Build And Recover - West London Alliance

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Build and RecoverAn Economic RecoveryStrategy for West LondonBuild and Recover An Economic Recovery Strategy for West Londonwww.wla.london1

Map of West LondonForewordWest London boasts a proud history of being at the forefront ofinnovation, leading the way nationally in growth sectors, technology andthe green economy.K E Y24COLINDALE/BURNT OAK3W H O ’ SH E R E11HEART OFHARROW1912BRENTCROSSH A R I N G E YGolden Mile-Southall Crossrail LinkHeathrow Southern Rail Link21The impact on our communities and businesses has been colossal. Entrepreneurs andmicro businesses as well as those working in the aviation, retail, transport sectors and thesupply chain, are amongst the hardest hit.132620WEMBLEYPARKWith a pre-Covid19 GVA of 74bn, the West London economy has been hit hard by thepandemic. An extra 71,000 people claiming benefits in May 2020 compared to the sametime last year – a 200% increase. More than 280,000 residents furloughed – that’s more thana quarter of all those in the capital.There are solutions and we can build back better.2325Council Leaders across West London have mobilised quickly to drive economic recovery byworking in collaboration on shared priorities: Growth sectors, Aviation communities, Skillsand employment, Entrepreneurs and micro businesses, A Green recovery, Town centres andHousing and infrastructure.PARKROYAL54Elizabeth LineSOUTHALL181514Crossra6il lin1WHITECITYk22782822 101697EARLSCOURT& WESTKENSINGTONGREATWESTCORRIDORWe welcome the help announced by the government so far – particularly the investment inde-carbonisation and youth employment. However, further targeted interventions set out inour plan are urgently needed.2217SoRa util helin rnkWe are determined to mitigate the damage caused by COVID-19 and to support all ourcommunities, especially those hardest hit. As a group of councils, we have a track record ofinnovation and delivery, exceeding targets for delivering housing and developing newapproaches to supporting residents into employment and raising skill levels.Working closely with the Mayor and other local authorities across London we are keen toalign the aspirations of our Build & Recover plan with the London Recovery Board’s work oneconomic recovery through its mission-based approach. Particularly strong opportunities forcollaboration and co-ordination exist across our themes on town centre, skills andemployment, green recovery and microbusinesses and entrepreneurs.The crisis is a once in a generation opportunity to create a greener economy with better andmore sustainable jobs. A newly established Economic Recovery Task Force will deliver ourbold and ambitious plan.21Sky7Olympia London13London Designer Outlet19Amgen25Park Royal Food Cluster2GSK8Disney Corporate Office14Ealing Studios20Vitabiotics26Wembley Stadium3Middlesex University9Fox Networks Group15BBC Studios21Coca Cola27Westfield London4Brunel University10Discovery Corporate Office16British Airways Headquarters22Starbucks28SEGA Europe5Imperial College London11Angels Fancy Dress17Rolls Royce23Bucks New University6University of West London12Pentland Brands Limited18Celgene Ltd24Ipsos MORIBuild and Recover An Economic Recovery Strategy for West LondonCouncillor Stephen CowanChair, West London Economic Prosperity BoardBuild and Recover An Economic Recovery Strategy for West London3

Executive SummaryWith a pre-Covid19 GVA of 74bn, the West London economy was bigger thanBirmingham, Leeds and Glasgow combined and is a vital engine of the UK economy,contributing 4% of national GVA. But its economy has been among the country’shardest hit, and decisive action is needed to kick-start recovery for the benefit ofthe UK more widely. This Build and Recover Plan aims to ensure that the 350,000people furloughed or newly claiming benefits can return to work quickly; that ourbusinesses are equipped to weather the storm; and that council, government andprivate investment work together to drive a green recovery.The West London economy comprises core growthsectors that will help to retain the UK’s position inthe global economy and it includes 11 OpportunityAreas in the London Plan. As the world’s gatewayto Britain it is home to leading biopharmacompanies, creative industries, tech and digitalleaders, environmental innovators and a stronghealthcare sector. The long-term sustainabilityof these sectors has been demonstrated, andthese companies must be supported through theimpact of Covid19 as an investment in the UK’sfuture. West London needs support to build on thesuccess of its world class institutions, diversify, andgrow out STEM and green industries businesses.Major national and international assets includeHeathrow Airport, the creative and digital hub atWhite City and the huge potential of Old Oak/ParkRoyal, as well as developments such as Wembley,Brent Cross, the Great West Corridor and Southallproviding thousands of new homes and jobs. ButWest London is the worst affected part of Londonin terms of economic impacts of Covid19, and isamong the hardest hit in the UK.Has seen an extra 71,000 peopleclaiming benefits in May compared tothe same time last year – a three-foldincrease. More than 280,000 residentshave been furloughed – more than aquarter of all those in the capital.4opportunity to re-think our long-term aspirationsfor West London, kick-starting the low carboneconomy, taking advantage of permanentlyaltered working patterns to revitalise our towncentres, and tapping into the entrepreneurial spiritof West Londoners. In creating the conditionsfor this transformation, through investment ininfrastructure and skills, we will need to ensure thatthe damage to communities is limited and growthopportunities are widely shared.Given the current and potential future impact ofthe Covid19 outbreak on West London’s economy,there is a pressing need for intervention to mitigatethese impacts both on the economy and on WestLondon’s disadvantaged communities, particularlyin BAME communities who have been hardest hitby the pandemic. Support for micro-businesses and theself-employed, who are at risk of ‘fallingbetween the cracks’ of existing support.Working closely with the Mayor and other localauthorities across London we will seek to alignthe aspirations and themes of our Build &Recover plan with the missions being establishedby the London Recovery Board.The Build and Recover Plan is structured aroundseven themes: Growth Sectors Aviation Communities Skills and Employment Entrepreneurs and Micro businesses A Green RecoveryThe Build & Recover plan sets out howthis can be addressed jointly at the subregional level, complementing individualboroughs’ and wider partners’ efforts.The subregion has particular exposure to sectorsand businesses especially likely to be affected bythe pandemic. In particular, the near closure ofHeathrow – the UK’s largest single site employer– has impacted transport and storage jobs (40%of London’s jobs in this sector are based in WestLondon) and several firms providing foods andservices for the airport. Other major employmentsectors in the region, such as wholesale, retail andmanufacturing, have also been hit hard by thepandemic. The large number of micro-businesses– usually a strength for West London – furtherincreases the sub-regions vulnerability.The impact on our communities of these economicchanges cannot be underestimated. However,Covid19 also provides a once in a generationBuild and Recover An Economic Recovery Strategy for West LondonWe welcome the help announced by thegovernment so far – particularly the investment inde-carbonisation and youth employment. However,further targeted interventions are urgently needed,in particular: Town Centres Housing and InfrastructureEach theme captures activities either underwayor which are within boroughs’ collective resourcesand powers to deliver in support of recovery, andsets out what more is required to address recoveryat the necessary scale and pace – including policyflexibilities, repurposing of existing funding andprovision of additional funding. Creation of an Aviation Communities Fund,bringing together capital and revenue supportfor those communities severely damaged by thedecline in aviation Investment to scale up our successful skillsescalator programme Greater flexibility over use of existing fundingstreams such as Apprenticeship Levy Investment in infrastructure such as theWest London Orbital rail line and Fibre / 5GBuild and Recover An Economic Recovery Strategy for West London5

West London isset to suffer adownturn worsethan any otherpart of LondonThe impact of Covid19on West LondonWest London is one of the country’s most dynamic sub-regions. Pre-Covid-19 itseconomy was larger than those of Birmingham, Leeds and Glasgow combined andits contribution to the UK economy will ensure lasting prosperity for local people,London and the UK as a whole.But it is being hit hard by the pandemic. Across ourseven boroughs the numbers of people claimingUniversal Credit have almost doubled sinceFebruary and over 280,000 West London residentshave been furloughed – more than a quarter ofall those in the capital. Our economy is so hard hitbecause it relies particularly on the sectors mostaffected by the pandemic. Heathrow – the largestsingle site employer in the country – has seen a 97%fall in passenger numbers; this has affected notonly those working at the airport, but also a hugerange of related sectors and supply chain.West London is the most globally connected placein London, attracting investment from firms ingrowth sectors from across the world, helping theUK position itself internationally and moving peopleand goods around the globe. World-class researchat universities, like Imperial and Brunel, will supportthe evolution of the national economy in fieldssuch as cleantech and zero carbon, digital anddata, and there are growth opportunities acrossthe subregion, where our councils are supportingdevelopment to provide over 100,000 new homesand commercial space for over 140,000 jobs.Delivering these schemes will draw on skills andmaterial from across the country.West London’s economy is taking a huge knock,but we have the foundations for renewed growthbigger, more inclusive and sustainable – and betterfor the UK – than before.West London is an enterprise hot spot: 164,900self-employed & 104,00 micro businesses. Selfemployment rates (15%) are higher than London& the UK (13%). Enterprise has been the route intothe labour market for BAME residents (52% of ourpopulation), many of whom trade in hospitality &retail (14.9% of all West London jobs) badly affectedby Covid19. Parallel to this 16.4% of jobs are ingrowth sectors; professional, scientific & ICT whichhave been badly affected.93% of businessesin West London are micro businesseswith 0-9 employeesWithin London, West London accounts for.Two out of every five jobs in transport and storage within London97% fallin passenger numbersat HeathrowA quarter of wholesale & retail jobsFall in GVA%9.28.287.86Build and Recover An Economic Recovery Strategy for West LondonNorth EastEngland8.4Yorkshire andHumberside8.6West London8.8North WestEngland9A third of manufacturing jobs4%of the country’s GVAis from West London 280,000West Londonresidentshave beenfurloughedBuild and Recover An Economic Recovery Strategy for West London7

Growth SectorsWork collaboratively to support central Governmentin strengthening West London as a growth sectorinnovation district with the ambition of achievinginclusive economic growth.AIMSTHE IMPACTWest London has the opportunity to develop agrowth sectors ‘innovation district’ spanning thesubregion and branching out across the country.At the heart of the district are a series of sectorspecific clusters that collaborate to providegovernment, academia and industry a testbed forcross-sector research and innovation.1. Kick start the local and national economyShort term Support businesses who have been negativelyimpacted by Covid19 Maximise opportunities for businesses thathave experienced growth during Covid19, suchas digital technology and life sciencesLonger term Accelerate the growth of high value sectors Promote innovation Scale-up businesses to create sustainablehigh-value jobsKEY FACTSCOUNCILS WILL2. Create a longer trajectory of job growth byfocussing investment on long term resilientsectors3. Construct pathways for economic mobility byproviding opportunities for people to re-skilland up-skill and supporting them into betterpaid, more resilient work4. Expand the UK’s competitiveness.STAKEHOLDER SUPPORT“ Imperial College London are committedto working in partnership with the WestLondon Alliance to strengthen the westLondon economy and its key growthsectors. We have a shared mission todrive inclusive growth, innovation andenterprise, contributing to a thrivinglocal economy and society.” Utilising the collective strengths of WL boroughs,the area has the opportunity to develop a growthsectors ‘innovation district’ spanning WL andbranching out across the country Use our 8m investment in digital connectivityso businesses can innovate with 5G andcloud computingSupport HEIs to invest in supporting businessgrowth by: Setting-up a WL Growth Sectors Steering Groupwith an active involvement of businesses and HEIs Extending the impact of UK Research andInnovation programmes by opening access toborough assets, services, data and supply chainsfor innovators to test, trial and develop emergingtechnologies and business models at scaleTo maximize the West London growthopportunities, we propose working with centralGovernment in order to: Provide equity funding to replace venturecapital in early stage and downstream spin offs8from West London incubators such as I-HUB(Imperial College), Westmont Enterprise Hub(University of West London), Central ResearchLaboratory (Brunel University). The equityfund should be held sub-regionally with equitygrowth / dividends shared between central andlocal govt Launch a 5G investment fund to digitise andstreamline wayleave processes to provideBuild and Recover An Economic Recovery Strategy for West LondonThe UK’s tech sector’s GVAcontribution pre-Covid19 wasgrowing six times faster thanthat of the wider economyPre-Covid19 it was estimatedthat AI could add an additional 630bn to the UK economy by2035, increasing the annualgrowth rate of GVA from 2.5to 3.9%Life sciences companies,such as West London basedNovartis and GSK, generate anannual turnover of 74bn (preCovid19) and employs close toa quarter of million people inthe UKProfessor Neil Alford, Associate Provost(Academic Planning).OPPORTUNITIES ANDINVESTMENTSResearch from OxfordEconomics (OE) forecasts thatboroughs in West London witha higher proportion of highgrowth businesses, such asH&F (6.2%) and Hounslowwill be better positioned tobounce back from theimpacts of Covid19access to assets (such as street furniture) andco-invest with the private sector West Londonscale deployments of 5G use cases such asreal time logistics and traffic management andremote healthcare applications Provide grant funding for a West London ledprogramme of place based Small BusinessResearch Initiative (SBRI) challenges to createopportunities for business innovation ingrowth sectors Work with Innovate UK private / Venture Capitalsector to identity gaps in finance as a resultof Covid19 and provide a range of fundinginitiatives to fill those gaps Create an open access e-services platform toprovide SMEs with digital identities to allowthem to access cutting edge legal and fintechservices to drive productivity improvementsBuild and Recover An Economic Recovery Strategy for West London9

Aviation CommunitiesAIMSTHE IMPACTThere are two urgent aims:Heathrow Airport is West London’s dominanteconomic asset. Its near closure is the singlebiggest risk for West London. Heathrow’s impact isnot just directly on airport and airline related jobs,(e.g. catering, maintenance, customer service andhandling) but also its impacts on indirect jobs (e.g.hotels, car hire) and jobs from induced spend inlocal communities. Minimise job losses, with the major aviationemployers and through the wider supply chainto micro businesses, SMEs and struggling localhigh streets Support BAME residents and those most at risk ofa loss of livelihood due to Heathrow’s downturnIn the medium to long term, we aim to drive asustainable recovery and growth by: Reskilling and upskilling redundant and existingHeathrow employees in lowskilled jobs Driving diversification and new business modelsfor businesses in Heathrow’s supply chain Supporting realignment of the subregionallogistics sectorHeathrow job losses will hit the most vulnerableas they are concentrated in sectors that are morelikely to employ lower skilled, lower paid workers.These workers are more likely to either be maleand with dependents, or to be younger andworking part time. Targeted support now couldhelp remove barriers to future employment andlimit the creation of long-term structural issues thatimpact communities and residents for decades. Ensuring sustainable airport recovery,underpinned by green aviation and thegreen economyCOUNCILS WILLKEY FACTS Reassess land use and development opportunitiesaround the Airport given the significant delay orcancellation of a 3rd runway, taking forward theprinciples set out in the Heathrow Strategic PlanningGroup’s Joint Strategic Planning Framework Heathrow is West London’slargest employer and the largestsingle site employer in the UK Accelerate the capital model to focus on low skilledworkers at Heathrow and associated businesses’employees recently unemployed or at risk ofredundancy Scale up the Work and Health Programme to providesupport to most vulnerable redundant Heathrow andassociated businesses’ employees Ensure quick-turnaround job brokerage and supportfocussed on the most affected groups, Heathrow andthe transition to a green economy Make investment and conduct further analysis on theopportunities for green economy/green aviation jobsthrough Heathrow and its associated supply chainSTAKEHOLDER SUPPORTAs a big local employer, Heathrow is working closelywith local partners on our recovery plan to protectthe local skills base and maximise quality jobs thatwill help drive forward a sustained recovery for localcommunities in West London.Becky Coffin, Director of Communities, Heathrow Airports LtdOPPORTUNITIES ANDINVESTMENTS Give councils a voice in the aviation debate,including representation on the airportsround table Establish an Aviation Communities Fund tosupport revenue and capital investment The fund would be made up by:a. Focusing existing schemes on aviationcommunities, e.g. Kick Start, the Work and HealthProgramme extension, and more flexible use ofthe Apprenticeship Levy and Home Building Fund10b. Additional government investment to recognisethe particularly acute issues faced by aviationcommunitiesc. Support to entrepreneurs and micro-businessesto re-focus on opportunities outside the airporteco-systemc. Partly diverting environmental levies (such as theplanned Heathrow Access Charge) to the fund;and introducing new ones (e.g. a community levyon every plane ticket) Infrastructure investment including: Revenue investment including:a. Skills development and training, with a focus onopportunities in growth sectors, e.g. the greeneconomyb. Expansion of the successful West London SkillsEscalator ProgrammeBuild and Recover An Economic Recovery Strategy for West Londona. Transport links connecting communities toemployment hubs, e.g. the West London OrbitalRail Lineb. Digital infrastructure to support growth sectorsc. Local infrastructure priorities to ensure continuedeconomic activity, e.g. rebuild of Hillingdonhospital There are approximately130,751* direct, indirect andinduced jobs in the Heathrowtravel to work area. Of these anestimated 75,397 are in Ealing,Hillingdon and Hounslow 1 in 10 jobs in West London arein transportation and storage –more than

4 Build and Recover An conomic ecovery trategy for West London Build and Recover An conomic ecovery trategy for West London 5 With a pre-Covid19 GVA of 74bn, the West London economy was bigger than Birmingham, Leeds and Glasgow combined and is a vital engine of the UK economy,

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