Business tax revenues give fillip to Brown; the amount of tax paid by business in January soared thanks to strong profits made by North Sea oil companies and the financial services industry, thus lifting the Chancellor’s hopes of hitting his forecast for government borrowing. Corporation tax receipts totaled £10.8bn; £3.7bn more than in January 2005. Of that amount £1.1bn was due to the Budget 2005 decision to bring forward tax payments by North Sea oil companies – a one-off change. The Treasury has been forecasting a strong pick-up in corporation tax receipts for some time and Goldman Sachs commented that this should rule out any big tax changes in the March 22 Budget. The Institute of Fiscal Studies said that, on current trends, the public sector current budget deficit for 2005-6 would come in at £10.1bn, below Mr Brown’s pre-Budget forecast of £10.6bn. The International Monetary Fund has subsequently claimed that the Chancellor is in danger of breaking his so-called fiscal rules by allowing the public sector net debt to rise to 40.1 per cent of national income in 2010-11. This would be above the Treasury’s estimate of 38.2 per cent and in breach of the chancellor’s self-imposed 40 per cent limit. The IMF is less confident about the projections for tax revenues. For further information click here. Financial Times 21.02.06, 04.03.06
NHS
finds that it is productive; amid growing cynicism that increased
spending on the National Health Service has produced the best paid doctors
in Europe, but falling productivity, the Office for National Statistics (ONS)
has produced new research showing that productivity growth may be about zero
rather than negative, as previously thought. It has released preliminary data,
incorporating work done by York University and the NIESR, showing that there
are productivity increases if adjustments were made for improvements such
as the use of statins for the treatment of heart attacks. Last year a review
by Sir Tony Atkinson (pictured right) suggested that shorter waiting times
and improved patient experience might be taken into account. In 2004 the ONS
produced initial figures, based on crude measures such as the number of operations
per pound spent, which showed that NHS productivity had been falling by between
zero per cent and one per cent a year since 1995. The OECD also warned that
NHS spending would account for 12 per cent of GDP by 2050 unless productivity
was raised. For further information click
here (ONS report) or here
(OECD) Guardian 28.02.06
PwC adds Mexico and Indonesia to BRICs; several years ago Goldman Sachs produced a report on BRICs-Brazil, Russia, India and China- and how their economies would grow in the first half of this century. PricewaterhouseCoopers have now added to this research by adding other countries such as Mexico, Indonesia and Turkey to form the “E7” group of emerging economies, which it estimates will grow to become 75 per cent larger than the G8 group by 2050. John Hawkesworth, Head of Macroeconomics at PwC, forecasts that India has the potential to be the fastest-growing economy in the world with an average growth rate of 7.6 per cent between now and 2050. China would have a rate of 6.3 per cent but would be the largest in terms of GDP. The USA would be the third largest economy with a growth rate of 2.4 per cent followed by Brazil, Japan and Indonesia. Germany and the UK would drop to joint eighth place from third and fifth respectively. The UK growth rate would be 1.9 per cent. For further information click here.Times 03.03.06
Chambers say red tape has cost £50bn; the latest Burdens Barometer published by the British Chambers of Commerce claims that the red tape burden has increased by more than £50bn since 1998. The report is compiled independently by researchers at the London and Manchester Business Schools and is based on government departments’ Regulatory Impact Assessments. They estimate that costs of the regulatory culture increased by £11bn in 2005 alone. Jim Murphy, the Cabinet Office Minister (pictured right) said, “The BCC have added the costs of eight years of regulation without looking at any of the benefits achieved”. For further information click here. Times 01.03.06
Business urged to expose red tape; Neil Davidson QC (pictured left), who has been appointed by Gordon Brown to assess the “additional and unnecessary burdens” placed on business by ‘gold plating’ (adding unnecessary burdens as EU measures enter UK law) urged business to submit evidence to his review. The review’s report is due to be handed to the Chancellor by the end of the year, could provide ammunition for Ministers to cut back significantly the existing stock of red tape. Mr Davidson pledged to recommend changes to regulations that go too far in implementing European laws, provided the review unearthed such rules. For further information click here. Financial Times 03.03.06
US red tape as bad, if not worse than UK; a new report has
found that companies in the USA find running a business just as challenging
and are just as likely to be bogged down by regulation - if not more so -
than their UK counterparts. The International Innovation Benchmarking Project
has been compiled by the Cambridge-MIT Institute to provide a like-for-like
comparison of the innovative behaviour of US and UK companies. Amongst its
findings are that US firms were more concerned about shortages of skilled
labour and access to finance as well as finding taxation, legislation and
regulation a constraint on innovation. UK companies are doing more to link
with universities but that universities are not seen as key players, in terms
of collaboration, sources of knowledge used by business and technology acquisition
by both UK and US companies. Ian McCafferty, Chief Economic Adviser at the
CBI said that he was “surprised” and that “Clearly the popular
impression of the US- that it offers a much better climate for innovation
than the UK- does not fully stack up”. For further information click
here. Independent 28.02.06
IPPR says Legi awards fail deprived areas; the Office of the Deputy Prime Minister has announced the first fifteen local authorities to win awards from the Local Enterprise Growth Initiative (Legi) - a £300m pot aimed at stimulating enterprise in England’s 88 most deprived areas. The first winners will share £126m, with the biggest award going to Bradford, who will receive £21.4m to set up 400 new firms a year for three years. The second biggest award of £20.3m goes to Croydon to develop the services of Croydon Business to encourage people to start and develop small businesses in the Borough’s priority areas. The other London winner was Barking and Dagenham who were awarded £15.5m. The Institute for Public Policy Research’s Centre for Cities unit said that they believed that flaws in the bidding process had failed the most deprived areas. They call for awards in the next bidding round to be made in accordance with deprivation levels. For further information click here (ODPM) or here (London Borough of Croydon) Regeneration 03.03.06
Time
to take VCTs back to their original concept; Lucius Cary (pictured
right), founder of Oxford Technology Venture Capital Trusts and also a moving
spirit in business angels, writes in the FT of the need to take the concept
of Venture Capital Trusts back to their original purpose. He says that when
they were set up in the mid-1990s, they were intended to plug the equity gap
(the difficulty that small companies have in raising capital). However the
financial lobby got to work and three changes were made: the minimum investment
was increased to £1m; second, VCTs were allowed to co-invest, so three
funds working together could invest £3m and third, VCTs were allowed
to invest in companies on the Alternative Investment Market (AIM). This almost
entirely subverted the original idea so that today most of the money goes
into mulitimillion funds who will invest in low-risk companies that are probably
profitable and which may be able to float on AIM. Cary calls for VCTs to be
returned to their original concept with a maximum investment of £500,000,
to be made only in unquoted companies, and no co-investment. Financial
Times 06.03.06
COMMUNITY AND BUSINESS AFFAIRS
Now Arcadia joins the move to Fairtrade; Topshop (part of Arcadia) has announced plans to sell clothes from three leading Fairtrade companies at its flagship store in Oxford Circus. The companies: People Tree, Hug and Gossypium, will have concession shops opening in May. According to Philip Green, the Chairman of Arcadia, “It is a trial. We will see how it goes”. The company may then extend the concessions to other branches as well as “exploring further ways to respond to the growing demand for Fairtrade products”. The move comes as Marks and Spencer are to start selling Fairtrade products in 10 per cent of their stores, joining Asda who started selling organic cotton baby clothes at the end of last year. Sainsburys have placed the biggest single order by a UK retailer of Fairtrade cotton to produce 200,000 T-shirts for Comic Relief. However the dangers of making moves towards ethical trading were illustrated by an attack on Arcadia by Labour Behind the Label that deemed the new initiative “hypocritical”. They pointed out that Arcadia and Primark are the only major clothing retailers not to belong to the Ethical Trading Initiative, which is trying to improve labour standards. For further information click here (Fairtrade) or here (Labour Behind the Label) Financial Times 02.03.06
M&S and Virgin herald Fairtrade Fortnight; the launch of Fairtrade Fortnight was heralded by a number of company announcements most notably Marks and Spencer who, in addition to their clothing ranges (see above) also announced that from April all the 38 lines of tea and coffee sold in its branches will be Fairtrade. The fortnight is being launched with a Virgin train which will carry the operators pledge that all hot drinks served on every journey will be made with ingredients that carry the Fairtrade symbol. From the autumn M&S will also be selling men’s shirts and organic cotton babywear. The trend towards more ethical consumption was also underlined by the launch last month of Red, a brand backed by Bono, which will dedicate some of its revenues to fight Aids in Africa. The American Express Red credit card is being marketed first in the UK where there are estimated to be 1.5million “conscience consumers”. Guardian 06.03.06
Fairtrade Fortnight; the Independent on Sunday spotlights Fairtrade Fortnight, which runs from March 6-19. It says that fair trade has gone mainstream and that from being a minority concern of the right-on and the religious, it has suddenly become an idea that everyone seems to agree on. Few dare speak against it - and the shops are cashing in. However the IoS article goes on, companies that use Fairtrade as a figleaf may be heading for trouble. If customers become more involved in what they are buying, won’t they start asking questions about how other products in the shop are made? The Fairtrade Foundation is run by Oxfam, Cafod and several other charities including the Women’s Institute and is one of 20 such organisations across the world that issues the licences. For further information click here. Independent on Sunday 05.03.06
Speculation about new supermarket inquiry; the Office for
Fair Trading is due to issue a draft ruling on whether to open a new Competition
Commission inquiry into supermarkets. It will publish the draft findings and
invite comments before making a final decision in April. Previously the OFT
had sided with the supermarkets in resisting calls from smaller shops for
a referral to the Competition Commission. However it changed its mind after
a challenge was made to the Competition Appeal Tribunal by the Association
of Convenience Shops. The Guardian says that the OFT has not confined the
rethink to whether superstore and convenience store shopping are two separate
markets but has considered all aspects of the grocery trade. However it thinks
that, given their previous statements about the UK retail trade, a full-scale
inquiry is unlikely. Guardian 04.03.06
The State of English Cities; the Deputy Prime Minister and the Minister of Communities have launched an independent report on England’s 56 major cities and towns. The State of Our Cities was compiled by a team led by Professor Michael Parkinson (pictured right) and looks at 5 main themes-demographics, social cohesion, economic competitiveness and performance, liveability and governance and the impact of policy. The Government will formally respond to the report but the Ministers indicated that the ideas would be taken up both in the forthcoming Local Government Bill and the Comprehensive Spending review to take place in 2007. One of the key points is that even though the English cities are lagging economically behind those in Europe, they have the best chance in 100 years to catch up as the government looks at giving city leaders more power. The second key point is that there is a need for strong leadership which could mean more directly elected mayors. City leaders also want more power over issues such as transport and a wider tax base to aid economic output. For further information click here (ODPM) BBC News Online 07.03.06
Call for London-style city regions with mayors; a new report
from the Institute for Public Policy’s Centre for Cities calls for a
switch in funding away from regional development agencies to elected city-regional
mayors with tax-raising powers. It calls for London-style city-regional mayors
for major conurbations, starting with Greater Manchester and Greater Birmingham.
The IPPR argue that there is a rising appetite for reform within the Office
of the Deputy Prime Minister but that there is no appetite for referenda.
Therefore when the City Council leaders say they want the powers but they
don’t want the mayors the IPPR says that Whitehall is going to say you
won’t get the powers without an elected mayor. For further information
click
here. Regeneration 24.02.06
Big increase in single living; the latest survey of social trends published by the Office of National Statistics shows that there are now 7m people living on their own in the UK- or 12 per cent of the population. This figure compares to 6 per cent in 1971. Whereas in the past the so-called “singletons” were mostly older, widowed women, the largest increases are now amongst 25 to 44-year-olds. Despite one in five men in their late 20s continuing to live at home, the average number of people per household has also fallen from 2.9 to 2.4. Two other facts of interest are that between 1980 and 2004 the number of passengers travelling to and from overseas countries rose from 43m to 167m and between 2000 and 2004 the number of households with a second home abroad increased by 45 per cent to almost 257,000. Spain was the first choice, followed by France. For further information click here.Guardian 21.02.06
Rate hike for infrastructure improvements? the South East of England Development Agency (SEEDA) is considering seeking government approval to create a multibillion-pound fund for infrastructure to be funded by higher business rates. Pam Alexander (pictured right), the Chief Executive of SEEDA, says that some firms in the region are interested in the idea as long as it can be ring fenced for specific infrastructure projects. SEEDA is already committed to setting up a £750m infrastructure fund, based on borrowing ahead of guaranteed government funding. Grapevine says that this idea needs to be seen in the context of the Business Improvement Districts and the proposed Development Land Tax, which are all based on the concept of a levy to fund infrastructure investment and /or improvements. Regeneration 24.02.06
MPs warn about Whitehall ignorance; the Public Accounts Committee has warned that poor communities are receiving a “rough deal” because of the way that funding is paid out to voluntary groups. Edward Leigh (pictured left), the chairman of the committee, says that, “Whitehall’s lack of expertise at working with the sector is compounded by the scarcity of information on how funding is distributed between voluntary organisations. My committee is concerned that the poorest communities might be getting a rough deal from the way funding is distributed”. Voluntary organisations, excluding housing associations, receive about £2billion a year from Government. The Treasury and the Home Office are responsible for disseminating good practice but the committee says that this tends to be the result of individual initiative rather than a well thought through or cohesive strategy. For further information click here. Evening Standard 02.03.06
PM
to create cabinet-level social exclusion post; Tony Blair has told
the Scottish Labour Party Conference that he intends to appoint a cabinet-level
minister to spearhead a renewed campaign against social exclusion. Indicating
that social exclusion will be the priority for the final phase of his premiership
he said that whilst there had been some successes the government had so far
failed to break the cycle of exclusion in the country’s poorest areas.
Downing Street has so far refused to amplify on the statement but did agree
that it may involve aspects of the ‘respect’ agenda. They also
indicate that Hazel Blears (pictured right), the Home Office Minister, is
the likely favourite for the post. For further information click
here. Regeneration 03.03.06
Points system to manage migration; the Home Office has announced plans to introduce a points system to manage the flow of non-EU migrant workers more effectively. The system is similar to those operating in Australia, New Zealand and Canada and will favour professionals and entrepreneurs. They will also be offered the possibility of a reduced qualification period, from four years to two years, before they can apply for UK residence. A new skills advisory body will determine short-term quotas to cover areas such as seasonal fruit picking and hotel and catering work. Other groups of workers will need to be sponsored by an employer. Companies will be graded as either A or B category employers, depending on their record of complying with migration regulations. Julia Onslow-Cole, a partner at CMS Cameron McKenna, welcomed the new proposals, which she said would “reward employers for complying with good practice and discourage bad employers who will find it harder to attract and place foreign staff”. Commenting on moves to attract young entrepreneurs she said, “This could be a great magnet to attract such people to the UK to the benefit of the economy and society as a whole”. For further information click here (Home Office) or here (BBC Website)Financial Times 07.03.06
Language
barrier forces Amazon to leave Slough; Amazon.com, the online retailer,
has announced that it is to move its main European customer service centre
from Slough to the Irish Republic. It says that it cannot find enough staff
with French and German language skills and hopes that by relocating close
to University College, Cork that it will gain access to a wider pool of suitable
recruits. The company acknowledges that Slough is a very tight labour market
and this was exacerbated by the need to find part-time staff at peak periods
such as Christmas. The company’s corporate operations will stay in Slough.
Financial Times 02.03.06
Only 50 electrical engineers a year; the Sector Skills Council for Energy and Utility Skills has revealed that the energy industry could face a recruitment crisis as the number of graduates in electrical engineering from British universities is only about 50. As a consequence companies are recruiting from as far afield as Serbia and Poland to fill the gaps. There is a particular shortage in lineworkers where an extra 600 are needed for work due to start next month. Strathclyde, Manchester, Southampton and Queen’s University, Belfast have set up the “Power Academy” providing scholarships for electrical engineering students, which are funded by the industry. For further information click here. Independent on Sunday 05.03.06
Oil
industry also highlights skill shortage; Opito, the offshore division
of Cogent, the sector skills council for energy and petrochemicals, has presented
a plan to Malcolm Wicks, the Minister for Energy, for easing skills shortages.
The skilled workforce in the oil and gas industry is ageing and staff leaving
are nor being replaced in sufficient numbers especially given the boom in
North Sea oil investment. It is estimated that 46 per cent of North Sea engineers
could retire by 2012. For further information click
here. Financial Times 07.03.06
Chambers warn about minimum wage rise; the British Chambers
of Commerce have warned that a proposed increase in the national minimum wage
will have highly damaging effect on sectors already hit hard by weak demand
and rising energy bills. The Low Pay Commission is thought to have advised
that the minimum wage hourly rate should be increased from £5.05 to
£5.35 in October, with the rate for 18-21 year-olds lifted from £4.325
to £4.45. However the BCC believe that the rate should be no more than
£5.20 for adults and £4.35 for 18-21 year-olds. David Kern, Economic
Adviser to the BCC, warns that firms are already seeing substantial increases
in costs and that industries most affected by the minimum wage - such as hotels,
distribution and catering - lost 39,000 jobs in the first none months of 2005.
He goes on, “If the proposed new minimum wage rates are not lowered
for October 2006, the BCC believes there could be adverse effects on employment”.
For further information click
here. Sunday Times 05.03.06
Work
experience warning; Mary Curnock Cook (pictured left), the Acting
Chief Executive of the Qualifications and Curriculum Authority, has written
to Ruth Kelly, the Education Secretary, warning that employers may not be
able to deliver the amount of work experience called for in the government
plans to get all teenagers to study new vocational qualifications. She says
that employers found the idea highly desirable but that they had concerns
about limited capacity, availability and health and safety concerns. For further
information click
here.Financial Times 24.02.06
Brunel pulls out of academy plan; in what the Guardian calls a blow to the government’s plans for a bigger role for the private sector in education, Brunel University has pulled out of plans to build a city academy for 16-19-year-olds on its campus. Preparations for a £17m academy to teach 800 pupils were well advanced with HSBC acting as lead sponsor. Brunel said that it had more pressing needs for the land at its Uxbridge site but that it remained enthusiastic about housing an academy. It has offered an alternative site but this is within the green belt and does not have planning permission. The government is committed to setting up 200 academies by 2010 and there are plans for other universities to become involved, most notably at Islington Green where the Corporation of London and City University are to jointly sponsor a new academy. Other universities in discussions include Liverpool, University College London, Nottingham, Nottingham Trent and Sunderland. Guardian 02.03.06
HE target proves elusive; the Higher Education Funding Council for England has indicated that the government is going to miss its target of getting 50 per cent of school leavers into higher education by 2010 despite a sharp increase in funding for universities in 2006-7. They estimate that provision has been made for an extra 26,000 students, which will take the total to 43.5 per cent of school leavers. The 5.9 per cent increase in funding will take state expenditure on higher education to £6.7bn of which £98m will be spent on increasing student numbers and £344m on boosting the number from poorer background. For further information click here. Financial Times 02.03.06
Scientists issue dire warning on climate; the Guardian has details of the latest report of the Intergovernmental Panel on Climate Change (IPCC) which is due to be presented to national governments in April and made public in 2007.The report draws together research from the past five years and raises the possibility that the Earth’s temperature could rise to levels far higher than previously predicted. Such an outcome would have severe consequences, such as the collapse of the Greenland ice sheet and disruption of the Gulf Stream ocean current. The IPCC was set up by the United Nations in 1988 and brings together hundreds of experts to summarise the state of climate science for policymakers. The new report is only the third since 1990 and is intended to underpin talks on how to cut greenhouse gas emissions when the first phase of the Kyoto protocol runs out in 2012. For further information click here. Guardian 28.02.06
The
wealthy must stop flying; George Monbiot takes aim at what he deems
the greatest future cause of global warming namely the growth of aviation.
He says that the aircraft industry has taken heed of the growing coalition
being mustered to fight the growth of airports in the UK and has gotten its
revenge in first. The draft treaty between the US and Europe on Open Skies
would prevent us (i.e. Europe) from taking any measure to reduce the environmental
impact of airlines without the approval of the US government. He says that
the British government admits that airport development is the only area where
it is “free to make policy in isolation from other countries”.
However instead of limiting airport capacity it is softening us up for a third
runway at Heathrow, and similar extensions at Stansted, Birmingham, Edinburgh
and Glasgow. Twelve other airports have announced expansion plans. According
to the Commons Select Committee on the Environment, the growth that the government
foresees will require “the equivalent of another Heathrow every five
years”. Monbiot says that already, one fifth of all international passengers
fly to or from a UK airport. The numbers have risen five-fold in the past
30 years and the government envisages that they will more than double by 2030,
to 476 million a year. As far as climate change is concerned he says that
this is an utter, unparalleled disaster. It’s not just that aviation
represents the world’s fastest growing source of carbon dioxide emissions,
but also that the water vapour that aircraft produce forms ice crystals in
the upper troposphere that trap the earth’s heat. The government has
developed an effective way of dealing with this in the debate about greenhouse
gases; it excludes international aircraft emissions from the targets. The
other feature is that there is no way of sustaining long-distance, high-speed
travel and the government has admitted that “there is no viable alternative
currently visible to kerosene as an aviation fuel”. However even though
this is broadly understood it is having no impact on behaviour. He concludes,
”Flying Kills. We all know it, and we all do it. And we won’t
stop doing it until the government reverses its policy and starts closing
the runways”. Guardian 28.02.06
France and Britain agree levy on air passengers; Gordon Brown’s plan to increase aid for poor countries has received a hefty boost following an agreement between France and Britain to raise billions of dollars for health and education by floating bonds on the world’s financial markets. The agreement was made at a conference in Paris attended by over 100 countries to look at new ways of funding the United Nations’ goals on infant mortality and education. Speaking to the conference President Chirac called on rich states to follow France’s lead and adopt a €1 levy on plane tickets. From July 1st France will levy €1 on domestic and European flights and €4 on long-haul flights. Business and first-class passengers will be charged €10, rising to €40 on international flights. Guardian 01.03.06
Portugal
launches Europe’s biggest wind power programme; Portugal has
launched an auction to build 500 wind turbines in what will be one of Europe’s
biggest wind power projects. The new project will be able to supply electricity
for 750,000 homes and will rank Portugal alongside Denmark and Spain with
the highest proportion of wind energy in the national grid. It has already
launched the world’s biggest solar plant and the world’s first
commercial wave farm. The countries with the highest total installed wind
power are Germany (18,428MW), Spain (10,027MW), the US (9,149MW), India (4,430MW)
and Denmark (3,122MW). Britain, China, Italy, Japan, the Netherlands and Portugal
have all reached the 1,000MW mark. Guardian 02.03.06
Mayor outlines why he wants to take on skills; writing in the Guardian the Mayor outlines why he wants to take over responsibility for learning and skills in the current review of what further powers should be delegated to the Greater London Authority. He points out that even though London is one of the most prosperous cities in the world it has the highest level of regional unemployment in the UK. Only 69 per cent of working age adults are in employment compared to a national average of 75 per cent. The GLA calculates that by 2010 46 per cent of all jobs in the capital will demand high-level skills. At the same time, there is a strong demand for basic skills and a flexible provision of speakers of other languages, so that London’s disadvantaged communities are equipped to enter the labour market. At present even though the Mayor is responsible for the economic development strategy the £1.7bn spent on learning and skills for over-16 students and adults sits entirely outside London’s regional governance structure. He advocates that skills development should be fully integrated into the responsibilities of regional government in the capital and that one employer-led body, accountable to the mayor, should be charged with shaping the skills agenda in London. Business should raise the level of investment that it is making in the existing workforce. Guardian 28.02.06
City
to go Wi-Fi; the Corporation of London is planning to provide a blanket
wi-fi zone for the whole of the financial district. Wi-Fi transmitters will
be fitted to street signs and lampposts. The network will be run in partnership
with wi-fi specialists The Cloud. For further information click
here. Times 28.02.06
July
7 hits major tourist attractions; according to the Association of
Leading Tourist Attractions the terrorist bombings on July 7th and the failed
bombings on July 21st have had a “considerable impact” on the
attractions of Central London- especially on the UK domestic market during
the summer holidays. Exchange rates may also have had a negative effect curtailing
discretionary spending by many North American tourists. The National Gallery
had 4.2m visitors in 2005, 15.2 per cent lower than 2004 and both Tate Modern
and the London Eye showed a drop of 12 per cent. On the other hand the Tate
Britain (pictured left) had 1.7m visitors, an increase of 58 per cent and
there were signs that tourists opted for attractions outside central London
with Kew Gardens showing a 25.6 per cent increase as well as the Nelson celebrations
in Portsmouth which recorded a 22.4 per cent increase. For further information
click
here. Guardian 21.02.06
The Wembley curse becomes supreme; Lord Falconer, the Lord Chancellor, has announced that because of delays in refurbishing the Middlesex Guildhall the Supreme Court will not come into operation until October 2009. The court, which will remove the law lords from the House of Lords, had been due to open in 2008. Financial Times 02.03.06
The
return of the Lido; the Observer reports on a conference being held
in London of swimmers and pool managers to discuss the revival of the outdoor
swimming lido. There are about 100 remaining but this July the derelict lido
in London Fields in Hackney is to reopen after a £3m refit. Planning
approval has already been given to reopen the lidos in Uxbridge and Droitwich
(Worcestershire) as well as a new pool adjacent to the derelict lido in New
Brighton on Merseyside. Observer 05.03.06
And the bowling lane….; the Sunday Times looks at the revival of another sport: ten-pin bowling. In the past twelve months two new bowling lanes have opened in the centre of London both with the aim of making the sport rather more cool than it has been in the past. Bloomsbury Bowling Lanes, located underneath the Tavistock Hotel in Tavistock Square opened in July 2005, offering eight lanes of bowling, as well as a diner, bar and two karaoke rooms. The more upmarket All Star Lanes opened in January, 2006 in the basement of Victoria House in Southampton Row offering bowling alongside a cocktail bar and restaurant. Both are aiming at the corporate market and Bloomsbury Bowling Lanes claim that prime spots are booked up until May and that there is even an after-market in booking slots. Further information click here (Bloomsbury Bowling Lanes) or here (All Star Bowling Lanes) Sunday Times 05.03.06
City
to open third China office; the Corporation of London is to open
its third office in China in the southern city of Shenzhen where the population
has grown from 20,000 25 years ago to 6 million today. The move follows the
recent visit by the Lord Mayor, David Brewer, to the city. The other offices
are in Beijing and Shanghai. For further information click
here. Times 07.03.06
Olympics skills strategy; with £15m funding from the European Social Fund the ‘On Your Marks’ training programme is being established across three regions-London, the South East and the East of England. The programme will run from 2008-2012 and £1.3m will go to improve skills in smaller construction firms and £1.3m to improve basic, vocational and management skills in sports and leisure. For further information click here. Regeneration 03.03.06
Builders battle for 2012 contracts; the Independent on Sunday
reveals that more than 40 companies from all round the world are vying to
oversee the construction of London’s Olympic venue. It says that the
interim Olympic Delivery Authority (ODA) is about to reveal the level of interest.
The contract will see the winning company or consortium responsible for nearly
every aspect of the ODA’s work. This will extend from building the venues
to converting the facilities after the Games. Only companies with turnover
of £100m, or consortiums where each member has a turnover of £50m,
are eligible to apply to become the Olympic delivery partner. Names being
mentioned include Bechtel, Bovis Lend Lease and a consortium of Amec and Balfour
Beatty. All the construction projects are to be funded by a £2.4bn package,
which includes up to £1.5bn from the Lottery and £625m from London
council taxes. However, experts are warning that spiralling construction costs
worldwide could result in a higher sum. For further information click
here. 2012 Independent on Sunday 05.03.06
More hotels for the City? the Estates Gazette says that three City landmarks are set to be converted into hotels. Cheval, a private property group owned by the Dubai Royal family, plans a 77-room apart-hotel and 64 flats at Three Quays on Lower Thames Street; the former Midland Bank building at 27 Poultry is also to be converted into a hotel and bids are being invited from hotel developers for the Willis headquarters (formerly the PLA building) in Trinity Square. Estates Gazette 25.02.06
Hippodrome
to get £8m restoration scheme; plans have been submitted to
Westminster City Council to transform the Grade II listed Hippodrome building
in Leicester Square into a members-only casino and cabaret club. United Leisure
Gaming are in discussion with the freeholder Viscount Cranbourne to take over
the lease with a view to reopening in spring 2008. The Hippodrome was built
in 1900 for variety performances and became a cabaret restaurant in the late
1950s. Estates Gazette 25.02.06
Chelsea Barracks back on market; the Ministry of Defence has appointed Drivers Jonas to market the 12.8-acre Chelsea Barracks site situated between Sloane Square and the Thames. Originally scheduled to be a PFI scheme, a plan that was dropped in 2004, the site was last valued at £58.5m in 2001 but it is now expected to fetch more than £250m. Four years ago Chelsea Barracks was the top of potential relocation sites for the US embassy and there is already speculation that this idea may still be on. The existing London embassy in Grosvenor Square is the only embassy in the world that the US government does not own. The Estates Gazette says that Grosvenor Estate, Candy & Candy and Berkeley, which was one of the final bidders for the PFI scheme, could also be in the running. Estates Gazette 04.03.06
Land Securities looks at revamp of Oxford Street; Land Securities have appointed Terry Farrell to produce a masterplan for the area at the eastern end of Oxford Street as well as Tottenham Court Road station and St Giles Circus. The brief is to look at the potential for retail and mixed-use development as well as transport and general environment issues. The conclusions will be shared with the Mayor’s West End commission, which is due to report at the end of June. Land Securities own three large blocks on the northern side of Oxford Street as well as the Dominion Theatre in Tottenham Court Road. Estates Gazette 04.03.06
Land Securities plan City tower; Land Securities have submitted plans for a 45-storey office tower at 20 Fenchurch Street to be designed by Rafael Vinoly (pictured left), the US architect. The 630ft tower is concave shaped and has already been dubbed the “Walkie-Talkie”. It is close by two other proposed towers with unusual design the 736ft “cheese Grater” and the 1,073ft “Helter Skelter” as well as the Swiss Re Gherkin. Independent 04.03.06
Terminal 5 will feature 400-yard plaza; plans for Heathrow’s new Terminal 5, due to open in April 2008, aim to provide passengers with a stroll through a peaceful piazza which transforms the airport experience from one of hassle and overcrowding into a calming and pleasurable stroll. The terminal, which has been designed by Lord Rogers, will have as its centerpiece a 400 yard open-air plaza between the passenger arrival points and the terminal which will feature mature plane tress, fountains and cafes as well as glass artworks. The plaza is modeled on a London square. Terminal 5 will be used exclusively by British Airways, who expect 30m passengers a year. Stephen Bayley, the design guru and cynic, said, “It’s a charming idea but I fear the retail side will take over”. Sunday Times 26.02.06
Soho House goes East; Soho House, the chic club, so beloved of the media and readers of Hello magazine, is to open a private members club in Shoreditch High Street. Previous venture have included Babbington House in Somerset and a Soho House in New York. Nick Jones, the founder of Soho House, said that the new venture would be a lifestyle club, with a swimming pool on the roof, a gym, a Cowshed spa, eating and drinking areas and two bowling alleys. Estates Gazette 25.02.06
The
Ark sells for £50m; described by the Times as a rotund, boat-like
building near the Hammersmith flyover, that has become one of the capital’s
iconic buildings – ‘The Ark’ has been sold for £50m.
Deka, the German open-ended fund manager is understood to have agreed to sell
it to GE Capital. The building has remained empty since the previous occupants
Seagrams were taken over in 2000. Times 01.03.06
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