Chancellor reveals plans for US advice; following on the news that Alan Greenspan, the former head of the US Federal Reserve Bank, is to be one of his advisers, the Chancellor is to hold a series of meetings with the world’s business leaders on how to use public spending to help close the productivity gap with the US. The FT says that Bill Gates (pictured right), the founder of Microsoft, has persuaded him that the “digital lifestyles” of growing numbers of households hold the key to economic prosperity and that the UK should capitalise on its role as a software developer for mobile phones and digital television technology. He believes that financial services, digital electronics, science, education, healthcare and high-tech manufacturing will underpin productivity growth. The current long-term spending review is likely to make investment in skills in these sectors a priority. The first sectoral meeting is expected to take place before Easter. Financial Times 28.01.06
Deputy Governor reiterates warning about rates; Rachel Lomax, the Bank of England Deputy Governor (pictured right), has re-emphasised the Bank’s concern that Asian savings could stop being used to purchase US assets and thus cause a sharp fall in the dollar. Although she told a conference on global financial imbalances that she felt the chances of damaging adjustments were low, the Bank of England monetary policy committee was trying to factor into its projections the risk of disruptive market adjustments. Net capital flows into the US fell from $104bn in October to $89.1bn in November, although there was sufficient to cover that month’s deficit of $64.2bn. If the US had to sell assets it could mean a rise in long-term interest rates, which could, in turn, hit worldwide economic growth. Financial Times 25.01.06
Economy to grow by 3.4 per cent in third quarter of 2006; a report by BDO Stoy Hayward says that the economy is due to grow by 2.2 per cent in the second quarter of this year and that this will then rise to 3.4 per cent in the third quarter. It says that confidence in the economy is likely to lead to greater investment and expansion in UK businesses and could reverse the current trend of rising unemployment. For further information click here. Financial Times 06.02.06
The
Chancellor’s innovation headache; an article in the FT by a
former secretary of the DTI’s innovation advisory board says that British
presence in seven of the top ten R&D sectors is virtually insignificant
at between 0.2 and 2 per cent. Twenty-five companies account for two thirds
of all British R&D spending and this is heavily concentrated in pharmaceuticals
and aerospace. Both these sectors have a significant government role. Given
his desire to turn Britain into a knowledge-based economy these figures will
cause the Chancellor great concern. One of the problems faced by UK companies
is the financial pressure placed on them by shareholders, which makes R&D
more expensive for UK companies than for their rivals in the US, Japan and
the rest of Europe. The Chancellor is conducting a review into how the R&D
tax credit is working to see if there is a case for making it more generous
in the Budget. He has already relaxed the way that the credit is policed by
Customs and Revenue. There are, however, some hopeful signs, particularly
in the software sector where R&D spending has increased from 4.5 to 5.2
per cent of the overall total. Guardian 03.02.06
CBI attacks ‘confusing’ array of SME support services; a CBI report into government support for small businesses says that company heads face a baffling array of quangos, grants and agencies across the UK, including 2,650 schemes in England alone. The research is the latest in a series of CBI reports assessing the progress being made by the government in its quest to make Britain the best place in the world to start or grow a business. Action to date has included passing responsibility for Business Link over to the nine regional development agencies in England and rebranding, amalgamating or winding down 200 business support schemes. Steve Sharratt, the chairman of the CBI’s SME Council, said that whilst there were signs of improvement in some services, several government agencies continued to have a poor approach. He singled out Business Link, which receives £140m funding each year but is only used by 14 per cent of SMEs. Independent research commissioned by the CBI found only 38 per cent of businesses felt satisfied with the general information provided by Business Link and that the quality of service was patchy across the country. It also criticised the concentration on start-ups at the expense of businesses wanting to grow. The CBI publishes a list of 12 recommendations to improve services. For further information click here. Financial Times 30.01.06
Business Link operators could change; the switch in responsibility for Business Link from the Small Business Service to the regional development agencies could see changes in the way the scheme is run. One North East has advertised for applicants to manage its Business Link internationally through the European Journal and is believed to have received bids from consortia of Scottish and Welsh agencies. Whilst any decision to place the contract outside the region would be contentious it is pointed out that, despite a plethora of advice agencies, the region has the lowest start-up rate per head. The three bodies running the Business Link service in Northumberland, Tyne and Wear and the Tees Valley have joined forces, with the support of the North East Chamber of Commerce, to bid under the banner “Coalition of Ambition”. The private operator of the Durham Business Link, A4e, is also bidding. The winner will be named in March. Seven of the nine RDAs have launched, or are preparing to launch, tendering process. They believe that by streamlining the current structure of 45 Business Links they can reduce administrative structures and costs and target the service more efficiently. Financial Times 25.01.06
Health White Paper boosts social enterprise; the Health and Social Services White Paper opens up the supply of neighbourhood care services to a potentially wide range of commercial and voluntary operators including new “not-for-profit” organisations set up by NHS staff themselves with the help of the Department of Health. To facilitate this the Department of Health will establish a social enterprise unit. In Surrey a former nurse and a former speech therapist are leading 720 staff in the East Elmbridge and Mid Surrey Primary Care Trust in establishing a co-ownership company. This will provide community nursing, physiotherapy, dietetics and other therapies outside hospitals. Subsequently there were some complaints that the contract was not put out to tender. For further information click here. Regeneration 27.01.06
Brentford Football Club becomes a social enterprise; a supporters’ trust has acquired a 60 per cent majority shareholding in Brentford and raised £5.5m to refinance the club’s debts. The trust, Bees United, which will run as a social enterprise, intends to build a new multi-purpose stadium, offering services to local people seven days a week. It will also be responsible for paying off the club’s £7.5m debt. Brentford FC will be a trading subsidiary of the Trust. Brentford becomes the fifth Football League club to become supporter-owned with seven more in the Conference and other feeder leagues. There is also a supporter-owned club in Scotland in the form of Raith Rovers where the chancellor provided £5,000 of his own money to support the £1.3m community takeover. Regeneration 03.02.06
Eden Project attracts £700m to Cornwall; the Eden Project (pictured right), the regeneration venture that has created a visitor attraction in an old clay pit, has attracted £700m to Cornwall in five years. This is twice the EU support for England’s poorest county. The project, which is run as a social enterprise, is the brainchild of Tim Smit, who says that the operating losses are narrowing and breakeven should be achieved within two years. He says, “Eden is a new economic model demonstrating the catalytic effect of creating places, which through their activity and symbolism, generate activities beyond the imaginings of bankers”. The FT says that supporters of social enterprises, such as Gordon Brown and David Cameron, will welcome the news but some traditional companies regard businesses with a social purpose skeptically. For further information click here. Financial Times 01.02.06
RDAs to get social enterprise role; Alan Michael, the DTI’s Industry and Regions Minister, has announced that social enterprises are to receive guaranteed support from the RDA-managed Business Link service. He told the Social Enterprise Coalition’s annual conference that the action plan for social enterprises being drawn up by the DTI for publication in the spring, would have four main areas. This would ensure that tailored support for social enterprises would be readily available from Business Links, while also opening up markets for social enterprise in the public sector and encouraging people to set up social enterprises. In a video message to the conference the Prime Minister said that the healthcare white paper would identify social enterprises as a “special part of our plans” (see above). He also saw a greater role for social enterprises in the Respect agenda on tackling anti-social behaviour. For further information click here. Regeneration 27.01.06
Blair pledges help for voluntary groups; Tony Blair has promised that an action plan will be drawn up to make it easier for voluntary bodies to provide a larger share of public services in competition with both the public and private sectors. The pledge emerged at a meeting he held with chief executives of voluntary organisations where, despite being offered a bigger role in offender management, the NHS, schools and skills development, the voluntary bodies listed a series of obstacles that they faced. These included short-term contracts, excessive bureaucracy, a reluctance by the public sector to pay the full cost, over burdensome monitoring, and tax and VAT rules that can make them uncompetitive. Steve Bubb (pictured right), Chief Executive of the Association of Chief Executives of Voluntary Organisations, said that the meeting had been “highly encouraging” but warned that after eight years of government rhetoric less than 2 per cent of government spending went through the voluntary sector. “There has been no major transfer of services since social housing in the 1980s. What we want now is action”. Both the CBI and the National Audit Office have given support to the association’s concerns. Financial Times 06.02.06
Protest at crisis on Phoenix Fund; a number of leading agencies providing business support for disadvantaged groups have protested that the DTI has yet to provide the regional development agencies with the relevant funding for the Phoenix Development Fund. The agencies, which include the Social Enterprise Coalition, the Black Training and Enterprise Group and the National Federation of Enterprise Agencies, say that the delayed funding amounts to “several” millions of pounds and that inability to access it is causing the specialist business support providers to reduce capacity. The Treasury had announced that the £11m funding for community development finance institutions under the Phoenix CDFI Fund was being ring fenced. The business support agencies ask that the funding for their activities, which comes from a separate Phoenix Fund, and which they say are vital for the CDFIs, should be similarly ring fenced. There are fears that the funds are ensnared in negotiations between the Treasury and the DTI about spending cuts. Regeneration 03.02.06
Bankruptcies reach record level; nearly 70,000 people became insolvent in England and Wales during 2005, the highest level since records began in 1960. Official figures show that insolvencies rose by 25 per cent in the last quarter of the year. The Government figures also show a sharp increase in Individual Voluntary Arrangements (IVAs), an increasingly common alternative to bankruptcy. Accountants said that the rapid rise was increasingly the result of young people taking on more debt than they could ever afford to pay back. A study commissioned by the government showed that an inability to mange credit was responsible for half of all bankruptcies. One bright spot was that the figures from the DTI show company liquidations fell by 5.5 per cent in the last quarter, although overall there was an 8.5 per cent rise in 2005. For further information click here. Times 04.02.06
COMMUNITY AND BUSINESS AFFAIRS
OFRs are becoming ‘a Whitehall farce’; the saga of the Operation and Financial Reviews continues. The Chancellor scrapped them in November as part of a drive to impress the CBI Annual Conference by tackling red tape. The original proposal for OFRs, which would have required companies to issue an annual review of risks and performance, including environmental and social issues, took seven years to develop. However, after facing a legal challenge from Friends of the Earth, the Government has now opened a full consultation on the decision. The consultation will be open until March 24th and comes at a time when companies are drawing up their annual reports for the year ending in March. At present they will have to comply with the less prescriptive EU requirements, which are not yet generally understood. Gerry Russell, Senior Partner of Ernst & Young, said, “This has all the elements of a Whitehall farce. There was extensive consultation before the OFR was adopted. What is the point of going through it all again? It would be much better to admit the error and reinstate the original position”. The CBI, however, said that they still felt the arguments for abolishing the statutory OFR were overwhelmingly strong whilst Miles Templeman of the Institute of Directors, called for the OFR to be voluntary. For further information click here. Financial Times 03.02.06
All-party groups told to name sponsors; Sir Alistair Graham (pictured right), the Chairman of the Committee on Standards in Public Life, has written to Sir George Young, the Chairman of the Committee on Standards and Privileges, recommending that all-party groups should be forced to declare the names of sponsors on all reports and press notices. At the moment they only have to declare them on a parliamentary website. The move follows a campaign in the Times, which showed that organisations in the nuclear and pharmaceutical industries were funding and even writing policy documents in the name of all-party committees of MPs and peers. It was also discovered that six all-party groups listed a lobbying company as their sponsor, in an apparent breach of parliamentary rules. The Committee on Standards and Privileges is to consider the issue further amid growing pressure from MPs for the activities of lobbyists to be made more apparent. For further information click here. Times 30.01.06
US investors urge study of climate change risks; a survey commissioned by Ceres, an investor coalition with an interest in environmental issues, has found that seventy five per cent of mutual fund investors want their funds to “ask questions about the potential impact of global warming on the companies in which they are investing”. However, US fund managers have so far done little to ensure that the companies they invest in analyse the risks of climate change to their profits. Mindy Lubbers, President of Ceres, said, “Mutual Funds are ignoring the growing evidence that climate change will have far-reaching fiscal impacts on a wide range of business sectors”. A website has been set up where investors can urge the three largest US fund families: Fidelity, Vanguard and American Funds, to vote in favour of shareholder resolutions on global warming. For further information click here.Financial Times 30.01.06
Business stakeholders need to change attitude on risk; a new report produced for the World Economic Forum’s Global Risk Network calls for businesses, investors and governments to change their attitude and approach to risk in the face of global threats. The report, which has been produced by Mercer Oliver Wyman, Merrill Lynch and Swiss Re, names the potential risks as HIV, tuberculosis. malaria and the natural disasters such as Hurricane Katrina and the Asian tsunami. In addition, “high impact risks such as terrorism and an influenza pandemic” will remain centre stage while “other risks, like climate change have begun to move to the centre of the policy debate”. For further information click here. Financial Times 06.02.06
M&S launch Fairtrade range of clothing; Marks and Spencer is targeting ethically sound shoppers with a new range of clothing made from 100 per cent Fairtrade cotton. It has also unveiled a Look Behind the Label campaign giving information about the way that products are sourced. For further information click here. Daily Telegraph 30.01.06
Retailers urge rules to protect migrants; leading retailers
have joined with unions to call for food processors and packers to be included
in the proposed rules to prevent exploitation of migrant workers by rogue
gangmasters. The Gangmasters Act has been introduced following the death of
23 migrant Chinese cockle pickers in Morecambe Bay in 2004. However, retailers
and unions fear the government’s drive to reduce red tape has prompted
a rethink over whether food manufacturers should be covered by the new rules.
Financial Times 06.02.06
MPs call for at least 8 super-casinos; two backbench MPs, Labour MP Clive Betts (pictured right) and Tory MP James Brokenshire, have called for the number of super casinos to be increased to eight. They say that the existing plan to allow one is “nonsense” and that there need to be pilots in different locations including seaside resorts, old industrial areas and areas of London. Betts said that he planned to table an adjournment debate on the issue. A total of 49 local authorities have expressed formal interest in hosting regional casinos. Estates Gazette 28.01.06
City-regions start to be taken seriously; Tristram Hunt, writing in the Observer, says that John Prescott is starting to take the notion of city-regions seriously. He says that the concept that a municipality’s economic, cultural and demographic reach extends far beyond its geographic boundaries is an idea as old as the city itself. Today it is apparent in the industrial and cultural reach of Paris, Newcastle and Brussels. But the historic difference between Britain and the continent is that Westminster has failed to recognise the political needs of successful city-regions. Outside of an increasingly autonomous London, this urban ambition is suffocated in Britain, not least because of the democratic deficit. The rejection of elected regional assemblies has meant that we are left with unelected regional development agencies, together with a welter of uncoordinated local institutions. Britain’s local authorities do not like having their rights infringed but if the cities want to expand regeneration, they must start to wrench power back from Whitehall. They also need to reflect the broader regional significance so that however compelling the identities of Walsall, Solihull and Birmingham may be, the urban motor of the West Midlands deserves a more strategic administration. If Britain’s regional cities are going to challenge London’s dominance and challenge their continental peers they need to start thinking like city-states, not parish councils. Observer 29.01.06
Knowledge economy not helping cities; a report by Local Futures claims that the knowledge economy is becoming commuter-based with workers earning in the cities but making no contribution to the urban economy because they live and spend in semi-rural areas. For further information click here. Regeneration 03.02.06
Select Committee critical of ODPM; the House of Commons Select Committee covering the work of the ODPM has criticised the work of the department calling it ‘ineffective’. Commenting on the ODPM’s annual report and accounts for 2005, the committee says that it remained “to be convinced that the department will be able to ensure the co-ordinated government action needed to meet its goals”. It criticised David Miliband, the Minister for Communities, for relying on the Thames Gateway as the only example of “joined-up government” and added that the success of the growth area was not guaranteed. Their criticism follows Treasury attacks on ODPM planning policies. For further information click here. Estates Gazette 04.02.06
Jobs market for students to stay buoyant; a report by IDS, the pay and benefit specialists, forecasts that the jobs market of 2006 final-year university students is likely to remain buoyant with employers expected to take on 6 per cent more graduates than in 2005. Most of the students are getting jobs in the private sector where graduate recruitment increased by 10.1 per cent last year and is expected to rise by 10.8 per cent this year. The public sector, where the government is cutting jobs, is providing far less fertile ground going up by 2.9 per cent last year with a 1.5 per cent increase forecast for this year. A separate report from the Association of Graduate Recruiters outlines a series of shortcomings found in potential graduate recruits by managers from 222 of Britain’s largest companies. For further information click here (Incomes Data Service) or here (Association of Graduate Recruiters). Financial Times 31.01.06, Times 07.02.06
CBI worries about private childcare; the CBI has warned that a government drive to increase free childcare could backfire because it is pushing private nurseries out of business. In a report they say that heavily subsidised state provision was making childcare increasingly uneconomic for the private and voluntary sectors. For further information click here. Financial Times 03.02.06
Mentoring scheme “an £11m failure”; a
report by the Youth Justice Board says that an ambitious scheme to pair young
criminals and others at risk with adult mentors has proved to be a multimillion-pound
failure. Less than half the youngsters referred received any mentoring, one
third of adult volunteers failed to become mentors and half the programmes
finished early. There was no evidence of any improvements and although one
of the chief benefits was supposed to low cost, each one cost between £7
- 26,000. However Bob Ashford, Head of Prevention at the Youth Justice Board,
said that whilst the results were not as positive as they would have liked
they were incredibly successful in engaging young people in a positive relationship.
For further information click
here. Times 06.02.06
Kelly meets potential sponsors; Education Secretary Ruth Kelly (pictured right) has held the first in a series of meetings with private sponsors and head teachers that were keen to back or become trust schools under the terms of the controversial White Paper on education reform. Amongst the 25 organisations that attended the 30th January meeting were Microsoft, KPMG, the City of London and the Mercers Company. The meeting came only days after the Select Committee on Education issued a report containing strong criticism of key elements of the White Paper although there is now every sign that a compromise may be reached on interviews. William Hulmes Grammar School in Manchester has already made it publicly known that it wishes to switch from being a public school to become a city academy. Times 30.01.06, Times 06.02.06
Universities offered cash for courses with employers; universities are to given extra money to develop courses with employers whilst the market for higher education diplomas is to be opened up to new providers. In a letter to the Higher Education Funding Council for England (HEFCE), Ruth Kelly, the education secretary, said that the top priority would be “growth through employer-led provision”. This could mean promoting and expanding schemes under which companies’ in-house training programmes were accredited and certified by a university, as well as more two-year vocational foundation degrees. She also wants to expand higher education to include vocational schemes that are funded and provided by businesses. The letter to the HEFCE also calls for the number of people from low-income backgrounds who take part in higher education to be increased as well as greater efforts to be made to cut drop-out rates. There is also increased funding to support students from families who have not traditionally sent their children to university. For further information click here. Financial Times 03.02.06
Protest at visa shake-up; Sir Digby Jones, Chief Executive of the CBI, and Professor Drummond Bone, President of Universities UK, have written a joint letter to the FT urging the government to rethink its plans to limit the right of appeal for overseas students who have been refused UK visas. The proposed immigration, asylum and nationality bill would scrap the current appeal system under which 25 per cent of failed applicants win their appeal. Sir Digby and Professor Bone say that the plans, which are currently in the report stage in the Lords, could damage the interests of both employers and universities. The universities, in particular, earn £1.25bn from overseas students, which could be lost by students turning to other countries. For further information click here. Financial Times 06.02.06
Report claims quarter of pupils play truant; almost one-quarter of school children skip lessons, with the most regular offenders living in Glasgow, Belfast and Norwich according to a study compiled by Smart Technologies, the educational supplies company. It found that an average of 23 per cent of 11-to-16-year-olds had missed lessons since starting secondary school either because of a dislike of a particular subject or because they wanted “to have fun and hang out”. Six per cent of the 1,000 youngsters interviewed said that they had skipped school because they had a hangover. Last month the House of Commons Public Accounts Committee said that the government had squandered £885m over seven years in a futile attempt to reduce the number of truants. For further information click here. Guardian 06.02.06
Dispute delays Government emission targets; the Guardian says that a seven month dispute between the DTI and the Department for Environment, Food and Rural Affairs (DEFRA) is delaying publication of a programme to cut the UK’s CO² emissions by 20 per cent by 2010. The DTI are arguing that emissions have risen by such a rate over the past two years that, on current measures, the cut in emissions will “only be around 10 per cent below 1990 levels by 2010”. DEFRA is contesting the figures and insists the target can be met with vigourous action. The dispute comes as David Cameron, the new Conservative leader, has put the environment at the heart of his repositioning of the party. He has pledged to cut carbon emissions on a year on year basis although the Prime Minister believes that this promise is unrealisable. The Whitehall dispute comes as renewed warnings are being published about the dangers posed by climate change (see below). Guardian 31.01.06
PM voices climate change fear; Tony Blair (pictured right) says that the risk of climate change may be more serious than previously thought. Writing a foreword in a new book based on Government-sponsored research into global warming he says, “It is now plain that the emission of greenhouse gases, associated with industrialisation and economic growth from a world population that has increased six-fold in 200 years, is causing global warming at a rate that is unsustainable”. The book, Avoiding Dangerous Climate Change, is based on a conference hosted by the Met Office at Exeter University last February. Amongst the warnings in the book are that the huge West Antarctic Ice Sheet is starting to disintegrate, which could raise sea levels around the world by 16ft, a temperature rise of 3C, which would cause large scale disruption, is well within the range of climate change projections for this century. For further information click here. Evening Standard 30.01.06
Clean coal needed in energy portfolio; Brian Wilson (pictured right), a former energy minister, has called for “clean” coal to be given a strong place in Britain’s energy portfolio. He warned that without coal and nuclear power there could be energy rationing by the time of the Olympics in 2012. He said that if Britain did nothing, by 2020 70 per cent of electricity will come from gas, 90 per cent of which would be imported. Clean coal would meet three of the essential criteria outlined by the government of affordability, security of supply and carbon reduction. Coal-burning plants currently supply 34 per cent of the country’s electricity but many are expected to close before tougher European regulations come into force in 2015. The government has put £35m aside for research into clean coal technology but Mr Wilson and Iain Miller, of Mitsui Babcock, speaking at a briefing said that a trial plant would cost up to £150m to build. Guardian 01.02.06
Mayor plans low emission zone; fines of up to £200
a day are likely to be levied against the drivers of polluting lorries and
coaches under plans for a Low Emission Zone in London. Proposals for the zone,
which is expected to begin in February 2008, have been unveiled for public
consultation by Ken Livingstone, who made the zone one of his manifesto commitments.
Those whose vehicles breach the permitted limits would pay between £100
and £200 a day, with fines of £500 to £1,000 a day for non-compliance.
For further information click
here. Guardian 01.02.06
CBI opposes Mayor’s skills bid; Sir Digby Jones (pictured right), the Director General of the CBI, has called for Ken Livingstone’s bid to acquire control over skills training to be blocked. The Mayor says that the England-wide Learning and Skills Council, of which Sir Digby is a member, is too blunt an instrument for dealing with the peculiar skills needs of the capital. His proposal is currently under consideration by the Office of the Deputy Prime Minister, who are looking at granting extra powers to the Greater London Authority. Sir Digby says, “I disagree with his wishes to take over the London LSC. It’s a national LSC and the reason for that is that if there is a skills issue for London, it is a skills issue for the whole UK”. He also points out that many workers come into London from the rest of the country. Regeneration 27.01.06
London job schemes get £35m from EU Social Fund; the Learning and Skills Council have launched the latest Pan London 2 Programme, which will distribute £35m provided by the EU Social Fund, to support employment and skills projects in the capital. Approximately £24m will go to helping the unemployed back into work whilst the rest will be spent on increasing the supply of Level 3 vocational training for employees in sectors with skills shortages such as construction, retail, leisure and tourism. The management will be in the hands of Ecotec. For further information click here. Regeneration 27.01.06
New doubts over Wembley; Multiplex, the company overseeing the building of Wembley Stadium, have admitted that there is only a 70 per cent chance that the national football arena will be ready in time to stage the FA Cup Final in May. Guardian 31.01.06
Prescott gives go-ahead for towers at Lots Road; the Deputy Prime Minister (pictured right) has given permission for two residential towers of 37 and 25 storeys on the site of the old Lots Road power station next to Chelsea Harbour. The site straddles the boroughs of Kensington & Chelsea and Hammersmith & Fulham, Kensington & Chelsea had turned down the Terry Farrell designed scheme-a decision that was later supported by a planning inquiry. The Inspector judged that the towers would damage the skyline and the setting on the Thames as well as exceeding the limits in the London Plan for new homes in the area. John Prescott agreed that that the towers would exceed the limits but this was not a compelling objection in itself. He also agreed with Ken Livingstone that the towers would create “attractive landmarks”. This is the second time in a year that the Deputy Prime Minister has overruled a planning inquiry; the previous case being tower blocks on the river at Vauxhall. Rowan Moore, the architecture correspondent for the Evening Standard, comments that it is now official the London skyline is now the Wild West of planning and policies on the Thames, which have been fought for over decades, are dust. He calls on Mr Prescott and Mr Livingstone to give a coherent framework to the unknown number of towers that might be built all over London. He asks if the plan is now for towers of equal height to be built along the length of the Thames or is it just this site. “Will there be lone pinnacles here and there, or phalanxes of them, like an Algarve resort?” Evening Standard 01.02.06
Madrid sounds warning to Heathrow; airlines and unions have joined forces to point out that with the opening of two new runways at Madrid’s Barajas airport (pictured right) Heathrow has slipped down the rankings of European airports. Madrid can now handle 120 takeoffs and landings every hour- similar to Charles de Gaulle in Paris- compared to Heathrow’s 85. Frankfurt and Schipol also have plans to increase to 120 flights an hour. A government white paper has proposed a short third runway at Heathrow but only if EU targets for emissions can be met. The promoters of Heathrow expansion point to the plight of the London docks where their pre-eminence was taken for granted in the 1960s, but by 1980 they had all closed with the loss of 50,000 jobs. Independent on Sunday 05.02.06
Roundhouse will be re-opening on time; after what the Guardian deems innumerable false starts and unfulfilled plans the Roundhouse, in Camden Town, is to reopen on 5th June. A two-year closure has seen a £29.7m redevelopment, which has restored the building to its former glory and created a state of the art performance venue. The main space will be able to hold 3,300 people standing or 1,800 sitting. In the chambers and tunnels below the main space there will be a series of studios and rooms for people aged 13-25 to pursue creative activities. It is hoped that these will provide opportunities for up to 10,000 local youngsters every year. There will also be a restaurant and café facilities-as well as, for the first time, toilets. The Roundhouse was originally built as an engine repair and maintenance shed in 1846 but quickly became redundant when bigger locomotives were introduced in 1854. It then became a gin warehouse until 1964 and after that a performance space for performers such as Jimi Hendrix, Pink Floyd and the Doors. It also staged Oh Calcutta and more recently the Royal Shakespear Company used it as their London home. It was bought in 1996 by the Norman Trust who have subsequently been a substantial contributor to the redevelopment costs. For further information click here. Guardian 01.02.06, Times 03.02.06
Mayor backs Leicester Square revamp; Ken Livingstone has pledged £3m from Transport for London towards Westminster Council’s plans to transform Leicester Square into an outdoor music and theatre venue. The redevelopment, which is estimated to cost around £18.5m, would see improved access to the park area, better lighting and an improved streetscape. For further information click here. Regeneration 27.01.06
Two different views of the West End; the Times heads a whole page piece “Record Year for the West End” whilst the previous day the Independent ran “West End slump feared as big shows struggle”. The Times is admittedly looking back to 2005 which it quotes the Society of London Theatre as claiming a record year with 12.1m customers paying £375,163,339. Richard Fulford, the Chief Executive, says, “The whole of the centre of London is in crisis. Shops are not doing business. Cinemas are empty. But Billy Elliot has sold out, you can not get a ticket for Guys and Dolls for love or money”. However, on the other hand the Independent concentrates on the current situation, using Sir Cameron Mackintosh as its main witness quoting him as saying the business is slow, and curtains have come down early on some West End productions. Terri Paddock of Whatsonstage says that she believes that slow sales are a minor problem compared to previous poor patches, when shows were closing within days of opening. “It’s more a clearing out of what’s to come. It was a very successful 2005 and we have major launches next week with Evita and Wicked and we already have Spamalot announced”. Independent 30.01.06, Times 31.01.06
Excel plans to expand; Excel, the exhibition complex in Royal Docks, is planning a £90m extension to increase its size by an additional 25,000 square metres to 100,000 square metres. Whilst this will still be smaller than Birmingham’s NEC it will be larger than many rival locations on the continent. The company has made substantial progress since its rescue refinancing three and a half years ago and now hosts a range of events, including the London Boat Show and has recently won the Motor Show back from the NEC. It is currently building a 2,000 underground parking space to release 12 acres. Sunday Times 29.01.06
Film makers flock to London; seemingly running counter to the gloomy figures released by the UK Film Council (see Grapevine 26/01/06) Film London has announced that film makers are flocking to London. Although it also says that the recently announced tax breaks have helped Film London says that there was a 20 per cent increase in production of films, documentaries, television series and commercials in the past year. London is now the third favourite location in the world, after Los Angeles and Manhattan. For the first time Warner’s are filming a blockbuster, V for Vendetta, in Whitehall whilst Westminster Abbey, Fleet Street and the Temple Church all feature in The Da Vinci Code. For further information click here. Daily Telegraph 30.01.06
Visual arts centre for Shoreditch; the culture-led regeneration of Shoreditch is to continue with the construction of a new building to house the Institute of International Visual Arts at Rivington Place. The 1,393 square metre building is being designed by Adjaye Associates and will include exhibition space, a library and a learning area. Funders include Barclays Bank and the Arts Council. The building is scheduled to open in 2007. For further information click here. Regeneration 29.01.06
London insolvencies hit five-year high; according to an analysis of corporate failures produced by PwC the number of insolvent companies in London reached a five-year high in 2005. A total of 2,900 companies in the capital entered insolvency with the worst casualty being retail which saw a 34 per cent, increase reflecting what PwC says was a “challenging trading environment”. For further information click here. Financial Times 30.01.06
Tour
de France to start in London; the 2007 Tour de France will hold its
prologue and part of the first stage of the race in London in early July of
that year. It will be the third time that the Tour has visited Britain since
it began in 1903. Ken Livingstone said that London would learn a lot from
staging the event and “We will see up to 3m people lining the streets
of London”. For further information click
here. Financial Times 25.01.06
London seeks 10 sponsors at £50m a time; the organising committee for the London Olympics have revealed that they are seeking 10 sponsors to contribute £50m each for the 2012 Games. Sir Keith Mills, the Deputy Chairman, told 250 delegates at an Olympics Business Summit that it was the aim that UK commercial sponsorship should produce about 35 per cent of the £2bn needed by the organising committee. He said that the intention was that there would be up to 90 sponsors in all with 20-30 at the second level and 30-50 at the third level. Negotiations will start in March. Financial Times 25.01.06
New plan for Olympic park saves 1,000 jobs; The Olympic Delivery Authority have announced that nearly 100 businesses and more than 1,000 jobs will be spared from having to move as a result of updated plans for the Olympic Park. Following a deal with the developers of the adjacent Stratford City adjustments have been made to the location of the village, media centres and the temporary coach and car parking sites. This, in turn, will mean that 93 businesses located on Fish Island at Hackney Wick, who had been served with compulsory purchase orders, can now stay although the orders remain for the 300 other businesses, which will be the subject of a public inquiry in May. Originally the Stratford City development partners had not wanted to tie the future of their site to the success of the London bid for the Games. However the new arrangements will mean that work can start ahead of schedule. Lord Coe, the chairman of London 2012, was presenting his first progress report to the International Olympic Committee meeting in Turin on February. For further information click here. Guardian 31.01.06, Regeneration 03.02.06
However the good news may be shortlived…; the Estates
Gazette features a diary piece wondering whether the reason for the reprieve
of Fish Island may be the desire to avoid a high-profile battle with Crossrail.
The EG says that Crossrail intend to apply for compulsory purchase orders
for some of the very same land south of Marshgate Lane. Estates Gazette
04.02.06
Strand development; a Hong Kong-based investor is working up plans to sell Arundel Great Court, a 3-acre site between the Strand and the Temple and the former home of Arthur Andersen, for redevelopment.
King’s Cross offices are new hotspot; having been on the market for 18 months the 650,000 sq ft Regent Quarter scheme at Kings Cross now has four prospective tenants chasing after it. The biggest single office building in the development, Regent Quarter was originally destined to be the new head office for P&O but they opted for Victoria. The Estates Gazette quotes one industry source as saying, “King’s Cross remains the cheapest location in London to get a brand new office”.
Architects chosen for Waterloo; P&O Estates have chosen Allies & Morrison as the architect for the redevelopment of Elizabeth House next to the main entrance into Waterloo Station. Their scheme for the former Department of Education building envisages around 800,000 sq ft of offices in two buildings as well as a residential tower. With the pending move of Eurostar to St Pancras they will also address the open spaces adjacent to the station as well as looking at the area’s commercial potential.
Aldgate scheme switches back to offices; Tishman Speyer, the giant US developer, has, once more, changed its mind about the redevelopment scheme planned for Aldgate. It originally planned to refurbish both the old Sedgwick Centre, now known as the Marsh Centre and the Aldgate Union site on Whitechapel High Street for offices. It subsequently sold the Marsh Centre to the Royal Bank of Scotland and announced that the Aldgate Union site would be residential. Now it has announced that these will be office developments. Tishman Speyer said that RBS would be moving 2,500 employees into Aldgate in 2007 and there was a chance to create a destination.
John Lewis to expand Oxford Street flagship; John Lewis is to invest £60m in expanding the space at its 600,000 sq ft Oxford Street store by 16 per cent. It wants to turn the department store into one unified building. The work is scheduled to be completed by the autumn of 2007. All in Estates Gazette, 27.01.06
Grapevine is produced twice monthly (except August and December when there is one issue) by Brian Wright on behalf of oneLondon.
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