2. SUMMARYOFRECOMMENDATIONS
Planning and Infrastructure
• Create a GLA planning fund to support
individual councils to commission planners
on complex matters where they would
benefit from additional resources.
• Support the twin principles of centralisation
and diversification of London’s town
centres to build communities that are vital
and viable, accessible and innovative.
• Lobby the UK Government to remove the
permitted development right allowing the
conversion, or demolition, of offices in favour of
housing. Promote the alternative of empowering
town centre partnerships to bring forward good
housing or high quality office space depending
on the needs of the local community.
• Make London the world’s best connected city
through public and private sector investment
in infrastructure. And, make London the world’s
smartest city by embedding a culture of open
data which planners and others can plug into.
Fiscal
• Lobby the UK Government to use revenue from
the Diverted Profits Tax to reduce the burden of
business rates and modernise the tax system,
realigning it with genuine economic performance.
• Establish a Mayoral Town Centres Regeneration
Fund for capital spending that could leverage
further private sector investment.
• Ensure the modernisation of business rates
includes the incentivisation of landlords and
tenants to upgrade their property to encourage
the intelligent and efficient use of space. This
must be accompanied by a complete Land
and Property Registry that is freely accessible
to councils and town centre partnerships
to help resolve landlord absenteeism.
Management
• Support efforts to ensure town centre
partnerships are financially sustainable by
championing them to develop available funding
streams. This must include the creation of new
partnerships to curate town centres where
no management structure currently exists.
• Recognise the ability of town centre partnerships
to lead on the delivery of local projects and
use every opportunity to empower them.
• Champion town centre partnerships as trusted
allies that can facilitate the delivery of some
of London’s biggest infrastructure projects.
ATCM London
recommends the
next Mayor of
London must...
3 Keeping A Great City Great – The Manifesto for London’s Town Centres
3. KEEPING
AGREATCITY
GREAT
An overheating economy has become the issue of
our time. Population growth and land constraints
are contributing to a range of problems including
demand on infrastructure, a housing crisis, pressure
on land-use and soaring property costs across both
commercial and residential uses. Furthermore, new
technologies are disrupting traditional industries
and creating new ones. The result – the unnecessary
exclusion from the jobs and housing market of
some Londoners, creating pockets of deprivation
in the city. London has to evolve to move forward.
Town centres are a big part of the solution. They
are home to London’s key infrastructure. They
are locations where the real pressure on land-
use happens. They are the places where the
majority of business activity takes place. London,
in effect, is a collection of unique town centres
with one shared economy. Recognising their role,
and the role of those public-private partnerships
that manage them, will help put sustainability
and inclusivity at the heart of this great city.
Steeped in history,
overflowing with talent
and at the forefront of
progress – London is
one of the best cities
in the world. But can it
maintain this title? This
is the challenge for the
next Mayor of London.
MANAGEMENTFiscal
A
GREAT
CITY
PLANNING &
INFRASTRUCTURE
“This manifesto is
aspirational, but
achievable, focusing
on ‘planning and
infrastructure’, ‘fiscal’
and ‘management’.
It will help London
retain its status as a
world-class centre for
investment if taken
forward by the next
Mayor of London. So,
here’s how to keep a
great city great...”
4. PLANNING
INFRASTRUCTURE Create a Central Planning Fund
Reductions in funding for planning are taking their toll.
Expertise is being lost at a time when it is needed most. HS2,
Crossrail 1 and 2, airport expansion, affordable homes, new
schools and urban intensification. The quality of these all
depend on good planning expertise at a local level – but we
are growing increasingly concerned about whether some
of London’s councils have the resources to help bring such
developments forward in the holistic way they should be.
For complex, resource intensive projects, the GLA could provide
planning support if requested by a local council. Having a central
funding pot for councils to use to commission planners when
needed could help cut costs without comprising on capacity.
This expertise could be vital in ensuring infrastructure projects
meet the city’s needs, developers are fulfilling a commitment
to provide affordable homes, or Compulsory Purchase Orders
can be delivered successfully and efficiently where landlords
neglect strategic assets of importance to the community.
RECOMMENDATION:
Create a GLA planning fund to support individual
councils to commission planners on complex matters
where they would benefit from additional resources.
Centralisation and Diversification
The fragmentation of place has harmed our ability to build
thriving, sustainable communities. We want the next Mayor of
London to adopt the twin principles of centralising appropriate
economic activity in town centres, but also diversifying
from traditional retail to develop strong, inter-connected
business eco-systems, particularly in Outer London areas.
Bringing together a mix of retail, offices, leisure, public services,
hospitality and evening and night-time economy in town
centres would deliver many benefits. Firstly, it allows town
centres to evolve beyond the exclusive focus of retail that
has left many struggling in the face of changing consumer
behaviour. A mix of uses means better resilience to change.
Secondly, this strong network of activities in local centres
means services and amenities are more accessible for
users and employees using public transport, creating a
more inclusive and environmentally sustainable society.
Finally, agglomeration theory tells us that the co-location of
different businesses and activities creates fertile conditions
for innovation, the foundation of productivity growth.
RECOMMENDATION:
The next Mayor of London must support the twin
principles of centralisation and diversification of
London’s town centres to build communities that
are vital and viable, accessible and innovative.
London is front and centre
of great economic and
societal change happening
across the UK. However,
reduced funding from the
taxpayer’s purse means
challenges in developing
capacity to adequately
adapt to this change. It is
simply not viable for this
city to sustain reduced
planning capabilities.
With projections of two
million more people by
2036, one million more
homes and a spike in
both the young and the
old, our ability to plan
is our ability to evolve.
We can overcome these
constraints by doing
the following...
7 Keeping A Great City Great – The Manifesto for London’s Town Centres
5. Protect London’s
Endangered Office Space
There is no doubt London needs new homes, and quickly.
However, the UK Government’s approach of removing the need
for planning permission for the conversion, or demolition,
of any office to a home is the wrong way to achieve this.
It is causing considerable harm to London’s town centres with
the closure of offices, the displacement of small enterprises
and the loss of the wider private sector eco-system (such as
suppliers and retailers) that depend on these businesses.
Some of London’s town centres have extremely low vacancy
rates, making it difficult to introduce new housing without
displacing existing jobs. Other town centres are in need of
more affordable homes alongside complementary provisions
such as healthcare, education and green space. However,
without the legal requirement to obtain planning permission,
little consideration is given to any of these factors.
And yet, an alternative route does exist. There is an untapped
potential for public-private partnerships in town centres
to identify potential change of use opportunities and bring
forward excellent housing solutions that meet the needs of a
community without sacrificing the local economy. GLA must
push the UK Government for change to protect London’s
endangered office space. This is critical to London’s future. A
growing population does not just necessitate more homes,
it also means we need more employment opportunities.
Place-makers, from local planners to the Mayor of London,
must have some control over finding the right balance.
RECOMMENDATION:
Lobby the UK Government to remove the permitted
development right allowing the conversion, or demolition,
of offices in favour of housing. Promote the alternative
of empowering town centre partnerships to bring
forward good housing or high quality office space
depending on the needs of the local community.
Make London the World’s Best
Connected and Smartest City
We have been left in no doubt that technological advances
can directly lead to greater intelligence within the planning
system which can, in turn, lead to better outcomes with
greater efficiency. If we can ensure the right infrastructure
is in place to give Londoners connectivity and convenience,
anonymise and aggregate key data sets, then enable
planners and service providers to use this data, then we
can revolutionise the way services are delivered.
This is not exclusively a public sector effort. The next
Mayor must encourage the private sector to both invest in
London’s connectivity through various methods, including
kite-mark schemes for landlords with a satisfactory
standard of superfast broadband, and maximise the
potential offered by open data sources to deliver a
truly smart city. Open data can power everything from
driverless transport to intelligence-led regeneration.
RECOMMENDATION:
Make London the world’s best connected city through public
and private sector investment in infrastructure. And, make
London the world’s smartest city by embedding a culture
of open data which planners and others can plug into.
How Transport for
London and Citymapper
are already one step
ahead of the game
Transport for London have already taken the
initiative on this journey, opening its data
on passenger movements across the city,
allowing people the ability plug into this
resource to deliver real-time information to
commuters and shape services accordingly.
Its eagerness to invest in Oyster Card technology
and contactless payment methods has led to the
collection of detailed data sets on work and leisure
travel patterns that are essential for delivering
excellent mapping and can ultimately be used
to enhance the customer journey. Citymapper
has translated this data into a powerful and
accurate smartphone application that helps
commuters traverse the streets of London by foot,
bicycle, public transport or motorised vehicle.
Open data on land-use, transport and travel,
and customer behaviour can help illuminate key
trends and changes in the city and plan with the
strongest possible evidence base at our finger tips.
8 Keeping A Great City Great – The Manifesto for London’s Town Centres
6. FISCAL A Modern Tax System for
a 21st Century Economy
The digital revolution has had a profound impact on the UK. Its
disruption of the traditional way of doing business is not in doubt.
The way we create value in the economy and deliver products
and services to people and other businesses has changed
completely. Our tax system is playing catch up. It is not fair that
some highly profitable multi-national corporations minimise
their tax liability by shifting profits to low tax jurisdictions leaving
property-based businesses from local shops to manufacturers
to pick up the bill simply because property cannot be shifted.
The excessive taxation of commercial property has led to a level
of distortion that is unsustainable with high profile business
failures across multiple industries, harming urban regeneration,
and our ability to fund public services. These businesses are
the foundation of the type of diverse economy that can provide
a range of jobs, helping to create employment opportunities.
London’s Mayor must take a special interest in the issue of
tax reform. The 2017 revaluation of business rates, the first in
seven years, will see greater tax liability shift to the capital to
compensate for the impact of the recession across England. One
study predicts that some shops and offices in the West End could
be hit by a hike of 80%. This could decimate London’s economy.
The Mayor must make the case to the UK Government
for urgent reform, identifying the Diverted Profits Tax
as one possible tool that should be used to reduce the
burden of business rates, bringing in a modern system
that realigns tax with genuine business performance.
RECOMMENDATION:
Lobby the UK Government to use revenue from the
Diverted Profits Tax to reduce the burden of business
rates and modernise the tax system, realigning
it with genuine economic performance.
A Mayoral Town Centres Regeneration
Fund for Capital Investment
For those areas that have benefited, the Outer London Fund
for Town Centres has been well received, triggering private
sector capital investment to boost the long-term growth of
the city. With many more towns needing that initial push to
turn fortunes around, now is the time to create a permanent
Mayoral Town Centres Regeneration Fund available to all
town centres struggling to attract major private investment.
This would be highly welcome within a tough fiscal climate
where private sector investment is not as forthcoming as it once
was. There are times when the public sector has to lead. We
believe this is one of them. And, with the emphasis on greater
fiscal autonomy, the next Mayor of London will benefit from the
proceeds of this investment through business rates retention.
RECOMMENDATION:
The next Mayor of London should establish a Mayoral
Town Centres Regeneration Fund for capital spending
that could leverage further private sector investment.
How do we adequately
invest in essential public
services whilst developing
the type of light touch
tax framework that
ensures London remains
both a breeding ground
for entrepreneurialism
and a global centre
for investment? This is
possible, but only if the
Treasury accepts root
and branch reform of
an ageing tax system
to adapt to modern
business practices.
Here’s what we suggest...
11 Keeping A Great City Great – The Manifesto for London’s Town Centres
7. Can London’s Economy Survive the
2017 Business Rates Revaluation?
Suggesting that the forthcoming business rates revaluation in
2017 poses an existential threat to London’s economy might
seem a bit exaggerated, but understanding how the rates
system actually works would elicit a different response.
Business rates is a revenue neutral tax. The Treasury aims
to collect the same amount in real terms every year from
property-based businesses. However, following a revaluation,
those businesses performing poorly (measured by the rental
value of the property) will pay less into the pot, subsidised by
those businesses who are performing strongly. The twin impact
of the recession and the emergence of digital alternatives
to trade have decimated commercial property rental values
across England. Central London’s commercial property is
almost unique in sustaining its rental value during this time.
The result? When the first revaluation in seven years
happens, liability will shift to the capital. Commercial
property experts Gerald Eve estimate this could cost
some businesses in the West End up to 80% a year
more in additional tax on top of rates already paid.
Although the Chancellor has announced the devolution of
business rates, this is not phased in until 2020, three years
after the revaluation. It also does not deal with the central
problem of the excessive taxation of commercial property.
Incentivise Investment
in Commercial Property
There are other things that can be done to trigger capital
investment from the private sector. One of the most absurd
peculiarities about the current business rates system is the
clear disincentive to invest in property. Any modernisation of
property leads to the Valuation Office Agency revaluing the
building, imposing a hefty increase on an already expensive
asset. When it comes to refitting a shop to suit 21st Century
consumer behaviour, improving the energy efficiency of a
place of production or the reconfiguration of an office to
allow for the more intelligent use of space, all of these could
trigger an increase in costs of hundreds of thousands of
pounds every year. Landlords and occupiers are simply not
encouraged to make the most of the space they have.
The first step to ensuring town centre partnerships and
councils can work constructively with landlords is to resolve
the problem of absenteeism amongst property owners.
Landlords are a hugely important stakeholder in regeneration
who are sometimes indifferent to working in partnership
and at other times, cannot be easily identified at all.
Any change in the business rates system must encourage
the modernisation of property and the intelligent use
of space, helping to free up land for other purposes
and must be proceeded by the allocation of resources
to the Land and Property Registry to identify the
owners of non-domestic buildings in London.
RECOMMENDATION:
The modernisation of business rates must include
the incentivisation of landlords and tenants to
upgrade their property to encourage the intelligent
and efficient use of space. This must be accompanied
by a complete Land and Property Registry that
is freely accessible to councils and town centre
partnerships to help resolve landlord absenteeism.
Can London’s Economy
Survive the 2017 Business
Rates Revaluation?
Suggesting that the forthcoming business rates
revaluation in 2017 poses an existential threat to
London’s economy might seem a bit exaggerated,
but understanding how the rates system actually
works would elicit a different response.
Business rates is a revenue neutral tax. The
Treasury aims to collect the same amount in real
terms every year from property-based businesses.
However, following a revaluation, those businesses
performing poorly (measured by the rental value of
the property) will pay less into the pot, subsidised
by those businesses who are performing strongly.
The twin impact of the recession and the emergence
of digital alternatives to trade have decimated
commercial property rental values across England.
Central London’s commercial property is almost
unique in sustaining its rental value during this time.
The result? When the first revaluation in
seven years happens, liability will shift to the
capital. Commercial property experts Gerald
Eve estimate this could cost some businesses
in the West End up to 80% a year more in
additional tax on top of rates already paid.
Although the Chancellor has announced the
devolution of business rates, this is not phased
in until 2020, three years after the revaluation.
It also does not deal with the central problem of
the excessive taxation of commercial property.
12 Keeping A Great City Great – The Manifesto for London’s Town Centres
8. MANAGEMENT Support the Development of Funding
Streams for Town Centre Partnerships
Many town centre partnerships, even those that are privately
led, are not-for-profit organisations engaged in place
management on behalf of their members and constituents.
In an era where public finances are being squeezed, concerns
exist around the critical issue of financial sustainability for
those that already exist, and the ability to introduce new
partnerships in the town centres where they do not.
There are a number of things that can support the sustainability
of these partnerships. This includes ensuring the late night
levy is not imposed on those businesses already successfully
promoting a safer and more vibrant night-time economy. Or
championing BIDs to develop their revenue streams through
the innovative use of space such as events and sponsorship,
especially where they are reinvesting the income back
into place management. And finally, working with local
government to recognise the importance of investing both
financially and otherwise in town centre management for
the benefit of sustainable economic growth, especially in
those locations where no partnership currently exists.
RECOMMENDATION:
The next Mayor of London must support efforts to ensure
town centre partnerships are financially sustainable by
championing them to develop available funding streams. This
must include the creation of new partnerships to curate town
centres where no management structure currently exists.
Recognition of Town Centre
Partnerships as Vehicles for Delivery
Too often, we have seen policy-makers devise well-meaning
targets without any credible means for delivery. By recognising
and supporting town centre partnerships, the Mayor of London
can benefit from delivery mechanisms that could transform key
objectives like those in ‘The London Plan’ from rhetoric to reality.
Put simply, town centre partnerships can get things done.
Better Bankside BID, with Southwark Council is working to
deliver housing. Heart of London Business Alliance is working
with the Metropolitan Police to coordinate manpower
and business resources to keep Londoners safe. And the
Cross River Partnership is helping to meet targets on air
quality. The versatility of these partnerships to tackle local
problems makes them powerful agents of change.
RECOMMENDATION:
The next Mayor of London must recognise the ability of
town centre partnerships to lead on the delivery of local
projects and use every opportunity to empower them.
The next Mayor will
not be working alone
to keep London great.
For years, public-
private partnerships in
London’s town centres
have been growing ever
more sophisticated and
capable of making a
difference. The Mayor
can count on them as
assets and friends.
Their ability to positively
shape London’s future
will be aided if the
next Mayor considers
the following...
15 Keeping A Great City Great – The Manifesto for London’s Town Centres
9. Shaping London’s Future
Rail Connectivity
Town centre partnerships facilitating the delivery
of some of the city’s biggest infrastructure
projects is not just wishful thinking, its
already a reality. Early proposals for HS2
and Crossrail 2 have been insensitive to the
disruption they would cause businesses and
residents. Rather than provide a platform for
London’s growth, early plans threatened a
significant loss of London’s economic output.
In the case of HS2, Camden Town Unlimited BID
took the opportunity to quantify the damage
in economic terms. Proposals to revise the link
with HS1 have outlined how damage can be
minimised and the overall project future-proofed
against the forecast growth of both passenger
and freight traffic in the coming years.
Love Wimbledon BID has brought together the
Crossrail 2 Managing Director with senior council
management, local councillors, the Merton
Chamber of Commerce and Wimbledon’s businesses
to explore what the options are to maintain the
vibrancy of the town centre as many buildings
are earmarked for demolition. This has already
led to the formulation of a number of different
options related to phasing or tunneling the line
for the benefit of residents and businesses.
Both cases demonstrate that this is not about
preventing development but about working
in partnership with various agencies to allow
the growth of London in a way that works
for everyone. The Mayor must act to ensure
such dialogue becomes commonplace.
Recognition of Town Centre
Partnerships as Trusted
Allies in Facilitating Key
Infrastructure Projects
To overcome its capacity issues, London needs to develop.
Infrastructure projects of city-wide and national significance
are critical to this process. Town centre partnerships have
a key role to play in positively shaping these projects so
they meet the needs of businesses, residents, visitors and
landowners in areas of the greatest urban density. However,
too often, the contributions of town centre partnerships can
be ignored with a tendency to consult them too late, if at all.
RECOMMENDATION:
The Mayor must champion town centre partnerships
as trusted allies that can facilitate the delivery of
some of London’s biggest infrastructure projects.
16 Keeping A Great City Great – The Manifesto for London’s Town Centres
10.
ABOUT
THE
ATCMHelping People
Make Great Places
ATCM’s membership consists of a mix of publicly funded
town centre managers, Business Improvement Districts
(BIDs), Community Interest Companies (CICs), Town
Teams and more. They span across the private, public and
voluntary sectors and, as a collective, do not have a sector
specific agenda. Instead they are focused on the promotion
of healthy places for the benefit of all stakeholders.
Association of Town City Management
32-36 Loman Street,
London SE1 0EH
T: +44 (0)300 330 0980
E: office@atcm.org
W: www.atcm.org
ATCM is a company limited by guarantee
and is registered in England (No 2814583).
ATCM London is a part of the
Association of Town City
Management, a not-for-profit
membership organisation dedicated
to promoting the vitality and
viability of town and city centres.
We support key stakeholders in
town and city centres across the UK
and Ireland, over 400 of which, are
town and city centre management
practitioners and active initiatives.
The majority of these function as
partnerships, some with several
hundred contributing members.
They develop and implement shared
visions, strategies and action
plans for a total of more than 700
district, town and city centres.
ATCM has been operating for
nearly 25 years and can offer a
significant body of experience in
the field of place management.
Ojay McDonald
Author and ATCM Public
Policy Manager
Shanaaz Carroll
Interim Chief Executive
19 Keeping A Great City Great – The Manifesto for London’s Town Centres
