transport capacity. Rich mix and attractiveness of the West End is enhanced. It continues to be an attractive global destination for visitors, employers and investors. In the good growth scenario the West End is able to accommodate a more diverse community of residents. Arup carried out an analysis of these three scenarios, based on the areas marked on the map below. It should be noted that the definition of the Oxford Street District that they applied differs to the one used in this business case; nevertheless, they are generally similar, and so the conclusions reached by Arup are still of relevance.

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Source: West End Good Growth, Arup, 2018 The findings of the Arup analysis in relation to the OSD are summarised in Table 3.5 below. According to this, relative to the Decline of Sorts scenario, the Chequered Growth scenario would result in additional GVA of £2bn a year, which the Good Growth scenario would result in additional GVA of around £8bn a year. There would also be a net increase of jobs of 9,000 in Chequered Growth and 36,000 in Good Growth, with an increase in business rates of £354m and £1,633m respectively.

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Table 2.5: Impacts of Arup scenarios on the OSD

Statistic Existing (2018) Decline of Sorts Chequered Good Growth Chequered Good Growth scenario (2041) Growth scenario scenario (2041) Growth scenario scenario relative (2041) relative to Decline to Decline of Sorts of Sorts scenario scenario (2041) (2041) Visitors (millions) 10 17 21 32 4 15 Overseas 3 7 11 20 4 13 Domestic 1 0 0 2 0 2

Page 100 Page Day trips 6 10 10 11 0 1 VAT (£m) before 372 766 1,105 2,132 339 1,366 deductions Residents 4,057 4,292 4,392 4,598 100 306 Homes 2,443 2,584 2,659 2,747 75 163 Net jobs (thousand FTE) 164 151 160 187 9 36 Business rates (£m) 978 520 874 2,153 354 1,633 Net GVA (£m) 15,082 12,111 14,352 20,029 2,241 7,918

Source: West End Good Growth, Arup, 2018

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What can be taken from the Arup analysis is that if action is not taken, the West End (and consequently the OSD) could take the path described by the Decline of Sorts scenario. Proactive action will need to be taken to avoid this, and facilitate either the Chequered Growth scenario at the very least, or ideally the Good Growth scenario. However, the Good Growth scenario would require many measures to enable it, of which public realm improvements will play a key part of. Whilst public realm improvements on their own would not be sufficient to enable the Good Growth scenario, it is clear that without them it would not be possible to fully realise it. The projects included in the OSD strategy would therefore help to enable the latter two scenarios, by improving the public realm, as well as by creating attractive and convenient pedestrian links across the district, therefore enabling it to seize the opportunity offered by the Elizabeth Line. However, as noted above it is also clear that the OSD strategy is only one of the many ingredients required to enable these scenarios. As such, whilst the OSD strategy will help to enable some of the increases in GVA, jobs and business rates outlined above, it could not be argued that it would be solely responsible for the entirety of them. In addition, the analysis produced by Arup focussed on the big picture, so whilst the overall conclusions reached by them are useful, the specific numbers contained in their analysis may need to be treated by caution. Another analysis was carried out by Volterra, that was focussed on the OSD. They estimated that the existing GVA of this area is £13bn year, but this relates to a slightly different area than used in the Arup report. Volterra’s report examined employment in the OSD, and whilst there are limitations associated with examining employment at a relatively small geographic scale, the analysis presented in the Volterra report is nevertheless useful in providing overall insights into the employment characteristics of the area.

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Source: Oxford Street District: An Economic Assessment, Volterra, 2018 The Volterra report divided the OSD into two sub-areas: the Inner OSD, and the Wider OSD (which incorporates the Inner OSD). For the purposes of this business case, we have drawn upon the statistics presented in the Volterra report, but for ease of comparison we have used what is termed the Outer OSD, which is Volterra’s Wider OSD excluding the Inner OSD. These are presented in 3.6 below. Table 3.6: Characteristics of the Inner OSD and Outer OSD

Statistic Inner OSD Outer OSD Area (ha) 75 162 Employment (jobs) 85,000 70,000 Employment density (jobs/ha) 1,130 805 GVA (£bn) 7 6 Floorspace (NIA, m2) 1,400,000 1,100,000 Professional services 45% 70% Retail, restaurants & cafes 53% 24% Industrial 1% 1% Other 3% 3%

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Business rates (£m) 380 275 Office 160 180 Retail, restaurants & cafes 215 80 Industrial 1 1 Other 6 8 Population (persons) 5,600 6,900 Population density (persons/ha) 74 79

Source: Oxford Street District: An Economic Assessment, Volterra, 2018 According to the Volterra report, there are about 155,000 jobs in the OSD, made up of about 80,000 in the Inner OSD and 70,000 in the Outer OSD. In terms of employment density, this translates into around 1,130 jobs/ha in the Inner OSD, which is 40% higher than the 805 jobs/ha in the Outer OSD. Another key difference is that in the Inner OSD the majority of floorspace is associated with retail, restaurants & cafes, whereas in the Outer OSD floorspace is dominated by professional services. On the other hand, population density in the Outer OSD (79 persons/ha) is higher than in the Inner OSD (74 persons/ha). Business rates collected in the Inner OSD are about £380m per year, whilst in the outer OSD the figure is £275m. The relative contribution of different sectors partially mirrors the different sectoral split of floorspace in each of the two areas, however what is notable is that retail, restaurants & cafes contributes proportionally more in business rates (relative to its share of floorspace) compared to other sectors. For comparison, Soho currently has an employment density of 1,395 jobs/ha, which is higher than the current Inner OSD density and significantly higher than the current Outer OSD density. On the other hand, the population density of Soho is 78 persons/ha, which is higher than the Inner OSD density and comparable to the Outer OSD density. What Soho therefore demonstrates is that it is possible for an area like the Outer OSD to sustain a much higher employment density, even with its current population density. It may also be the case that there is the potential for increased employment density in the Inner OSD, however as the Volterra report notes this may be limited by the higher floorspace per employee associated with the retail sector, which is much more dominant in the Inner OSD. Based on the data reviewed, the Volterra report suggests an aspirational vision to create between 2,100 and 2,800 jobs per year across the OSD up to the year 2041, with a central target of around 2,500 jobs per year. Based on the conservative assumption that GVA per job remains constant, then this level of jobs growth could result in an annual increase in GVA in the OSD of around £214m. This is also likely to increase the total amount of business rates collected. Whilst achieving this vision is likely to require more jobs throughout the OSD, the evidence presented above suggests that it is in the Outer OSD where there may be relatively more opportunity to increase employment. As such, solely focussing interventions in the Inner OSD (as is largely the case in Option 3) may prevent the vision from being met. Given that the Outer OSD is generally further away from transport nodes (such as the existing Underground stations and future Elizabeth Line stations), realising the potential of the OSD is particularly dependent on created attractive high-quality links between these transport hubs and the Outer OSD. This is only fully achieved in Option 4, suggesting that the projects included in it

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will be a key enabler in terms of achieving the levels of jobs and GVA growth suggested by the Volterra analysis. More generally, investment in Option 4 would make a more focussed contribution to achieving Arup’s Good Growth scenario, by targeting an area that has more potential for mixed-use development, building upon the opportunities inherent in the Outer OSD given its current characteristics. Finally, better integrating these parts of the OSD with its core may also result in increased rateable values in the Outer OSD, which will increase the total amount of business rates collected in this area.

3.5.9 Anticipated property impacts As set out above, the OSD is underperforming compared with other parts of the West End and other cities across the world with which it competes, yet has major potential for expansion and investment through intensification. The public realm improvements included in the OSD project are a key enabler of this, complemented by other improvements (such as planning policy). The anticipated impacts on property within the OSD are:  Increased floorspace: by either (1) new developments or (2) a greater intensity of use of existing commercial property and land, and thereby increasing the number of jobs that can be accommodated in the area;  Agglomeration benefits: agglomeration refers to the benefits of ‘clustering’ of high-value sectors in locations where they can benefit from access to a large labour pool, have access to clients and markets, and gain from ‘spillover’ effects that characterise the knowledge economy. The West End is a highly agglomerated international centre for high value activities including financial and business services, media/ creative and entertainment. Environments which support agglomeration have been shown to increase productivity (GVA per worker) - this benefit is additional to that captured within standard economic appraisal; and  Property investment / catalytic effects: as noted in the Strategic Case, some landowners have delayed investment in their stores and commercial properties pending the agreement of a funded and coordinated programme backed by the public sector and Government to address the major challenges facing the West End. We have not quantified the economic benefits associated with this potential private sector investment. However, it is clear that the OSD would act as a catalyst for wider private sector investment, and that this combination of public and private investment is required to deliver the strategic outcomes associated with the project and the wider WEP vision. One way in which to monetise, in part, the property market impacts of the project would be through an assessment of the land value uplift. Guidance from MHCLG focuses on land value uplift of residential or non-residential sites as the approach to quantifying the economic benefits of investment. While this approach is easily applied to projects on greenfield or brownfield sites where investment leads to a change in land use (e.g. from brownfield to housing), the approach does not lend itself to projects in historic townscapes with a mix of uses. The OSD project will increase the value of land in the area, as it becomes more attractive for people to shop, work and visit, and for business to invest and locate. Consequently, this would result in a greater level of economic activity in the area (more jobs and GVA as noted above).

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There are two main reasons why we have not included land value uplift within the economic appraisal. First, the increased ‘value’ created will, in large part, be either displaced (e.g. if values increase in the OSD, there could be a corresponding decrease elsewhere on the basis that the overall level of economic activity at the UK level is broadly the same), or represents transfers between economic actors (e.g. increased land value for property owners would be offset by increased rents for occupiers). Second, to include land value uplift would involve an element of double counting with the GVA benefits that are discussed above.

3.6 Economic Performance: Cost-Benefit Analysis This section presents the results of the appraisal following the methodology set out above. Benefits and costs presented in this section are relative to Option 1. As set out above, the costs include an allowance for optimism bias of 44%.

3.6.1 Economic appraisal of Option 2 (i) Benefits and impacts Table 3.7 below summarises the impacts of Option 2 relative to Option 1. Table 3.7: Costs, benefits and impacts associated with Option 2

Public Costs and Revenues (2010 PV) £m CAPEX (Public) 109 OPEX (Public) 0 Maintenance 0 Net public costs (PVC) 109 Private Impacts (2010 PV) £m CAPEX (Private) 0 OPEX (Private) 54 Social Benefits to Users (2010 PV) £m Urban Realm Benefits 1,395 Casualties 25 Net social benefits (users) 1,420

The key drivers of the overall economic performance under the central case scenario are:  The public realm benefits, which total £1,395m PV under a central scenario. These primarily accrue to pedestrians on Oxford Street.  Casualty benefits, which are valued at £25m. (ii) Economic performance The cost benefit analysis for Option 2 is presented in Table 3.8 below.

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Table 3.8: Economic performance of Option 2

Economic performance Central PVC 109 PVB 1,366 NPV 1,258 BCR 12.57

The economic appraisal shows that:  The benefits of the scheme far outweigh its costs, with a BCR of 12.57 that demonstrates very high value for money.  However, it should be noted that this excludes potentially negative traffic congestion, bus passenger and air quality impacts on streets surrounding Oxford Street, caused by the lack of mitigation of reassigned traffic and the expected traffic congestion that would occur. In any case, as discussed elsewhere this option would not be feasible to implement, due to the unmitigated impacts of buses and traffic that are displaced from Oxford Street.

3.6.2 Economic appraisal of Option 3 (i) Benefits and impacts Table 3.9 below summarises the impacts of Option 3 relative to Option 1. Table 3.9: Costs, benefits and impacts associated with Option 3

Public Costs and Revenues (2010 PV) £m CAPEX (Public) 161 OPEX (Public) 0 Maintenance 0 Net public costs (PVC) 161 Private Impacts (2010 PV) £m CAPEX (Private) 0 OPEX (Private) 54 Social Benefits to Users (2010 PV) £m Urban Realm Benefits 1,478 Casualties 42 Net social benefits (users) 1,520

The key drivers of the overall economic performance under the central case scenario are:  The public realm benefits, which total £1,478m PV under a central scenario. These primarily accrue to pedestrians on Oxford Street and other streets in the Oxford Street District. The increase in the value of these benefits relative to Option 2 is almost £200m which is a

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significant amount, but it is a proportionally small increase due to pedestrian flows on these other streets being lower than the extremely high level on Oxford Street.  Casualty benefits, which are valued at £42m. (ii) Economic performance The cost benefit analysis for Option 3 is presented in Table 3.10 below. Table 3.10: Economic performance of Option 3

Economic performance Central PVC 161 PVB 1,466 NPV 1,305 BCR 9.09

The economic appraisal shows that:  The benefits of the scheme far outweigh its costs, with a BCR of 9.09 that demonstrates very high value for money.  This BCR is lower than for Option 2. This is because whilst the marginal benefits of this option (relative to Option 2) far outweigh the marginal costs, the marginal BCR is lower than the 12.51 for Option 2. However, as Option 2 is not feasible to implement, the additional cost associated with Option 3 should also be viewed as a necessary cost for enabling the improvements to Oxford Street itself to be implemented.  In addition, this excludes the potentially neutral air quality impact of this option, relative to the potentially negative impact of Option 2.

3.6.3 Economic appraisal of Option 4 (i) Benefits and impacts Table 3.11 below summarises the impacts of Option 4 relative to Option 1. Table 3.11: Costs, benefits and impacts associated with Option 4

Public Costs and Revenues (2010 PV) £m CAPEX (Public) 162 OPEX (Public) 0 Maintenance 0 Net public costs (PVC) 162 Private Impacts (2010 PV) £m CAPEX (Private) 91 OPEX (Private) 54 Social Benefits to Users (2010 PV) £m

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Urban Realm Benefits 1,704 Casualties 86 Net social benefits (users) 1,790

The key drivers of the overall economic performance under the central case scenario are:  The public realm benefits, which total £1,704m PV under a central scenario. These primarily accrue to pedestrians on Oxford Street and other streets within the district. This is over £200m higher than for Option 3, due to the larger number of streets included in this option.  Casualty benefits, which are valued at £86m. (ii) Economic performance The cost benefit analysis for Option 4 is presented in Table 3.12 below. Table 3.12: Economic performance of Option 4

Economic performance Central PVC 162 PVB 1,645 NPV 1,483 BCR 10.15

The economic appraisal shows that:  The benefits of the scheme far outweigh its costs, with a BCR of 10.15 that demonstrates very high value for money. This BCR is slightly higher than for Option 3, as the marginal costs of this scheme are borne by the private sector. For the purposes of the BCR calculation, the denominator is only made up of public sector costs, and the private sector contribution is counted as a disbenefit in the numerator.  In addition, this excludes the potentially positive air quality impact of this option, relative to the potentially neutral impact of Option 2. What this quantified analysis does not capture is the likely greater impact of this option (compared to Option 3) in terms of supporting the intensification of a diverse range of economic activity across the entire district, therefore enabling higher employment and GVA growth.

3.6.4 Commentary on security and hostile vehicle mitigation The OSD, and particularly Oxford Street itself, are both highly crowded and iconic locations. Unfortunately, this makes them attractive targets for hostile activity. WCC is working on a wider strategy addressing security concerns, and in particular Hostile Vehicle Mitigation (HVM), following the tragic incidents at Westminster Bridge/Houses of Parliament and at London Bridge. The increased numbers of pedestrians expected from the Elizabeth Line increases the imperative to deliver security measures quickly, and the OSD project brings the opportunity to deliver this through designs that are incorporated into the wider public realm strategy. In this way the project

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can deliver the enhanced security whilst avoiding a “fortress” impression that would be harmful for the economic prospects for central London. There are very clear economic benefits associated with HVM measures. These not only include the value associated with preventing fatalities and injuries, but also the value of avoiding negative impacts on businesses and the wider economy in the aftermath of an attack. As such, it is clear that there would be a clear (and potentially very large) economic benefits associated with the HVM measures included in Options 2, 3 and 4. However, it is difficult to quantify these robustly, given the great uncertainties regarding the probability, nature and scale of a future terrorist attack on Oxford Street. In any case, the decision on whether HVM measures should be included in the scheme does not rest on a benefit cost ratio. Therefore, whilst it is clear that there will be economic benefits from the HVM measures that are included, these impacts are difficult to quantify and have therefore not been monetised.

3.6.5 Other non-monetised benefits As outlined in the Strategic Case, there are a number of economic benefits which have not been monetised, in particular, investments by retailers, office occupiers, land owners and developers, which are anticipated to lead to intensification in the use of space, making the area far more efficient in terms of land use. Furthermore, competition from other prime locations around the world, such as New York, Paris and Hong Kong means that investments to improve the visitor experience are vital to maintain London’s, as well as the West End’s, competitive position internationally. Non-monetised benefits are included below.  Pedestrian travel time savings – at this stage of the design process, it has not been possible to generate monetised estimates for changes in travel times for pedestrians. Nevertheless, it is expected that these impacts would be positive in Options 2, 3 and 4, due to reduced pedestrian travel times due to the much greater ease of crossing north-south across OSD, and also reduced pedestrian crowding.  Cycling benefits – this forms an important aspect of the project proposals. Whilst we have monetised cycle ambience benefits, there are other benefits that have not been included in the economic appraisal, such as:  Time savings: improved journey times;  Growth in cycling and modal shift from other transport modes: by providing a coherent and safe cycle network this will support the overall trend towards increased cycling in central London and will reduce trips made by other modes of transport;  Environmental benefits: reduced use of motorised vehicles with associated improvements in air quality and reduced noise pollution;  Road safety: reduced conflict between cycling and motorised traffic and therefore a reduction in the rate of traffic accidents;  Health and productivity: studies show that increasing the number of trips made by cycling in central London is likely to result in health benefits that will provide a positive

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impact in terms of increased productivity for employees and reduced costs for the National Health Service;  Providing missing connections: the OSD does not currently provide any continuous and direct cycling facilities to connect the various areas within the district. Improvements will open up new opportunities for growth and will improve the user experience; and  Other considerations: There are also the employment and GVA benefits that could be associated with increased floorspace, with the project potentially supporting a greater intensity of use of existing commercial property and land, and thereby increasing the number of jobs that can be accommodated within an area. (i) Programme Wide Items As noted in the Strategic Case, there area number of cross-cutting issues that need to be tackled as part of the programme Measures to address these issues have not been included in this economic case but are being developed to ensure a rounded approach is taken to address the long-term challenges that threaten the success of the district. They are:  Freight engagement  Lighting strategy  Culture and public art strategy  Landscape and planting strategy  Play strategy  Study to accelerate the adoption of low emissions vehicles

3.7 Sensitivity and Optimism Bias We have undertaken a range of sensitivity tests to assess the robustness of the central case appraisal under a range of scenarios. The scenarios considered are:  Lower level of optimism bias: The central case assumes a 44% level of OB, whereas the sensitivity assumes 20%.  Upper and lower range public realm benefits: We have assessed the impact on the appraisal with the public realm benefits at a +/-25% level compared to the central case.  A delay to project opening of two years: This is proxied by delaying the benefits stream by two years, and keeping the costs based on the original profile. The sensitivity analysis shows that the BCR remains positive and remains very high for all of the scenarios considered for all of the options. The lower BCR that occurs is 7.14 in Option 2 where urban realm benefits are reduced by 25%. This demonstrates the robustness of the economic appraisal. Table 3.13: Option 2 sensitivity tests

Sensitivity test PVC (2010 £m) PVB (2010 £m) NPV (2010 £m) BCR

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Central 109 1,366 1,258 12.57 Lower optimism bias (20%) 91 1,366 1,276 15.08 Urban realm benefits +25% 109 1,769 1,660 16.27 Urban realm benefits -25% 109 1,072 963 9.86 Delayed opening 109 1,312 1,203 12.07

Table 3.143: Option 3 sensitivity tests

Sensitivity test PVC (2010 £m) PVB (2010 £m) NPV (2010 £m) BCR Central 161 1,466 1,305 9.09 Lower optimism bias (20%) 134 1,466 1,331 10.91 Urban realm benefits +25% 161 1,889 1,728 11.72 Urban realm benefits -25% 161 1,150 989 7.13 Delayed opening 161 1,407 1,246 8.73

Table 3.15: Option 4 sensitivity tests

Sensitivity test PVC (2010 £m) PVB (2010 £m) NPV (2010 £m) BCR Central 162 1,645 1,483 10.15 Lower optimism bias (20%) 135 1,645 1,510 12.18 Urban realm benefits +25% 162 2,216 2,054 13.68 Urban realm benefits -25% 162 1,364 1,202 8.42 Delayed opening 162 1,579 1,417 9.75

3.7.1 Switching values Switching values have been tested for the value of urban realm benefits and public capital costs to generate a BCR of 1, as shown in Table 3.16 below.  Urban realm benefits: For all of the options, the urban realm benefits would need to reduce by approximately 90% to result in a BCR of 1. For Options 2, 3 and 4, it would need to decrease by 90%, 88% and 87% respectively.  Public CAPEX: For all of the options, public CAPEX would need to increase by a very significant factors to results in a BCR of 1. For Options 2, 3 and 4, it would need to increase by 1153%, 812% and 915% respectively. Table 3.16: Switching values (2010 PV £m)

Scenario Option 2 Option 3 Option 4

Central case 1,395 1,478 1,704 Urban realm benefits Switching value (to reach a BCR of 1) 137 174 221

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Central case 109 161 162 Public CAPEX Switching value (to reach a BCR of 1) 1,366 1,466 1,645

3.8 Key Findings

3.8.1 Appraisal Summary Table (AST) The Appraisal Summary Table is include in Table 3.3.17 below.

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Table 3.17: Appraisal Summary Table (AST)

Option 2 (Relative to Do Option 3 (Relative to Do Option 4 (Relative to Do Nothing) (2010 PV £m) Nothing) (2010 PV £m) Nothing) (2010 PV £m) Present Value Benefits – based on Green Book principles and Green Book Supplementary and Departmental guidance

A Net social benefits (users) 1,420 1,520 1,790

Private Sector Costs -54 -54 -145

B Present Value Public Costs / (Surplus) 109 161 162

Net Present Value [A -B] C

Page 113 Page Net social benefits 1,258 1,305 1,483

Benefit-Cost Ratio [A/B] D Net social benefits 12.57 9.09 10.15 Likely vehicle journey time Likely neutral air quality, and bus passenger impacts; vehicle journey time and potentially positive air bus passenger impacts quality impacts Potentially negative air Some contribution to Strong contribution to E Significant non-monetised impacts quality, vehicle journey time achieving employment achieving employment and bus passenger impacts intensification in a diverse intensification in a diverse range of economic sectors, range of economic sectors, increasing GVA and business increasing GVA and business rates rates F Value for Money (VfM) Category Very High value for money Very High value for money Very High value for money Very High value for money Very High value for money Very High value for money is achieved, and this is achieved, and this is achieved, and this remains robust under a remains robust under a remains robust under a G Switching Values and rationale for VfM category range of sensitivity tests range of sensitivity tests range of sensitivity tests See Table 3.16 for switching See Table 3.16 for switching See Table 3.16 for switching values values values

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As analysis of the options is As analysis of the options is As analysis of the options is still ongoing, values may be still ongoing, values may be still ongoing, values may be H Risks subject to change as more subject to change as more subject to change as more detailed analysis becomes detailed analysis becomes detailed analysis becomes available available available Not feasible to implement in isolation, due to I Other issues N/A N/A unmitigated impacts from displaced traffic and buses Benefits and costs under proposed BCR metric Consumer and business External impacts and public

impacts sector finance impacts

Page 114 Page Net social benefits (public realm, accident reductions) Present Value Benefits (numerator) Private sector funding for capital and operating costs (Section 106, CIL, other) Public sector funding for Present Value Costs (denominator) capital costs (WCC)

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3.8.2 Overview Putting aside Option 2 (which would not be feasible to implement), the key finding from the economic analysis is that both Option 3 and Option 4 represent overall very high value for money based on their economic performance against Option 1. Key points include:  There is a very strong quantified case for the implementation of both of these options, even based on the limited range of benefits that have included in the quantified assessment at this point. Conservative assumptions have generally been taken to the quantification of benefits, meaning that the case remains robust even if further detailed work results in changes to some of the input data used. This robustness is demonstrated by the sensitivity tests and switching values presented.  Option 4 has a higher BCR than Option 3, as it creates higher benefits (particularly related to the urban realm), whilst the marginal costs for Option 4 are not met by the public sector.  It is clear that both options would contribute to maintaining and growing a diverse economy in the district, by enabling (along with other measures) intensification of employment across the district. This has not been quantified, given the difficulty of reliably isolating the contribution that the options would make, but if it were possible to include this impact in the BCR calculations then the value for money case would be even stronger. What is evident though is that Option 4 would make a larger contribution to Option 3, particularly because it will enable intensification in the outer part of the district, where there is likely to be more opportunity to achieve this. This also means that Option 4 is also likely to boost business rates to a greater extent than Option 3.  As traffic modelling in ongoing, certain impacts (including vehicle journey times, bus passenger impacts and air quality) have not been quantified. Based on professional judgement, these impacts are considered to be generally neutral in Options 3 and 4, with a potentially positive air quality impact in Option 4. Notwithstanding this, even if further analysis shows that there are some negative impacts, these would need to be extremely large to outweigh the significant public realm benefits.

3.8.3 Recommendations The case for Option 3 clearly meets the overall strategic rationale for the project, as set out in the strategic case. It also has strong and robust economic performance, delivering very high value for money. As such, it is recommended that this option is taken forward, as the case for public sector funding to implement it is clear. Whilst public sector funding may not be available to cover the marginal cost of implementing Option 4, the analysis presented here demonstrates how it would play a key role in improving connectivity across the district, therefore supporting intensification of economic activity where there is the most potential to do so. It is therefore recommended that WCC work with the private sector to secure the investment necessary to implement it.

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4 Commercial Case

4.1 Delivery Model

Procurement and delivery will be led by WCC. A project team will be created including a Project Director, Project Managers and range of specialist advisors. This team will be responsible for all aspects of project planning and delivery for the Oxford Street District and will report through the governance arrangements established for the project as set out in the Management Case. To realise the ambition in this high profile and challenging environment, and given the scope of public realm works required, a design and build contract is considered most appropriate. The procurement of the Design and Build Contract will be covered by existing staff within the Procurement, City Highways, Place Shaping, Legal and Finance teams with the support from NRP under an existing Highways contract, Trowers and Hamlin and Ernst and Young Global Ltd.

4.2 Procurement Strategy The proposed procurement exercise for The Oxford Street District Place Shaping project will ensure focus on reaching the best commercial arrangement with a quality service provider of suitable experience and compliance within relevant procurement regulations. A significant Soft Market Testing exercise was held with over 30 potential bidders in attendance that included discussion on partnership, sub-contracting, contract packaging, stakeholder engagement, evaluation criteria (Price/Quality ratios) and performance indicators. The intention was to be open and transparent with potential bidders to attract market interest from individual providers or from a consortium of providers and to ‘de-risk’ the procurement as much as possible from project commencement. The approach the Council are taking for this procurement is to use the flexibility and allowed negotiation included in the competitive procedure with negotiation (CPN) in the Public Contracts Regulations 2015. This procedure has already been approved by WCC Board and is supported by a similar paper to Council Members. The first specific stage prior to launching this procedure from an options analysis presented is to engage with the supply market in the form of a Soft Market Test Event (SMTE). Procurement Services were commissioned to advise on the route to market to secure a service provider that can deliver the Council’s ambition for the district and achieve a quality outcome in a difficult and challenging environment. The following options were considered:  Procure through existing Highway contract – the limits of the existing contract for the value of works per scheme mean that this option cannot be pursued.  Use of construction framework arrangements – several construction framework contracts exist for engineering and construction services. These offer the option to draw down against pre-agreed contract terms with established providers. However, the ability to tailor these arrangements to the client’s specific needs for delivery and commercial terms is limited. There is no guarantee therefore that the frameworks offer value for money. More

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importantly, there is a very real risk that the providers on the frameworks do not understand the challenges of working in central London, leading to the potential for delays, increased cost and reputational damage.  Procure the construction services in an open market – procuring the Oxford Street District Design and Build contract directly provides an opportunity to secure a commercially competitive service that meets the Council’s financial and quality requirements. This option will be open and transparent and will attract a lot of market interest from suppliers or from a consortium of providers. This is the option being recommended. Several routes to market were considered including the open, restricted or competitive dialogue (CD) process. In discussion with Procurement, and recognizing that many suppliers may not appreciate the context of construction in Westminster, the Competitive Procedure with Negotiation (CPN) route is to be pursued. This procedure is similar to the Restricted route but allows for negotiation as part of the process. This is only applicable where the works or services in question include design or innovation where there are technical, complex, financial or legal matters that require clarification and discussion with the bidders before the contract can be awarded. Negotiation under this procedure is not mandatory. The steps under this procedure are:  A formal notice to the supplier market  Pre-Qualification and shortlisting stage  Shortlisted contracting organisations are invited to submit initial tenders  The initial tenders so as to improve them and can then invite further / refined tenders which it then negotiates  During the negotiation stage, each contracting organisation will be invited to discuss and develop their tender outline proposal. The negotiation stage will end once it is clear there are proposals which WCC believes are robust, affordable and correlate closely with the aspirations for the project  Bidders then submit a final tender  These final tenders are evaluated and a contracting organisation is appointed subject to the necessary approvals preferred partnership plan is agreed. The competitive procedure with negotiation provides that interested suppliers submit initial tenders which form the basis for negotiation with the Council. Any subsequent tenders (other than the final tenders) can also be negotiated by the Council to a point where there is at least one robust, realistic, affordable proposal the council could approve as a solution to the planned regeneration aspirations for the Oxford Street District Place Shaping Project. This procedure allows identification from the open market of suitably qualified and experienced contractors and to refine submissions, as necessary, during the negotiation stage..

The Council remains open as to how bidders approach this commercial opportunity whether via Special Purpose Vehicles (SPVs), partnerships or other arrangements. The procurement strategy

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seeks to drive innovation, creative thinking and a commercial approach that achieves delivery within reasonable timescales and ensures stakeholder management and, particularly public liaison, are of the highest quality. The contract scope is to deliver Initial Designs, Detail Design stages and the construction of high- quality public realm and highway improvements across the district. The contract will allow the use of specialist sub-contractors who have significant experience in complex traffic modelling, urban design, landscape architecture and architecture. The contract is also geared to incentivise delivery through appropriate financial performance mechanism Given the technical nature and challenging timescales of the procurement, the Council has, via the Compliance and Audit Services contract, retained the services of Norman Rourke Pryme (NRP) to prepare the technical specifications, pricing schedules and provide support with the evaluation of the submitted bids. NRP have the experience and understanding of the Westminster service contracts having supported the procurement of the Highways Term Contract in 2013. They are specialist in highways contracts, have an in-depth understanding of the market and, more importantly the context of working in Westminster. NRP supported the recent successful procurement of the West End Project (Tottenham Court Road) for the London Borough of Camden and have been retained to audit and monitor this contract. Trowers and Hamlins LLP have provided external legal support to the internal legal team. Ernst and Young Global Limited are supporting the Finance Team in respect of the financial aspect of the bids.

4.3 Implementation Timescales An outline procurement programme is shown in Table 4.1 below. The programme is ambitious but achievable assuming key decisions and consultation outcomes keep to the existing timetable. It is expected that once the contract is approved it will take three to five years from commencement to complete the programme, subject to the final scope and funding.

Table 4.1: Procurement Programme Milestone Date Publish PIN (Complete) Sept 18 Soft Market Testing (Complete) Nov 18 Publish OJEU (Complete) Nov 18 Evaluate & Shortlist – Initial supplier submissions. Mar 19 Invite shortlisted suppliers to submit initial tenders. Mar 19 Negotiation Stage May 19 Suppliers submit Final tenders May 19 Evaluate/Moderate June 19 Preferred Bidder Identified Jul 19

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Gate 2 paper/Board Approval Aug 19 Contract Sign Off Aug 19 Contract Start Date Aug 19

4.4 Contract Management Approach The contract will be managed by WCC who has significant experience of managing high value, complex contracts of this nature and has a strong reputation for delivering high quality schemes on-time and within budget. Key staff have been upskilled in the new NEC 4 form of contract to ensure that they are up to date with the new forms of contract and their obligations under that form of contract. A gate process has been added to the form of contract so that the Council has control of key elements of the programme. The contract management approach to the project is to ensure continuous sequential work streams are delivered to provide the greatest efficiency and value for money possible. For a project of this size, scale, complexity and importance this approach is common and the timescales are realistic and achievable. The deliverability and phasing of the programme have been verified by the Council’s design and works contractor (FM Conways and WSP respectively) who have significant experience of delivering large scale highways and public realm improvements in densely urban city centre environments like Westminster and Camden. WCC will ensure that contacts adopt a range of key outputs to maximise the wider benefits of this project wherever possible including:  Social value: Local training apprenticeships and local jobs, especially for those Westminster and Camden residents that are long term unemployed. This will include the consultants and contractors providing support and mentoring programmes for local residents to either ensure they are work ready and/or can continue being employed post the completion of the works;  Support for SMEs: A number of the contacts let for various elements of the design and works phases of the project are likely to be applicable and relevant to SMEs, especially creative worksteams which are more likely to be dominated by small businesses. e.g. public art;  Supply chain: As with most projects of this nature, there will be a number of bespoke design features (e.g. street furniture, street lighting, public art and other street furniture). The supply chain is likely to include UK suppliers and manufacturers. Even where supplies are likely to only be available from outside the UK (e.g. granite paving) these will be procured through UK suppliers so that there are wider benefits within the UK; and  Environment/sustainability: Partners will ensure that sustainability is included as an important contract KPI. WCC aims to maximise the percentage of existing materials are recycled and not sent to land fill. It will use the Oxford Street District as an exemplar project for best practice for future public realm and highways schemes.

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5 Financial Case

5.1 Capital costs As detailed in the business case there are three phases. Option 3 covers phases 1&2, option 4 covers all phases (option 1 & 2 have now been discounted)

 Phase 1 involves immediate maintenance and safety related works  Phase 2 involves the delivery of the proposed changes to Oxford Street, plus any related enabling works that will need to take place across the district streets  Phase 3 involves the work on the wider Oxford Street District to deliver the full strategy.

The estimated costs are demonstrated in the table below: Table 5.1 – Programme costs £m £m £m £m Area Phase 1 Phase 2 Phase 3 Total Construction 3.0 75.6 43.9 122.5 Utilities Costs - 11.3 6.6 17.9 Professional Design and - 11.3 6.6 17.9 Survey Costs Client, Management Costs - 6.7 3.4 10.1 Indexation - 10.9 2.7 13.6 Risk & Contingency - 34.2 19.1 53.3 TOTAL 3.0 150.0 82.3 235.3 The outline cost estimate shows an indicative total project cost of £235.3 million to complete implementation of all elements of the programme on presently available information and assumptions (outlined below). Of which option 2 costs £150m (plus an additional £3m for the immediate maintenance and safety related works).

5.2 Assumptions FM Conway and WSP have undertaken an outline costing for the Oxford Street District. Alongside this, an indicative implementation phasing plan has been developed based on location, priority and scale of works to produce an estimated spend profile for the works. Cost estimates are currently at a high level, these will continue to be refined as the design phases progress. District wide projects Outline cost estimates for district-wide projects beyond Oxford Street itself have been developed using existing areas of footway and carriageway area combined with the proposed level of intervention indicated by the Place Strategy and subsequent workshops. The areas covered by the projects noted in the Delivery Plan have been used to calculate the potential costs to deliver these projects.

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As the projects are at an early stage of design, an indicative costing scale has been applied. These provide a rate per m2 of footway for high, medium and low levels of intervention:  High (Significant or Major public realm project) = £900/m2 – For example, new pedestrian spaces or key walking routes, including new trees and / or street furniture. Allows for granite paving and kerbs, bespoke lighting, significant tree and street furniture intervention.  Medium (Streetscape enhancement) = £700/m2 – For example, a mixture of granite or Yorkstone paving and kerbs, bespoke lighting, some tree and street furniture intervention  Low (Minor alterations) = £500/m2 – For example, Yorkstone paving and kerbs, bespoke lighting.  Do minimum / traffic operation change = £225/m2 – Low intervention – for example minor interventions to facilitate traffic operation changes Additionally, carriageway resurfacing of non-Oxford Street projects has been included at a rate of £75/m2. The exact scope of each project will be defined with stakeholders over the coming months. Northern and southern alignments In line with the latest concept proposals, the northern and southern cycle alignments have been costed using the same approach as for the district streets, assuming a ‘do minimum / traffic operation change’ level of intervention to footways plus carriageway resurfacing. Other assumptions

Category Assumption Utilities An allowance of 15% on the construction costs has been included in the costing estimate for utilities. This is commensurate with allowances that WCC make in their estimates at this stage of project development. Professional An allowance of 15% on the construction costs has been included for design and professional fees, surveys and other costs associated with the survey costs development and implementation of a design. This is commensurate with allowances made by WSP in previous business case exercises and allowances that TfL make in their estimates. WCC staff and Allowance for Westminster City Council staff and professional costs is professional included at £10.1m based on the total estimated design and construction costs value. Also included in this amount for phase 2 is the approved funding for development of the Place Strategy. Indexation The base date of the Oxford Street District Project Estimate is FY 18/19, with an 8.2% indexation added to construction, utilities and design costs (reflecting the 2014 start date for Westminster’s existing Highways Services Contract). Future inflation is applied at an estimated 2% for each subsequent financial year. Indexations applied on a projected spend

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forecast which will require review as the scheme develops further and both costs and phasing are revisited. Risk and A Quantitative Cost Risk Assessment (QCRA) has yet to be carried out. An contingency assumed allowance of 10% risk and 20% contingency of the combined construction, utilities, design, and surveys and indexation has been included. This is commensurate with allowances made by WSP in previous business case exercises and allowances WCC make in their estimates when a scheme is at this stage of design and business case development.

5.3 Phasing Overview To complement the cost estimation, the identified works associated with the Oxford Street District scheme have been reviewed to develop an indicative construction phasing profile, developed based on a series of assumptions plus input from WCC and project partners. A phasing workshop with input from WCC, Publica, NRP, WSP and FMC representatives provided the basis for the construction sequencing completed, by assigning a delivery phase to each individual project based on traffic management, stakeholder, adjacent scheme dependency and TfL approval requirements. Each project has been included as part of Phase 2 or 3 reflecting the existing Phase 1 works safety and maintenance works already underway. Several assumptions, detailed below, were made to inform the development of this draft programme.  Enabling works – No allowance has been made for delays by any of these activities. This does not include projects within the scope considered enabling works themselves for other parts of the scheme.  Feasibility Design of the OSD scheme has started, with Initial Design to commence from Spring 2019;  Projects have been scheduled as per agreements and discussions made following various phasing workshops including input from WCC and other project partners. The phasing assignment is driven by a combination of traffic management delivery priorities as assessed by NRP, priority assessed as part of the Place Strategy, also considering key WCC or stakeholder priority projects as noted during the delivery review. Individual projects have subsequently been assigned to prospective phases based on a combination of safety, traffic and pedestrian comfort levels;  Construction works are assumed to commence in Autumn/Winter 2019;  Construction works are assumed to occur on weekdays only (i.e. no night or weekend works);  Works would be suspended during Westminster City Council’s Christmas moratorium period (which has been assumed as a 4-week period from early / mid-December until early January each year)  No allowance is presently made for design, contracting or street access capacity although it is recognised this may provide constraints on schedule and will require review as the programme advances.

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A series of working arrangements and phasing assumptions have been developed with input from FM Conway as part of the Oxford Street Transformation scheme have been reviewed and applied to this phasing exercise:  It is assumed that up to 18 compounds of two workers will be mobilised at any time. In order to minimise disruption on Oxford Street, a maximum of 5 compounds have been assigned to operate on Oxford Street (in its’ entirety) at any given time.  Multiple compounds have been assigned to one project where required to assist with the completion of early phase projects. This has only been applied for projects of sufficient size where multiple compounds could work without major traffic management implications. Given the size and scale of the cycle projects, three compounds have been assigned to complete the north and south alignments successively.  Compounds will be approximately 40 – 50 metres in length (although it may vary from these lengths where it was deemed necessary, e.g. for safety, access or other requirements).  Footway works can be carried out at a rate of 15 m2/day by each compound. This will include paving / kerb works, lighting and street furniture installation. This provided a basis for calculation of footway construction durations for each project.  No allowance is presently made for HVM measures on Oxford Street or across the wider district, pending confirmation of the scope for these works.  Carriageway resurfacing works can be carried out at a rate of 300 m2/day by each compound, although it is noted that final scheduling of resurfacing works is likely to be coordinated across several adjacent compounds to minimise disruption and delay to completion of individual projects. This provided a basis for calculation of carriageway construction durations for each project.  At a high level, compound schedules were reviewed to avoid multiple construction compounds operating adjacent to each other, in order to avoid undue impacts on local neighbourhoods.  A contingency of 20% has been added to each construction phase in allowance for potential delays.

5.4 Capital Funding The Council has capital funding of £150m as approved by full Council on 6 March 2019 as part of the Capital Strategy Report. This has also been approved at project level by Cabinet on 25th February 2019 subject to the approval of a business case. This is sufficient to fund option 3 of the business case. The expected profiling of costs against the budget is demonstrated in the table below:

Table 5.2: Phasing and funding overview

Year £m 2018/19 2019/20 2020/21 2021/22 TOTAL* Capital budget as per 2.5 27.5 80 40 150 Capital Programme Estimated Capital Cost 2.1 27.9 80 40 150 Net Surplus/(Deficit) 0.4 -0.4 - - 0

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*There is also a £3m budget in 2019/20 for Safety and Maintenance related issues on Oxford Street (Phase 1). This is not included in the above.

To note of the £150m, £15m will be funded from the infrastructure reserve, with the remaining being funded from General Fund resources.

As demonstrated below the Council there is a funding gap in order to deliver the full strategy.

Table 5.3: Funding of Option 4 (delivery of full strategy)

£m Total project cost 232.3 Less approved capital programme allocation -150 Net funding required from external parties 82.3 This gives a funding shortfall of c.£82m for the project. This funding shortfall is expected to be funded from the private sector. There have been initial discussions with a number of stakeholders.

Note the Council’s allocation of funding against phase 2 is indicative. It is expected that elements of this will be funded from external funders which will free up more council resources to fund phase 3. The Council’s investment is a kick start for sustained investment in the district.

Ongoing maintenance costs will be funded out of the annual Planned Preventative Maintenance capital budget. The call on this budget will be less than Option 1 ‘do nothing’ scenario however design of the street is important to ensure that the call on the Council’s capital budgets are minimised.

5.5 Sources of Funding The council’s ambition is unambiguously to deliver option 4 which delivers the full Place Shaping Strategy. It is well understood that residents and businesses feel that improving just Oxford Street is not enough.

The Council’s capital expenditure £150m will be initially directed to fund option 3 of the business case, which focuses on the major changes to Oxford Street itself and the required enabling works in the surrounding district that will support the world class improvements along its entire length. This commitment provides that assurance to potential funders that real change will be taking place and will act as a catalyst to generate significant additional investment from the private sector. But in order to generate the additional funding required to do all the planned district wide work, it is necessary to begin by focusing the council’s funds where it will have the most impact, which initially means the length of Oxford Street and its immediate environs.

However, the council is confident that this clear commitment would draw in new and additional private funding that will allow the council to quickly refresh and update its programme as to where it plans to spend its money. For example, private investment that comes forward for

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certain locations on Oxford Street, that supports the delivery of the strategy, will mean that the portion of the council’s £150m that was to have been spent there can be swiftly redirected and reapportioned elsewhere across the district.

It is also important to note that works proposed for phase two and three could also run in parallel, dependent upon the additional partner funding that is raised so that improvements can start to be felt district wide. The council’s programme will also integrate with other public realm projects and work undertaken by third parties in the district. The project team are liaising with these delivery partners and will ensure the high level of coordination continues during all phases of the delivery of the strategy. As a result, there will be an ongoing and transparent review of the funding profiling of projects and the proposed delivery timetables to ensure that the moist effective and efficient use is being made of all the funds, private and public, that come on stream through the lifetime of the project.

As indicated in the economic case there may be some increase in rateable area and the investment is likely to result in more intense use of the existing space and increases in land values leading to business rates revaluation growth which the Council could financial benefit from but it is difficult to quantify the benefit at this stage because of the expected reform of business rates retention.

It is acknowledged that there are challenges with attracting external funding:  Funding is required for both capital and revenue elements  The current economic climate linked to uncertainty around Brexit as well as challenges for High Streets across the country as consumers are increasingly choosing online avenues  There is fragmented ownership across the Oxford Street District and particularly across Oxford Street itself  High business rates in the area and BID levies resulting in businesses perceiving investment should be funded via these income streams. Business may conclude that investment will happen with or without their contribution

To address these, a comprehensive funding strategy is in development and this will will set out an approach that will form the basis of a detailed and integrated implementation plan. There are three key elements proposed to provide additional capital and revenue funds to deliver the strategy and ensure the district is well managed and maintained: i. Seek partner contributions through a targeted programme of engagement about funding for specific schemes and locations as well as ongoing management costs. ii. Lobby for financial freedoms to generate additional resources for the City Council iii. Horizon scan for new funding opportunities from public and private sector

5.6 Revenue costs The revenue costs in relation to the investment are c£9m per annum. This consists of MRP and interest costs. MRP is based on 30 year useful economic life (UEL). This is thought be an accurate estimate of the UEL because there will be a strong focus on ensuring longevity during the design

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process, this is also consistent with MHCLG appraisal guidance and reflects the likely asset life of the infrastructure given the significant investment. This is fully budgeted for as part of the capital programme. This expenditure represents c.6% of the Council total capital programme.

Throughout the consultation process there has been clear feedback that more resources are required for the Oxford Street District given the challenges, which will be exacerbated by the opening on the Elizabeth Line. Indicative assessments have an estimated an additional cost of £3.4m per annum which covers increased service delivery of highways cleaning and maintenance; park security and maintenance; management and upkeep of public realm such as planters; HVM asset management; improved rough sleeping service; and enhanced multi-skilled team to include city inspector, enforcement and engagement elements.

However, the Council has fully committed its revenue funding to the area and therefore additional resources and funding are needed. This will require input and collaborative working with private sector partners as well as the active engagement of those who live, work and visit the area.

5.7 Financial Risks and Responsibilities A risk register has been produced for the Oxford Street District project, identifying the key risks and providing an assessment of probability and impact against each risk (see section 6.6). Consideration has also been given to appropriate mitigating actions.

As part of the Oxford Street District Place Strategy and Delivery Plan a number of projects are referenced. As outlined above the delivery of the strategy will exceed the Council’s £150m budget allocation and therefore funding will need to be secured from external parties. In addition, revenue funding is required to deliver high quality management of the district. An inability to secure funding will mean that the Oxford Street District will continue to face challenges and lose ground against its competitors.

The projects are at varying stages of development with some at an early concept stage, an understanding of how and when these will be delivered, and the cost associated with these will be an iterative process. Key risks around cost increases include:  Shallow services are regularly encountered throughout Westminster and Central London. These may impact on installing gullies and foundations to lighting columns, greening, posts, gullies, bollards requiring redesign or further utility works  The outcome of Brexit negotiations may result in a reduced pool and availability of resource/labour to deliver the works and an adverse impact on being able to import materials resulting in cost increases  Contractor unable to fully resource the design, management and construction in order to meet the Completion Date resulting in cost increases and a delay in the benefits  Additional costs linked to proposed design changes as stakeholder engagement and traffic modelling are further developed As this is a Design and Build contract once the contractor is procured they will work alongside the project team to fully work these up. Providing a clear scope on a project by project basis will

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prevent cost increases and ensure value for money however, contingency and risk of 30% has been allocated to cover unexpected costs.

In addition, a key risk for the project is resourcing for all stages of the project including modelling, design and construction. A team structure has been developed and recruitment will progress once approval for further funding drawdown, as part of this report, has been approved. The Council will be the accountable body and as such, it will have responsibility, among other things, for:  Financial risk assessment and management;  Financial management and controls;  Negotiation of all funding sources and associated funding agreements/contracts;  Monitoring and reporting to various relevant parties, and  Project appraisal.

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6 Management Case

6.1 Governance and Organisational Structure

6.1.1 Programme Governance Central to the delivery of the Place Strategy and Delivery Plan is robust programme governance. Outlined below is the current programme governance and some proposed changes that will ensure the programme continues to receive support at a senior level and the momentum required to deliver as planned.

Table 6.1: Existing governance Group / Board Role and level of engagement Project Board Weekly project board meetings which are chaired by the Chief Executive and attended by senior responsible officers including the Executive Directors for Growth Planning and Housing and City Management and Communities. The project board:  Monitor and approve any changes to the project programme and reports;  Exercise financial authority to support the project;  Review risks, issues and exceptions and determine appropriate course of action based on recommendations from the Project Working Group;  Manage and co-ordinate private sector funding mechanisms;  Review, comment and approve the project business case and economic case for investment;  Regular monitoring of the project budget;  Maintain overview of the communication strategy. Cabinet Members Steering Monthly steering group meetings which are chaired by the Cabinet Group Member for Place Shaping & Planning and attended by the Cabinet Member for Environment and City Management and the Cabinet Member for Economic Development, Education and Skills. The Steering Group:  Provide strategic direction for the project including the agreed aspirations and outcomes;  Agree the programme for the project and any significant changes to key milestones;  Make decisions on proposals and agree the strategy for their implementation;  Approve the public realm strategy for the district;  Agree the funding model for the delivery of the project;

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Table 6.1: Existing governance Group / Board Role and level of engagement  Resolve issues that the Project Board were unable to reach consensus on;  Approval of communications strategy and key messaging relating to the project;  Provide direction on possible impact this project may have on other major projects;  Align the strategic plans and processes of their respective departments for the achievement of agreed project outcomes;  Provide authorisation to spend against budget (formalised via a Cabinet Member report). Ward Members  Bi-monthly updates to the ward members of the affected wards;  Engagement with ward members will continue during the design process. Residents, Neighbourhood  Regular engagement with stakeholders. Further engagement will Forums and Amenity be undertaken with stakeholders during the design process to Societies ensure their views are taken on board. Stakeholders including BIDs,  Regular engagement with stakeholders. Further engagement will business representatives be undertaken with stakeholders during the design process to and landowners ensure their views are taken on board.

6.1.2 Governance Arrangements and Post Business Case Approval The Oxford Street District programme will continue to have a project board with representation at the most senior officer level in the Council. The Cabinet Member Steering Group will continue to provide strategic advice to the project board and the project working group. The positive engagement with key stakeholders including residents, land owners, BIDs and the business community will continue and they will be encouraged to contribute to the design process via working groups that will be setup and will be focused on the projects within zones or groupings of zones that are relevant to them. These zonal working groups would be encouraged to input into the development of the design process. At the early stage of developing these zonal working groups we would need to define the following:  Role of Cabinet Members in the working groups  Role of Ward Members in the working groups  Area covered (zones)  Funders, stakeholders role / involvement  Communication during the design and delivery of the projects  Identify lead officer role and necessary support

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Engagement with local stakeholders will take place throughout the design and delivery of the projects. Equalities implications have been considered and each phase of the project will have an Equalities Impact Assessment carried out as part of the design process.

6.1.3 Reporting and Approvals The Oxford Street District project will provide six monthly updates to Members on the progress of the delivery of the project. Progress updates by group are outlined in Table 6.2.

Table 6.2: Progress updates Group / Board Frequency of reporting Topics Members Every six months Progress to date Updated programme of activity Key risks Cabinet Member Steering Group Monthly Progress to date Updated programme of activity Key risks Project Board Fortnightly Progress to date Updated programme of activity Key risks Ward Members Quarterly Progress to date Updated programme of activity Key risks

6.1.4 Programme Resourcing A programme of this scale and ambition requires a dedicated team of resources across directorates to manage the programme of activity and ensure successful delivery of the many projects outlined in the strategy, an allowance has been included within the programme costs. There will be a combination of senior and experienced individuals performing the client side role supported by consultancy input as required which will support the multi-disciplinary nature of the programme. It will be led by a dedicated Programme Director experienced in world class projects.

6.2 Project Management Approach WCC are confident in their ability to procure and manage the Oxford Street District programme and have significant direct experience of managing similar large scale projects. The Council has successfully procured and managed other major capital works programmes and its most experienced officers form part of the core Oxford Street District team. The project will require input from a range of disciplines including traffic management, public realm, place management, finance and communication and engagement for an overview of key work streams.

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The OSD Project Sponsor is ultimately responsible for the delivery of the project including its financial management. A Strategic Finance Lead and a Budget Managers provide the day-to-day financial management and support for the project. These roles report into the WCC’s City Treasurer and the Project Sponsor. The Head of Programme provides an update to the Project and Strategic Boards by way of a monthly financial dashboard which details expenditure and funding against programme. It also details any slippage or overspend based on the forecasted profile for the project.

6.3 Programme Plan The proposed timetable for the delivery of the Place Strategy and Delivery Plan is outlined below. Note that dates are indicative and are subject to change. The timetable is also subject to approval by Cabinet of this report and the upcoming business case in April. Please note: there a number of dependencies outlined in the proposed programme such as those related to modelling audit by TfL.

Table 6.3: Indicative programme Project stage Dates Cabinet presented with the results of the consultation and 25th February 2019 updated Place Strategy and Delivery Plan Cabinet business case - £150m investment 8th April 2019 Design development April 2019 onwards Stakeholder engagement April 2019 onwards Traffic modelling completion June 2019 Traffic model audit by TfL July 2019 Traffic Management consultation to commence September 2019 Phase 2 delivery to commence Autumn 2019

6.4 Communication and Stakeholder Management There are no direct public consultation implications arising from this report but consultations with internal and external stakeholders concerning scheme designs for the Place Strategy projects within the scope of the final contract will be significant. A broad range of communication activities have been and will continue to be used to raise awareness of the Place Strategy and the related delivery including:  Media coverage in the national, regional, trade and local media;  Direct posted mail to households in the four wards affected by the proposals: Bryanston and Dorset Square; Hyde Park; Marylebone High Street, and West End;  Regular social media activity and posting across all WCC channels;

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 Working with local and community organisations to promote the project through their channels and newsletters;  A dedicated website which will be kept up to date with the latest information to help keep stakeholders up to date (www.osd.london);  Information about the project will be included in council publications, such as the My Westminster newsletter; and  Regular e-newsletter updates. A dedicated Stakeholder Engagement Manager and a team of Public Liaison Officers will be employed on the project to engage with residents, businesses, visitors and other interested parties throughout the period of works.

6.5 District Management There are ongoing revenue costs for the management of the district. There are improvements currently in progress for the management of the district linked to the expected significant increase in pedestrian volumes once the Elizabeth Line opens. These include:

New Multi-Agency District Team: Since January 2019, the district has had a new dedicated team of Council City Inspectors, NWEC security services and Rough Sleeping Outreach support. Along with a new partnership governance structure, this team provides a proactive and co-ordinated response to management issues that arise in the area. Discussions are also ongoing with the Police to secure support to this team within the new West End BCU model. The team will liaise with partners such as contractors, local residents, businesses and property owners as well as other internal teams within their respective organisations. Monitoring of the effectiveness of this will be reported to the Council in due course.

Improved Highways Maintenance: The Council have increased the frequency of planned repairs and maintenance to the footways and highways within the district to ensure a more timely response to defective and damaged pavements and roads. Planned street closures have been increased from 6 at present to 18 per year. The Council have also co-ordinated the schedules of utility companies to better align their repair and upgrading works, to reduce the number of times the highway is dug up and disrupted, and where these works need to be carried out the areas will be replaced with the same standard of materials.

Emerging Street Entertainment Policy: Oxford Street will be a pilot area for the Council’s emerging street entertainment policy. This policy is currently being developed with stakeholders and aims to ensure that street entertainment will be appropriate in terms of quality and management for this world class district. It should continue to bring culture and vibrancy to the district whilst minimising the risk to pedestrians caused by crowds on the already crowded street, and adverse impact of noise on businesses and residents.

Improved Street Cleaning: From April 2019 both NWEC and the Council have committed to increase the number of cleansing vehicles deployed to the street each day as well as increase the number of times the district is deep cleansed.

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There has been substantial feedback that the ongoing management of the district to the desired standard is of high priority for stakeholders. It is vital that there is world class management to reflect the transformation of the district and to best exploit sustained investment in the area.

The Council is committed to maximising the use of existing resources, utilising technology and influencing the public realm design to ensure efficient maintenance. The key areas of focus will be:

 Intelligence and insight – There is a plethora of data collected within the Oxford Street District area from air quality to pedestrian counts however the active use of this data is limited. The aspiration is that this data is brought together and shared with all key partners to enable predictions of hot spots of activity and therefore allowing resources to be flexed in line with demand.  Improving safety and security – It is important that resources utilised across the district have a multi-disciplinary focus which includes engagement, compliance, enforcement, ambassadorial as well as enforcement. To note there will need to be different regime of management during the transition period as this will bring with it unique challenges during the delivery phases.  Improving the environment - There is a key role of design in ensuring that the area remains clean and provides a pleasant experience for all visitors. For example, materials will be utilised that reduces maintenance and management requirements.  Engagement - Cultivating a sense of shared-ownership will be an important part of sustaining improvements to the district and can form a cost-effective, lower maintenance management approach to the upkeep of public spaces. The ambition is to encourage proactive engagement through fostering a sense of joint ownership and pride of place, rather than necessarily through compliance and enforcement. This will be nurtured by adding to the identify of the area through design and branding, helping to create a distinct personality and generate a strong relationship between people and place.  Animation and activation – To utilise the space to the best affect it is important that the space is animated and activated for key events. There needs to be a dynamic and flexible use of the space to attract visitors and tourists and therefore positively encouraging investment into the area.

This is not totally within the Council’s control. No single agency can achieve the aspirations and therefore it is important that there is a partnership approach to district management with key stakeholders such as the Metropolitan Police, major land owners, the New West End Company Businesses Improvement District, and businesses. Some of the challenges experienced in the area are outside of the Council’s control and therefore there will be an ongoing need to lobby central government to address the root causes. Also, there is the funding element that remains a challenge.

6.6 Risk Management Strategy

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A comprehensive approach to risk management has been adopted by the Oxford Street District project. An individual risk register has been developed in line with best practice. Progress is tracked regularly with the top risks reported to the Project Board. High level strategic risks are report to the Strategic Board. The risk register has been developed through a series of risk workshops with all key partners and continues to be updated on a regular basis. Key risks include:

Risk Category Risk Mitigation Actions Close liaison and adequate resources Procurement work stream delivery across departments to ensure this work Procurement timeline - new contractor in place by stream progresses according to the Autumn 2019 proposed programme. Officers in regular contact / engagement External Crossrail delays impact on the place with Crossrail delivery team and are approval strategy being updated on progress. Project team to evaluate the need for an area study Worksteams such as freight/services and Resources proposed to help deliver this Design street trading do not progress and the workstream inhibits delivery of the Strategy Close liaison between the project team and relevant departments Shallow services are regularly encountered throughout Westminster Coordination of design development with Utilities (water, and Central London. These may impact utility companies. Contractor to electricity, gas, on installing gullies and foundations to coordinate for the stages they are BT, comms) lighting columns, greening, posts, gullies, commissioned to deliver for each work bollards requiring redesign or further package. utility works Existing services are found to be damaged during the works - requiring Utilities (water, protection, reconstruction or other Contingency and risk allocations included electricity, gas, works. Costs for protection and diversion in the budget to cover unexpected costs BT, comms) of existing services will not be known until the relevant quotations are obtained. All works applications in the Oxford Progression of works may be impacted by Street District to be considered by the Other Works applications from third parties to carry Council for the potential impact on the out works project Close engagement with neighbouring Works may be hindered by existing schemes Other Works scaffolding, diversions, suspensions, Include as much information as possible closures, access requirements in the contract documents Close engagement with neighbouring Impact on neighbouring schemes on schemes Other Works proposed works Include as much information as possible in the contract documents

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Working group already setup which Lack of funding for the management plan includes representation from across WCC Management which will impact the long term departments. operation of the strategy Revenue element to form part of the funding strategy See section 5.7 for further information on key financial risks

6.7 Monitoring and Evaluation Westminster City Council is committed to the ongoing monitoring of the impacts of schemes that it introduces to ensure that benefits are realised, impacts are identified and any unforeseen effects are understood. In the case of the Oxford Street District, monitoring will include the survey of traffic flows on potentially affected streets before and after scheme implementation, continuous monitoring of air quality across the district, ongoing assessment of road user collision records, kerbside occupancy (parking and loading), traffic regulation infringements and specific issues and complaints from the public. The programme of monitoring for the Oxford Street District will dovetail with existing monitoring strategies for the Baker Street Two-Way and Tottenham Court Road Two-Way schemes, meaning that there will be the opportunity to measure and understand the combined effects of all schemes and develop measures for mitigation should they be required. Westminster City Council will monitor any changes in traffic in the Oxford Street District. The scheme will be designed with the aim of minimising traffic displacement into residential streets, however if it is shown that this objective has not been achieved at a particular location then the Council will commit to work with local groups to devise and implement appropriate measures to mitigate any Impacts. This could include measures that would restrict or calm traffic movement, alterations to the scheme where elements of it are shown not to be working as desired, or other measures that would provide benefits that are desired by the local community. Broader measures to reduce traffic on a district wide and or city-wide level including, but not limited to, better management and consolidation of freight will also be explored by the Council as part of its overall role as the highway authority.

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Appendix A: Selection of relevant policies and strategic

Westminster City Plan, 2016 The City Plan sets out its approach to the West End in Policy S7: West End Special Retail Policy Area (WESRPA). This states that the unique status and offer of the WESRPA as a global shopping destination should be maintained and enhanced through:  Improved retail space.  Appropriate retail growth throughout the WESRPA, including provision of A1 retail along the Primary Shopping Frontages at least at basement, ground and first floor levels.  Improved pedestrian environment to manage the significant pedestrian flows and address the adverse impacts of pedestrian congestion.  Improved public transport provision and access to it, including Elizabeth Line stations at Tottenham Court Road and Bond Street.  Development of oasis areas of rest, including seating areas, and café and restaurant uses where appropriate to support the main retail areas.  Improved linkages to and from surrounding retail areas and visitor attractions  Provision of appropriate service uses where they complement the shopping environment. Similarly, Policy S5 concerning the Tottenham Court Road Opportunity Area requests A1 retail use at basement to first floor level for all frontages onto Oxford Street within the opportunity area, due to its role as the eastern gateway to the Oxford Street district. The Oxford Street district falls into two Stress Areas, West End and Edgware Road, identified in the City Plan as areas where a saturation of night time entertainment uses limits new uses.

Conservation Areas The Oxford Street District is across several different conservation areas, designated by Westminster City Council on the basis of ‘special architectural and historic interest.’ Additional planning permissions apply in these areas in order to protect their unique characters. These are:  Portman Estate  Stratford Place  Mayfair  Harley Street  Regent Street  East Marylebone  Soho

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 Hanway Street

Westminster Way, Supplementary Planning Document (SPD), 2011 The Westminster Way is a public realm manual created to provide advice and direction on the design and maintenance of Westminster’s public realm. It contains the Westminster Code, which is a set of ten principles, established to guide intervention in the city’s public realm. “The Westminster Way aims to build on established best practice advocating a generally minimalist, but co-ordinated and holistic approach that considers whole life costing and sustainability in design, implementation and management of the public realm together with priority for the pedestrian and a truly inclusive public realm. It advocates that all parties within the council and partners need to ‘join-up-the-thinking’”.

Walking Strategy, 2017 Westminster City Council’s latest Walking Strategy seeks to provide ‘an opportunity to enhance Westminster’s excellent quality of life and its historic environment.’ It advocates environmental improvements that ‘make walking easier and more attractive, which can improve air quality and thus the health and lives of residents, workers and visitors and the local economy.’ The strategy states Westminster City Council’s target to ‘increase the number of walking trips by residents from 84% to 92% of all potentially walkable trips’. The objectives of the strategy are stated as:  Provide capacity to support current walking demand and accommodate future growth.  Improve the quality of the walking environment and the public realm to make walking more comfortable.  Make walking more intuitive by increasing legibility and permeability of walking routes.  Ensure walking is a safe option for everyone.  Make the pedestrian environment more accessible for everyone.  Encourage behaviour change to realise the potential of walking.

Trees and the Public Realm, SPD, 2011 This document provides guidance for appropriate tree planting throughout Westminster. Most of the Oxford Street district is categorised as an ‘area for caution’, where new street trees could detract from the historic character of the area, although may be considered in some circumstances as part of the evolving landscape. District streets off Oxford Street, however, might provide opportunities for tree planting, and other opportunities for greening should be considered.

Rough Sleeping Strategy, 2017 – 2022 Westminster City Council’s Rough Sleeping Strategy outlines the measures that the council will take, in partnership with others, to deliver their ambition of significantly reducing rough sleeping and the harm it brings to individuals and communities in Westminster.

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Marylebone Low Emission Neighbourhood Marylebone’s Low Emission Neighbourhood (LEN) was established in July 2016, and is a scheme aimed at improving air quality and promoting sustainable living in the area. Funded by the Mayor of London’s Air Quality Fund and led by a partnership formed of Westminster City Council and local stakeholders, it serves as a test site for green innovations and parking-related initiatives. Projects underway address:  Cleaning the air through planting  Air quality for schools  Anti-idling in Marylebone  Green freight and delivery  Smart deliveries

Soho Public Realm Study In 2014 Westminster City Council, in conjunction with TfL and the London Borough of Camden, commissioned a study of streets and spaces in Soho. The resulting Soho Public Realm Study examines the conditions in the neighbourhood and suggests recommendations and ideas for the improvement of pedestrian movement and cycling provision in Soho’s streets and alleyways. The document sets out principles and makes recommendations for the area as a whole.

City of Westminster Cycling Strategy 2014 – 2026 The Cycling Strategy sets out a plan for how Westminster intends to support the delivery of the Mayor’s 2013 Vision for Cycling at a local level, to increase the level of cycling, and see it ‘normalised’ by encouraging a broader cross section of people to take up cycling. The strategy highlights opportunities and challenges associated with the increase in cycling, and how growth will be encouraged through a wide range of schemes and initiatives. Over the next 10 years, the Mayor’s vision will be delivered using an estimated budget of £913m, a portion of which will be made available to boroughs working to support the delivery. Four high-level objectives have been set out by Westminster City Council:  Creating safer and more legible routes, with actions including the implementation of a Central London Cycling Grid, and working in partnership with the Royal Parks to improve access points in parks from the highway.  Improving road user interaction, education and enforcement, with actions including free cycle training, and safety training aimed at HGV and LGV drivers.  Facilitating bicycle ownership / access and parking, with actions including trialling a bike loan scheme, and installing secure bicycle parking.  Raising awareness and participation in cycling, with actions including the launch of a cycling- incentive scheme, and encouraging schools to develop active travel plans.

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Health and Wellbeing Strategy for Westminster 2017 – 2022 The strategy sets out how people, public services, businesses, and voluntary and community groups in Westminster will all play a part in creating a city in which everyone has access to opportunities to be healthy, stay well, and live well, supported by a collaborative and cohesive health and care system. Westminster experiences unique challenges due to its central location and its position as a hub for business, culture, and tourism. The borough also has an ageing population and a high prevalence of childhood obesity. The key priorities are:  Support for children, young people and their families to live healthier lives.  Helping people to prevent the onset of long-term health conditions such as dementia and heart disease.  Improving mental health services through prevention and self-management.  Improving the way we work to offer better health and social care.

Greener City Action Plan The Greener City Action Plan is designed to ensure that all of Westminster’s services and policies work together to create a more sustainable and liveable city, while adapting to the challenges of a changing climate and increased population. The 11 policy priorities for the ten-year strategy are:  Addressing noise pollution across the city  Making better use of the city’s waste resources  Delivering affordable, secure and low-carbon energy supplies  Improving local air quality  Supporting a sustainable transport system for Westminster  Making the best use of open and green spaces  Ensuring that sustainability is delivered through economic development  Supporting a sustainable growth  Managing water use  Addressing flood risk  Communicating and encouraging people into environmental action

Draft New London Plan, 2017 The Draft New London Plan sets out the economic, environmental, transport and social framework for the strategic and sustainable development of London over the next 20 – 25 years.

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It was released for public consultation from December 2017 to March 2018 and a final version is expected to be published in winter 2019/2020. Relevant draft policies include:  Policy T2 states new development should adhere to the Healthy Streets principles as set out in Healthy Streets for London (2017).  Policy SD4 The Central Activities Zone (CAZ) states that ‘the vitality and viability of the international shopping and leisure destinations of the West End and Knightsbridge together with other CAZ retail clusters should be supported’, and also ‘The attractiveness of the CAZ to residents, visitors and businesses should be enhanced through public realm improvements and the reduction of traffic dominance’.  Policy D1 states that Development Plans, area-based strategies and development proposals should address the form and layout of a place (for example using land efficiently; facilitating an inclusive environment; having clearly defined public and private environments; provision of active frontages and reciprocal relationships between the buildings and public realm; and facilitate active travel) and the development design should respond to local context, be of high quality and sustainable, respect heritage assets, provide urban greening, and achieve comfortable and inviting environments, inside and outside buildings.  Policy D3 states that development proposals are required to achieve the highest standards of accessible and inclusive design.  Policy D7 specifies how the public realm should be designed, for example: safe, accessible, attractive, easy to understand; relating to the historic context; ensuring it encourages active travel; being based on an understanding of the role of the public realm in an area; balancing ease of movement with the creation of a place; ensuring a mutually supporting relationship between the space, surrounding buildings and uses; ensuring buildings activate and define the public realm; good management and maintenance arrangements; incorporation of green infrastructure; creation of shade and shelter; an engaging public realm for people of all ages; non-continuous / non-dominant on-street parking; free drinking water.

Central Activities Zone (CAZ), Supplementary Planning Guidance (SPG), 2017 This SPG sets out specific policy guidance for the CAZ, within which the Oxford Street District sits. It builds on the policies in the London Plan, adding detail on how to support and enhance the special nature of this area, by:  Protecting London’s vibrant commercial heartland and ensuring it can remain a key driver of the UK economy for decades to come.  Striking an appropriate balance between office and new residential development including the removal of office to residential permitted development rights when the current exemption expires in May 2019.  Managing the attractions of the area as a global destination for culture, entertainment, shopping and tourism.  Outlining the potential for additional housing capacity in central London without compromising the business, culture and other key functions of the zone. This could be done

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by building new homes in specific parts of central London, including the Opportunity Areas and by renewing existing housing.  Promoting movement by walking and cycling and encouraging investment in existing and new transport infrastructure to support development.  Recognising the value of central London’s unique heritage and supporting a quality of environment that befits the core of a world city.

Accessible London: Achieving an Inclusive Environment, 2014 This SPG includes guidance on the London Plan policies creating and promoting an accessible and inclusive environment and gives local planning authorities advice on how to incorporate and implement them. It explains the principles of inclusive design and how these principles should be applied in London and includes ideas for designers on where to find good technical advice and guidance. It also provides information on what to expect from planning in London for disabled people, older people and others who experience barriers in the built environment.

The Mayor’s Transport Strategy, 2018 The Mayor’s Transport Strategy promotes prioritising human health and experience and changing London’s transport mix so that it works better for everyone. Key policies and proposals include:  Policy 1 states that the Mayor will ‘seek to make London a city where people choose to walk and cycle more often by improving street environments’.  Proposal 2 states that the Mayor, through TfL, will work with the central London boroughs to transform the experience of the walking and cycling environment in central London by reducing the dominance of vehicular traffic, including by transforming Oxford Street.  Policy 7 states that transport schemes should protect existing and provide new green infrastructure to deliver a net positive impact on biodiversity.  Proposal 15 intends to improve the efficiency and safety of freight, an issue that is likely to affect the Oxford Street District, given the delivery and servicing needs of Oxford Street.

Healthy Streets for London, 2017 Healthy Streets for London prioritises walking, cycling and public transport to create a healthy city. It is supplemented by the 2018 Walking Action Plan. The ten Healthy Streets indicators are:  Pedestrians from all walks of life  People choose to walk, cycle and use public transport  Clean air  People feel safe  Not too noisy  Easy to cross

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 Places to stop and rest  Shade and shelter  People feel relaxed  Things to see and do

Walking Action Plan, 2018 The Walking Action Plan sets out the Mayor’s aim to make London the world’s most walkable city, with ‘80 per cent [from a base of 63 per cent in 2015] of all trips in London to be made on foot, by cycle or using public transport by 2041.’

Vision Zero Action Plan, 2018 The Vision Zero Action Plan sets out the Mayor’s aims ‘for no one to be killed in or by a London bus by 2030, and for all deaths and serious injuries from road collisions to be eliminated from London’s streets by 2041.’

Mayor of London’s Draft Culture Strategy, 2018 Culture for All Londoners, the draft Mayor’s Culture Strategy, sets out the Mayor’s programmes for investment in London’s cultural offer, with a focus on inclusivity and community engagement. The strategy remains at draft stage following a public consultation in spring 2018. A number of commitments in the strategy affect the future of culture in the Oxford Street District. The strategy also aims to also support Business Improvement Districts to develop cultural strategies, commits to publishing a Cultural Infrastructure Plan which can identify gaps where greater support is needed, and to improving licensing practice across the capital to support the Mayor’s plans to transform London into a 24-hour city.

Culture and the Night-Time Economy SPG, 2017 The Mayor of London’s SPG for culture and the night time economy sets out how London can move towards a 24-hour city model. It emphasises the need to support existing venues in the face of widespread closures. The Central Activities Zone (CAZ) is given particular prominence; the country’s largest concentration of night-time activities should be recognised, improved and managed by the Mayor, boroughs and other agencies. The West End’s special characteristics should be promoted, enhanced and protected as a Strategic Cultural Area. The SPG supports extending the opening hours of existing daytime facilities like shops and cafés, and integrating leisure and other uses to create bridges between the day and night-time economy and diversify the range of activities and promote access for a range of audiences. Licensing should balance the interests of residents with the functions of the night time economy. The document also emphasises the need for safe, convenient and accessible public transport throughout the day and night, and a public realm where the fear of crime does not undermine the quality of the experience.

98 Page 142 Westminster City Council Oxford Street District - Business Case 8th April 2019

Appendix B: Risk Register

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This page is intentionally left blank Appendix 2a – Map outlining the options Page 145 Page

Appendix 2b – Project summary by option

Intervention Option Option Option Zone ID Name Phase Level 2 3 4 B 1 Great Cumberland Place to Orchard Street Significant 1    C 2 Between Orchard Street and Duke Street Significant 1    D 3 Duke Street to James Street Significant 1    D 4 James Street to Stratford Place (outside Bond Street station) Significant 1    D 5 Stratford Place to New Bond Street Significant 1   

Page 146 Page D 6 Junction Bond Street / Vere Street / Oxford Street Significant 1    E 7 New Bond Street to Holles Street Significant 1   

E 8 Junction Harewood Place and Holles Street Significant 1    E 9 Holles Street to John Princes Street Significant 1    F 10 Oxford Street, John Princes Street to Great Portland Street Major 1   

Oxford Street G 11 Great Portland Street to Winsley Street Significant 1    G 12 Winsley Street to Poland Street Significant 1    G-H 13 Poland Street to Great Chapel Street Significant 1    H 14 Great Chapel Street to Dean Street Significant 1    H 15 Dean Street to junction of Soho Street and Rathbone Place Significant 1    I 16 Soho Street to Tottenham Court Road Significant 1    Junction of Tottenham Court Road / Oxford Street / Charing Cross 1    I 17 Significant Road 18 Marble Arch Islands Streetscape 2  19 Great Cumberland Place Streetscape 2  A 20 Bryanston Street Do minimum 2  21 Old Quebec Street Significant 2  22 Seymour Street Do minimum 2 

Intervention Option Option Option Zone ID Name Phase Level 2 3 4 23 Brook Street Do minimum 2  24 North Row Do minimum 1   25 Park Street Do minimum 1   B 26 Portman Street Do minimum 1   27 Portman Square surrounds Do minimum 2  28 Portman Mews South and Granville Place Streetscape 2  29 Orchard Street Significant 1   30 Grosvenor Square surround Streetscape 2  31 Grosvenor Square Gardens Significant 2  32 North Audley Street Do minimum 1   33 Balderton Street Streetscape 2  Page 147 Page 34 Brown Hart Gardens surrounding streets Do minimum 2  35 Lumley Street Streetscape 2  36 Manchester Square surround Do minimum 2  C 37 Duke Street (south) Do minimum 2  38 Duke Street (north) Do minimum 2  39 Picton Place Streetscape 2  40 Barrett Street Significant 2  41 Bird Street Significant 2  42 James Street Significant 1   43 Binney Street Do minimum 1   44 Gilbert Street Do minimum 1   45 Stratford Place Significant 2  46 Davies Street Minor 1   D 47 Weighhouse Street and St Anselm’s Place Do minimum 1   48 Henrietta Place Significant 1   50 Wigmore Street Do minimum 1.5 

Intervention Option Option Option Zone ID Name Phase Level 2 3 4 51 Marylebone Lane (South) Significant 1   52 South Molton Street Do minimum 2  53 South Molton Lane Streetscape 2  54 Woodstock Street Do minimum 2  55 Vere Street Significant 2  56 Chapel Place Significant 2  57 Old Cavendish Street Significant 1   58 Holles Street Significant 1   E 59 Cavendish Square and Gardens Major 2 

Page 148 Page 60 Cavendish Place Minor 1   61 Margaret Street Do minimum 1   62 John Prince’s Street Significant 1   63 Great Castle Street (west) Streetscape 1   F 64 Great Castle Street (east) Streetscape 1   65 Princes Street Streetscape 2  66 Little Portland Street Significant 2  67 Argyll Street and Place Do minimum 2  68 Ramillies Street and Place / Hills Place Significant 1.5  69 Great Marlborough Street / Noel Street / Hollen Street Significant 2  70 Market Place Minor 2  71 Great Portland Street Streetscape 1.5  72 Great Titchfield Street Streetscape 1.5  G 73 Eastcastle Street Significant 1.5  74 Mortimer Street Do minimum 1.5  75 Winsley Street Significant 2  76 Adam and Eve Court Significant 2  77 Wells Street Streetscape 2 

Intervention Option Option Option Zone ID Name Phase Level 2 3 4 78 Poland Street Do minimum 2  79 Berwick Street Streetscape 2  80 Berners Street Significant 1   81 Wardour Street Minor 2  82 Great Chapel Street Do minimum 1   H 83 Newman Street Do minimum 1   84 Rathbone Place Do minimum 1   85 Soho Street Streetscape 2  86 Soho Square and Gardens Significant 2  I 87 Hanway Street and Place Significant 1.5  88 Southern alignment cycle grid Do minimum 2  Page 149 Page ALL 89 Northern alignment cycle grid Do minimum 1  

This page is intentionally left blank Agenda Item 5

Cabinet Report

Decision Maker: Cabinet

Date: 8th April 2019

Classification: General Release

Title: Corporate Enforcement Policy

Wards Affected: All

Key Decision: An entry was included in the Forward Plan of Key Decisions.

Report of: Kirsty Munro, Principal Policy Officer

1.0 Executive Summary

1.1 This report asks Cabinet to review and adopt the council’s updated Corporate Enforcement Policy.

1.2 The current corporate enforcement policy was adopted by Cabinet in 2008 and last updated in 2016. It is an overarching policy outlining the broad legal framework and approach to enforcement across the whole of the council, to ensure the way we apply enforcement is transparent and consistent across all services. It includes our legal framework, what residents, businesses and visitors can expect from enforcement, and the types of enforcement we might take.

1.3 A full review of the corporate enforcement policy has been necessary to ensure the council is fully transparent in the way our services carry out enforcement, to bring it in line with recent updates to legislation, and to widen the scope of council services that this policy applies to following the housing department functions from City West Homes being brought in -house. To help achieve this the updated policy now follows a template enforcement policy issued by the Department of Business Innovation and Skills.

1.4 It is important to note that the update to the policy does not propose any changes to the council’s approach to enforcement which remains to educate and help businesses and individuals understand and meet regulatory requirements through support and advice, whilst taking proportionate enforcement action where there is serious risk or where regulatory breaches are persistent.

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1.5 Under this policy sit a number of our local service specific enforcement policies that are already in place (e.g. parking, waste, planning enforcement). These policies provide the detail explaining the specific legislation under which officers are acting and the application of enforcement powers relevant to the service, including and detail around the level of penalty fines. These local policies are not affected by the update to the Corporate Enforcement Policy, however will be reviewed to ensure they refer to this most recent update.

1.6 As the policy is quite long, a short accessible summary will be published alongside the full policy on the council’s website.

2.0 Recommendations

(i) That the Cabinet approves the updated Corporate Enforcement Policy (appendix 1)

(ii) That the Corporate Enforcement Policy is uploaded to the website and included in publication lists for the authority.

(iii) That the Corporate Enforcement Policy continues to be reviewed on a regular basis or as the need arises from factors such as changes to legislation.

(iv) That delegated authority is given to the Chief Executive to approve minor modifications and updates to the policy.

3.0 Reasons for Decision

3.1 The council’s current corporate enforcement policy was endorsed and adopted by Cabinet on 17th March 2008 and last updated in 2016. It can be accessed via the council’s webpages at: https://www.westminster.gov.uk/enforcement-policy

3.2 An update to the policy is required to:

 Fully align the policy with the legal requirements set out in the Regulators Code 2014  Include recent legislative updates (e.g. general data protection regulations (GDPR)  Ensure our approach to enforcement is transparent and consistently applied

4.0 Background, including Policy Context

4.1 The Council carry out regulatory and enforcement functions across a number of services including (but not exhaustively):

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 Environmental protection  Food safety  Health and safety inc. Fire Safety  Private sector housing standards  Education (non-attendance at school)  Waste  Licensing  Highways and Kerbside management  Trading standards  Planning  Animal Welfare  Anti-social behaviour  Council Housing Tenancy/Lease conditions

4.2 The Corporate Enforcement Policy is an overarching policy that ensures transparency and consistency of enforcement approach across all council services. The policy helps the council deliver on its City for All commitment to provide excellent local services by providing a proportionate approach to enforcement, and ensuring our resources are prioritised to tackle the worst offenders. The policy also supports the council to deliver on its commitment to being a caring and fair City by taking stepped approach to enforcement for individuals and businesses to reach compliance, as well as ensuring that the strongest enforcements powers are used to protect those most vulnerable from deliberate or serious non-compliance.

4.3 The policy sets out:

 The legislative framework, regulations and principles that all regulatory services should adhere to  What residents, businesses and visitors can expect from officers carrying out enforcement  The council’s approach to enforcement and types of enforcement we may impose

4.4 A full review and update to the current corporate enforcement policy (last updated in 2016) is required to bring it in line with updates to legislation (such as GDPR), updates to the councils services (i.e. housing functions being brought back in house), as well as providing more detail and transparency for our community to understand the way we carry out enforcement. The updated policy has followed a suggested outline template issued by the Department of Business Innovation and Skills to ensure legal compliance.

4.5 It is important to note that the update does not introduce any new approach to enforcement across the council. Our approach remains the same which is to support businesses and individuals understand their legal responsibilities and will offer advice/issue warnings if the breach is not so serious, not persistent or we are confident there will be future compliance. However, we will also not hesitate to take necessary formal enforcement action against those who commit serious

Page 153 offences, fail to follow advice, where the scale of activity is considered unacceptable, or where there is serious risk of harm.

4.6 The diagram below provides a summary of our enforcement framework:

4.7 The broad nature of this policy is necessary as underneath sit a number of our local service specific enforcement policies that are already in place (e.g. parking, waste, planning enforcement). These policies provide the detail explaining the specific legislation under which officers are acting and the application of enforcement powers relevant to the service, including where appropriate the level of penalty fines. These local policies are unaffected by the update to the Corporate Enforcement Policy, however will be reviewed to ensure they refer to this most recent update.

5.0 Financial Implications

5.1 There are no financial or resourcing implications

6.0 Consultation

6.1 Between 30th July 2018 – 21st October 2018, the council invited the public and businesses, to have their say on the draft policy. The response rate was however low having received only three responses back from business groups, and therefore cannot be assumed as representative of the wider population. As the policy mirrors the current enforcement approach and does not introduce anything new, the council did not anticipate many responses, and this low response rate may reflect that people did not find anything to object to.

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6.2 Within the responses received they were in summary supportive of the policy framework, however were critical of the resources available to the council to undertake enforcement. A question was therefore asked for the council to consider delegating enforcement functions to business representative groups to improve our enforcement response. This suggestion has been considered and incorporated into the policy where this is deemed as appropriate and within our powers to do so.

7.0 Equalities Implications

7.1 Equalities implications have been considered. There are no equalities implications in relation to the report and the recommendations proposed.

8.0 Communicating the Policy

8.1 This Policy by its nature is long, therefore an easy to understand short webpage that summarises the main contents of the policy will also be published.

If you have any queries about this Report or wish to inspect any of the background papers please contact: [email protected]

BACKGROUND PAPERS - None

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Corporate Enforcement Policy Updated 2019

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Contents

Part One: About the Policy

Introduction………………………………………………………………………………….. 3 Areas we Regulate………………………………………………………………………….. 3 Policy Rationale and Scope….…………………………………………………………….. 3 Deviation from the Policy…………………………………………………………………… 4

Part Two: Legal and Policy Context

Legislative Framework……………………………………………………………………… 4 The principles of regulation………………………………………………………………… 4 The Regulators Code………..……………………………………………………………… 5 Information Sharing…………………………………………………………………………. 5

Part Three: Our Approach to Managing Non-Compliance

Authorisation of Officers…………………………………………………………………….. 6 Requests for our services…………………………………………………………………... 6 Identifying the Need for Action……………………………………………………………... 6 Conduct of Investigations…………………………………………………………………… 7 Prioritising Cases……………………………………………………………………………. 7 Decision to take Enforcement Action……………………………………………………… 7 Enforcement Good Practice……………………………………………………………….. 8 Explaining non-compliance………………………………………………………………… 8 Multi-agency Enforcement………………………………………..………………………… 9 Publicity………………………………………………………………………………………. 9 Complaints and Appeals……………………………………………………………………. 9 Performance Monitoring……………………………………………………………………. 9

Part Four: Enforcement Powers

Compliance, Advice, Guidance and Support…………………………………………….. 10 Voluntary Undertakings…………………………………………………………………….. 10 Statutory (Legal) Notices…………………………………………………………………… 10 Financial Penalties………………………………………………………………………….. 11 Revocation/Amendment of Licences……………………………………………………… 11 Court Orders…………………………………………………………………………………. 11 Simple Caution………………………………………………………………………………. 11 Prosecution…………………………………………………………………………………… 11 Proceeds of Crime…………………………………………………………………………… 12

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Part One: About the Policy

Introduction

Westminster City Council is responsible for undertaking enforcement activity across a wide range of public services. Our aim is to protect the interests, safety and wellbeing of all those who live, work and visit the borough by ensuring the actions of businesses and individuals comply with relevant legislation and Codes of Practice. We adopt a positive and proactive approach towards ensuring compliance, by helping businesses and individuals understand and meet regulatory requirements more easily, and responding proportionately to breaches.

It is the responsibility of individuals and business to comply with the law and Codes of Practice, and we recognise that the failure to comply sometimes stems from unintended ignorance, carelessness, or a lack of training and management control. Educating through the provision of information and advice, as well as serving notices that provide the opportunity to remedy the breach, are examples of the important tools that officers will use to manage risks. However, in some cases failure to comply may risk causing serious harm, be the result of deliberate illegal behaviour, or failure to correct an identified serious problem. In these instances, we will not hesitate to take strong enforcement action.

Areas we regulate

We deliver regulatory services and enforcement across a number of areas including (but not exclusively):

Environmental protection Food safety Health and safety Private sector housing standards Fire safety Waste Licensing Highways and Kerbside management Trading standards Planning Animal Welfare Anti-social behaviour Education (non-attendance at school) Council Housing Tenancy/Lease Conditions

Policy Rationale and Scope

This corporate enforcement policy applies to all service areas setting out the council’s intended enforcement approach and guidelines. It also provides a framework for our enforcement officers that ensures their powers are transparent and consistently applied.

Under the corporate policy sits a range of additional departmental enforcement policies. This is because for some services more specific detail is needed to explain the application of enforcement powers and imposition of penalty fines. Our departmental enforcement policies include:

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 Waste  Licensing  Kerbside management (parking)  Planning  Private Sector Housing  Education (non-attendance at school)

Deviation from the Policy

This policy indicates what to expect by way of enforcement, however the policy cannot provide prescriptive detail because the circumstances of each individual case, the law being applied, and the evidence available are likely to vary substantially. If there is a need to deviate from the policy this will be done where it is justifiable and the reasons are recorded.

Part Two: Legal and Policy Context

Legislative Framework

We will act in accordance with the relevant legislation, guidance and case law as appropriate, when investigating breaches of regulatory compliance and when considering enforcement action including:

 Human Rights Act 1998  Data Protection Act 1998  General Data Protection Regulation (GDPR) 2018  Regulation of Investigatory Powers Act 2000  Police and Criminal Evidence Act 1984 Codes of Practice  Criminal Procedures and Investigations Act 1996  Legislative and Regulatory Reform Act 2006  Code for Crown Prosecution  Regulatory Enforcement and Sanctions Act 2008  Criminal Justice and Police Act 2001

Our authorised officers will also comply with the requirements of the particular legislation under which they are acting, and with any associated guidance or codes of practice.

The principles of regulation

The Legislative and Regulatory Reform Act 2006, requires us to have regard to the principles of good regulation when exercising a specified regulatory function. For local authorities, the specified functions include those carried out by our environmental health, trading standards and licensing services, but we have also extended these principles to other areas of enforcement as listed under the scope of the Policy. We will exercise our regulatory activities in a way that is: Page 160 4

 Proportionate: our activities will reflect the level of risk or harm and enforcement action taken will relate to this and the seriousness of the offence  Consistent: our advice to those we regulate will be robust and reliable and we will respect advice provided by others. Where circumstances are similar, we will endeavour to act in similar ways to other local authorities.  Targeted: we will focus our resources on higher risk enterprises and activities, reflecting local need and national priorities.  Transparent: we will ensure that those we regulate, and victims of non-compliance, are able to understand what is expected, and what they can anticipate in return.  Accountable: our activities will be open to public scrutiny with clear and accessible polices and fair and efficient complaint procedures.

The Regulators’ Code

The Regulators’ Code came into statutory effect under the Legislative and Regulatory Reform Act 2006 and provides a clear, flexible and principles-based framework for how regulators should engage with those they regulate. All enforcement action will be carried out with regard to the principles specified in this Code.

In certain instances, we may conclude that a provision in the Code is either not relevant or is outweighed by another provision. We will ensure that any decision to depart from the Code will be properly reasoned, based on material evidence and documented.

Information Sharing

Section 5 of the Crime and Disorder Act 1998 places a duty on us to do all we can to reasonably prevent crime and disorder in our area. The council will fulfil this obligation by sharing information regarding its investigations with other council services and partner agencies including, (though not exhaustively):

 Police  Department of Business Energy and Industrial Strategy  Food Standards Agency  Health and Safety Executive  Environment Agency  London Fire Brigade  HM Revenue and Customs

All disclosures will be in accordance within the provisions of the General Data Protection Regulations (GDPR) 2018.

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Part Three: Our approach to dealing with non-compliance

Authorisation of Officers

The council’s Enforcement Officers will be authorised to undertake enforcement action once their line manager and the delegated authorising officer (usually a Director or Head of Service) is satisfied that they are competent to do so. Assessment of their competency is based on a number of factors and can include a period of assessment, qualifications, experience and/or specific training. Authorised officers will act in accordance with the policy.

The council at times may also appoint representative outside bodies to carry out enforcement functions where we consider this appropriate and there are powers for us to do so.

Requests for our services

In responding to requests for our services, including requests for advice and complaints about breaches of the law, we will:

 Acknowledge your request  Tell you when you can expect a substantive response  Seek to fully understand the nature of your request  Explain what we may or may not be able to do, so that you know what to expect  Keep you informed of progress throughout our involvement  Inform you of the outcome as appropriate

We treat all contact with our services in confidence unless you have given us permission to share your details with others as part of the matter we are dealing with, or there is an operational reason why we need to do so. In some circumstances, you should be aware that it might become naturally apparent to an alleged offender who the complainant is.

We will respond to anonymous complaints and enquiries where we judge it appropriate to do so.

Identifying the need for action

We may identify the need for enforcement action in a number of ways including (but not limited to):

 programmed and intelligence-led inspections  response to a complaint or referral from a third party  request for assistance for enforcement action or advice  requests for subsidised financial assistance to improve a premises  some enforcement services have officers patrolling the streets  sampling visits  test purchases Page 162 6

Where we consider it appropriate to inspect/investigate a business, premises, or activity to determine whether a risk of non-compliance exists we must do so. We will usually give you notice that we intend to visit unless we have specific reason to believe that an unannounced visit is more appropriate.

Conduct of investigations

All investigations will be carried out under the following legislation and in accordance with any associated guidance or codes of practice:

 the Police and Criminal Evidence Act 1984  the Criminal Procedure and Investigations Act 1996  the Regulation of Investigatory Powers Act 2000  the Criminal Justice and Police Act 2001  the Human Rights Act 1998

These Acts and associated guidance control how evidence is collected and used and gives a range of protections to citizens and potential defendants. Our authorised officers will also comply with the requirements of the particular legislation under which they are acting, and with any associated guidance or codes of practice. As part of the investigation process, persons suspected of breaching legal requirements will wherever appropriate:

 be formally interviewed in accordance with the Police and Criminal Evidence Act  be given the opportunity to raise a statutory defence  have the reasonable opportunity to provide an explanation or make any comments about the alleged breach

Prioritising cases

The following factors will be taken into account when allocating resources:

 severity and scale of potential or actual harm  existence of any continuing risk or breach of law  individual or businesses past performance in complying with relevant legal responsibilities  current enforcement priorities of the relevant service  practicality of achieving results including any evidential gap  wider relevance of the event, including serious public concern and interest  vulnerability of any group affected

Decision to take enforcement action

The decision to use enforcement action will be taken on a case-by-case basis and, to ensure consistency of approach, in accordance with this and any other policies which may be applicable. The action taken, which may be immediate, will be proportionate to the gravity and nature of the non-compliance. Page 163 7

Where appropriate, services will take into account the views of any victim, injured party or relevant person to establish the nature and extent of any harm of loss - including potential harm and loss - and its significance when making the decision.

In every case a decision to take enforcement action will seek to:

 promote and achieve sustained compliance with codes of practice or the law  ensure that businesses or individuals take action to deal immediately with serious risks and areas of non-compliance  eliminate financial gain or benefit from non-compliance  repair the harm done by the offence, where appropriate  ensure that individuals and businesses who breach prescribed conditions or legislative requirements, and directors, employees or managers who fail in their responsibilities are held to account, which may include bringing alleged offenders before the courts

The appropriate use of enforcement powers is important both to secure compliance with the law, and to ensure that those who have duties may be held to account for breaches of legislation, or causing harm to the community. It is also important that compliant business and individuals can be assured that action is targeted against the worst offenders, and that their compliance and efforts are part of a coherent system.

Enforcement Good Practice

We recognise that robust enforcement is essential for public confidence in upholding the integrity of the regulatory regimes that we administer, but also that good, proportionate regulation is supportive to the economic vitality and growth of the economy and local businesses. We will not hesitate to take all necessary enforcement action against those who commit serious offences, flout the law, fail to follow advice or warnings to achieve compliance, or breach matters that are of key priority to the Council. If there is a serious or imminent risk of harm, danger, nuisance or injury then we will take immediate formal enforcement action as required.

We are however more likely to offer advice or a warning in the first instance if the breach is not so serious as to require immediate enforcement action, if it is not a persistent breach, if there has been a history of good compliance, or we are confident there will be compliance. There are however, breaches, which the council considers necessary to adopt a zero tolerance approach towards for the protection of the quality of life of its residents, and these will be enforced without giving a warning.

Explaining non-compliance

When we take informal and formal enforcement action, we will provide individuals and businesses with clear explanations of what the breach is, what action is needed and the reasons for this. We will also offer advice but differentiate between those matters that are legal requirements and those matters that are advice and good practice. Page 164 8

We will provide the individual/ business with an opportunity to discuss with us the advice given, actions required or decisions taken in relation to non- compliance, except where we need to take immediate enforcement action to respond to or prevent serious or imminent risk.

Multi-agency Enforcement

There will be occasions where we will need to work with other agencies by carrying out joint inspections, in accordance with jointly agreed protocols for example with the Police or Fire Services.

In determining the most appropriate form of investigation and enforcement action, officers will have regard to other agencies’ interests as far as is reasonably practicable. Where enforcement action is being taken by another service, we will provide all reasonable assistance including witness statements and sharing evidence (subject to legal and data protection constraints).

Publicity

We will also consider in all cases drawing the media’s attention to factual information about charges which have been laid before the courts, within the limitations of avoiding publicity which could prejudice a fair trial. We may also publicise any successful conviction, to help inform others and improve awareness and compliance.

Complaints and appeals

We are always willing to discuss with you the reasons why we have acted in a particular way, or asked you to act in a particular way. In the first instance you should speak with the enforcement officer involved in your case.

Where we take formal enforcement action, there is often a statutory right to appeal against a regulatory decision or if we fail to act in accordance with the Regulators Code. We will always tell you about this at the appropriate time.

We manage complaints about our service, or about the conduct of our officers, through our Corporate Complaints Policy. Details can be found at www.westminster.gov.uk/complaints

Performance Monitoring

The council publishes an annual Audit and Performance Report, which describes our performance (including enforcement) against the council’s City for All programme, Service Standards, and Service Business Plans. It provides analysis, explanations and commentary in respect of outstanding, good and poor performance, including achievement of targets, the results of the City Wide satisfaction survey, trends, and details of remedial actions being taken where appropriate. Annual Reports can be found via the Audit and Performance Committee webpages. Page 165 9

Part Four: Enforcement powers

The range of civil and criminal enforcement options available to Westminster City Council is wide. Any enforcement carried out by our authorised officers will be set out in legislation or under national/local policy. Our officers will comply with the requirements of the particular legislation under which they are acting, and with any associated guidance or codes of practice. Below is a summary of the common categories of enforcement we may impose (this list is not exhaustive):

Compliance Advice, Guidance and Support

We will use compliance advice, guidance and support as a first response in many cases where breaches of legislation are identified. Advice is provided, sometimes in the form of a warning letter, to assist individuals and businesses in rectifying breaches as quickly and efficiently as possible, avoiding the need for further enforcement action. A warning letter (sometimes called an ‘informal caution’) will set out what should be done to rectify the breach and to prevent re- occurrence. If a similar breach is identified in the future, this letter will be persuasive in considering the most appropriate enforcement action to take on that occasion. Such a letter may be presented in evidence should the issue escalate to the court. Where more formal enforcement action, such as a simple caution or prosecution, is taken, we recognise that there is likely to be an ongoing need for compliance advice and support, to prevent further breaches.

Voluntary Undertakings

We may accept voluntary undertakings that breaches will be rectified and/or recurrences prevented. We will take any failure to honour voluntary undertakings very seriously and enforcement action is likely to result.

Statutory (Legal) Notices

In respect of many breaches, we have the power to issue statutory notices. Such notices are legally binding. Failure to comply with a statutory notice can be a criminal offence and may lead to prosecution. A statutory notice will clearly set out actions which must be taken and the timescale within which they must be taken. It is likely to require that any breach is rectified and/or prevented from recurring. It may also prohibit specified activities until the breach has been rectified and/or safeguards have been put in place to prevent future breaches. Where a statutory notice is issued, an explanation of the appeals process will be provided to the recipient.

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Financial penalties

We are only able to issue fixed penalty notices when we have prescribed powers to do so. If fixed penalty notices are available, their issue is at our discretion. In some circumstances, in particular where breaches are serious or recurrent, it may be that prosecution is more appropriate than the issue of a fixed penalty notice. A fixed penalty notice is not a criminal fine and does not appear on an individual’s criminal record. If a fixed penalty is paid in respect of a breach, we will not take any further enforcement action. However, payment of a fixed penalty does not provide immunity from prosecution in respect of similar or recurrent breaches. If a fixed penalty is not paid, we may commence criminal proceedings or take other enforcement action in respect of the breach.

Refusal/Suspension/Revocation of Licences or Permissions

We issue a number of licences and permits. We also have a role to play in ensuring that appropriate standards are met in relation to licences issued by other agencies. Most licences include conditions, which require the licence holder to take steps to ensure that, for example, a business is properly run. Breach of these conditions may lead to a review of the licence, which may result in its revocation or amendment.

Court Orders

In some circumstances, we may seek a direction from the court (in the form of an order or an injunction) that a breach is rectified and/or prevented from recurring. The court may also direct that specified activities be suspended until the breach has been rectified and/or safeguards have been put in place to prevent future breaches. Failure to comply with a court order constitutes contempt of court, a serious offence that may lead to imprisonment.

Simple Caution

We have the power to issue simple cautions as an alternative to prosecution for some less serious offences, where a person admits an offence and consents to the simple caution. A simple caution will appear on the offender’s criminal record. It is likely to influence how others and we deal with any similar breaches in the future, and may be cited in court if the offender is subsequently prosecuted for a similar offence. If a simple caution is issued to an individual (rather than a corporation), it may have consequences if that individual seeks certain types of employment.

Prosecution

We may prosecute in respect of serious or recurrent breaches, or where other enforcement action has failed to secure compliance. When deciding whether to prosecute we will have regard to the provisions of the Code of Crown Prosecutors. Prosecution will only be considered when we are satisfied that there is sufficient evidence to provide a realistic prospect of conviction against the defendant(s), and that prosecution would be in the public interest. For this, we will have regard to the Crown Prosecution Service Code of Practice. Page 167 11

Any successful prosecution will result in a criminal record. The sentence that the court imposes will depend on the legislation involved, the seriousness of the offence, any mitigating factors, and the courts sentencing guidelines.

Where a business is concerned, we will consider the management chain and the role played by individual directors and managers. We will take action where an inspection or an investigation reveals that the offence was committed with management knowledge or consent, or to have been attributable to any neglect on their part. We may also seek disqualification of directors under the Company Directors Disqualification Act 1986.

Proceeds of Crime

Any money or assets earned because of, or in connection with, an offence can be recovered under the Proceeds of Crime Act 2002. In relevant cases, we will consider taking action under the Proceeds of Crime Act to confiscate the proceeds of those who benefit from criminal conduct.

Page 168 12

Agenda Item 6

Cabinet Report

Decision Maker: Cabinet

Date: 8 April 2019

Classification: General Release

Title: Connected Libraries - the Report of the Independent Advisory Board on Libraries to Westminster City Council

Wards Affected: All

City for All Summary The report of this independent advisory board, now presented to Cabinet for it to receive, outlines the group’s findings and recommendations to the council for the future of its Library and Archive Services. Retaining public libraries at the heart of our neighbourhoods is a specific City for All commitment in itself, but the board’s report and its recommendations have implications and highlight opportunities across all Cabinet portfolios and every City for All theme.

Key Decision: No

Financial Summary:

Report of: Mike Clarke Director of Libraries and Registration Services 020 7641 2199 [email protected]

1. Executive Summary

1.1 The purpose of this report to Cabinet is to present, for ‘receiving’ purposes, the final report of the independent advisory board on libraries. It is attached as Appendix B to this report.

Page 169 1.2 The independent Libraries Advisory Board was established to consider the longer term future of Westminster’s library and archive services. The board is now ready to publish its findings and are seeking the engagement and acknowledgement of full Cabinet as it does so.

1.3 The Board’s report is attached in final draft (please note there may yet be minor changes on the publication design).

2. Recommendations

2.1 That the Cabinet review and acknowledge the report of the independent advisory board on libraries.

2.2 That Cabinet Members consider implications and opportunities arising from the report and its recommendations for their portfolios.

3. Background, including Policy Context

3.1 The independent Libraries Advisory Board was established to consider the longer term future of Westminster’s library and archive services. It was to look at the role they should have in future, the contribution they can make to delivering on the council’s strategic priorities, and what it would take to ensure they are fit for the future. The Board has developed some strategic recommendations for an effective and sustainable service vision – one which engages with other council provision across portfolios and can meet the needs of the community, now and in the future. 3.2 Board members were invited to join based on expertise and experience. The group was chaired by Chris Cotton DL, former CEO of the Royal Albert Hall. Cllr David Harvey and Cllr Guthrie McKie were observers. In addition, representatives of the voluntary library friends groups participated.

3.3 The work of the board was wide in its scope, leading to a set of recommendations that reach right across Cabinet portfolios and the City for All themes. Key areas covered by the recommendations are:

 Using the trust and accessibility of the library service, adopt the approach of the national Libraries Deliver report, tailoring it to City for All  Ensure best use of resources – the right service in the right place at the right time based on a strong understanding of local need  Make better use of libraries as a delivery channel and mechanism for City for All  Connecting libraries better through digital, business planning and investment

3.4 Alongside the main report, the Board intends to make available a precis of its discussions over the many months of its work programme. This is intended to provide background for those who may be interested in the information the board took into consideration and how it reached its conclusions. This will be accessible on a dedicated web page, where the report itself will also be hosted.

3.5 Publication of the report will be accompanied by a communications and engagement exercise by the council itself, starting with library staff, and involving service users and partners. The focus of this engagement will be to outline the council’s reactions to the

Page 170 findings of the independent advisory board (to whatever extent or detail this has been developed at the time) and the aim will be to attract as many people as possible into a wide-ranging discussion about the future role of libraries in Westminster’s local communities.

3.6 To facilitate this, an extensive, multi-media plan of engagement activity is currently being shaped. We seek to ensure local people have plenty of opportunities to engage with actively shaping these services in their own neighbourhood. The engagement programme will be delivered through summer 2019.

3.7 From this, it is proposed long term service strategies will be developed that respond to the Board’s recommendations and set a clear future direction for the service.

If you have any queries about this Report or wish to inspect any of the Background Papers please contact:

Mike Clarke – [email protected]

Page 171

Page 172 Appendix A

Other Implications

1. Resources Implications – none

2. Business Plan Implications – none

3. Risk Management Implications – none

4. Health and Wellbeing Impact Assessment including Health and Safety Implications – none

5. Crime and Disorder Implications – none

6. Impact on the Environment - none

7. Equalities Implications – none

8. Staffing Implications – none

9. Human Rights Implications - none

10. Energy Measure Implications – none

11. Communications Implications – none

Page 173

Page 174

Appendix B

Connected Libraries – Report of the independent board on libraries to Westminster City Council

Page 175 This page is intentionally left blank CONNECTING LIBRARIES The report of the independent advisory board on libraries to Westminster City Council

Page 177 1.1 / Foreword from the Board Chair They are increasingly playing a key role in the provision of collaborative and diverse Westminster City Council established a workspaces for the community as well as Libraries Advisory Board in 2017 with the aim evolving into hubs for education, health, of engaging expertise at a time of profound entertainment, and work. Libraries are change in local government, to assist it to encouraging people back into the physical determine the medium and longer-term future space, by providing facilities and services direction for its public libraries and archives. people want, such as coffee shops, access Westminster’s libraries have a strong base to free Wi-Fi, child care programmes, health of a valued and well-used service to build and lifestyle classes, senior citizen contact the future on, including its regionally and opportunities, and much more; while the nationally important archive, music and special ‘walls’ of libraries continue to expand beyond collections. The operation of the service was the physical space, with online resources, remodelled in 20171 to ensure value for money social media and mobile apps changing and to help make it fit for the future in the light how collections and services are delivered. of local government austerity, but the Council Apart from our own deliberations and site wanted to look at what needs to happen next. visits, we have had working sessions covering To begin with, we want to dismiss effective use of digital services, the integration the notion that libraries are only about of better ways to serve the community jointly buildings as expensive receptacles with other public services in Westminster, of books and cosy places serving primarily alternative delivery models, the value of cultural the more affluent resident. and heritage collections and services, and libraries’ role in supporting communities

Page 178 Page It is clear to the Board, through our visits and to come together. research, that libraries and the people who work in them are in an enviable position of trust, and that the benefits of a good quality INTRODUCTION library service are appreciated by its users and more widely in the community. The library service needs to find ways of encouraging a greater number of non-users to engage with libraries. Although councils have a statutory duty to provide a free public library service, it needs to generate a high level of take-up to justify expenditure and continued investment.

Nationally and internationally, public libraries are going through a renaissance, both in terms of the social infrastructure they provide, and the broadening of services and experiences they offer. At our sessions, we heard about libraries in Denmark (Aarhus), Finland (the new Helsinki library), and in other major British cities such as Birmingham and Manchester, and these examples formed the Board’s strong view that libraries are already community facilities and assets, and given the right nurturing they could become a key focus of community activity and strengthen community pride and sense of place.

1 Future delivery of the library service: Report to the Cabinet Member for Sport, Leisure and Community by Director of Libraries and Culture, 28.11.16

2 CONNECTING LIBRARIES CONNECTING LIBRARIES 3 1.3 / Acknowledgments and thanks Board visits to libraries I would like to thank the many people who have assisted the Library Advisory Board, for the time We visited libraries at different times of the day, which made us realise the true range and commitment that has been given. I think we have covered a large spectrum of issues over of activities that take place and the varied reasons why people use them. The popular the past year. The contributions from participants, the Board, officers including libraries director misconception is that public libraries are entirely about lending books, to a shrinking Mike Clarke and his team, Councillors David Harvey and Guthrie McKie, who observed the number of users. Our visits convinced us that a well-run library service: Board in action, library staff, and members of library friends groups. They are listed in Appendix 1, together with brief biographies of presenters and Board members. • offers a wide range of reading materials in digital as well as print formats with collections tailored to local need; Importantly, I would also like to thank all those who presented at Board sessions, sharing their • supports community development as a hub for activity and access; expertise and perspectives as guest speakers. Presentations to the Board have been excellent and wide-ranging, inspiring and thought-provoking. Each session is written up in Appendix 2 • provide learning opportunities for all ages and backgrounds; and that overview is well worth reading. • supports economic development by providing a reason for people to visit the neighbourhood, as well as helping people with skills; and We had presentations and question and answer sessions from the director of libraries at Arts Council England, the chair of the Society of Chief Librarians, members of the Kent Arts and • introduces people to technology, helping bridge the digital divide. Libraries team, the head of Lewisham library services, the managing director of social enterprise Wimbletech on start-up business working in collaboration with libraries; passionate delivery from Ciara Eastell OBE, of Devon’s Libraries Unlimited, and by the deputy chief executive of leisure provider GLL. There was also a perspective from the then director of library services at 1.2 / How to move forward This report advocates for a continuing and King’s College London and a compelling presentation from the chief executive of the National strong role for public library services in the Despite these consuming sessions, I am all Libraries Taskforce. Board member Ayub Khan also gave us some interesting observations City of Westminster, and aims to enlighten too conscious that there are many strategic from his own experiences – as a local government chief officer and president of the librarians’ the reader about the value of libraries and strands to develop and we have only been professional body Chartered Institute of Library and Information Professionals (CILIP) – visiting how they have an important place in the dipping our toes into what a library service other library services in the UK and abroad. development of the city, as it is articulated Page 179 Page of the future might look like. It is not about in the draft City Plan going forward painting a detailed picture, but some clear All of these inputs greatly influenced Board thinking – and this report – in one way or another to 2040. and strong themes came to the surface from and we are immensely grateful to everyone who took time and trouble to come and talk to us. all presentations and discussions. Above all, Despite this, the recommendations and conclusions in this report are solely the Board’s and we I hope the Cabinet, Councillors, officers, presentations demonstrated the need for take full ownership of them. the library and archive service, residents, passionate commitment by all stakeholders, stakeholders, potential partners and external and the will to come up with and implement advisors, all of whom this report is aimed at, a robust bold vision. Passion and committed will investigate, debate and take forward the engagement are essential to drive forward thoughts and ideas in it, in order to develop innovation, community engagement and the service in the future. I trust this work develop a beacon service for the wide and will assist in strengthening the future of the diverse communities that make use of libraries. service, clarifying its future direction of travel This is true whether it is providing strategic together with the investment the Council leadership, front line services or as a partner. makes in its public library services. Chris Cotton DL Chair, Westminster Libraries Advisory Board Severe financial cuts, as we heard about in London: February 2019 Lewisham, could have led to library services imploding. But through the passionate hard work and creative thinking of many individuals, with a range of stakeholder interests being engaged, change has been effected for the good, and use of library services there has increased. This underlines what can positively be achieved by combining genuine commitment to the service on the part of the local authority with effective use of available resources and harnessing of community support, enabling a continuing and thriving library service.

4 CONNECTING LIBRARIES CONNECTING LIBRARIES 5 2.1 / Before we get to the recommendations for libraries at a national level, and makes a of the report, we have tried to put them in strong case for councils to tap into the full some context, viewing the recommendations potential of libraries to impact on a vast array in the light of national ambitions for libraries of potential beneficial outcomes. We have expressed in the National Libraries Taskforce been encouraged by the Taskforce’s findings, publication “Libraries Deliver: Ambition for which have resonated with what we received Public Libraries in England (2016)”. We have during our own investigations. A council that also considered the strategic goals of the City empowers and invests in its library services can of Westminster expressed in the “City for All” unlock their potential to be, at different times, vision. We believe Westminster’s library service both a driving force and a conduit, acting in can be an exemplar of the Libraries Deliver conjunction with other services, in delivering approach, as well as supporting a range of many of the strategic aims of the authority. highly desirable outcomes that the Council wishes to see more broadly. Libraries Deliver is a positive message with some depth that enriches the future 2.2 / Westminster is a unique place. of libraries debate and demonstrates the A city within a city, with a global outlook extraordinary reach that libraries can achieve - Westminster has a higher proportion of assisting a wide range of outcomes for working-age residents, and a lower proportion communities: delivering value for money, of younger and older residents than the wide opportunities for partnering, and London average.2 Its cultural diversity and community engagement. range of ethnic backgrounds is immense, and there are wide variations in personal financial 2.4 / Libraries help to deliver for Westminster resources. Residents interact with an important a City for All Page 180 Page CONTEXT, daily workforce that enjoys many services provided by Westminster City Council, most It became clear when compiling the Board’s of whom live, and commute from, elsewhere. proposals that the recommendations of Libraries Deliver dovetail into all the themes in BACKGROUND AND There is a student influx too, with many the “City for All” vision. This led us to conclude major seats of learning. There is also a that thriving libraries are in a unique position huge tourist pull into the City throughout and important resource to help deliver a FIRST THOUGHTS the year providing significant employment “City for All”; from improving health and opportunities. Visitors enjoy the shops, the wellbeing, and building cohesive and ambitious richness of the performing arts, museums, communities, through supporting local the parks and historic buildings that abound, enterprise and driving growth, to supporting whilst others are here for the Mother of civic engagement. Many of the “City for All” Parliaments, royal connections or religious aspirations can be actively and directly driven history. Public libraries engage with residents, through the Council’s libraries offer. businesses, visitors and students, and the city’s healthy economy, rich mix of cultural activity, The foundations for this approach exist in and academic credentials should provide Westminster already. We were particularly opportunities for partnering in the future struck and encouraged by the commitment across a range of fields and activities. of senior officers whom we met from the adult social care, children’s, public health and housing departments to engage with library 2.3 / Libraries Deliver: the national strategy services. Many see libraries as part of key for libraries community services, which can assist in the The National Libraries Taskforce was jointly delivery of aspects of their services in a trusted commissioned by the Department for Digital, and friendly way. Culture, Media and Sport and the Local Government Association. Libraries Deliver sets out the challenges and opportunities

2 Westminster census and mid-year estimates, source: ONS, from WCC website

6 CONNECTING LIBRARIES CONNECTING LIBRARIES 7 2.5 / Changing times, changing libraries and over time as use declines, so the argument communities. In Westminster, the retention Tailoring of services is not always by for closure seems to build up. It should be said, of 12 public buildings across the city4 (not community need, but sometimes by what The scope of activity of all public libraries as volunteer involvement in libraries is generally counting the separate children’s library at the individual building can accommodate. we know them has evolved since their first beneficial to the service, but where they are Paddington, and the music, schools and The Board believes that the service is likely inception in the 19th century but no more so properly supported and not used as a substitute home library services) means that funding to be more effective, and more services than in the last 25 years as the digital society for adequate funding. is stretched over numerous locations better delivered, if a thorough review of has emerged. The way people produce, of varying age, suitability and quality, needs and standards were to be undertaken consume and store information has been delivering variable services. in conjunction with a clear set of objectives, revolutionised. Alongside this societal change, The Public Libraries and Museums which should be developed by the Council libraries around the country have grown Act 1964 following on from this report. their offer and changed the ways they deliver This Act makes public libraries a statutory services. Westminster’s libraries and archives service. It requires councils (including

are no exception, developing in response to London boroughs) to ensure there is a 4 The 12 sites are: City of Westminster archives centre, Charing Cross, Church St, Maida Vale, Marylebone, Mayfair, Paddington, Pimlico, Queens Park, local need and national trends, and providing “comprehensive and efficient” public St John’s Wood and Victoria libraries and Westminster reference library a mix of services that is specific to the city and library service. Local authorities must: the neighbourhoods within it. • provide a comprehensive and efficient What Westminster’s libraries and archives do 2.6 / The Public Libraries Act of 1964 (over library service for all people that would like to use it; half a century ago) set out the duty of every CORE SERVICE authority “to provide a comprehensive and • promote the service; and (summary) efficient library service for all persons”, but • lend books and other printed material the exact scope and quality of service is free of charge for those who live, work discretionary, for individual councils to decide. or study in the area. However, there is some consensus: drawing on this, we think a well-run service should The Act gives requirements for the range Page 181 Page provide: of resources to be provided and the Free access to internet Digital information Archives and local Parent and baby provision of support for people to access • enjoyment in reading and other cultural and Wi–Fi in all libraries resources studies activities the service. and creative activities; • raise aspirations and building skills The Government or more specifically, so people can achieve their full potential, the Secretary of State for Culture, oversees regardless of background; a local authority’s role in complying with the Act. • share information actively, encouraging people to engage with, co-create and learn (Source: CILIP briefing on Public Library Act 1964 [2015]) Provide books and other formats Local information provision Promote reading to children from each other; and for information, learning and signposting and help family learning and leisure reading • provide trust and practical support and 2.8 / The Westminster City Council, by advice to those who need it. contrast, has one of the best-funded and best-used public library services in the ADDITIONAL PROVISION TO MEET LOCAL NEED AND ADD VALUE 2.7 / The Act allows councils a lot of leeway in country, in relation to the size of its resident (indicative) how much they provide and what they expect population. The Council’s “City for All” their library services to do. In recent times, this vision declares that it wishes to “retain and has meant that councils have decided to close Arts and culture support Westminster’s libraries at the heart English Desk space for Specialist Advice services some of their libraries, in many cases reducing events and of our neighbourhoods.”3 The library service language local small collections on site the service to a minimum level of provision performances in Westminster provides a wide range of classes tailored businesses / they think will be legally acceptable. Others for identified entrepreneurs encouraging new core activity in response to the statutory audiences and have handed libraries over to volunteers to community requirement, as well as a range of additional groups participation run entirely. This may initially seem attractive services that add value and deliver a greatly as it avoids library closures and maintains an enhanced library offer (see infographic on impression of a full service, but in some cases page 9). However, a step change is required it has resulted in the library service being Business Homework Clubs Promote healthy living Social activities to allow libraries to fulfil their potential to fully hollowed out. Expensive buildings are Information Points through information to combat serve, engage with, and contribute to local events and campaigns isolation maintained, but little goes on in them,

3 Working with you to build a city for all, WCC 2018

8 CONNECTING LIBRARIES CONNECTING LIBRARIES 9 2.9 / We also urge Westminster City Council to today goes beyond providing books. As The infographic (below) illustrates some of the key groups targeted by libraries’ universal service be bold and not be afraid to try out new ways Singapore gears up for the future economy, according to the Libraries Deliver report 2016. This approach links to number of Westminster’s of working and service offers, building on a it is also important that we help people keep existing strategies such as the Active Westminster Strategy and the council’s emerging Cultural Vision. strong track record which includes initiatives abreast of global trends and the developments such as Making Every Contact Count, ESOL5 in a fast-growing world.” for Health, early years Rhymetime sessions LIBRARIES and others. The service should take every 2.11 / While the exact nature of the services DELIVER opportunity and make a clear strategic plan libraries provide has changed over the years, for working with partners to innovate, to make their underlying purpose has remained Services for CHILDREN sure libraries continue to retain the relevance constant. Public libraries have always existed everyday life AND YOUNG ACTIVE ACTIVE ACTIVE and accessibility that clearly attracts so many to support all people in bettering their PEOPLE LEARNERS CITIZENS AGEING in our community to use them. At the same circumstances – regardless of their current time, judgement should be used to select the situation. The original legislation in 1850 right service offers that are congruent with the established the principle of free public libraries, Users needs Users needs Users needs Users needs read, learn, connect vision, and any temptation and it was considered their core purpose to including: including: including: including: to chase every possible activity or fund to fill promote literacy, reading and learning that Reading Reading Reading Reading spaces and justify existence should be resisted. would enable self-improvement and reduce levels of crime. Although this assumption was Digital Digital Digital Digital 2.10 / Councillor Richard Beddoe, Westminster borne from middle-class paternalism, the literacy literacy literacy literacy City Council Cabinet Member for Place argument has been refined over the years and Health and Health and Health and Health and Shaping and Planning, said:“As we set out there is now a strong evidence-based link wellbeing wellbeing wellbeing wellbeing to create our city of the future, there is one between levels of literacy and levels of crime, question that should be at the forefront of as well as with health, self-advancement, Family activities Study space Community Family activities our minds in every development we job opportunities, and happy retirement. For Life skills Connectivity Business support Social activities Page 182 Page undertake: Will this be an asset to people’s example, the Shannon Trust, which works with lives? If we can answer this positively every prisoners to improve their reading and literacy, Careers Family activities time, the Westminster of 2040 is one we will says:“Learning to read isn’t just a brilliant thing, all want to be a part of.” it changes lives. It builds confidence, helps Libraries deliver Libraries deliver Libraries deliver Libraries deliver keep people connected and makes the world services including: services including: services including: services including: Although the timeline of this report is an easier place to live. It makes the impossible, much shorter, we believe the Council’s possible. [Our] Reading Plan is helping people Free Wi–Fi and Free Wi–Fi and Free Wi–Fi and Free Wi–Fi and determination to make Westminster a in prison.”7 computers computers computers computers world-class city should include the ambition of offering world-class libraries. We think this Libraries continue to help deliver a range Health information Health information Health information Health information will contribute to Westminster’s desire to of socially beneficial outcomes through their Social spaces Social spaces Social spaces Social spaces create the city of the future. Singapore presents core purpose of encouraging lifelong reading a possible example. As a small nation state, and learning. Bookstart Free study space Local information Books and poor in natural resources, it has invested in the e-resources Rhymetime Books and Business and IP educational and creative potential of its citizens 2.12 / Broad yet purposeful focus e-resources centres Events and through high quality schools, universities and Summer reading activities public libraries. The Singapore government We are not advocating that libraries should challenge Homework clubs Books and defines a world-class library service as a be all things to all people. Libraries should e-resources Home delivery service dynamic library system characterised by become engaged where they can make a Code clubs Reading ahead and difference – carefully prioritising where to quick reads Job clubs convenience, accessibility and usefulness, Volunteering which cultivates the culture of lifelong learning, engage, in consultation with colleagues creativity and entrepreneurship. (National and users. It is the fundamental purpose of Library Board’s annual review, 2017/18.6) libraries – to promote reading and learning – that has an under-recognised impact on Chair Heng Kee says:“our vision[is] to create a range of outcomes. The Council should readers for life, learning communities and a recognise this potential and exploit it by knowledgeable nation. The role of libraries targeted investment and much-improved partnership in some key areas.

5 English for speakers of other languages, a variety of courses by a number of different providers are available in Westminster’s libraries 6 www.parliament.gov.sg/docs/default-source/default-document-library/s-347of2018.pdf 7 www.shannontrust.org.uk/impact

10 CONNECTING LIBRARIES CONNECTING LIBRARIES 11 2.13 / The Board saw for itself that appreciate that they are entrepreneurs, DELIVERING A CITY FOR ALL Westminster’s Church Street library is a focal and personal skills building. This will create point of its community as a cultural hub, opportunities in an accessible, safe and information centre and meeting point. It is familiar environment – a good starting point also a bringer of investment both directly for many people. We say a bit more about this (with National lottery and Arts Council in our first recommendation. A CITY OF A CITY THAT A CARING AND A HEALTHIER AND A CITY THAT funding) and through people being attracted OPPORTUNITY OFFERS FAIRER CITY GREENER CITY CELEBRATES ITS EXCELLENT COMMUNITIES 2.16 / All Council services make their to visit and spend money in Church Street’s LOCAL SERVICES shops and businesses. A good library can help contribution to the society we live in and a community feel more confident – such how we care for and interact with that society. as the examples we heard about including Libraries have a special opportunity the Avonmore library in Hammersmith and to contribute. In the words of Malorie Fulham, which runs in partnership between Blackman, author and past Children’s the council and Citizens’ Advice, and in Laureate, quoted in Libraries Deliver:“What do Lewisham, where volunteers play a big part in libraries do for us? Well, they introduce many service delivery and development. into the world of literacy and learning and help to make it a lifelong habit; they equalize; Using libraries’ breadth of capability One of the Board members had recently they teach empathy and help us to learn visited Aarhus, Denmark, where a new library about each other; they preserve our cultural forms the focal point of the city’s approach heritage; they protect our right to know to citizenship and new arrivals. Birth and to learn; they build communities; they registrations take place in the library, and a strengthen and advance us as a nation; they bell is rung each time a new birth is registered empower us as individuals.” Reading and Helping Greater Stronger, Healthier, Digital Cultural literacy everyone prosperity resilient happier access and and creative there. In Suffolk, the library service is now reach communities lives literacy enrichment

Page 183 Page a community business, run by a mix of 2.17 / Creating a joined-up purpose their full employees who own a notional share potential and community representatives on a trust: Our recommendations have been developed use and funding from other sources beyond with a view to utilising libraries’ existing the council has grown significantly since strengths to deliver or enhance the five this started. distinct areas identified by Westminster in City for All. This does not mean the long-standing and characteristic strengths 2.14 / Integrating libraries to the delivery purpose of public libraries – reading and of a wider range of goals with other public learning – is set aside. In fact, it is essential, services is likely require restructuring budgets because it is by using the library service’s TRUST ACCESSIBILITY and possibly redirecting some spend (either mission of Read, Learn, Connect as a starting way). It is also likely to require exploration of point that Westminster’s libraries draw people other funding options that will meet strategic in and make these opportunities happen. priorities. We recommend that this is explored The following recommendations, the Board and reviewed, as part of budget-planning believes, could help the Council gain even processes over the next year, and findings more value and benefit for people from the through services that help people implemented in 2020/21 and 2021/22. remarkable potential offered by libraries’ See also the section on page 33 regarding position of trust and accessibility. financial reality.

2.15 / A key area for renewed focus is in the link between libraries and learning: we want the link between the two to be renewed and strengthened. This enhances the original purpose of libraries but also supports a revitalised ‘offer’ for adults in the READ LEARN CONNECT City. Such an offer would include access to both informal and formal learning (including academic courses), career coaching, support for entrepreneurs (who may not necessarily

12 CONNECTING LIBRARIES CONNECTING LIBRARIES 13 3.1 / The overall approach The purposes of public libraries, • Do not be afraid to be bold agreed between central and local • Adopt (and adapt) the vision for public government, are: library services articulated in Libraries • cultural and creative enrichment; Deliver, and use it to support City for All • increased reading and literacy; • Develop and empower staff and volunteers, for a confident workforce which advocates • improved digital access and for itself and the service digital literacy; • Be consultative and collaborative: • helping everyone achieve their learn from others and look to co-design full potential; and co-produce services with the • healthier and happier lives; local community, business, and other • greater prosperity; and council services • stronger, more resilient communities. • Maintain a recognisable core service throughout the City, tailored and delivered expertly in local settings and with flexibility Source: Libraries Deliver, 2016 to meet local need

We also think the following are very important: • Developing a plan without a vision will

Page 184 Page not be effective. Our recommendations should be seen as helping develop a WHAT THE BOARD vision rather than a delivery plan, which comes next • Explore how libraries can be resourced RECOMMENDS and invested in for the future, to ensure the best outcomes

Apart from general recommendations and observations throughout the report we highlight five specific service delivery recommendations that link to City for All.

3.2 / How we have structured our recommendations • There are five main recommendations • Brief introduction to each • Why and how for each recommendation • Desired outcomes

14 CONNECTING LIBRARIES CONNECTING LIBRARIES 15 FIRST RECOMMENDATION: LIBRARIES HELP MAKE WESTMINSTER A CITY OF OPPORTUNITY

Refocusing resources and combining with other services to ensure libraries are a vital platform for delivery Westminster’s libraries help everyone to “have the opportunity to build and maintain their lives, careers and families”, a priority of City for All. To do this, providing lifelong learning resources is essential. Accessible and trusted libraries provide resources, support and a “safe space” – particularly for those who need encouragement, help or support. This requires a clear tie-in with both adult education services and the Council’s economic development work, to ensure seamless provision, best use of resources and, for the library service, a performance target to reflect the number of adults engaged and assisted and finding their lives enhanced. Some of these offerings may be “added value” or charged for at point of use, in addition to the core, free offer.

This recommendation has two strands – literacy and digital literacy; and greater prosperity.

FIRST STRAND: LITERACY AND DIGITAL LITERACY WHY? Literacy improves life chances and is shown to have a positive impact on school achievement, employability, and health. The National Literacy Trust says: “Lacking vital literacy skills holds a person back at every stage of their life.” Some parents find they can’t support their own child’s Page 185 Page learning due to their own lack of literacy skills, lack of space and equipment particularly when children, as they grow up, have varying needs according to age. Low levels of literacy can also RECOMMENDATIONS hamper social mobility. In addition to this, the lack of basic skills has implications for isolation, social cohesion, and mental health. Libraries are an obvious place to start with the wealth of reading and digital materials and trusted staff to help people read, learn and find out more. Libraries are also places where people should be encouraged to come to learn new digital skills. The worldwide web and Google have made information so readily accessible and available to all that apparently there may be no need for libraries. However, there is still a substantial number of people who do not have ready access to digital services, for reasons of cost or accessibility. Others need help in researching, navigating and assessing the trustworthiness of information from often complex networks of resources. In the era of ‘fake news’, information literacy has never been so important and library staff help people develop this critical tool. Increasingly, public libraries are also partnering with technology companies and the academic sector to offer access for everyone to research reports and data, providing a valuable ‘open source’ for communities.

Digital literacy and digital inclusion should be strongly promoted as not only do they have huge benefits across learning, employment and leisure, they also align with the Council’s own drive to connect with more people digitally.

HOW? Expand the current reading and digital support programmes – independently and with partners particularly forging a new relationship with Westminster Adult Education Service (WAES). Engage more volunteers or secondees from business partnerships to work alongside library staff helping people become independent users of digital services.

16 CONNECTING LIBRARIES CONNECTING LIBRARIES 17 Support a rolling programme of investment in IT to ensure that libraries update and provide a We recommend the Council should: “world class” digital experience. The existing library offer we heard described by one of the staff • Develop a comprehensive learning and skills “offer to adults” in Westminster with as ‘2G’. Ideally, libraries should offer a superfast digital hub with modern infrastructure that can recognition for libraries as entry points to a high-quality learning experience support the community in acquiring digital skills, giving people greater confidence and the ability to do homework, research and learning; to improve their health and wellbeing, job seeking, and Proposed outcomes: their ability to engage with public services and e-commerce. It will also showcase the benefits of superfast, encouraging takeup, and this could potentially be a partnership with a major provider. • 50% of adults requiring literacy and digital skills improvement over the next five years are supported by libraries The service should, with the council’s IT provider, consider launching “Westminster libraries in • Learners gain recognised qualifications through participation in library programmes the cloud” bringing together an improved digital offering, which would include digitising all its wonderful assets – not least more of the archive and reference library collections, so that more • 10% of the City of Westminster’s target for people into jobs each year will have engaged people can access them more easily. with a programme in, or been supported by, libraries (75 people)

SECOND STRAND: GREATER PROSPERITY WHY? Case study Public libraries have always been a means to self-improvement and reskilling. They can support Glass Box is a community space in Taunton Library to support digital and business people into jobs and entrepreneurship through providing facilities for research, learning space, innovation where start-ups, innovators and digital makers can come together to share and resources, with a real focus on incubation and microbusinesses, and promotion of access knowledge and increase digital skills development. The library works in partnership with to resources and knowledge in partnership with companies and individuals who can offer some businesses, who can offer to share their skills and expertise. Workshops have included a of their time and skills each week. Google Digital Garage masterclass, where experts from Google offered advice and tips to local business owners on growing their businesses.

HOW? Library facts:

Page 186 Page We recommend the library service should: The British Library’s ‘Enterprising Libraries’ network has helped to create 1,692 new • Develop a specific strategy to offer skills development, business and entrepreneurship businesses and 4,178 jobs between 2013 and 2015 resulting in a payback of £4.50 for support with a real focus on incubation and microbusinesses, and promotion of access to every £1 of public money spent. Of the people who started a new business, 47% were resources and knowledge such as the existing business information points. As we stated women, 26% were from Black, Asian, and Minority Ethnic backgrounds and 25% were above (in Broad Yet Purposeful Focus), this should be done by renewing and revitalising unemployed or had been made redundant.8 the partnership with WAES, and working with the economic development team, and Westminster Employment Service 8 Enterprising Libraries: Engines of innovation and economic growth (Key findings of an Economic Impact Analysis), British Library, March • Trigger business start-ups (particularly digital) by providing access to kit, connectivity 2015 and advice – a good example is the Makerspaces established by some libraries; we know this may be past being considered ‘innovative’ now but could be refreshed for the next generation • Define a package of employment support to be delivered at each library as part of the core offer, including a range of basic support with job search, CV and application writing, and presentational skills. Specialist career advice should be made available within libraries to enhance this core offering • Work with the economic development and commercial strategy teams in the council, build partnerships with large local employers which offer progressive career opportunities, to trial new forms of support. These would be delivered through library spaces, to assist low-income residents to progress in the workplace. For example, Google could be helped to identify and recruit a cohort of digital apprentices from low-income backgrounds, with support provided away from the workplace in libraries (coaching, tech skills, life skills, self-led learning, mentoring). This could parallel a scheme the City of London already has in place to improve in-work progression by young Black and minority ethnic (BAME) employees. Follow up with research to evaluate outcomes

18 CONNECTING LIBRARIES CONNECTING LIBRARIES 19 SECOND RECOMMENDATION: LIBRARIES HELP We recommend the Council should: • Carry out a full review across all council service portfolios, looking at where libraries SUPPORT A CITY THAT PROVIDES EXCELLENT could help deliver and communicate initiatives and help see them actioned. Build findings LOCAL SERVICES and resulting proposed actions directly into service development and financial planning • Help the service become more adept at fundraising and commercial partnerships. Libraries provide a place and help make things happen It has already taken some steps to grow in these areas but they require skill and specialist knowledge, at a time when more public and voluntary services are chasing the same Libraries’ intrinsic accessibility and trustworthiness can not only support improved services funding pots and opportunities. Set realistic targets but also engage the service with wider but also add value to the existing provision. We also think the commercial potential corporate fundraising and commercial activity of libraries – some of it known, some of it still to be uncovered – should be maximised to help them be sustainable. Proposed outcomes: • Libraries have a secure resource base enabling longer-term planning (five years or more) Westminster City Council has “a national reputation for providing excellent local, value for money services”. In deciding how to continue to drive efficiencies as well as improvement, • Commercial strategy introduces greater resilience for the service, protecting and the council should be mindful that libraries are able to offer locations across the City and complementing the core offer and enabling the introduction of financially viable service trusted staff through which the community can access a wide range of services. This is a improvements and enhancements to spaces capability which can reduce pressure and levels of demand on other council services. Some examples of what we mean are noted below.

WHY? Case study: Libraries are in communities where often there are few other visible public and community Chelmsley Wood library, Solihull spaces. They provide a readymade shop window and place for service providers and residents • The library includes co-location with a community advice hub and health hub to interact. People feel more comfortable using a library in a way they don’t with a council in an urban neighbourhood

Page 187 Page office, advice service or even, in some cases, health services. These levels of trust, combined • Council-run with accessibility, are specific to libraries and can help the council achieve its strategic objectives and boost community resilience and independence. • Library service review (2017) future strategic direction emphasises more hubs and partnership working There are efficiency gains in using libraries, in addition to or in place of other facilities and resources, in both using resources well, and outcomes. Currently, thousands of people attend Library facts: library health and well-being events each year, supporting public health priorities including Library users place a theoretical monetary value of £24 - £27 per visit on their library smoking cessation, healthier eating, and better mental health. Often these are low-level service, which is 5.5 - 7.5 times greater than the cost of provision.9 interventions, such as books on prescription, which helps people take ownership of a mental health issue, used before the need for more intensive therapies arise. This can save money downstream as lower cost interventions reducing or delaying the need for more expensive 9 The Economic Impact of Libraries Report, Alliance of Libraries and Archives UK, 2014 one-to-one therapies provides a saving for the NHS and may also be better for the patient.

HOW? We recommend the library service should: • Make the business case for efficiency gains for other services, engaging corporate policy, public health and others to support developing the evidence base • Develop its commercial strategy, more pro-actively seeking funding opportunities. We recommend this be done in a clear and strategic way aligned with financial planning and corporate commercial opportunities • Prioritise fundraising and commercial activity as a given. Westminster’s libraries have taken some first steps in this but should review this area, supported by the council’s commercial team, and secure support for doing more. Learning from the experience of some of their teams (archives, music, for example) in leveraging funding successfully, and scaling this up

20 CONNECTING LIBRARIES CONNECTING LIBRARIES 21 THIRD RECOMMENDATION: LIBRARIES BECOME We recommend the Council should: • As a priority, address the accessibility and quality of the service provision – particularly A VISIBLE ADVOCATE OF A CARING AND FAIRER CITY its buildings, to ensure barriers to using libraries are reduced and removed. This includes both physical access, supportive technologies, staff training and awareness, and co-design Accessible spaces fostering community spirit of services with users “City for All” says that “caring for our most vulnerable…is and will always remain our most • Use the potential of the community infrastructure levy and section 106 resources important priority.” Libraries, as trusted and safe spaces, are somewhere the most vulnerable in a strategic way to support these changes, with the engagement of local communities can have a place and a voice and participate in activities rather than feeling isolated. Proposed outcomes: WHY? • All libraries to be fully and equitably accessible, with standards assessed and agreed with disability and community organisations, and percentage of registered users with Westminster should be a place where people look out for each other, fostering a sense of a declared disability is aligned to City of Westminster resident proportion by 2025 community, and where everyone has a chance. Libraries can help promote social inclusion and make people feel part of the city and welcomed. They are already places people go for help, for • Westminster’s libraries are seen as a national benchmark for accessible service provision advice and to make contact. We want to see the council build on this by using libraries to make by peers and national organisations, by 2025 even more connections in our sometimes-fragmented urban life. Going back to first principles, and the legal basis for libraries, they should genuinely be “for all” – ages, backgrounds and communities – which helps build cohesion. Case study: HOW? Sandal Library in Wakefield received a major internal and external refurbishment in 2015. By using libraries to foster community spirit, connectedness and shared experiences, helping The interior was redesigned so that people living with dementia would feel comfortable, tackle loneliness among not just elderly people but also the isolation felt by new arrivals with supported and more independent. Planned in partnership with the Alzheimer’s Society, a lack of English skills, carers, people with mental health problems, or parents at home with a Sandal Library became the district’s first dementia friendly public building and is likely Page 188 Page very young child. There should be a fair deal for young people – many of whom use libraries to be the first fully dementia friendly library building in the country. for study, but are sometimes overlooked for other needs. The service can learn lessons from Practical things include: a colour scheme which is deep red making it warm, friendly and its colleagues in youth services and sport and leisure in its engagement. calming; furniture which is suited to the people who will use it; a reduction of reflective Libraries should, as a given, be accessible – not just for mobility impaired people, but to all: surfaces; contrasting door frames making it easier for people to recognize them against people with dementia and their carers, homeless and vulnerably housed people, and those the walls; and signage that is easy to understand. They have published details about these with mental health issues, as well as easy to use for parents and carers with buggies and prams. changes in a guide. Since reopening, it has become a beacon of good practice for other This may need investment, as some facilities currently do not meet these needs resulting library services and health professionals. Its local community has also enthusiastically in those people not being able to access services. Certainly, the Council should look for supported their new local library and it has become a vibrant hub of community life. opportunities to reprovide or upgrade outmoded facilities, wherever this is possible, either Library facts: through planned maintenance and development, or opportunities that arise to replace existing provision with new. This should form part of the library location strategy we suggest later in 68% of people feel isolated following a diagnosis of dementia, and 85% want to stay this report (see section 6.4). We are aware the Council has opportunities for two new libraries at home as long as possible after a diagnosis. However, one study found that people in Westminster to replace current, inadequate provision: these should be used as prototypes with dementia regularly go out alone and this improves their health, wellbeing, and for an “inclusive from go” approach. independence. Familiar places help people to find their way around, and data from the national Taking Part Survey 2016 (DCMS) indicates that over one-third of people aged We recommend the library service should: 75+ already use their public library.10 • Support action to tackle the “loneliness epidemic” through a targeted, measurable programme in partnership with adult social care

• Ensure all libraries become dementia-friendly spaces as they are refurbished or provided, 10 Sources: “Over half of people fear dementia diagnosis, 62 percent think it means ‘life is over’ “ study; Dementia Awareness Week 15th-21st May 2016 from the Alzheimer’s Society, YouGov poll (June 2014) commissioned by Alzheimer’s Society, Mitchell, L. and E. Burton (2010) and more staff are encouraged to become Dementia Friends as part of the national Designing dementia-friendly neighborhoods: helping people with dementia to get out and about. ADS scheme • Provide a consistent standard of service to homeless or vulnerably housed library users complementing the work of the council’s homelessness team to understand needs whilst managing any behavioural issues • Develop an engagement strategy with young people – including non-users of libraries within a 16-30 age group – making them feel it’s “their library”

22 CONNECTING LIBRARIES CONNECTING LIBRARIES 23 FOURTH RECOMMENDATION: LIBRARIES HELP MAKE We recommend the service should: • Continue the partnership with public health, building on the success of the health A HEALTHIER AND GREENER CITY information officer, training for staff in Making Every Contact Count, and the 1,000 health activities in libraries every year. Update and develop the health offer in libraries Libraries are a key resource for social prescribing and referrals • Build the offer with local health professionals, particularly GPs, to ensure they know about Social prescribing is a means of enabling GPs, health and social care professionals, the voluntary what libraries in their locality can do. Remove any barriers to awareness and build this sector and other partners such as job centres and pharmacies, to refer people to a social in as a key local target for each individual library prescribing advisor, who supports and refers patients to local services such as walking clubs, • Ensure new and redesigned library spaces have different zones wherever possible, gardening or arts activities. allowing a range of social activity and also a quiet space for study and reflection. And also that new and refurbished libraries offer spaces for health and well-being activities such By providing non-medical support, it aims to improve patients’ quality of life, health as meeting and events spaces, consulting rooms and digital resources and equipment, and wellbeing by recognising that health is affected by a range of social, economic wherever feasible and environmental factors, and by helping them take greater control over their own health. Evidence shows that this approach works: a UK study found that after three to four months, • Focus on social isolation and loneliness reduction, by reforming the home library service 80% of patients referred to a social prescribing scheme were paying fewer visits to A&E, to specifically address these issues as its most important priority outpatient appointments and inpatient admissions.11 • Develop the rationale for libraries and public health building a partnership with UCL Partners, the academic health science network based at University College London Dr Neil Churchill, NHS England’s director for experience, participation and equalities, said: Hospital (UCHL), to trial fresh approaches for effective community-based treatments “Readers have always believed in the benefits of reading but initiatives like these show for adult and adolescent depression, dementia and Alzheimer’s disease. This would how important libraries can be to our health and wellbeing, especially for people feeling lonely build on work such as Wakefield’s dementia-friendly library, and the new approach to or isolated and living with poor health. It’s great to see the NHS partnering public libraries to under-5 rhymetime sessions being developed by the Association of Senior Children’s make sure we can help more people find answers to their troubles and and Education Librarians, that focuses on better mental health outcomes.13 It would also 12 not just treat the symptoms.” connect it to UCLH’s world-leading research and higher standards of proof. This would

Page 189 Page see Westminster’s libraries acting as city-labs and real-world settings for academics To help Westminster be a healthier city, where people grow up, live and age well, libraries can to conduct formal trials and studies, with potential benefits in practice for staff and contribute to people’s understanding and engagement with their own health and well-being, volunteers, and better outcomes for service users as well as that of the community around them. More than anywhere else, in health, knowledge is power, and a more informed population is better able to make informed choices. • Within the context of family hubs, look at how libraries could provide targeted ‘pop-up’ services to support the development and learning among families with young children. WHY? This could focus on school readiness through building literacy (rhyme and story times, engagement with reading) and parent information services – building on what libraries Fundamentally, libraries are about a broad-based and hugely effective form of social prescribing already do, but spreading it out wider in the community beyond the library walls on a mass scale, substituting participation, learning and social contact for clinical treatments. It’s for this reason that libraries are co-located with local health centres in Cambridgeshire, Cornwall, We recommend the council should: Lambeth and many other areas. Kent Arts and Libraries demonstrated to the Board how their • Join the libraries and archives service up with the sport and leisure strategy, and ensure digital services communicate with the growing ageing population and help link up people with it is contributing to encouraging active, engaged and healthy lifestyles by providing each other and services, remotely, to assist in providing reassurance and combating loneliness. encouragement, support, and awareness Public libraries already support better health and well-being for many people, helping them • Consider how it can use libraries much more effectively as focal points to promote to become active, live better and maintain their mental health. Westminster’s library and archive positive behaviours, including driving recycling, making more use of libraries’ ability to services are no exception. Health checks, smoking cessation groups, chair-based exercise for reach into the community to affect behaviour change. Use libraries as an exemplar to shift older people and reading for mental health activities take place every week, and libraries are towards reduce, reuse, share as well – making a highly visible commitment to having less a key place that people seek information and advice about health and well-being at a time and ‘disposable’ culture in the City, taking all opportunities to use resources more sparingly in an environment, which tends to make them comfortable and receptive to these messages. • Promote community gardening and planting wherever space permits

HOW? Proposed outcomes: As a free, local and accessible resource, delivered in a non-stigmatising environment, the service can • Outcomes and benefits of a social prescribing approach as applicable to libraries are play a role in overcoming some of the causes of health inequalities, including lack of information as measurable and demonstrable, with a suite of performance measures to be developed by 2020 well as deprivation, levels of formal education, and physical mobility. Libraries can also play a part in • Increased library usage by people on referral from health providers the emerging “tranquillity agenda”, providing space for people to recharge and reflect in our vibrant, “always-on” culture. This could contribute further to the mental health benefits they can bring. • Westminster’s libraries partnering on innovative programmes with research organisations

11 The Reading Agency: Social prescribing and Reading Well in Shropshire libraries, 2.10.18 13 Association of Senior Children’s and Education Libarians: Rhymetime and seven quality principles, November 2017 12 NHS England: Social prescribing at the library, blog 12.10.18

24 CONNECTING LIBRARIES CONNECTING LIBRARIES 25 Case study: FIFTH RECOMMENDATION: LIBRARIES AND ARCHIVES Oswestry Library and North Mobile Library in Shropshire have been working in partnership SHOULD BE THE CITY’S FOCAL POINTS FOR with other community organisations on a social prescribing pilot scheme in the local CELEBRATING CITIZENSHIP, HERITAGE, AND area. When GPs identify patients who they feel would benefit from a health-promoting community intervention, they can direct them to Shropshire Council’s health service, COMMUNITY-BASED ART AND CULTURE Help2Change, where a friendly and experienced advisor is available to talk to the client about resources and services available in the library to help. The first place for people to experience and engage with arts, culture and heritage According to Mirka Duxberry, Library Development Manager at Shropshire Libraries, chief Cultural and creative opportunities enrich lives. Previous Culture Secretary, Karen Bradley MP, among these resources are the expert-endorsed Reading Well collections: said: ”Watercolour painting, playing a sport, visiting ancient and beautiful places, drawing, writing poetry, mastering a musical instrument – all of these lead to a life well lived. They raise “The programme offers more than signposting and includes one to one support from a the human condition and cheer our spirits. Simply put, they make us happy….. It is precisely the social prescribing advisor, trained in behavior change. The majority of clients have anxiety, aggregate effect of these individual experiences that will bring about a healthier, smarter, more depression and/or pain management issues. We have introduced them to our specialist peaceable, more cohesive, and happier society.”15 Reading Well collection of books on these topics, activities for reducing stress/reducing isolation such as Time to Listen (books aloud for adults), and Quick Reads book club for The DCMS Taskforce says: “Libraries are well-placed to increase participation in cultural activities people with low confidence and concentration.” because of their use by all social groups and their role as inclusive cultural hubs within communities. Libraries also point people to wider cultural activities, objects, knowledge and sites, and encourage The scheme also has the full support of Shropshire Council’s public health department, individuals to explore different cultural experiences and to create things themselves.” who has seen how working with Shropshire Libraries has helped to broaden their reach into communities and really “make a difference by working with partners to make health WHY? and wellbeing information available to the public”. We believe the library service should foster and promote engagement with cultural and artistic Library facts: Page 190 Page activity for two reasons: Regular library users have an increased the likelihood of reporting good general health. 1. it is good for people – their well-being, and social integration; and The NHS estimates this delivers a saving across the library-using English population of 14 £27.5 million annually. 2. it improves educational achievement and encourages lifelong learning.

Libraries are a good place to start taking part, as an audience or participant: they are local, 14 The health and wellbeing benefits of public libraries (Full Report), 2015, Arts Council England friendly and accessible.

Library buildings provide an important venue for a wide range of cultural events and activities. They often offer smaller scale artistic events and activities in a familiar and informal environment, which can give them a heightened ability, compared to other venues, to attract new audiences who may not habitually engage with the arts. This is increasingly being recognized by Arts Council England (ACE) and other creative policy-makers and partners. A good example is City of Stories, a writers’ programme in public libraries (including Westminster’s) aimed at identifying new and emerging talent. Libraries can be an accessible introduction to cultural experiences with minimal risk. For artists and the creative economy, they can give a platform for little financial outlay, and space to grow and develop. They are incubators of talent, and this aligns with the council’s own emerging cultural strategy. For the Council, it would fit well with the City Lions programme and the wider challenge to engage local people with the benefits of living in Westminster, cheek by jowl with some of the world’s best arts organisations.

HOW? The service, supported by the wider Council, should consider a strategic approach to building relationships, including with external funders, and also consider crowdfunding, sponsorship and higher profile marketing. The service already has a good entree to the cultural ecosystem of Westminster through the Westminster Culture Network, which it supports and facilitates. This is a grouping of arts professionals, teachers, council officers and others which networks

15 Rt Hon Karen Bradley MP, maiden speech as secretary of state for digital, culture, media and sport; Liverpool – published 9.8.16

26 CONNECTING LIBRARIES CONNECTING LIBRARIES 27 and collaborates regularly. The service should seek more opportunities to work with the major cultural, research, local, national and international business organizations that have their home in Westminster, and do so in a more targeted and strategic way. This may require a full time committed fundraising resource. Developing relationships may well have a beneficial effect in providing support for other library activities either financially or in kind.

We recommend the library service should: • Continue to support and grow arts, cultural and heritage programming in libraries and archives, building on the excellence that already exists and ensuring that it is targeted widely and accessible • Start to make use of digital channels with partners to improve engagement and take-up such as webcasting events and talks to broaden the audience • Develop its strategic approach to fundraising and consider dedicated resource • Set challenging targets for funding and attendance – leveraging money, increasing attendances, evaluating feedback

We recommend the Council should: • Ensure libraries’ role in promoting culture and creativity is fully recognised and reflected in its wider cultural strategies and programmes • As well as the City cultural strategy, connect to other programmes and strategies e.g. sport and leisure, City Lions to maximise the benefits • Consider a commissioning budget or programme led by libraries to develop new talent Page 191 Page and offer opportunities targeted where the need is greatest • Support and challenge the service to build more external relationships and bring in more SOME ADDITIONAL resource through partnerships Outcomes: CONSIDERATIONS • Greater engagement with arts and culture within communities, via libraries; especially non-traditional and hard-to-reach audiences, to be measured via longitudinal study. Events in libraries are reported by participants to improve their connection to their community and sense of wellbeing • Strengthened partnerships with major organisations fulfilling their social responsibilities to Westminster in part through libraries • A more sustainable arts, culture and heritage offer

28 CONNECTING LIBRARIES CONNECTING LIBRARIES 29 5.1 / A note on special collections and and a regular programme of talks, workshops 5.2 / Volunteering services and concerts aimed at opening up access to Libraries should continue to nurture their the collections and engaging with schools, The City of Westminster’s libraries and connections with the local voluntary and and groups who may think it is not for them. archives include a number of special community sector (VCS). Westminster collections and services that are unique or libraries already work directly with many Westminster reference library is, in reality, unusual, and not replicated in other public VCS organisations to deliver vital services to a special collections library with resources library services. These include the City of people in their neighbourhoods, sometimes focused on visual and performing arts Westminster archives, the Westminster music by providing physical accommodation. (particularly West End theatre), business and library and a number of collections based at Libraries should build upon this existing good science. It recently launched a telescope Westminster reference library. The collections work, using their reach into the community loan services funded by a research council mostly relate to arts, culture and heritage (see to raise the profile of local VCS activities and grant, supported by a programme of events. also Recommendation 5). With the exception playing an active part in the promotion of Alongside the collections regular activities, of the City of London – which is a unique volunteering and recruitment of volunteers. talks and networking events attract hundreds authority, and in any case, has a London- of people each year, many of whom are not wide remit for some of its services – no other Volunteers are already an important part otherwise library users. borough maintains such a large number of of delivering library services in many parts of the country, not least in Westminster. special collections in addition to the core The Board is not going to comment in any They support and assist paid staff but their service within its public library service. In part, detail on these services as their specialist contribution goes beyond that. Volunteers this explains the high per capita cost of the nature would require more in-depth evaluation. help deliver services that are enhanced library service in Westminster. Some of the We have not reviewed these services in their beyond what the council could offer alone. collections are of regional or even national rightful national context. They appear to They are also a direct connection to the interest, and are used by non-residents from provide much-valued services (evidenced community, helping the service be ‘owned’ far and wide, whilst being maintained as part by use and recognition), but where they are of the Westminster-funded service. by it and providing an important feedback

Page 192 Page positioned in the future requires a detailed loop. The benefits are also mutual – study and meeting of minds nationally. Archive services do more than just preserve opportunities to volunteer in libraries can records of municipal activity. They provide a It may be that, given their wider regional and support people’s health and wellbeing, provide written, visual and oral history of Westminster national remit, and the potential for greater chances for personal and career development, and its ever-developing communities. We external funding, a different vehicle should and can tackle social isolation. should not forget every day is history in be considered in the form of a trust or other We think the Council should increase the making. Westminster has an archive of non-profit model, for these specialist services. and diversify the number and deployment distinction, one of only two in London to be Partnership with other institutions (particularly 16 of volunteers in running its libraries, with accredited by the National Archives, which academic) might also be a way forward more demanding targets for the number runs a sustainable programme of education, for some of the collections in particular of hours and an overall number of people outreach and events, funded by mainly – providing access was maintained and engaged in this way, and give more of a external resources and partnerships. enhanced. The main aims would be to ensure voice to volunteers, in terms of consultation continued vibrancy and sustainability for these The music library, housed in Victoria library, and engagement. Targets should include a services and collections, and the Board thinks is one of the largest of its kind in the country. requirement for the volunteer body to reflect this – and other options that may be identified Founded in 1946 thanks to the bequest of a the socio-economic and cultural makeup of – should be considered by the Council. major collection, and still supported financially Westminster, and that volunteers should be by the charitable Central Music Library part of the solution for developing new and Committee which provides funds for new sustainable services in libraries. acquisitions, it includes a song index of more than 75,000 items, as well as orchestral and vocal sets for hire, and books about music. This is a significant collection, with no real equivalent in London, as most boroughs have discontinued their music libraries in recent years. As well as research resources, there are music practise facilities and keyboards for hire,

16 The National Archives accredits local authority archive services which meet its standards for care, access and education. Westminster was first accredited in 2016

30 CONNECTING LIBRARIES CONNECTING LIBRARIES 31 6.1 / Austerity in the public sector hasn’t gone What did become abundantly clear, though, in away. The Board fully appreciates that ‘gold- engaging with the different models presented plated’ levels of funding are not likely in the is that the passion and commitment of the future for discretionary services, as reduction people delivering the service are vital. This in government grants and increasing demand is especially true for those responsible for for core social services continue. Libraries leading it, from both a political and managerial need to clearly and continuously demonstrate standpoint. We recommend that Westminster the value they add, and the approach of Libraries Deliver partially illustrates their value City Council keep reviewing its means of and beneficial outcomes. delivery in a timely way to ensure that not only is it offering the best value and achieving 6.2 / It is, however, worth noting that while objectives, but also that it is engendering local government as a whole spent less than passion and commitment to the service at 1% of its total budget on public libraries in all levels. An unflinching commitment to this, 2014/15, here in City of Westminster the not the details of the precise model chosen, council spends rather more, about 3.5% of its seemed to the Board to be the key common revenue, on running the library service, a total marker of success. of £6 million a year, as of 2018/19. It is clearly proud of its libraries and willing to invest in 6.4 / An important part of a financial review them (when others have cut theirs). Even so, should cover the use and appropriateness and financial pressures dictate that libraries will location of library property and premises. The need to be more commercial and successful library buildings in the context of the council’s at attracting new funders and users if, in future, provision is to be maintained or even wider property ownership should be reviewed extended to meet a new and emerging need. by the Council’s property services and library They will also need to consider whether other services together to ensure buildings are used Page 193 Page DELIVERING THE models of delivery, in whole or part, might to best effect, and what the need should be in support sustainability. the medium term future. This review should include co-location opportunities, sharing 6.3 / Alternative models of delivery of resources, disposal to market of duplicate RECOMMENDATIONS: or under-utilised facilities, and reinvestment The Board had presentations from in library provision. It should also have a organisations who are providing public library mind to community engagement. A good services in a variety of ways. These included example is the plan to use space at Seymour THE FINANCIAL REALITY Devon’s Libraries Unlimited, a mutual provider Leisure Centre to provide a new library for the which is owned by employees and the community in Marylebone. There could be community; GLL, which is a form of social further opportunities if other services such as enterprise; and as previously mentioned, adult learning work more closely with libraries the partnership libraries in Lewisham, and in the future. in Hammersmith and Fulham. The different models, and the in-house delivery of service 6.5 / The Board has not looked in–depth at which Westminster (along with many other where to locate libraries or how they should be councils) continues to have, all have strengths planned. As we have noted, that would require and weaknesses. The implications and relative a thorough business and needs appraisal, as merits of individual models of delivery can well as identification of potential opportunities. be financial as well as operational. The Board There is the wider community of Westminster as well as local communities, and communities noted how, whatever the model pursued by can be defined by geographical and other a local authority, the challenge of balancing definitions. These need to be determined so budgetary imperatives and the pursuit of that the council can respond appropriately. efficiencies with the core purpose and value of We do urge the council to include the services, remains. The Board has decided consideration of library provision in major not to recommend one model over another, redevelopments, of which the Church Street as it would require considerably more time Masterplan is a good example.17 This does not and investigation than we have had available necessarily mean standalone library buildings. to make a sound recommendation.

17 WCC: Church Street regeneration

32 CONNECTING LIBRARIES CONNECTING LIBRARIES 33 Each evaluation should include the question local authorities have available to them. non-core activity (an example would be “what is the need” with a clear bold response Westminster libraries’ positioning at the charging admission for special events) including “what services should be on offer” heart of communities could make them so the offer responds to the community. very attractive for sponsorship or corporate • Seeking long term funding from a key By way of illustration, it may be a review social responsibility investment. Invest to save, sponsor – public or private – for the would demonstrate that fewer hubs, resourced community infrastructure levy and planning specialist services that Westminster’s effectively with excellent facilities planned gain are just three alternative funding sources libraries offer but other councils do not. to serve the community, and combined with that libraries should build their case for These include Westminster reference other council services, would represent better investment from. Philanthropic support and library (and its individual collections), service and value than the existing network Arts Council England funding is also available the music library, the Chinese language built up piecemeal over the years. There are given the appropriate pitch for funds. service at Charing Cross Road library. a number of examples of the close proximity The archive service, which is part of libraries One route would be to seek ‘national of some libraries within Westminster, whilst in Westminster, has proved adept at securing portfolio England’ status from the Arts other parts of the city are more remote funding from small grants and other parts of Council, but this shouldn’t be the only from provision. Rightsizing this should the public purse, and most of their project opportunity that is explored since it is be a long term ambition to ensure fairness work is externally funded. Applying for funding and consistency. requires, above all, knowledge and training, unlikely to be the answer to everything resource, stamina, skill, and passion for • Commissioning by other council In answering “what is the need” an appraisal the cause. departments to deliver services making study should include questions that respond in use of existing library strengths and skills. several ways. Is the current library of value as a 6.7 / Commitment means more than money The service is already commissioned centre of learning, as a cultural hub or facility, by public health to deliver health as a key resource for young people and their We have seen that passion and will to serve information and lifestyle guidance; by development, or for older members of the the community is crucial - more essential economic development to co-produce community; as a community builder, and as a than throwing money at the subject, or business information points, and by the community centre. They need not necessarily indeed the reverse, presuming that major

Page 194 Page West London Clinical Commissioning satisfy all these objectives but as has been said savings can or should be made. We were in section 2.9 of this report currently tailoring Group to deliver English For Speakers struck by how resourceful some service of services is not always by community of Other Languages (ESOL) for providers elsewhere have been when faced need, but sometimes by what the legacy Health classes. We recommend more with potentially devastating financial cuts building can accommodate. This is clearly an commissioning opportunities are sought ineffective way to continue in the future. driving the need to think creatively and look for funding opportunities. • Greater commercial activity in libraries, At the same time, locating services needs delivered by the service but also careful planning so people (especially existing Equally though, the Board has seen how through partnerships, franchising users) are not deterred from using the strong investment in library services, not or sub-contracting service because of transport issues or fear necessarily funded in whole by councils, of the unknown. On the other hand if the can deliver dividends for service scope Health, social care and children’s services libraries estate contained the right number and social outcomes well beyond those are the Council’s highest priorities and we of well-sited, well-specified facilities, there is traditionally viewed as libraries’ and archives’ hope we have made a case in this report for evidence to suggest that they might attract remit. The aim must be to courageously libraries to be part of the solution to many 18 much greater use. At the same time, any address the question of how to make of the challenges faced by the Council: ill-effects of change – such as reluctance to Westminster libraries “fit for the future” and supporting health, learning and social care travel, mobility concerns and other potential programmes, and building on the accessibility drawbacks could be offset by putting library then support the service to find ways of resources in more community settings, resourcing the solution. This could include and trustworthiness we have talked about. including pop-up libraries as currently probably a mix of: Reducing the service’s funding without operated by London Borough of Merton, consideration of the alternatives – and the and more outreach and flexible provision • Commercial sponsorship of some value it adds - would be counterproductive with partners. aspects of the service (other services to the welfare of the community they are have done this with their culture there to serve. Conversely, by giving all 6.6 / Westminster is at the heart of London, programmes, specific collections, opportunities full consideration, we think that with strong local, national and international children’s facilities – LEGO has the realistic scope for world-class service, business presences, which offer support supported these in some libraries, for with long term financial sustainability, remains. and partnering opportunities few other instance); alternatively monetising some

18 See for example the well-documented case of Tower Hamlets’ Idea Stores, where a declining library service reinvented itself with fewer, better-lo- cated and purpose-designed buildings combining library and adult learning provision in one place

34 CONNECTING LIBRARIES CONNECTING LIBRARIES 35 We have presented our views and recommendation but how are we best able to judge the benefit of implementing the recommendations over time? We are all aware of the ever-rising expectations of customers and at the same time, the pressure on public funding requires greater diligence on measuring performance. Understanding the impact of what libraries do (the services, support, and space) both to individuals and to the community, is essential for us to understand and demonstrate its value.

Assessment of value for money of library services is often expressed only in economic terms. There are thorough business plans and targets for income and expenditure, there is a measurement of inputs including the cost of staff, stock, IT and premises. There are bold headlines of cost per visit, number of active members, or visits to the website, number of activities, books loaned. But importantly rarely is there any assessment of outcomes.

For example, what improved opportunities have been generated by increased literacy, or for reskilled midlife users? Has the use of a library led to higher academic grades or a better job? We certainly witnessed after school homework being diligently undertaken on one visit to Pimlico library, but library services must go beyond anecdotal indications, to ensure that where these connections feel instinctively true we can also prove that they are.

Continuous assessment of outcomes is crucial but is not the responsibility of the library service alone. It is for the council to acknowledge and find ways to measure the difference being made, and for the wider community to recognise the value of libraries and the services offered within them.

For the recommendations in this report to have the beneficial effect, we urge the Council Page 195 Page to embrace the real opportunities available to widen library services for the good of the community and together collaborating with other services the values embraced in ”City for All” CONCLUSION will continue to achieve their goal.

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