Agenda item

Presentations:

 

-  Suzanne Hall (LSE)

 

-  Liz Peace (British Property Federation)

 

-  Elizabeth Cox (New Economics Foundation)

 

Briefings attached:

 

-  LSE Cities, Future of London's Town Centres

 

-  NEF, Reimagining the High Street

 

-  Health Safety Licensing & Environmental Protection Unit Manager, Potential for Saturation Policies in Respect of Licensed Betting Shops

 

-  CAB, Payday Loan Case Studies

6.1  The chair reminded the committee that Jeremy Leach from the Walworth Society had been co-opted onto the committee for this item.

 

Suzanne Hall, London School of Economics, Cities Unit

 

6.2  Suzanne Hall introduced her presentation, ‘‘Walking the Walworth Road”.  She explained that her recent work had concentrated on “Ordinary Streets” and that she was currently studying Rye Lane.  Her approach was an ethnographic and visual exploration of a street’s vitalities and of the constraints in the spaces, economies and cultures of the street.  She reported that she had spent a lot of time talking to shopkeepers and visitors on the Walworth Road.

 

6.3  A spider web diagram in the presentation showed the distribution of retail activity in the city; two thirds of all Londoners lived within five hundred metres of a high street.  There was an increasing level of ethnic diversity, demonstrated by graphs showing London’s population changes over the  ten year period 1991 – 2001.  In London the most ethnically diverse areas were also the most deprived.  London was a polarised city in terms of wealth distribution and had the country’s top 10% of the richest people and the top 10% of the poorest.

 

6.4  Walworth was very high density and consequently although the population had a low level of disposable income the retail annual turnover of the Walworth Road was similar to Hampstead Heath, which was much wealthier but also of lower density.  East Street was the best location economically, followed by Elephant and Castle around the London College of Printing Communication and South Bank University and the Walworth Road library, although Heygate Estate formed a physical barrier.  Economic activity dissipated towards the south of Walworth Road.

 

6.5  The results of a survey demonstrated that shopkeepers were from around the globe.  The languages spoken by shopkeepers were very diverse and Rye Lane had more language capacity than the LSE with 28% speaking four or more languages.  There was an equal preponderance of food and clothing retail outlets, as well as a recent growth in beauty outlets.  This rise in beauty outlets was because hair and nail products could be purchased cheaply and space could be rented for £50 to £80 a week.  Mutualism was important between and within businesses.  For example money recipients would tend to spend a proportion of the cash locally as soon as it was received.

 

6.6  Traders were asked how long they had been in occupation; many had been in the area a long time including 32% for twenty years or longer, and a quarter of these for fifty years or more.  Long term proprietors often owned the shop and living accommodation above.  More recent retailers wanted smaller places.  People were developing innovative strategies - for example hat shops and barbers incorporating nail bars.

 

6.7  The surge in online buying had undermined the more traditional retail role of the street.  The ordinary high street and Westfield differed in their diversity and also because Westfield had a stronger marketing approach.  The Mayor of London had developed funds for retail areas.  Town teams and street trade associations could take on a marketing role.

 

6.8  The diversity of small outlets made the area very resilient.  Sometimes it was very valuable to have a Sainsbury or Tesco’s, but too many large retail chains could cause a tipping point, and the same was true of betting shops.

 

Comments and questions

 

6.9  A member highlighted the general concern of constituents about a local concentration of betting shops and loan shops.  Clustering appeared good for their business but the impact was worrying.

 

6.10  The co-opted member asked how the retail opportunity could be maximised.  Suzanne Hall recommended thinking about the hinterland which included schools, libraries, etc. and suggested utilising the Mayor’s Outer London Fund.  This was highly collaborative and there had been some interesting initiatives, for example providing retail units with an initial start of three months on half rental charges.  One project collaborated with an art college.  The Architecture Foundation, based in Tooley Street, was involved in the initiative.  A partnership with the London College of Communication could be productive; their street frontage was an exciting intervention on the Elephant and Castle roundabout.

 

6.11  In response to a question about the most effective type of interventions, Suzanne Hall responded that recent regeneration had focused on  physical investment and that the Walworth Road  improvements had been principally mechanistic and had improved the retail environment.  However there were recent moves into developing local websites that gave streets a technological profile.

 

6.12  A member asked how Lend Lease related to such a diverse, local retail environment, which might become fragile with major regeneration, and whether there was an opportunity to provide linkage in order to protect and enhance the area.  Suzanne Hall thought that Walworth Road  and Peckham Rye were successful and that their health value could be amplified.  Peckham had things that brought people to the area but not necessarily something to hold them once they were there.  Diversity of provision with an anchor could work well; a strong gesture project could achieve this.

 

6.13  A member asked if it would be a good idea to link the high street with the cultural offering, for example to Pullen's Yard.  Suzanne Hall agreed that linking with artistic organisations in the hinterland would work well and commented that it would be interesting to bring together the head teacher, librarian, Pullen’s and the local retailers.  Another member commented that Harold De Walden developers revitalised Marylebone High Street.  They retained retailers like specialist book stores and cross-subsidised the rent.  Community links were created which brought in the local schools for festivals.

 

6.14  A member asked if shops on the Walworth Road moved up the retail ladder; from the South to the North and then on to East Street, for example.  Suzanne Hall responded that they did not, however she thought that the retail area in the South could be improved, for example there was no signage to show that Pullen’s Yard was there.  Entrepreneurial activity could be encouraged by showcasing a small project to get wider buy-in and by forming associations.

 

6.15  A restaurateur commented that footfall in Tower Bridge Road was not large, but that the council had offered support to form a business improvement area, which managed to raise £92 000 for improvement.  He reported that originally the smaller businesses were worried about rents rising and the bigger businesses had to get head office approval, but that the medium sized businesses were able to see the benefits more easily.

 

6.16  A member of the audience asked if a coordinator was an important role and commented that town centre managers were often brilliant for an area.  Suzanne Hall commented that coordinators and partnership were vital in terms of vision and implementation.

 

Liz Peace, British Property Federation

 

6.17  Liz Peace stated that retail had been the mainstay of the high street but was now moving to the internet, retail parks and out of town supermarkets.  Small interesting shops were disappearing from the high street, as were some bigger chains. The Nexts of the retail world were now only targeting ninety-eight high streets rather than the three hundred that could be available.  There was a saturation of unwanted shops, for instance nail bars, chicken and betting shops.

 

6.18  Liz Peace reported that Mary Portas had commented that however much you might not like supermarkets and out of town retail parks, you could not turn back the clock. The solution for high streets was not retail but instead to encourage people to visit for community links and entertainment.  The focus in town centres was going back to the smaller retail store.

 

6.19  Liz Peace believed that there were four potential solutions:

 

-  Holistic planning, including shrinkage

-  Information, particularly about ownership

-  Holistic management

-  New uses/change of use

 

6.20  There was a question of who was best placed to lead holistic planning; this could be the town council, a local neighborhood group or a business association.  There was a need for a leadership team and this could be part of a partnership.  Business could be used as a resource and as a champion.  It was recommended that there was a strong leader.  It was useful to establish ownership as this helped in bringing pressure to bear.  Places which had a single owner had greater choices.  For example the Marylebone High Street was owned largely by one corporation and it was possible to maximize leverage.  Councils had considerable powers at their disposal in terms of neighbourhood planning, compulsory purchase and reducing rates.

 

6.21  Liz Peace suggested that footfall could be increased by thinking about social and community resources, for example putting a health centre in the centre of town.  Lots of property companies had recently been formed for doctors’ centres.  She reported that there was a trend of converting retail use into residential but that there could be problems with this, particularly if it was a haphazard approach.  Local authorities could help to define the area to invest in and identify peripheral units that might be best placed for conversion to retail.

 

6.22  Liz Peace stressed that, although they had risen in some areas, rental levels and values had generally fallen in real terms.  Property was often overpriced and landlords needed to accept a lower price otherwise there would be problems down the line and a possible reduction in footfall and revenue.  There was a need for partnership and leadership to develop a successful high street.

 

Comments and questions

 

6.23  A member asked whether landlords held onto properties charging sky-high rents in order to force a change of use.  In Liz Peace’s view, some landlords were not good and she recommended a robust high street plan at the right price.  She advised the council to lay down firm guidelines but to be realistic about what could be achieved.

 

6.24  A member commented that the Strata Tower still had empty units and felt that there was a question about the future of the site.  Liz Peace reflected that there were opportunities to give rate concessions if the council had a specific economic purpose.  She noted the lack of sufficient guidance to local authorities, but stated that it was clear that rate variation could be used to encourage business development.  Development plans also required affordable retail provision.

 

6.25  A member asked Liz Peace to expand on her reference to introducing entertainment into the high street.  Liz Peace responded that she was thinking of galleries and another member suggested cinemas.  The member said that recently Peckham had a pop up shop initiative which helped young people get experience.  Liz Peace agreed that these could be useful initiatives.  Projects like this could be a good way for people to try out a business.

 

6.26  A member commented that people now went to Camberwell for food.  Pubs were often owned freehold and now the publicans had retired.  The member asked if joint ventures could drive out diversity - like the tech industry in the East London.  Liz Peace replied that this was always a danger but that a strong objective and ensuring the right mix of units would mitigate against this.

 

6.27  The co-opted member reported on his involvement with “Better Bankside” and his experience of lobbying central government.  He felt that there needed to be a community engagement ethos.  Liz Peace commented that business was often well placed to take the lead but generally needed local authority support.

 

Elizabeth Cox, New Economics Foundation

 

6.28  Elizabeth Cox commented that there were many positive things about high streets.  They provided an economic and social role but the preeminence of the economic role was not predetermined; it was possible to design them around what the community wanted to achieve.  Elizabeth Cox felt that it was not possible to separate out the high street from broader economic and other pressures.  Her brief this evening was to focus on specific shops, such as betting shops, however there was a wider context.  The country had to reduce its carbon output by 80%.  In part this could be tackled by reducing the consumption of consumer goods.  The country was also facing other issues such as rising fuel prices, an aging population and rising obesity.  Affordability was another big issue.

 

6.29  Elizabeth Cox referred to the resurgence of social movements such as Occupy and 38 degrees.  People were questioning the use of social spaces.  She wondered whether the design of spaces would be radically different if we were looking at wellbeing as the frame.  There were a range of social, environmental and economic drivers.

 

6.30  Elizabeth Cox reported that NEF had been looking at “home” and “clone” towns and considering local economies and multipliers.  Looking at estates it had been found that much of the money left the local economy.  Supermarkets created local jobs but local shops created more employment because they created local supply chains.  Elizabeth Cox cited the Brixton pound where, for every pound, seventy-five pence stayed in the local community.  NEF had also been looking at streets from the point of view of design, connection and sustainability and trying to identify whether money flowed out of the community or circulated locally.

 

Comments and questions

 

6.31  Members asked how to best manage the high streets, whether the approach should be to ensure that more money was in the hands of local people through statutory minimum wage and to use economic stimulus.  Elizabeth Cox agreed that these were useful tools as were the creation of citizen movements and local partnerships.  In response to a question from a Walworth resident, she also suggested that community land trusts could provide more local economic relationships.

 

6.32  A member felt that it would be useful to understand the local spend and whether betting shops were sucking huge amounts out of the local economy.  He wondered whether business rate relief could be linked to businesses that were working hardest for the area.  Elizabeth Cox commented that betting shops involved moral choices and if the council’s framework was well-being then this could give a context to decisions around rate relief.  Another member was interested in how much it had cost to set up local currencies such as the Brixton pound.

 

6.33  In response to a question, Elizabeth Cox outlined the five elements that promoted well-being and explained that Liverpool used this model:

 

-  Connect

-  Be active

-  Keep learning

-  Take notice

-  Give

 

6.34  A member asked how important was the role of ethnically diverse business to the global economy.  London had seen a large rise in independent retailers and some of the money would go to communities in need abroad, for example in Vietnam.  Elizabeth Cox commented that some activities would be better achieved if done on a greater scale.  There was also the social impact of spend to take into account; family global networks would usually have a more positive social impact than global corporations.

 

6.1  A member stressed that questions of economic and social justice needed to be considered.  The Southwark Youth Council was not happy with the betting shops and loan shops.  The views of the community had to be taken on board.

 

6.2  A Walworth resident highlighted that some business proprietors did not want to engage with the council because of difficulties over rates.  The chair welcomed any more detailed information on this.

 

6.3  The chair suggested that the review concluded in the first meeting of the new administrative year.  She outlined areas which could lead to recommendations:

 

-  The amount of money that remains in the local economy

 

-  Young people’s involvement in enterprise, community and trade/business associations

 

-  Identifying who is best placed to lead the development of the high street, is this the council or some other agency

 

-  The reduction in numbers of voids

 

-  Opportunities for synergy, e.g. light touch systems such as food or cultural quarters, wider place making of which Walworth Road is just one part