Agenda item

Interview with Councillor Martin Seaton including a holistic overview of key strategies and projects under the Cabinet member portfolio for Jobs, Business and Town Centres with a focus on key aspects but not limited to:

•  Opportunities for ex-offenders and the success rate in Southwark Works.

•  Living wage and conditions of employment such as zero hour contracts.

•  Number of BAME workers in businesses in Southwark as previous report suggested 85% of client businesses supporting BAME workers

•  Affordable work spaces

•  Figures on empty and occupied commercial properties, council and privately owned (landlords)

•  Businesses performances on the climate change targets including green jobs for youth of the future.

•  Progress and delivery of the Southwark Pioneers Fund (SPF)

•  New Economic Strategy Consultation

The commission then heard from Councillor Martin Seaton, Cabinet member for Jobs, Business and Town Centres, Danny Edwards Head of Economy and Laura Hills, Manager- Planning Policy and Digital Transformation on the following topics:

• Different strands of work on target for delivery of council plans such as 250 paid internships for people from disadvantaged backgrounds, Southwark Pioneers Fund (SPF), New Green Jobs and a world class health innovation area involving Guys and St Thomas, Kings and South London and Maudsley Trusts
• High Street Fund to be launched in January 2023 awaiting confirmation from GLA.
• Completion of the consultation on the New Economic Strategy which is the overarching strategy to deliver economic initiatives from now until 2030
• Plans to build coherent town centre neighbourhoods with the initial focus on areas such as Camberwell, Peckham, Elephant & Castle and Old Kent road with a proactive approach of developing those town centres with resident and community consultations.
• Proposal for a register of affordable workspaces benefiting local entrepreneurs and businesses
• Expansion of street markets to provide means of starting a business in a cost effective way with minimal overheads giving entrepreneurs the stimulus to develop and grow work ethos and their respective businesses
• Closer working relationship with Department for Work and Pensions on job centres
• Southwark Works was setup to encourage entrepreneurship especially for people with barriers such as people just out of the justice system, Black and Minority Ethnic people and young people in need of education and training
• Role of councillors in their respective wards to encourage the town centre initiatives of buying locally

The commission then asked questions around the following themes:

• Impact of Brexit, Covid and Inflation on entrepreneurship and increase in rents and 5 year leases in commercial council properties in the Bermondsey area
• Protection of our local high streets where private landlords opting to convert commercial properties to residential as this is more more lucrative and also relaxation of regulations in planning class usages make it easier for conversion into residential properties
• Licensing of street markets, night markets and Christmas markets

Councillor Seaton explained to the commission that council rents had been frozen for the past two years during Covid and there has been only a reasonable increase rent since then, privately rented commercial properties have increased rents by 20-40% compared to 5-10% increase in council owned commercial properties. The question arises whether it is reasonable for the council to run commercially rented properties at a loss, profit or at least break even, budgetary targets have raised £20m so far with the deficit being at £26m.

Danny explained to the commission that the property team within the council can help and support businesses struggling to pay their rent. Laura explained to the commission that the planning team have placed Article 4 directives on certain shopping parades restricting their permitted development rights, therefore these properties cannot be converted without a full planning permission and the planning team have been monitoring the areas regularly. Councillor Seaton explained to the commission that there are plans to have a dedicated resource such as an event manager for street markets and events learning from the markets at the privately owned and developed Elephant Square.

The commission then discussed the following points:

• Business rates increase while there are still council owned empty commercial properties; this is to be raised with lettings teams
• Support for small business on council websites with regards to networking and business rates payment options and cabinet member visits to businesses
• Decrease in the number of public toilets on the high street, vast majority of businesses have customer toilets
• Small businesses undergoing relocation due to private redevelopment are actively supported by the Local Economy team and Councillor Martin Seaton ensuring that communities are not at a detriment due to investment and redevelopment and also encouraging such businesses to engage in the planning application process of such redevelopments
• Encouraging development of Business Improvement Districts (BIDs) to organise independent refuse and waste collection; monthly BIDs meeting with council to improve networking; discussing new innovations and resolving issues such as levels of shoplifting and street crime leading to an extended and resilient high street.