Agenda item

This report presents key challenges and priorities for The Economy in H&F.

Jon Pickstone, Strategic Director of the Economy, provided an overview of the challenges and priorities for the Economy Department.

He explained the Economy comprised of the following key services: Economic Development; Regeneration; Operations, Property and Asset Management, Planning; and Housing. It was noted that Housing had its own specific committee – the Housing and Homelessness Policy and Accountability Committee but that new housing development was of interest to this Committee.

Touching on some of these aspects, it was noted that Economic Development supports business, skills and learning, helping people into work, and town centres. The Council also supports Upstream, the Council’s partnership with Imperial College London, which focuses on the White City Innovation District. Regeneration is housing focused, including the provision of affordable housing, but also some new schools and other community facilities. The Operations service is varied: including capital investment in our housing stock, the digitalisation of services to improve and enhance housing service delivery and resident interfaces, the civic campus, much of our corporate property management, and contract development and management. Planning focuses on developing planning policy, determining planning applications, masterplanning and s106 and CIL funding agreements. Jo Woodward, Chief Planning Officer, explained that one of the challenges was the forthcoming Levelling Up Bill and changes to the planning system. Other challenges and opportunities included the new powers related to climate change delivery and working on business plans with colleagues in the Environment Department.

Jon Pickstone confirmed the Economy Department took a holistic approach to making Hammersmith and Fulham a global economic hotspot for the benefit of our residents. To achieve this aim, the Council seeks growth in its business base, particularly in higher value sectors. He explained that Council interventions had helped spur  substantial growth in high-value sectors related to the Council’s Industrial Strategy. Councillors noted that the trick was to create more of these high value jobs and allow residents to have the necessary gateways and skills to access these employment opportunities.

Jon Pickstone confirmed that sustainability was another key theme that underpins the work of the Economy Department. As well as interventions to tackle local aspects of the climate and ecological emergencies, it is important to foster clusters of innovation within White City; new ideas and emerging technologies can meet global challenges. The Committee were provided with details of ongoing and future projects that are revitalising the Borough.

Jon Pickstone explained that the Economy is about place, people and businesses and bringing these factors together, as well as working across the Council and developing partnerships across the Borough. The world class innovation district at White City should be promoted more nationally and internationally to create more opportunities and enhance growth.

Referring to the Industrial Strategy, Shared Prosperity and Economic Development work being undertaken by the Economy, Councillor Adam Peter Lang asked how this work linked to other areas. Jon Pickstone agreed that important lessons and approaches could be drawn from different (innovation and growth) models from across the world. Jon Pickstone cited a number of business and growth initiatives, most notably those involving our economic MOU with Barcelona (ties between business and education), Imperial College London forging closer links with key universities including in the United States, and the Welsh Government’s strong foundational economy approach. Jon Pickstone confirmed it was important business, local government and educational institutions worked together as this was the best way to drive innovation.

Councillor Ashok Patel asked for clarification about the six core values set out at the beginning of the report. In response, Jon Pickstone explained all Council reports used this template and incorporated these six universal values to show how the Department was responding to them. Jon Pickstone highlighted that it was important to consider shared prosperity, co-production and working with residents, not doing things to them. Joanne Woodward, Chief Planning Officer, reiterated that the core values drove all the priorities across the Council, which included the Council’s Business Plan to working on Climate Change and responding to the Climate Emergency. Referring the cost-of-living crisis, Jon Pickstone commented it was now more important than ever to ensure  a ruthlessly financially efficient approach was taken to all aspects of Council business, as well as a whole Council approach.

Councillor Jackie Borland asked what impact Covid had made on the Borough and how officers perceived these changes. She felt that Covid had completely changed the way in which people lived and worked and explained that now, residents were more likely to prefer a ten-minute bike ride than an hour’s commute to work.

In response, Jon Pickstone confirmed that Covid had impacted on the Council’s plans, and it had adapted accordingly. He explained that during the pandemic, the Council ran successful business grants programmes, which prioritised key sectors. He referred the effects Covid had on service industries, the hospitality sector and to the amount of empty office space in parts of the borough since Covid. It was noted that post-Covid and Brexit, Heathrow Airport was now finding it harder to engage staff and had changed its relationship with West London economy and engaged more with local partners and Local Government to address this issue and others.

In relation to claimant count rates, it was noted that these were substantially down, but were not at pre-pandemic levels and more work had been done in relation to employment support and jobs brokerage. Looking to the longer term, Jon Pickstone provided details of current workstreams and confirmed that the Industrial Strategy would be refreshed in 2023.

Joanne Woodward explained (in the face of the pandemic) the Borough was still changing. She confirmed the immediate responses focused on the empty office space, where a more flexible approach was required. In the longer term, there was more emphasis on understanding the importance of public space, public realm and ensuring the planning regime could deliver this. Joanne Woodward explained that residents outlooks had changed since the pandemic and cited the Earls Courts Development as a case in point. In the post-Covid period, residents were looking more locally, to 15-minute neighbourhoods and there was a clear inclination to remain local rather than travel further afield.

Councillor Jackie Borland commented that as a result of the pandemic, there was more opportunity to focus on localism and opportunities for small business districts for services such as legal advice and lettings. Jon Pickstone concurred that as many people now worked from home, it had become the new normal to commute fewer days per week. However, there was also an opportunity to attract fresh talent as workers might commute longer distances for fewer days per week. Joanne Woodward confirmed the Authority was looking to make more affordable workspace, especially for Culture and the Arts and to focus on developing the digital infrastructure so that news ways of flexible working could be supported.

With regards to training and levelling up, Councillor Liz Collins enquired about the quality and diversity of the training available. To enable graduates to change jobs and switch careers, she noted that they had been offered NVQ Level 2 training which was not comparable. She asked what was being done to ensure the quality of the training available would enable residents to level up and provide the skills they needed i.e., apprenticeships. In response, Joanne Woodward explained the work of the Adult Learning Service, the progress on this front, and that this topic could be brought back to the Committee in future (should it be requested). Jon Pickstone highlighted that Imperial College were looking at ways of improving its outreach.

Councillor Ashok Patel highlighted how Covid had affected business rates and he noted the number of void office spaces within the borough. The cost-of-living crisis, coupled with rising energy prices meant that some businesses were struggling to find the money to remain viable. He commented, this was why some businesses were choosing to let staff work from home, as an easier route, than address the office space issue directly. He noted that the number of failing businesses was increasing, and asked what local solutions could be found. In response, Bram Kainth, Strategic Director of Environment, explained that Business Rates Support was led by the government and the Local Authority acted as a passport to the funding which had been made available centrally. He confirmed the Council was looking at ways of helping but reiterated that business rates were determined by government policy.

The Chair thanked officers for the report which provided a good overview of the Economy Department and what the Department was taking forward. He noted that the Committee wished to investigate topics further in the future, such as the Cultural Strategy, the development of affordable social housing, and the Civic Campus.

The Chair enquired about the Industrial Strategy, and when this was refreshed, he asked what the indicators of success would be to show what progress had been made on matters such as shared prosperity, job creation, and working with education and students.

In response, Jon Pickstone confirmed that the Council had developed an Industrial Strategy dashboard (80% completed) which recorded progress, as well as being a management tool. The Chair thanked officers for this information and confirmed it was good to articulate how this area moves forwards.

The Chair confirmed he was keen that the Committee looked at the Cultural and Industrial Strategy moving forwards and for these topics to be time-tabled so that residents could be invited and engaged at the appropriate times.

RESOLVED

That the Committee note the priorities and challenges.