The Economic Case for Public Realm Investment in the Heart of London Area THE ECONOMICCASE FOR PUBLIC REALM INVESTMENTIN THE HEART OF LONDON AREA 2 PURPOSE OF THIS STUDY Economic case for public realm investment in the Heart of London area Arup and Professor Tony Travers of Arup has assessed what the sectors that make up the Heart of the London School of Economics outcomes of selected public realm London’s economy, and assess how (LSE) were appointed by the Heart of investment scenarios might mean in these fit together, to maximise good London Business Alliance to: terms of property value growth for all those who live, work, enhancement, land use changes, invest and visit this remarkable part Develop a case for greater employment, taxes at the London of central London. level and from a national perspective investment in public realm for the Major capital projects with the and Gross Value Added (GVA) – a Heart of London area to allow it to potential to affect the Heart of measure of economic growth. meet its full good growth London area in the near future are potential, and We have set out the conditions already underway, and still more are required for investments in public in the pipeline. Some examples Inform decision makers of the realm to fulfil the economic potential include: economic benefits that could be of the Heart of London area by • The arrival of the Elizabethline achieved through investment in building on the Placeshaping (Crossrail) driving significant public realm. Strategy commissioned by Heart of projected increases in footfall London Business Alliance (developed throughout the West End; The Heart of London area makes a by Publica) and an extensive body of unique contribution to the economic literature, initiatives and lessons • Westminster City Council’s success of the wider West End, from international case studies. proposals in its Local Implementation Plan 2019-22; London and UK economies by helping The proposals outlined in this report and; attract hundreds of millions of present opportunities and some visitors to London. The quality and challenges to the delivery of good • Construction of several large Alliance capacity of public realm of the Heart growth in the Heart of London area. hotels at the centre of theHeart of London area should reflect and of London area. support this economic role. Our focus has been on producing analysis to ensure the Heart of London area’s ‘ecosystem’ issecured and continues to thrive. We have of London Business assessed how investments in public Heart realm would impact the diversity of Source: THE ECONOMICCASE FOR PUBLIC REALM INVESTMENTIN THE HEART OF LONDON AREA 3 CONTENTS 1 Executive Summary 4 2 Defining the Heart of London area 11 3 The Heart of London area in West End’secosystem 20 4 Investing in the continued success of the Heart of London area 28 5 Sackville Street case study 42 6 Scenarios results 47 7 Appendix A: Baseline methodology 61 8 Appendix B: Model methodology 63 9 Appendix C: PERS scores 74 10 Appendix D: Learning from other successful globalcentres 79 FOREWORD The Heart of London Business Alliance serves as a voice for 500 businesses in the Piccadilly & St James’s and Leicester Square areas. We support the commercial well-being of the businesses and organisations we represent and ensure our areas remain integral to London’s West End offer. We have a 18 year track record transforming the area for the better, putting it on a global stage, and making our businesses more economically resilient and secure. Continued investment in our public spaces will maintain the Heart of London area’s status as a leading global hub for culture, commerce and leisure. And this report sets a clear case for investing in the Heart of London area to the benefit of businesses, workers, visitors and residents. Ros Morgan CHIEF EXECUTIVE Heart of London Business Alliance THE ECONOMICCASE FOR PUBLIC REALM INVESTMENTIN THE HEART OF LONDON AREA 4 HEART OF LONDON IN INVESTING IN THE SACKVILLESTREET EXECUTIVE SUMMARY DEFINING THE HEART SCENARIORESULTS CONCLUSIONS OF LONDON AREA WEST END'S ECOSYSTEM CONTINUED SUCCESS CASE STUDY EXECUTIVE SUMMARY The economic case for public realm investment in the Heart of London area The Heart of London area is one of THE NEED number of road casualties in the area is symptomatic of a the most economically successful Popularity comes at a cost. The ‘distressed’ urban environment and areas in London, with over 45,000 intensity of use by day and night of associated conflicts betweenusers. people coming from across the this part of central London probably capital and beyond to work there has no parallel in Britain. Coventry There is an opportunity to re- every day. The businesses in the area Street by Piccadilly Circus has a prioritise people and sustainable are parts of successful clusters of greater footfall than any street in the transport in public streets and professional services and quality country. The challenge of ensuring spaces. Historical under-investment entertainment, culture and arts. the Heart of London area is clean and has not helped to protect the The Heart of London area’s offer is safe goes beyond what is required in cultural and heritage assets of the unlike anything else in the UK. most other city centres. area. Leicester Square and Piccadilly Circus Furthermore, the area must evolve The Heart of London area as a are places known by people who to accommodate new leisure trends. destination is in competition for have never visited London, or Conventional levels of street design, both visitors and inwardinvestment indeed, Britain. The area’s improvement and maintenance are with other world-class destinations. concentration of cinemas, theatres, simply not sufficient for an area Accordingly, the public realm must hotels, restaurants, nightclubs and facing such intense usage. compete on a global stage aswell. public space is a gift from London’s history. The Great Estates and As a result, the Heart of Londonarea developers have left a remarkable is under pressure. Economic growth patchwork of streetsand buildings and development have not been which have evolved to become one matched by improvements in public of the world’s most famous (and spaces, places and transport. More Alliance visited) locations. people than ever are exposed to the negative effects of road traffic The Heart of London area is also an including poor air quality and important cluster for the office accidents and experience the sector, which accounts for twothirds challenge of congested connections of London Business of jobs in the area. into and throughout the district.The Heart Source: THE ECONOMICCASE FOR PUBLIC REALM INVESTMENTIN THE HEART OF LONDON AREA 5 HEART OF LONDON IN INVESTING IN THE SACKVILLESTREET EXECUTIVE SUMMARY DEFINING THE HEART SCENARIORESULTS CONCLUSIONS OF LONDON AREA WEST END'S ECOSYSTEM CONTINUED SUCCESS CASE STUDY EXECUTIVE SUMMARY The economic case for public realm investment in the Heart of London area THE OPPORTUNITY The list of interventions included in the A sophisticated area where creative, cultural, This means that architecture, lighting, Placeshaping Strategy recognise the unique and professional worlds sit side by side and and mixed use are now all attractors to Streets make and connect places. The Heart of strengths and weaknesses of the Heart of engage. Now is the time to invest in this reinforce retailoffers and draw in London area is highly connected, both London area. It represents an active plan to unique environment to enable its continued visitors and spend. physically and culturally. The streets in the exploit and change these, in relation to public growth to benefit London and Londoners area offer a very diverse mix of uses and they realm quality, public transport and active together. • There is strong evidence of return on provide an important social context for civic, travel connections, the presence of heritage investment - investment of $86m in residential and community life. This report sets out the compelling case for Melbourne is estimated to deliver $6bnof assets, and the mix of services and amenities. public and private sector investment. economic benefits. However, concerns over the quality and To tackle the area’s challenges, the Heart of comfort of some of the streets and places in LEARNING FROM OTHERSUCCESSFUL London Business Alliance will continue to work • There is strong importance placed on the Heart of London area mean that COMPARABLE GLOBAL CENTRES closely with Westminster City Council, TfL, the curating spaces through well planned investment to enhance its sense of place, to GLA and private partners to deliver the best programming of activations and a support its attractiveness for investors in the Our review of international comparators possible future for the Heart of London area. comprehensive evening/night time face of international and domestic (Appendix D) has produced key insights about entertainment offer that contrasts with competition is required. The Heart of London the attributes of success for the public realm The programme of public realm improvements daytime uses and caters for residents, area must play to its strengths and deliver a in the Heart of London area, which further identified in the Placeshaping Strategy seeks to workers and visitors. programme of coordinated actions to improve unlock the economic potential of the area with informs future iterations of the Placeshaping its public spaces and routes. This can be a compelling case for investment. Strategy and help the area realise its full • Successful districts showcase and maintain achieved through a series of high quality, economic potential: their heritage assets, landmark buildings, ambitious and practical interventions aimed at Recognising that the Heart of London area’s • There is a long-established policy of and open spaces. improving the streetscape and enhancing continued success relies on managing its creating traffic-free spaces.