ENTERPRISING WHITECHAPEL STRATEGY & TECHNICAL EVIDENCE

Transcription

1 ENTERPRISING WHITECHAPEL STRATEGY & TECHNICAL EVIDENCE

2 Enterprising Whitechapel Strategy & Technical Evidence REVISION (C) Published by: Regeneris Consulting Ltd 3rd Floor 65 St. John s Street London EC1M 4AN T Written and produced by: Chris Paddock Amy Gilham Florrie Dunn Holly Lewis Pooja Agrawal Hannah Martin Commissioned by: London Borough of Tower Hamlets With thanks to all those who gave their time to contribute to this report. Copyright May 2015 Cover image: Whitechapel High Street p 2 Enterprising Whitechapel Strategy

3 Contents 1.0 Introduction The Enterprising Whitechapel Strategy: Recommendations 9 Principles for the Strategy 10 Projects Where are we going?: Whitechapel s Emerging Roles & USP s in London 19 Med City 20 Tech City 22 Retail and amenity destination 23 Textiles and artisan activities 25 Diversity The Spatial Strategy: Delivering the Vision 31 Vision v Delivery 33 Timescales and meanwhile uses 40 Appendices Appendix 1: Evidence Base 49 A Evolution of Whitechapel in Policy 51 B The Whitechapel Economy 61 C Whitechapel Here and Now: Observed Activity 85 D The Case for Opportunity Sectors and Activity 111 Appendix 2: Sector Definitions 133 p 3

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5 1.0 INTRODUCTION 1.0 Introduction 1.1 The Enterprising Whitechapel Study was commissioned by LB Tower Hamlets (along with partners) in late 2014, to create a better understanding of the economic and business opportunities which could be delivered by development emerging from the Whitechapel Vision SPD. Rationale 1.2 Whitechapel has, relatively quickly become a hot location in London, with the development and property market increasingly acknowledging the opportunity presented by Crossrail, proximity to The City and Canary Wharf and unique mix of assets that exist in the area. 1.3 Since the launch of the Vision in March 2014, a number of key development opportunities have come forward for pre application discussions. LB Tower Hamlets have recognised that to inform these discussions and to facilitate a coherent, impactful and equitable response, a clear strategy is required. 1.4 To respond this need, The Enterprising Whitechapel strategy is intended to build upon the Masterplan s findings, consider these in the light of current policy drivers, providing more definition on the requirements of different sectors and how these can be supported. Importantly, it also makes recommendations on the way forward to ensure the positive impacts of Whitechapel s evolution are maximised. Work Undertaken 1.5 Regeneris Consulting and We Made That were commissioned to undertake research and development to support the production of this strategy. Between them, they undertook the following tasks. Reviewed and summarised relevant policy drivers for economic and employment growth (locally and regionally) Reviewed live development proposals to understand the nature of employment and economic growth that these might deliver (and the extent to which this will support LBTH ambitions to deliver 5,000 jobs in Whitechapel) Revisited population and baseline date reviewed within the Masterplan baseline to provide a more current statistical picture of the area Undertook observational research and informal consultation with businesses, to understand phenomena and trends which exist beyond or beneath the statistics Investigated and considered the various commercial and strategic aspirations for Whitechapel, also considering Whitechapel s role in London Considered the potential of specific sectors and their prospects of developing within the Whitechapel Appraised opportunities to support incubators, accelerators and co-working as well as affordable workspaces within the area Considered the demand for future retail and amenity offer gaps in the current offer and how this can be addressed Made recommendations on how the impacts of Whitechapel s growth can be maximised and benefit as many people as possible. Structure of the Report 1.6 This report brings together the overall strategy for action, alongside the evidence collected. It sits alongside a separate Officer Manual, and includes the following: The Enterprising Whitechapel Strategy: Strategic principles and projects to support Whitechapel s evolution. Where are we going? Whitechapel s p 5

6 Emerging Roles & USPs in London: The four unique selling points which will shape Whitechapel s economic future The Spatial Strategy: Delivering the Vision: Update on delivery of the Vision to date as well as ideas for meanwhile projects to reinforce area identity. 1.7 The Enterprising Whitechapel Strategy is followed by Appendix 1: Evidence Base, including: The Evolution of Whitechapel in Policy: Summary of the evolving role of Whitechapel in local and regional policy The Whitechapel Economy: An Update: Update on economic baseline conditions in Whitechapel Whitechapel Here and Now: Observed Activity: Findings of local observational research Sector Opportunities in Whitechapel: Consideration of more detailed sectors and activities which could become strengths in Whitechapel. p 6 Enterprising Whitechapel Strategy

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9 2.0 THE ENTERPRISING WHITECHAPEL STRATEGY 2.0 Recommendations 2.1 The Enterprising Whitechapel Strategy should be the cornerstone LB Tower Hamlets partner s response to ensuring that the impact of developments in Whitechapel are maximised and balanced. In this section a number of strategic principles are set out to inform this response as well as interventions to support short and long term objectives. p 9

10 Principles for the strategy 2.2 The principles of any strategy are arguably more important than the projects that emerge from it. These principles need to be agreed and adhered to by partners and inform all activity within and area for the duration of the strategy. This is particularly important for Whitechapel as these principles also provide a checklist against which development can be judged to ensure that delivery in the area is impactful and sustainable. 2.3 The eight principles underpinning the Enterprising Whitechapel Strategy are as follows: 1. Keep Whitechapel distinctive: Ensure that, where possible, development and intervention in Whitechapel supports the evolution of the area as a genuinely distinctive location in London. Tower Hamlets intervention in the area. 6. Ensure Whitechapel continues to function as a local service centre: Meaning that the local service, retail and amenity offer evolves to meet the needs of the current and future community. 7. Prepare local people and businesses for opportunities: Ensure that where opportunities exist for training and employment, local people are ready to capitalise upon these. 8. Reinvest revenues within the local area (particularly housing): recognise that Whitechapel still faces fundamental challenges and that, where possible, revenue from growth and diversification should be invested locally, particularly in local estates and existing local residents. 2. Blur the boundaries and recognise the value of neighbouring assets to Whitechapel: Ensure that delivery in Whitechapel is not duplicating or compromising development in neighbouring areas (such as workplaces at Central Working, Pillbox etc). 3. Capitalise upon the opportunity for genuine innovation: Recognise that Whitechapel is already a location of genuine innovation be that in life sciences, art or fashion. This must be promoted and its evolution supported. 4. Recognise and communicate Whitechapel s contribution to London: At the interface of Tech City and Med City and well connected to the rest of the city Whitechapel s perceived role in London need to be acknowledged and celebrated. 5. Leadership: Influence developers to provide the space Whitechapel (and London) needs: Ensure that effective communication and strategic leadership is at the heart of LB p 10 Enterprising Whitechapel Strategy

11 Projects 2.4 Through consideration of the Evidence Base included in this report; as well as local and regional policy; and consultation with stakeholders, a number of intervention areas and projects have emerged which will help secure the long term positive evolution of Whitechapel. Project 1: Sector working groups 2.5 If Whitechapel is to achieve/maintain genuine sector strengths, it is important that LB Tower Hamlets seeds some control and influence to industry leaders and relevant stakeholders. To support this, appropriate sub-groups of the Whitechapel Regeneration Board should be established to provide some direction in terms of: Strategic messaging to relevant external partners Oversight of the development and delivery of workspace Engagement in the delivery of skills and employment offer 2.6 In the short term, the Med City, Tech City and retail/ amenity offers are probably the most salient, but other groups may be established as and when the need arises. These groups may not need to meet regularly, but a (small) membership should be agreed, who can then be convened when required. Project 2: The Civic Hub as a test bed 2.7 LB Tower Hamlets acquisition of the Old Royal London Hospital buildings to deliver a new Civic Hub in Whitechapel presents significant short and long term opportunities for the area. 2.8 The Civic Hub needs to be more than a traditional town hall, bringing together a range of activities which stimulate local involvement and engender a sense of ownership of the building amongst local people. Long term goal: Define the scope of activity to be delivered within the building 2.9 In addition to an effective council building and service centre, development of the new Civic Hub needs to include a broader range of activities which will engage both current and future residents of Whitechapel. This could include workspace, cultural facilities, restaurants, education and leisure The exact mix needs to, in part, be defined by local residents, businesses and stakeholders, through a period of facilitated co-design. This should promote local use of the hub as well as providing a focal point for engagement, cohesion and assimilation of new populations in Whitechapel. Short Term/Meanwhile Activity 2.11 The short term activity in the Civic Hub is arguably as important as its long term functionality. The building provides a blank canvas to try new things in Whitechapel. An opportunity to innovate in the provision of commercial activities; rapidly improving the mix of activities in Whitechapel; and use the hub as the fulcrum of local engagement The priority should be to make visible parts of the building operational as quickly as possible, setting the scene for the successful delivery of the building. Developing a strong programme of commercial and meanwhile activities will be important to set the foundations for the future of the building success In considering activity for permanent and temporary uses, LB Tower Hamlets should recognise its ability to intervene where market failures exist and where new p 11

12 specialisms could be developed. This could include affordable workspace, new spaces for collaborative working, new food and drink offer, Third Sector provision or even more experimental cultural activities All of the examples of meanwhile and short term uses set out in Sections 3 and 4 of this report could be applied to the civic hub. In addition, there is also an opportunity to deliver genuinely affordable workspaces for artists and creative industries (see Project 4: Supporting Business Space Mix). Project 3: The Enterprising Whitechapel - An immediate local response 2.15 The likely rapid change in Whitechapel will be a source of great opportunity locally. For many however, it will also present a challenge, adding to the socio economic polarisation which is already evident tin the area. It is vital that LB Tower Hamlets and its partners respond with a visible and well branded package of interventions which ensure that all local people and businesses are able to benefit from change in Whitechapel. Long term goal: Whitechapel is seen as a genuine trailblazer in the delivery of equitable and inclusive transformation 2.16 Although this is a long term activity/ objective, it is important that deliver and promotion starts now The programme of intervention must link to the borough s existing employment and enterprise activity, but should also be explicitly skewed toward Whitechapel, focussing upon preparing existing local businesses and residents for future opportunities; this should include: Visible Project Office: Establish an Enterprising Whitechapel project office, where local people and businesses can access information on the area s evolution and enquire about opportunities. Offer Support for All Businesses: An offer the opportunity of support to all businesses (in particular retail and food & drink), providing advice on future business opportunities and how their businesses practices and offer can evolve to capitalise upon this. Outreach to Local People: Targeted outreach (through housing associations) to local estates to link existing residents to opportunities in the area. As well as informing local residents of change in the area, this should also seek to increase civic pride in Whitechapel. Local Employment and Apprenticeship Clauses: Work with developers, freeholders and construction companies to develop local clauses into contracts and leases. This will directly link development and operation of Whitechapel to Skills Match and an enhanced offer for people of Whitechapel and surrounding areas. Operational Training and Skills: As Whitechapel evolves and grows, the job and enterprise opportunities available locally will change too. Intervention will be required to provide skils and capacity to enable people to participate in new opportunities locally. School/Business Links: Work with local schools and businesses to facilitate links to future employment opportunities in Whitechapel (particularly focussing on science p 12 Enterprising Whitechapel Strategy

13 and technology). This could include a dedicated programme to broker work experience in local companies. Short term/ Meanwhile activity 2.18 In the immediate terms it will be important to establish relationships with housing associations locally. These will be the primary broker of information to the existing resident population. Access to the local business population should include on the ground outreach and an ongoing conversation with businesses. Locally based representative organisations such as the British Bengali Chamber of Commerce could also provide access to less visible and accessible local businesses A project office could be established relatively quickly, whilst, local training and information should be supported within the Old Royal London Hospital once this is accessible to the public. Project 4: Influence the mix of commercial space 2.20 Given that, compared to other locations in east London, Whitechapel has a lower quantum of workspace, a key element of this strategy needs to be to support the delivery of more (and a more diverse range of) space. This will need to cater for a broad set of constituents from local third sector organisations to major companies who may be looking for a more distinctive location for their operations. Long term goal: An increase in the quantum and variety of commercial space in Whitechapel, supporting speciality and mainstream sector activities 2.21 Given the breadth and depth of potential sector activities which could evolve in the Whitechapel, there are a range of potential interventions which could help to support this long term goal. These include: Fast-Track Science Incubation and Accelerator: Develop a partnership approach to realise Whitechapel s potential as a centre for science based startups. Bringing together QMUL, local space providers (Central Working and Workplace amongst others) and other accelerator specialists (such as Techstars) will help to fast-track a coordinated science based incubator and accelerator offer in Whitechapel to ensure that this remains the most significant location for this in London. Local Partnerships: Develop regular dialogue with Central Working and Workspace (Pillbox) to ensure that any development of workspace within Whitechapel complements their activities and future plans. Community Value Model: Develop a Community Value model to affordable workspace which allows businesses to pay a proportion of their rent through involvement in the community activities, training and business support outlined in Project 3 (This approach has already been deployed successfully at Bootstrap Campus in Dalston bootstrapcompany.co.uk/). Larger Operator Market Testing: With Aldgate and Whitechapel increasing being seen as viable sub markets to the City and Shoreditch 1, work with London 1 New London Quarterly, Summer 2014 p 13

14 & Partners and local agents to test the short and medium term (reviewing on an annual basis) to establish potential for larger floor plate (25-50,000sqf) occupation and potential pre-let within Whitechapel transformational areas. Affordable Art Space: Working closely with Whitechapel Gallery and other local creative workspace providers to develop a well branded low cost ( psqft) offer in Whitechapel, potentially as part of the early stages of the Civic Hub development (See Project 5 for details on delivery) Public Sector Support: Tower Hamlets may consider active support of the provision of affordable and creative workspace in Whitechapel. Great Western Studios, Westminster is a key example of local authority supported provision of creative workspace. (Further details of this case study are provided in Section 3). The studios are now 100% let and profit making, with Westminster City Council s loan to the development having been paid in full. The example of Great Western Studios demonstrates the important role that local authorities can have in creative workspace provision, by partnering with established studio providers. Such a model of provision could be highly applicable to Whitechapel in supporting the defining sectors of its local economy. More Efficient Use of Side/Tributary Streets: In line with Project 6, work with freeholders and existing to bring space on Vallance Road, New Road and Cavell Street into more efficient uses as work spaces. Short term/ Meanwhile activity 2.22 As set out within Project 2, the immediate opportunity to delivery more workspace and greater variety is linked to the council s ownership of the old Royal London hospital building. This provides the space to pilot a number of the projects outlined within this study and establish a longer term rationale for intervention in the provision of workspace. Project 5: Support affordable workspace through planning policy 2.23 Tower Hamlets does not presently have planning guidance regarding delivery of affordable workspace. Therefore, relevant policies from other London boroughs have been reviewed, in particular Hackney (Policy DM16), Lambeth (Policy ED2), Lewisham (Policies DM9, DM10, DM11), Wandsworth (Policy DMI4) and the London Legacy Development Corporation (Policy B.4). From this review, the following observations have been made, which should form the basis of LBTH s reponse: Securing Existing Supply: Provision of affordable space for small and medium enterprise is recognised as important for many boroughs. Two of the reviewed policies (Hackney, LLDC) require the reprovision of existing low value employment floorspace on sites with redevelopment proposals. Quantum: The quantum of affordable workspace is generally assessed in light of overall scheme viability, although in the case of Hackney, the Council seeks 10% of the floorspace of major new commercial and of mixed use schemes within designated employment areas to be affordable workspace. p 14 Enterprising Whitechapel Strategy

15 Spatial Requirements: The reviewed policies rarely make detailed stipulations for spatial requirements of workspace. LB Hackney policy identifies small/ micro workspace as around 90sqm or less and encourages flexible design that can be suited to sub-division and per desk letting if appropriate. Wandsworth s policy is more explicit, requiring clear floor plates, natural light, a range of floorspace sizes, wide doors, adequate floor to ceiling heights (3.35m suggested), wide doors and corridors and considered servicing provision. Management: The most common feature of the reviewed policies was recognition of the importance of suitable management to the success of the workspace provision. Multiple policies encouraged partnership with managed workspace providers prior to submitting planning applications. The most robust policy is that of Hackney, which requires applicants to provide evidence of an agreed leasing arrangement with one of eight Council registered Workspace Providers. The benefit of this policy and of seeking early partnership with a provider is not only ensuring that workspace is leased by organisations with experience of the sector, but also the opportunity for design input to ensure that provision suits the sector market of any particular provider. Under the terms of this policy, applicants are also required to indicate likely lease terms for tenants, in recognition of the fact that for small and start-up businesses, flexible terms can be as important as affordable rent values. Affordability: For policies stipulating levels of affordability (Hackney, LLDC) this varied between 60% and 80% of market rental values. Both authorities state that sliding scales of rental values to transition from affordable rates to market values, or close to market values, over a period of years will be supported. Internal Fit Out: Two of the reviewed boroughs (Lambeth and Lewisham) require internal fit out beyond shell and core. This is intended to ensure that the property is attractive to start-up businesses, for whom high fit-out costs may be prohibitive The inclusion of specific policy guiding workspace provision in other boroughs with arguably similar contexts to Tower Hamlets, suggests that the borough should develop supplementary planning guidance to support the delivery of affordable and creative workspace in Whitechapel, and across the borough. Project 6: Marketing and branding 2.25 Unlike many places in London, Whitechapel is blessed with a strong identity and good brand recognition. However, this needs to evolve, with Whitechapel moving from being infamous and the epitome of the old East End, towards becoming the renowned as a high value, diverse and accessible economic node. Long term goal: Change perceptions of Whitechapel, making it a local choice for new residents and businesses 2.26 Develop a set of clear brand messages and stories for Whitechapel to percolate into existing media. This should include: A clear focus on the unique selling points set out in section 6 of this report. In particular, Whitechapel must increase public and commercial recognition of its p 15

16 role in Tech City and Med City Placement of positive articles relating to Whitechapel s evolution into the mainstream press at an early juncture Development of a tangible Whitechapel brand to underpin interventions and provide consistency Linked to Project 3, deliver a programme of activity to support greater civic pride Linked to Project 6, work with London & Partners to undertaken regular market testing of Whitechapel as location for international investment, particularly in relation to health and life sciences. Short term/ Meanwhile activity 2.27 Whitechapel and the area s evolution is currently under represented on social media. Early interventions to get messages into social and mainstream media will provide an important early step towards changing perceptions. Project 7: Tributary streets movement 2.28 The High Street 2012 improvements have has a significant positive impact upon the Whitechapel Road. This has however, created a stark contrast to a number of the streets adjoining the high street. The poor streetscape and dilapidated buildings on Vallance Road and New Road amongst others, clearly has a negative impact upon the appeal of the area. More significantly for this study, this limits the commercial potential of these locations preventing the spread of commercial growth and investment from the main high street. Long term goal: Deliver Improvements to tributary streets which meets the standards set by Whitechapel Road 2.29 In the long term, the aim should be to bring these streets back into more productive use to facilitate uplift in the amenity offer. In addition to this, these locations also have the potential to accommodate B1 uses as well as retail. To achieve this it may be necessary for LB Tower Hamlets to use their powers of enforcement alongside investment in public realm, business support and shopfront improvement to create more pleasant environments for commercial activity and investment. These actions should include upper parts of buildings as well as ground floor uses. Short term/ Meanwhile activity 2.30 In the short term, strategic planning, painting and signage (as proposed within LBTH s Aldgate Connection Study) could help to change perceptions of these streets. This would benefit from being accompanied by improved business communications and support for visual merchandising and shop front improvement. Project 8: Radical improvement to local broadband 2.31 Currently the E1 postcodes has amongst the slowest broadband speeds in London (c 8mb slower than the London average according to Ofcom, 2012). If Whitechapel is to become a legitimate part of Tech City and a more popular business area generally, it will need to offer vastly improved broadband speeds. Long Term Goal: Ensure that fast reliable Broadband is part of Whitechapel s offer 2.32 The scale and coverage of development in Whitechapel provides an opportunity to deliver new high speed infrastructure at a level which could differentiate the area in comparison with other business locations (Kings Cross and Clerkenwell for instance, have notably slow speeds). There are two potential approaches: p 16 Enterprising Whitechapel Strategy

17 Procure a partner to deliver higher speed broadband in the whole the area (e.g. Hyperoptic, City Fibre Holdings) Ensure that developers deliver high speed broadband within individual developments in Whitechapel 2.33 The potential to deliver publicly accessible wifi, could also present benefits to local businesses (including market traders) and Whitechapel town centre users. This would also support one of the objectives set out in the London LEP s recent Economic Strategy. Project 9: Improving and Diversifying Whitechapel Market 2.34 The market is a divisive subject in Whitechapel. As well as a distinctive and strong part of Whitechapel s identity and heritage, it does bring with it several operational challenges and (according to existing businesses and stakeholders) some image problems. Arguably, it is also not currently maximising its economic potential Most partners agree that some diversification of the offer generally; provision of new goods and services; and the delivery of a product more in line with the aspirations of the area, is necessary for the market to continue in such a prominent location within the Whitechapel. Long Term Goal: A Market that delivers genuine, measurable economic and social value to Whitechapel 2.37 Intervention needs to be underpinned by a greater understanding of economic and social functions of the market and a clear, long-term strategy. This may well require some additional research into the roles and value of the market It may also be necessary to consider the impacts of relocation or consolidation of the market, to allow for other uses on Whitechapel Road (such as café, improved seating and social spaces). This should be considered only after adequate consultation and consideration has been undertaken If the market does remain in its current physical form, the (in line with the objectives and recommendations of the Whitechapel Vision), serious consideration will need to be given to the way the market infrastructure, how this looks and how the market can be broken up to facilitate movement in the area. Short term/ Meanwhile activity 2.40 Intervention needs to be underpinned by a greater understanding of economic and social functions of the market and a clear, long-term strategy. This may well require some additional research into the roles and value of the market The Whitechapel Vision states that it seeks an expansion and improvement of the market, but it does not explain what it means by an improvement or how it would seek to expand it given the current locational restrictions and the further restrictions likely to be imposed by the new cycle superhighway. p 17

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19 3.0 WHERE ARE WE GOING? WHITECHAPEL S EMERGING ROLES & USP S IN LONDON 3.0 Whitechapel s Emerging Roles 3.1 As Whitechapel evolves as a residential and commercial location, a number of economic activities will need to be prioritised to help the area define itself and for it to be a more significant contributor to London s economic evolution. 3.2 Until the last few years, the economic strategy for Whitechapel has focussed upon its role as a location which was subservient to The City. This meant economically, Whitechapel struggled to demonstrate and offer, above and beyond the Royal London Hospital and as a hub for London s Bengali community (a function which Whitechapel has continued to deliver successfully). 3.3 The emerging development and this strategy, provides an opportunity to review and revisit Whitechapel s economic function and consider how it can better support and define its economic offer over the next 10 years. 3.4 Following consideration of the available statistics (refer to Appendix A: Evidence Base) and consultation with stakeholders and businesses, five areas have emerged which will help define the Whitechapel s unique economic offer and future actions. These sectors/ activties are: 1. Med City 2. Tech City 3. Retail & Amenity 4. Fashion & Artisan Activities 5. Diversity p 19

20 Med city 3.5 Med City is London s 20 year strategy to support and grow the city s life sciences into a sector which can compete with major global centres such as Boston and San Francisco. This sector is also a priority as set out within LEPs Economic Strategy. 3.6 The cluster of existing life science activities around the Royal London Hospital, lead primarily by Queen Mary University (QMUL), is already acknowledged as one of London s world class science assets, alongside the Francis Crick Institute and Imperial West. 3.7 The presence of this activity, is arguably Whitechapel s single biggest economic differentiator (particularly when the area is considered in comparison to London s other city fringe town centres) supporting this should be seen as a priority for Whitechapel. Of particular interest will be the extent to which value can be generated from the physical crossover/interface between Med City and Tech City. 3.8 QMUL estimates that the first phase of their new research institute development could accommodate 2,500 researchers, with at least 1,500 of these being in jobs which are new to the area. Whitechapel s assets London s largest hospital providing a readymade market and a practical arena for testing innovation. An internationally recognised cluster of activity, with strong international sector links A fully let Bio-Enterprise and Innovation Centre (currently the only purpose built laboratory for SMEs wholly let to the open market in London) supporting in the region of 400 jobs and many hundreds of millions of pounds of turnover The national centre for Bowel Research and Surgical Innovation Aspirations to create a globally significant research institute (Population-Scale Medical Genomics) Existing centre providing science based education and outreach into the local community Existing departmental research ranked within the top 10 in the UK Actions to support growth in the offer Better acknowledgement and promotion of the sector locally, including outreach and signage currently this is hidden and not visibly part of the offer in Whitechapel Secure multi-partner support (via the Whitechapel Regeneration Board) for QMUL expansion plans Generate regional strategic and political acknowledgement of the sector opportunity at Whitechapel, ensuring that this is acknowledged as a fundamental element of the of the Med City offer Support the fast tracked delivery of the Life Science Education Centre and Innovation Centre to reinforce the Whitechapel s position in London and ensure outreach remains a cornerstone of the offer Support the delivery of tied property within the local housing mix to allow scientists to live in the areas as well as work. Building Capacity in the Short Term 3.9 It is understood that QMUL is looking to expand and increase the density of the existing Med City cluster in Whitechapel. We have therefore provided a case study, opposite, which demonstrates the potential support for SMEs and positive impacts on urban place-making that new developments in the life sciences can offer their surrounding communities. p 20 Enterprising Whitechapel Strategy

21 Harlem Biospace, New York Harlem Biospace is a business incubator and co-working lab space focused on biotechnology located in Harlem, New York. It offers affordable shared wet lab space, mentorship and business support to 20 competitively selected start-up biotech companies. It is located in the Sweets Building in the old Factory District of Harlem, a rapidly growing academic and arts corridor. It is situated north of Columbia University, south of City College and east to where the new Columbia University Manhattanville campus is going to be located. The space has been divided into different zones with lab benches and shared services and utilities. Specialist equipment is available including gas tanks, biowaste disposal and turnkey access to cell-culture hood, incubators, chemical fume hood, freezers, fridge space and microscopy. As a contribution to the local neighbourhood, the founders also run an after school programme called Hypothekids in the local public school bringing the spirit of innovation and unconventional science education to the students. p 21

22 Tech City 3.10 Since 2008 the Tech City area of East London has grown from around 15 companies to become the third biggest tech start-up location in the world (after San Francisco and New York). Politically, the Tech City moniker has been appropriated nationally, but the nucleus of activity remains around Shoreditch Whitechapel has a growing number of companies working in tech related sectors, which swells even further when the new managed workspace at Central Working Whitechapel and the Bethnal Green Pill Box are taken into account. In policy terms. Whitechapel is recognised in policy (City Fringe Draft OAPF, 2014) as being a peripheral Tech City location (alongside location such as Angel and Dalston) which can accommodate growth as demand outstrips supply in Shoreditch The digital sector is positioned within the LEPs recent economic strategy as the number one growth sector focus, and has serviced to reinforce this as a common target for most locations. Proximity to the core and excellent transport links give Whitechapel enough of a comparative advantage to make these activities a target for Whitechapel s evolution. As mentioned above, the challenge for partners will be to identify and exploit any links between the life sciences and digital sectors. Actions to support growth in the offer Through new development, support the installation of significantly faster broadband Maintain dialogue with neighbouring deliverers of managed tech workspace (Central Working and Workspace in particular) Facilitate the dialogue between developers (providing new workspace) and third party operators already active in east London Improve digital skills across the local population to facilitate local links to the sector. Building Capacity in the Short Term 3.13 Both short and medium term actions can support the digital and creative sectors to thrive in Whitechapel. In the short term, access to workspace for less established and start up businesses in these sectors should be considered as part of any provision of Low Threshold Enterprise Space scheme. In the medium term development of further SME hubs such as those provided at Dept W and the Pillbox should be supported. Whitechapel s assets Proximity to the core Tech City area Acknowledgement as part of the wider Tech City area New provision of creative workspace in close proximity to Whitechapel Pipeline of new development of new business space to support growth p 22 Enterprising Whitechapel Strategy

23 Retail and amenity destination 3.14 Successful residential and commercial locations in London are all characterised by a strong retail and amenity offer, which complements housing delivery and helps to make places more interesting for work and leisure. Previous reports (such as A Tale of Tech City; the Future of London, Demos, 2012) focussed on east London have highlighted the importance of a local attraction offer to the development of a stronger business base. Whitechapel currently under-performs in terms of the breadth and depth of its retail offer, something that is openly acknowledged by partners and investors in the area The retail market in Whitechapel is characterised by local independent operators along the length of Whitechapel Road and also by the street market. The rental market in the area has been consistent over recent years, with minimal growth levels. Retail rents are currently comparable to Hackney Central and Dalston, but are less than half than those achieved in Spitalfields Demand for cultural activity and entertainment is a rapidly changing sector and is notoriously difficult to track and forecast. Recent years have seen a focus shift from mass delivery (including multiscreen cinemas, large chain bars and Mega bowls ) to more local, unique boutique facilities (focusing on the individual s experience) The quantum of development in the Whitechapel pipeline, with the possibility of swift delivery provides an opportunity for LB Tower Hamlets to influence delivery and support a retail and amenity offer. In time, this could become a genuine driver of economic value and distinctive enough to set Whitechapel apart from its competitors. Whitechapel s assets New residential development and Crossrail station create game changing demand Previous Investment in Whitechapel and improvement to Whitechapel Road (particularly shop-fronts) Relatively low cost retail space Space (including former RLH) and leases (included Whitechapel) currently in public sector ownership Proximity (and reassurance for providers) to other divers amenity markets (such as Shoreditch) Actions to support growth in the offer Ensure that in public sector ownership is used to support the diversification of the retail and cultural offer Use the former Royal London Hospital site to test ideas for the retail and cultural offer Actively involve existing partners (in particular The Whitechapel Gallery and the Genesis Cinema in the evolution of the cultural offer in Whitechapel Support the delivery of some larger retail floor plates (c 10,000 and 20,000 sqft) within the delivery offer Provide targeted support for local retail businesses to help them adapt to the needs of a new and evolving customer base Diversify the markets offer, creating greater variety in its offer, incorporating some hot food offer as a minimum Through development, seek to create distinctive retail spaces and zones within Whitechapel. This could include retail courtyards, grouping of similar uses and zoning for local and independent retailers. p 23

24 Building Capacity in the Short Term 3.18 Whitechapel has a rich ethnic and cultural heritage that should be promoted to attract a wider range of visitors and businesses to future development The market offers a potentially flexible and low cost route to introducing a wider range of offers. The case study below provides one example of a market offer being developed and broadened leading to a more successful future. Brixton Village Market Brixton Village market is a 1930 s indoor market that has made a dramatic transformation within the past 5 years, owing to a change of ownership and a surge of new successful food traders taking up residence within the market hall. Previously threatened with demolition, the declining market needed assistance in attracting new trade and custom. Over a 6 month period social entrepreneurs, Spacemakers, facilitated conversations between existing traders, local campaigners, architects and artists to develop ideas for the revitalisation of the market. Empty market stalls were leased out for free for 3 months to anyone that had an idea for how to reinhabit the spaces. Spacemakers organized weekly events such as music, pop up stalls, food tastings and children s workshops to generate an interest and increase in footfall within the market. This interest encouraged an influx of new food traders and restaurants. Today this market is extremely popular and a key London foodie destination. p 24 Enterprising Whitechapel Strategy

25 Textile and artisan activities 3.20 Historically Whitechapel and Spitalfields have been at the centre of London s textile trade. Observational research undertaken for this study (refer to Appendix 1C) has shown that the legacy of this specialism remains, with noticeable clustering of activity towards the south west corner of the Whitechapel planning boundary The presence of the Whitechapel Gallery also provides the area with an artistic heritage which is not present in other locations. This does not manifest itself as a significant cluster of artists locally (although there are some artists operating from the Safe Studios and the Craft Building on the western edge of the Whitechapel area) Much of the activity within the Textiles sector is lower value wholesale activity, which utilises retail units on New Road and Commercial Road. There is also a presence of suppliers of fabric and haberdashers in this area, which serves east London designers and makers. Of more interest is the reemergence of higher end fashion design and tailoring in the area. The opening of Whitechapel Workhouse at 132 Whitechapel Road and East London Manufacturing Ltd in Mile End suggests that the area and surrounding places have a commercial USP for this sector As section four showed, the scale of the textile and art sector is unlikely to be a The Whitechapel Workhouse The Whitechapel Workhouse is a studio recently opened on Whitechapel Road, specialising in constructing costume and couture fashion pieces for industry. Founders Ian Frazer Wallace and Joel Moore have extensive experience in the fashion industry. With the workhouse, their ambition is to focus solely on creating costume and couture for the industry, from design development, through fabric selection to final construction. In addition to the production service, the workhouse also offers workshops & classes encompassing specialist skills from professionals at industry standards. p 25

26 significant driver of employment and added value within the local economy. These are however, sectors which will help to keep Whitechapel s distinctive, offering an alternative to a standard / generic offer which could evolve in the area. Whitechapel s assets Whitechapel Gallery, one of London s most important artistic spaces Evidence of diversification and innovation within the textile and fashion industry (particularly the Whitechapel Workhouse) Buildings in public sectors ownership, providing the potential to deliver a genuine low cost offer. Attractive existing building stock with architectural merit appealing to creative practitioners. Proximity of significant arts universities. Actions to support growth in the offer Work more closely with Whitechapel Gallery and other local bodies such as Bow Arts Trust to develop the offer for artists and to reinforce the brand of the area as an artistic location Support the consolidation and potential relocation of lower value fashion wholesale to free up spaces for retail, particularly on New Road Stratford Studios, London This case study is of particular interest as an example of using Low Threshold Enterprise Space, in this case dilapidated upper floors on high streets, as affordable workspaces for artists. Bow Arts is a registered educational charity that supports community renewal in East London by delivering Arts and Creative Services through a financially sustainable model. Part of their range of work consists of providing affordable artists studio space to emerging artists. In Stratford, Bow Arts has recently announced a partnership deal with the London Borough of Newham to provide 28 studios with affordable creative workspace for over 30 artists and creative practitioners. The studios are located on the first, second and third floors of disused buildings on Stratford High Street. The studios are rented out on approximately 12 per sq ft. All studios have natural light, with either windows to front or rear of building or to internal light wells. p 26 Enterprising Whitechapel Strategy

27 Establish partnership with relevant academic partners such as University of the Arts and LB Hackney (currently developing a Fashion Hub at Hackney Central). Building Capacity in the Short Term 3.24 Discussions with the new creative fashion businesses in the area suggest that many of the key issues facing them are shared in common with more general creative workspace i.e. diminishing availability of affordable space. In this sense, supporting creative enterprises and artists workspace through making vacant buildings in the area available for such uses would encourage the evolution of textiles in Whitechapel into a vibrant and productive cluster. Links with the local fashion schools could also be encouraged through priority access to space and facilities As artists and creative practitioners move to increasingly distant parts of the Capital for the sake of affordability, Whitechapel could be well placed to become a desirable, well-connected and central location for creative workspace. It is recognised that in the long term, Whitechapel s central location is likely to lead to rents that are prohibitively expensive for such uses. However, there is a potentially large amount of floor area in vacant buildings that would be well suited Great Western Studios Great Western Studios is a new build 60,000 sq ft facility providing 106 affordable studios spaces to a variety of creative enterprises, including designers, makers, artists, fashion designers and TV production companies. The studios were built on the site of a disused former paint factory in the Westbourne ward of Westminster, having been relocated from a previous premises affected by Crossrail development. Westminster City Council were instrumental in enabling Great Western Studios to develop by helping to broker the development opportunity with landowners, London Underground, providing a 3m loan on commercial terms and offering conditional grant funding of 1m. The total development costs for the Studios were approximately 9m, with the remainder being privately funded. Terms of the Council grant funding were that 23,000 sqft of the available workspace be let at 50% of market rental values for 10 years. It has thus enabled a large number of micro and early stage creative businesses to locate and grow within the facility. The WCC loan has now been paid off in full and the Studios are 100% let and profit-making, requiring no ongoing local authority support. p 27

28 to meanwhile use. In particular, the large scale vacant buildings available in the area, such as the former Royal London Hospital building and its annexes, could present an opportunity to support artists workspace in the short-term The case study example above illustrates a scheme which is currently underway to support artists workspace on the upper floor of under-used buildings on Stratford High Street The recently formed London Open Workspace Providers Group aims to support the provision of artists and creative workspace in London. It is therefore suggested that input is sought from the GLA as to potential suitable providers who could manage such opportunities. Further details of potential meanwhile sites and uses are included later in the report. p 28 Enterprising Whitechapel Strategy

29 Diversity 3.28 In considering the valuable assets and USPs for Whitechapel, the area s diversity and history should not be over looked as a driver of value and distinction. Diversity within the population and the visible impact this has on the area and its economy is a key element of Whitechapel s individuality As a result of Whitechapel s diversity there are a large number of third sector and civil society organisations in Whitechapel, as well as specialist retailers and businesses who provide a distinctive feel to the area The proposed delivery of 3,500 new homes in Whitechapel will significantly change the profile of the area, create new demand and new markets for the retailers and service providers who support the population. It is important that, as development is delivered within Whitechapel, that the area does not lose its distinctiveness. Supporting existing operators to adapt to the opportunities this population growth provides, will be a critical element of securing real transformational value in Whitechapel. offer, alongside diversification Consider the potential of consolidating civil society activities in the Civic Hub development. Building capacity in the short term 3.31 To ensure that the local presence of the important Third Sector organisations in the area is retained and that they remain viable into the future, relocation programmes should be considered as part of redevelopment proposals for sites where they stand to be displaced. Temporary operation from the new Civic Hub as part of a meanwhile occupation, with a possible view to permanent tenancy as part of the proposals should also be considered As new SME Hubs are provided in the area, it is also important that more specialist businesses, (as illustrated in Appendix C) are considered as potential tenants to ensure they continue to support the local community and international trade links. Whitechapel s assets A unique retail and market offer, providing goods and services otherwise not readily available in London A diverse mix of ethnic groups and nationalities represented within the local population Strong culture of social action and intervention Actions to support growth in the offer Fast track delivery of support to local retailers to ensure that they are ready for opportunities afforded by new residents and increased footfall Facilitate the evolution of the street market offer in a way which retains higher quality elements of the current p 29

30 p 30 Enterprising Whitechapel Strategy

31 4.0 DELIVERING THE WHITECHAPEL VISION SPATIALLY 4.0 Long term transformation and meanwhile uses 4.1 Whilst analysis and prioritisation above helps partners cement messages and develop projects, it is the physical evolution of Whitechapel which will ultimately drive the area s transformation. To chart this, this section looks at progress to date against the scenario set out within the Vision. 4.2 The Whitechapel Vision SPD is by no means an accurate description of how the area will evolve. It sets the ambition for the area and provides benchmarks against which the evolution of the area can be measured. 4.3 Following assessment of planned development and discussion with developers and land owners, a working picture of potential development versus the aspirations of the Vision and is outlined on the map overleaf. It should be noted that this is a high level aggregated assessment of current positions. Many of the proposals are in an early stage and are subject to change/risks/ uncertainties and as such, this is just an initial guide as to what is happening to date. p 31

32 p 32 Enterprising Whitechapel Strategy

33 Vision v Delivery 4.4 The table below provides an initial assessment of aggregated planned development against the aspirations of the brief. Again, this is a high level assessment; it should also be noted that this does not include development. 4.5 Even only including the major developments which are currently under consideration, it is still estimated that planned development will deliver between 3,000 and 3,500 residential units, the target established within the Vision. This does not include any residential which could be delivered on the Civic Hub site, on small/infill sites or as a result of local estate renewal. 4.6 Using Regeneris housing model, we estimate that this housing will support an increase in expenditure within the local economy of over 8m per year. It is worth noting that this figure is derived using assumptions based on the Tower Hamlets Retail Needs Assessment (2009), which records a high level of leakage of retail spend in Whitechapel. With an improved retail and amenity offer, it is reasonable to expect this to be higher. 4.7 Whilst there is currently a predicted overdelivery of commercial space, ¾ of the proposed development is accounted for by the delivery of QMUL s proposals for a research institute and innovation centre. Whilst these are exciting developments for Whitechapel and London (delivering higher value jobs), it does suggest that there could be scope and capacity to deliver more managed workspace or IAC development. This is particularly important given the low levels of enterprise in Whitechapel. Table 4.1: Vision V Delivery Vision Initial Development +/- Office/ Commercial (Sqm) 37,374 42,300 +4,926 Retail (Sqm) 22,094 12,250-9,844 Hotel (Sqm) 10, ,789 Estimated Local resident expenditure ( m pa)* Leisure/ Culture/ Education (Sqm) N/A 8.30 N/A 4,394 3, Jobs 3,795 6,000 +2,205 Source: Regeneris (2015) p 33

34 4.8 As things stand, the level of proposed retail delivery is lower than envisaged in the Vision. This again does not include the Civic Hub development or any potential efficiencies that could be realised by making better use of the existing retail stock, but may be worth monitoring. Jobs Growth 4.9 Using a mix of operator estimations (in the case of QMUL and Civic Hub developments) and standard HCA employment densities, it is estimated that the direct jobs supported by developments could be around 6,000. Whilst all of these may not be additional, once indirect and wider employment impacts (such as those from new resident expenditure) are included it is a reasonable to assume that the target of 5,000 new jobs remains very achievable. p 34 Enterprising Whitechapel Strategy

35 p 35

36 Development Job Growth Office / Commercial Retail Hotel Leisure / Culture / Education Vision Planned Revitalising Whitechapel Road Office/Commercial Improvements to upper floor commercial spaces on Whitechapel Road, creates more attractive workspaces and supports more diverse activities 1 Retail Improvements to retail and market offer supports a positive change Leisure/Culture Education Potential to improve facilities for existing Third Sector providers on Whitechapel Road ELRE( m pa) Unlikely, notwithstanding development of corner site VALLANCE ROAD New Civic Hub 3 2 Planned Vision m2 1 2 WHITECHAPEL W Jobs NEW ROAD 4 ELRE N/A ALDGATE EAST Durward Street Gardens COMMERCIAL ROAD 3 Planned Vision m2 Jobs ELRE m p/a N 0 200m p 36 Enterprising Whitechapel Strategy

37 Med City Campus Planned Vision m2 Jobs CAMBRIDGE HEATH ROAD ELRE m p/a 6 HITECHAPEL ROAD Raven Row Planned 5 5 Vision m2 CAVELL STREET Jobs ELRE 3.1m p/a Cambridge Heath Gateway 6 Planned Vision m2 Jobs ELRE m p/a p 37

38 1. Revitalising Whitechapel Road Potential Interventions/ Improvements Office/ Commercial (Sqm) Retail (Sqm) Hotel (Sqm) Estimated Local resident expenditure ( m pa)* Leisure/ Culture/ Education (Sqm) Improvements to upper floor commercial spaces on Whitechapel Road, creates more attractive workspaces and supports more diverse activities Possible improvements to retail and market offer supports positive change N/A Unlikely, notwithstanding development corner site (Vallance Road) Potential to improve facilities for existing Third Sector providers on Whitechapel Road 2. New Civic Hub Vision Planned Development Office/ Commercial (Sqm) 17,820 N/A N/A Retail (Sqm) 2,390 N/A N/A Hotel (Sqm) 0 N/A N/A Est. local resident expend. ( m pa)* N/A N/A N/A Leisure/ Culture/ Education (Sqm) 0 N/A N/A Jobs 1,370 2,500* +1,130 * LBTH jobs moving to Civic Hub 3. Durward Street Gardens Vision Planned Development +/- +/- Office/ Commercial (Sqm) 4,500 N/A N/A Retail (Sqm) 5,860 4,000-1,860 Hotel (Sqm) 0 N/A N/A Est. local resident expend. ( m pa)* N/A 1.90 N/A Leisure/ Culture/ Education (Sqm) 4,394 N/A N/A Jobs p 38 Enterprising Whitechapel Strategy

39 4. Med City Campus Vision Planned Development Office/ Commercial (Sqm) 9,087 36,000* + 3, ,913 Retail (Sqm) 1,272 N/A N/A Hotel (Sqm) 0 N/A N/A Est. local resident expend. ( m pa)* N/A 1.70 N/A Leisure/ Culture/ Education (Sqm) 0 3,000 +3,000 Jobs 700 2,500** +1,800 * 31,000sqm Whitechapel Research Institute, 5,000sqm Innovation Centre delivered by QMUL **Based on QMUL estimates 5. Raven Row Vision Planned Development Office/ Commercial (Sqm) 5,303 2,700-2,603 Retail (Sqm) 4,902 N/A N/A Hotel (Sqm) 10,789 N/A N/A Est. local resident expend. ( m pa)* N/A 3.10 N/A Leisure/ Culture/ Education (Sqm) Jobs Cambridge Heath Gateway Vision Planned Development +/- +/- +/- Office/ Commercial (Sqm) Retail (Sqm) 7,670 8, Hotel (Sqm) Est. local resident expend. ( m pa)* N/A 1.60 N/A Leisure/ Culture/ Education (Sqm) Jobs p 39

40 Timescales and meanwhile use 4.10 Despite the relatively swift progress through the very initial stages of development, a number of the developments which could be realised remain longer term opportunities. Based on discussions with developers, it seems that the core period of delivery will be from around This means that there is likely to be a period of 3-5 years where sites could be used for appropriate meanwhile uses. for possible temporary use, these are referred to. Key case study examples for each transformation area have also been highlighted Meanwhile uses will provide an opportunity to test out new ideas, introduce relevant activities into Whitechapel, change perceptions of the area and to stimulate interest and confidence in the delivery of the vision. To support the implementation of an effective meanwhile strategy, We Made That have identified good practice, which could be implemented not only to support positive activity, but also to develop the specific commercial visions articulated within the Whitechapel Vision document The likely presence of unoccupied buildings and development sites throughout the area in the short term presents a challenge, in that high-profile and centrally located sites may lie vacant for significant periods of time. There is a risk that poor perception of the area during this time impacts on Whitechapel s ability to attract investment, and may ultimately threaten the deliverability of the Vision However, such sites also offer opportunities for temporary interventions that can support changing perceptions of Whitechapel. Handled correctly, meanwhile uses could be used to reinforce Whitechapel s identity as a creative and dynamic City Fringe location In recognition of this potential, the following pages make suggestions for possible appropriate meanwhile uses in each of the transformation areas. Where particular sites are known to be vacant and available KEY Identified potential meanwhile sites 1. Revitalising Whitechapel Road 2. New Civic Hub 3. Durward Street Gardens 4. Med City Campus 5. Raven Row 6. Cambridge Heath Gateway p 40 Enterprising Whitechapel Strategy

41 NEW ROAD CAMBRIDGE HEATH ROAD VALLANCE ROAD 6 3 WHITECHAPEL WHITECHAPEL ROAD CAVELL STREET COMMERCIAL ROAD N 0 200m p 41

42 1. Revitalising Whitechapel Road 4.15 Whitechapel Road is the spine of the Vision Area. The High Street 2012 initiative has improved the quality of the environment elsewhere along this key route, and the Whitechapel Vision ambition is to continue this work with proposals being focused on public realm improvements and the creation of gateways at three entrance points to the area. Whitechapel Market 4.16 The market is a defining feature of this transformation area. Its vibrancy is an asset, although its physical presence and servicing can cause issues with pedestrian accessibility and general appearance. Updating of the Market Plan document is identified as a high-priority, short-term action in the Vision Delivery Schedule. As part of this exercise, there is potential to consider temporary trials of a wider range of uses in the market. In the context of the Vision aim of expanding and diversifying the retail offer of Whitechapel Road, the market offers a potential opportunity for Low Threshold Enterprise Space for local businesses The case study included below is of particular interest in illustrating a market being used as driver of enterprise. A similar scheme in Whitechapel Market could be used to test a broadened hot food offer or textile craft sales from local businesses. Artisan Row, Blackburn Market Blackburn Indoor Market have initiated an incubator programme for local start up enterprises, which aims to gradually introduce them into the market through trial stages. The scheme consists of small incubator units, which are allocated to potential traders 6 days a week, for a period of three months at a subsidised cost. If the stall proves to be a success, the traders are given the option to upgrade to a larger stall for a further 3 months at a higher, yet still subsidised, cost. At this point the traders can decide whether to take a permanent position within the market at a standard rate. If not, the traders are able to give as little as 1 weeks notice to end their agreement. These arrangements make it very attractive for local start ups to test their products and also have a chance to gain a permanent position in the market. Image: p 42 Enterprising Whitechapel Strategy

43 2. New Civic Hub 4.18 Proposals for this transformation area centre around new public sector use of the former Royal London Hospital building. Whilst these proposals are developed and delivered, the building - presently surrounded by hoarding - presents a poor welcome to those arriving at Whitechapel Station. The Vision document identifies temporary hoarding and public art as one means of addressing this issue. However, temporary use of defined portions of the building itself could offer a more vibrant solution pending future development. Old Royal London Hospital - Front Block & Grocers Wing 4.19 Uses for this site should support its past and future as a civic asset, whilst also reacquainting visitors with the building as being for the community, rather than part of an institution. The Vision aim of combining other SME and retail uses as part of the permanent proposals, means that lowcost workspace could be a suitable use for portions of the site, including the Grocers Wing. It will also be important to introduce community uses to the site. As a prominent local landmark, the Front Block would be best suited to such uses The case study below is a good example of a building being used for a range of communityfocused activities, combined with artists studios and cultural programmes. Open School East Located in a former library and community centre in De Beauvoir Town, East London, Open School East is a unique space that brings together a free study programme for emerging artists and a multifaceted programme of public projects and events which facilitate interactions between artists, local residents and audiences from further afield. Open School East offers a non-accredited study programme for artists. In return for tuition and studio space, artists offer their skills and knowledge to the community for one day per month. Its pilot year in 2013 was commissioned by the Barbican and Create London, with a combined grant of 100,000. Subsequent funding has been raised from supporters and patrons including Arts Council England and various individuals. Hackney Council are supporting the project by subsidising the building s rent. Image: Eva Rowson p 43

44 3. Durward Street Gardens 4.21 The Whitechapel Vision ambitions for Durward Street are to create a new urban quarter providing homes, retail and offices and introducing a new public space, Durward Street Gardens The area currently has a lack of open public space, as identified in the Vision baseline analysis, and the proposals for Durward Street Gardens envisage a vibrant and active public space In order to re-introduce the area to the local community and those further afield as a public space destination - as opposed to a back street - a programme of outdoor, temporary cultural uses could be hosted in one of Durward Street s pre-development sites. If a suitable site can be identified, it would be possible to use links with cultural institutions such as the Whitechapel Gallery to activate the space with public art interventions and events. Such uses would have the benefit of establishing a new identity for the area associated with active public space, that may in turn make new development more attractive to businesses that could offer active uses to the ground floor units of future developments The case study below is a good illustration of such uses being introduced to a future development site in east London. Dalston House This case study is of particular interest as an example where a public art intervention has developed a buzz about a particular place. A recent Barbican commission, Dalston House successfully animated a site that was awaiting development situated behind the main shopping street in Dalston, East London. The 3D installation created by the artist Leandro Erlich, invited members of the public of all ages to actively participate and play within the space. The installation ran for 6 weeks and was widely covered by the media. The installation was a huge success and attracted a large number of visitors from all over the city who queued for up-to an hour just to get a chance to interact with the installation. With the presence of cultural institutions such as the Whitechapel Gallery in the area, there could be strong potential for cultural interventions in spaces awaiting development. Image: Gar Powell Evans p 44 Enterprising Whitechapel Strategy

45 4. Med City Campus 4.25 The Med City Campus covers a potentially extensive area to the South of Whitechapel Road. Development of this area is likely to be driven by existing institutions, such as QMUL, but the presence of knowledgebased enterprise has the potential to attract other business uses, as identified in the Whitechapel Vision. Outpatients Annexe Building 4.26 This building is located on New Road and is known to be vacant and potentially available for temporary use. Due to its location, it has a lower street profile than other buildings being considered for meanwhile uses in the area. The cellular nature of its interior means that it is well suited to office/ studio uses, and due to the number of potential tenants it would benefit from management by a single provider. The temporary nature of the building s availability makes it well suited to the provision of affordable and incubator workspaces. Whilst these may not be suited to higher value businesses that are likely to be attracted by the presence of Med City, the building does offer an opportunity to create an more visible enterprise hub as a compliment to the valuable uses of Med City The case study example below illustrates local authority support of affordable workspace through the temporary use of a vacant building. Cottrell House, Wembley Commissioned by Brent Council, and delivered by Meanwhile Space, Cottrell House offered support to local start-ups and entrepreneurs in Wembley with affordable workspace. A former retail unit was refurbished at low cost to provide a small cafe, a shared studio, eight fixed desks for hire and a hot-desking space. Cottrell House was also home to the Coming Soon Club, which offered support and mentoring to people looking for temporary space for meanwhile projects in Wembley. Members of the Club received guidance on their potential projects and had access to Club headquarters at Cottrell House for meetings, events and project trials. This type of incubator programme could be a positive, publicfacing offer delivered from the same building as individually rented offices. Image: Meanwhile Space p 45

46 5. Raven Row 4.28 The Raven Row site is particularly prominent due to its location at the Cambridge Heath Road junction and its long frontage onto Whitechapel Road. The former Post Office is a significant vacant property that is known to be potentially available for temporary uses pending development. Former Post Office Site 4.29 The building is large and has an extensive street frontage, with minimal activity even during its occupation. The benefit of this site for meanwhile uses is that it has a strong presence on Whitechapel High Street. Potential challenges for temporary use of the building include the large scale of the site and associated cost of temporary fit-out The large scale of the spaces in the building make it well suited to leisure and cultural uses. Spaces such as the ground floor shop front and former canteen also offer opportunities for a wider mix of uses including retail, cafés and restaurants The case study example below illustrates ways in which unusual and large-scale spaces can be used on an ad-hoc basis. Making the site available for hire, rather than seeking specific tenants could make it attractive to a wider range of potential users, creating a varied and vibrant programme of activity. The Old Sorting Office, Holborn This example shares much in common with the Whitechapel Post Office site. The building is a former sorting office on New Oxford Street that is now used as a location for filming, events, galleries and fashion shows on an ad hoc basis. Its ground floor area is 40,000 sqft, making it well suited to large scale productions. The venue is represented by a location agent, Location House, who promote the venue on behalf of its owners and make it available for hire. Venue use can vary from one-off events to extended exhibitions and trade shows. Image: Ben Knight Evans p 46 Enterprising Whitechapel Strategy

47 6. Cambridge Heath Gateway 4.32 The Cambridge Heath Gateway presents a challenge in terms of meanwhile uses, as its transformation relies primarily on a single, large site; the current Sainsbury s superstore. However, temporary uses are worth consideration as the site is at a prominent location and is of a scale where construction across the full site is likely to take many years. how creative use of planters and temporary structures have been used to introduce a public green space on a potential development site. Such an intervention at the Cambridge Heath Gateway could provide a means of giving back to the community during an extended period of construction and disruption 4.33 Due to the Vision proposals introducing a new public space in this location, it may be appropriate to deliver temporary improved public and green space on the site if a suitable location can be found The case study example below illustrates 100 Union Street This case study is of particular interest as an example where a derelict site has been used on multiple occasions for interventions. 100 Union Street was previously a derelict site adjacent to the railway arches in Southwark. It was transformed into the most experimental and well loved urban sites in London through a series of public meanwhile uses over recent years. These included the Southwark Lido, the Union Street Urban Orchard and the Urban Physic Garden. Each intervention (led by different artists and collectives) invited the general public to inhabit and engage with the space through various activities. Along with engaging with the local community, it successfully contributed to generating a London wide interest and trendiness about the area. This multiple use has created a fruitful foundation for the future development that is to take place on the site. Image: Wayward Plants p 47

48 p 48 Enterprising Whitechapel Strategy

49 APPENDIX 1: EVIDENCE BASE p 49

50

51 A) EVOLUTION OF WHITECHAPEL POLICY 1.0 How we got here 1.1 The Enterprising Whitechapel Strategy, unlike some interventions, is not a fresh start, or a response to a specific issue. It is the latest element in the policy response to Whitechapel s evolution, a continuation from what has gone before. 1.2 The perceived role of Whitechapel in policy has evolved quite significantly over the last decade, to a point where it is seen as an important component of both Tower Hamlets and East London. Previous (to the Whitechapel Vision SPD), but still relevant, the articulated roles of Whitechapel in local policy are summarised below: Core Strategy (2010): Identifies Whitechapel as playing an Enhanced regional role; optimising existing buildings and reducing vacancy Employment Land Study (2009) Whitechapel is seen as: Low cost location for TMT businesses in refurbished space Local office location Rapid shift form B2/B8 to A2/B1 Town Centre Spatial Strategy (2009): Identifies the need to strengthen diversity and become a regional economic and visitor location by 2025 Making Connected Places (2009): Notes Whitechapel s role as one of the most important interchanges in LBTH LBTH Enterprise Strategy (2012): Notes that increased population and movement creates opportunity. It also states that Whitechapel should diversify, in particular supporting creative industries and becoming a more significant cultural centre. p 51

52 The Whitechapel Vision SPD (2013) 1.3 The Whitechapel Vision SPD is the fundamental policy pre-cursor for this study. Adopted by LB Tower Hamlets in December 2013, it provides a framework to support the redevelopment and improvement of Whitechapel town centre over the next 15 years. It includes the aspiration to deliver 3,500 new homes and over 750,000 sq ft of non-residential uses. It is estimated that the activities set out within the vision could deliver in the region of 5,000 new jobs. 1.4 The Vision identifies 6 areas of transformation in Whitechapel: 1. Revitalising Whitechapel Road: Supporting public realm improvements and enhancing the street market 2. New Civic Hub: Bring Royal London Hospital back into use; collocating council offices with new employment, retail, cultural and community uses 3. Durward Street Gardens: Area to the north of new Crossrail station, including over site development of new residential, retail and employment 4. Med City Campus: Supporting the expansion of health, biotech and life sciences in Whitechapel 5. Raven Row New residential neighbourhood to the west of Royal London hospital 6. Cambridge Heath Gateway: residential, community and office development driven by the redevelopment of the new Sainsbury s site 1.5 The location of these sites are outlined on the map opposite. KEY 1. Revitalising Whitechapel Road 2. New Civic Hub 3. Durward Street Gardens 4. Med City Campus 5. Raven Row 6. Cambridge Heath Gateway p 52 Enterprising Whitechapel Strategy

53 NEW ROAD CAMBRIDGE HEATH ROAD VALLANCE ROAD 6 3 WHITECHAPEL WHITECHAPEL ROAD CAVELL STREET ALDGATE EAST COMMERCIAL ROAD N 0 200m p 53

54 Table 1.1: Breakdown of Employment Space in Whitechapel under the Masterplan Use Class Floorspace (Sqm) Employment Density (sqm per FTE Employee) Total FTE Employees Supported - Civic Hub 20, ,500* A1 Shops 10, A/B Offices/ Services 17, ,100 B Office 10, C1 Hotel 10,800 N/A** 250 D2 Leisure 4, Total 74,500-5,430 * Based on initial local authority estimates ** Assumed that this will be a 150 room Mid-Market Hotel (1 FTE per 1.67 Bedroom) 1.6 To support the adoption of the Masterplan, Regeneris Consulting presented a paper of the economic impacts of the Whitechapel Masterplan to LB Tower Hamlets Cabinet in February This provided an estimate of employment based on the use classes in Table 1.1. opportunity in the area and the opportunities for specialisation and delivery of genuinely significant economic projects. 1.7 The extent to which specific developments are delivering against these targets in the six transformational areas is outlined in Section 4 of this report. Implications for Enterprising Whitechapel The Whitechapel Vision SPD remains the dominant policy lever against which this strategy can be delivered. It also represents the first attempt to outline the scale of the of p 54 Enterprising Whitechapel Strategy

55 Dalston Kingsland Hackney Downs Dalston Junction Hackney Central Haggerston Kingsland Road Hackney Road Bethnal Green Old Street Shoreditch High Street Bethnal Green Liverpool Street Aldgate East Whitechapel Road Commercial Road Whitechapel Aldgate Table 1.2: City Fringe OAPF Area Core growth area Wider hinterland p 55

56 City Fringe Opportunity Area Planning Framework (2014/2015) 1.8 In December 2014, the GLA published the City Fringe Opportunity Area Planning Framework for consultation. This focuses upon an area to the east of the City which is increasingly seen a core component of London s growth. Whitechapel is part of the core OAPF area (see Table 1.2 above). 1.9 The five of objectives of the OAPF are: Ensuring there is continued business growth in the City Fringe Striking a balance between residential and commercial development Supporting the mix of uses that makes City Fringe special Identifying key strategic development sites Connecting the City Fringe 1.10 Importantly the OAPF provides the policy levers by which GLA (including the GLA Family) can intervene and to deliver against these objectives The City Fringe is seen as vital to London s commercial evolution, with the need for safe guarding of commercial spaces as development comes forward. The draft OAPF also outlines how affordable workspace has been a previous driver of growth and diversification in east London and identifies how this will continue to be important in the future. It is recognised that local policy and public sector intervention will be the most important way to realise and retain affordable space in the future Broadband is also seen as a highly important lever for future success. Promotion of the voucher scheme for SMEs and delivery of publicly accessible WIFI areas identified as priorities. Whitechapel in the OAPF 1.13 The aspiration for Whitechapel set out in the OAPF is to realise its full potential as an employment location as well as a centre for retail, culture, leisure and the nighttime economy. Whitechapel s urban grain, built form and mix of uses mean that it already shares many of the characteristics of the other successful employment areas of the City Fringe, such as Shoreditch and Spitalfields The draft OAPF specifically recognises the life sciences campus as an important opportunity for Whitechapel and London as a whole (within the context of Med-City). Whitechapel is also recognised as location which, through the delivery of additional coworking space, can accommodate businesses who may have previous located in Shoreditch. Implications for Enterprising Whitechapel The draft OAPF provides the regional policy levers which will support change in Whitechapel. Importantly, this document, marks the first time that Whitechapel has been identified as a location of specific regional importance. This provides a mandate to work with regional partners to deliver against the aspirations of the Vision. Tech City/ City Fringe OAPF Property Market Appraisal Accompanying the Draft OAPF is a Property Market appraisal. This makes recommendations on the types of space required within the city fringe to support evolution as well as identifying gaps in the current offer. 2 Tech City/ City Fringe OAPF Property Market Appraisal, Jones Lang LaSalle for Greater London Authority, November 2014 p 56 Enterprising Whitechapel Strategy

57 1.16 Key findings of particular relevance to Whitechapel are: Demand for smaller space appears to be increasing but the availability of space, including new space, appears skewed towards larger floorplates. Demand forecasts are strongest in areas in and close to the core of Tech City and anticipated to be next strongest in the sub-areas, which includes Whitechapel. Here projected demand is expected to exceed supply over the short term. The periphery s market is an important source of small, start-up spaceparticularly Whitechapel. The report recognises the increased opportunities for Whitechapel emerging with Crossrail, linking Whitechapel to key markets. VOA floorspace stock data shows that periphery areas are important sources of small, start-up space (<1,000 sq ft), particularly Whitechapel, which has the highest proportion (31%) of total Table 1.3: Average Rents by Sub-Area (per square foot) Sub-Area Present Change in Rent Shoreditch East % Spitalfields % Shoreditch West % Clerkenwell % St Luke s % Angel % Hackney Central % Dalston % Canalside % Aldgate % Whitechapel % Source: Jones Lang LaSalle p 57

58 floorspace in this size band across all Tech City Sub-Areas. (0% of floorspace in Whitechapel is >30,000 sq ft). Analysis of floorspace uses in Whitechapel indicates 38% is office uses, 26% Retail, 32% industrial and distribution and just 3% leisure. Of all areas (11) in the study Whitechapel is ranked 4th for market tightness (balance between demand and supply). Take-up in the 3 years to 2013 Q1 appears to have risen (+9%) in Whitechapel. Whitechapel at present (2011) currently has some of the cheapest rents per square foot in the area but is still above those in neighbouring areas such as Hackney Central and Dalston. Unlike other areas in the City Fringe, Whitechapel has yet to see a return to pre-recession rents having seen a 23% decrease since the period. The average rent data suggests that across the potential use classes there is limited or no development capacity (Table 2.4). Implications for Enterprising Whitechapel The OAPF Property Appraisal is an important document in the context of this report. The tightness of the market, increase in take up and low quantum of space provides the impetus for the delivery of more small workspace in Whitechapel. The fact that rents have remained low also means that the possibility of delivering genuinely affordable workspace is a very real one. Incubators, Accelerators and Co-working Spaces (IACs Report) 1.17 This study commissioned by the GLA explores the current provision of IACs in London and outlines the potential benefits both to businesses and the surrounding areas in which IACs are located. IACs are defined as: Incubators: Spaces designed to actively support the growth of start-ups. Businesses also received support on site, often in exchange for a profit share. Accelerators: Provides space for new and existing companies with potential for rapid growth. These tend to focus on a short term commitment to a space. Co-Working: Easy in/ Easy out facilities which bring together a range of companies predominantly in an open plan space The report highlights the importance of IACs in the regeneration of an area and the diversity and differentiation they bring to a place. To be successful, the report identifies the need for flexibility and affordability as well as the need for short term commitment from businesses It is reported, that quality of management and intensive support are pre-cursors for success, whilst interaction with investors on site is also desirable. The report also notes gaps within London s offer particularly when it comes to the delivery of non-office provision (including lab and small scale industrial space). An exception to this is the Queen Mary Bioscience (QMB) Innovation Centre was selected as a case study for creating a powerful medical presence in East London, drawing expertise into the area. In relation to this centre, the report also outlines: The clustering of bioscience knowledge and expertise has wider health and wealth impacts for local businesses, as well as the wider community An important attractor to QMB is the availability of adjacent lab space to allow contiguous expansion options to tenants. Tenants also value being physically located alongside other specialist science businesses, particularly for supplier recommendations and p 58 Enterprising Whitechapel Strategy

59 referrals. There is growing concern that despite QMB s role in safeguarding science jobs within the capital, without proper follow on space these jobs will be lost to Science Parks located outside London. Implications for Enterprising Whitechapel The IAC mapping report is a major element of the evidence base which is currently underpinning a renewed focus on workspaces and their role in the evolution of places in London. The accompanying map actually shows that the core Whitechapel area has less IACs than other locations in east London (with the notable exception of QMU) this clearly provides a key driver for the Enterprising Whitechapel strategy. Accommodating Growth in Town Centres 1.20 This GLA report outlines some of the challenges that London faces in managing future growth. It concludes that town centres have the potential to play an important role in accommodating this growth through the re-shaping and intensification of uses. Reinforcing the character and distinctiveness of town centres within London s network Fostering a vibrant cultural offer which embeds London s core attraction within its town centres as the heart of community life 1.22 The report makes specific reference to the current vacant units in Whitechapel. Whitechapel is outlined as amongst 11 other district centres for having relatively low vacancy rates (below 5%). This suggests that in terms of business space, the area is operating close to full capacity with tight levels of demand and supply. Implications for Enterprising Whitechapel The report (like the OAPF property appraisal) identifies that Whitechapel as operating at around capacity, supporting the rationale for additional provision of commercial space. To deliver against the objectives of the report, it is clear that new types of commercial space will be required, in particular spaces to support the needs of 21st Century SMEs The report advocates evidence based policy making around the need to think more broadly about the mix of uses in London s town centres and how this can support growth. Town centres are encouraged to support: A more focused, curated and diverse retail and service offer, which provides a positive consumer experience High quality, high density housing to help meet London s acute housing need and will also contribute vitality, footfall and expenditure Creating characterful workspace that is designed to a specification and price to meet the needs of 21st Century SMEs in a World City economy p 59

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61 B) THE WHITECHAPEL ECONOMY: AN UPDATE 2.0 Where we are now 2.1 It is important that any response promoted through this strategy is developed in line with latest evidence and is cogniscent of some of the challenges that exist within Whitechapel. This section reviews this evidence and considers it implications on the future of the area. The headlines: Whitechapel s local resident population has grown significantly over the last decade, with around 17,600 local residents In total, Whitechapel currently contains around 16,800 jobs, around 7% of all jobs in Tower Hamlets (Borough). Whitechapel is currently home to more than 700 local business units, which has grown by 22% since Around 86% of businesses in Whitechapel are micro businesses (0 to 9 employees), with the remainder predominantly small businesses (10 to 49 employees). There has been a growing number of working age residents living in the area over the last decade. Around 77% of the population is of working age, exceeding the London average of 69%. Despite a growing proportion of working age residents living in Whitechapel, economic activity remains below the London average at 69%. There are a growing number of working age residents in employment, however this still remains considerably below the London average at 55% compared to 68% across London. Activities relating to human health are the largest employer in the area whilst wholesale and retail, and professional, scientific and technical activities are the most prevalent in terms of number of businesses. p 61

62 Defining Whitechapel 2.2 The Whitechapel boundary (illustrated below) has been established for this baseline. This uses the best fit of Lower Super Output Areas (LSOAs) to align with the Whitechapel Vision Masterplan Boundary. 2.3 Analysis is undertaken making comparisons with neighbouring locations and other distinct town centres in London. Hoxton LB of Hackney Shoreditch Haggerston Bethnal Green Whitechapel Data Boundary London Borough boundary Whitechapel boundary Primary roads St. Luke s Whitechapel LB Tower Hamlets City of London LB Stepney Limehouse Shadwell Poplar Borough Wapping p 62 Enterprising Whitechapel Strategy

63 Current size and strength Economic functionality 2.4 Whitechapel currently contains around 16,800 jobs, around 7% of all jobs in Tower Hamlets (Borough). According to official data sources (ONS Business Count, IDBR), Whitechapel is currently home to around 600 businesses 3 or more than 700 local business units (individual sites associated with an enterprise). However, this is likely to be considerably higher as the data source excludes the smallest, non-employing unregistered businesses. 2.5 Whitechapel sits on the city fringe on the western edge of the Tower Hamlets Borough boundary and continues to play an increasingly important role in the wider London economy. 2.6 Its strong connectivity and physical location are reflected by its labour market flows. Around 5,900 commuters travel into central Whitechapel for work and around 4,600 Whitechapel residents leave the area for work on a daily basis. Around 23% of residents leaving the area for work travel to other areas in Tower Hamlets borough, with 68% working in other areas across London (outside Tower Hamlets, but including the City of London). 2.7 Whitechapel s net in-flow of workers highlights the role of central Whitechapel as a large employment base, particularly supported by the presence of Queen Elizabeth Hospital. 3 Note: Business count data is only available at MSOA level so is based on a different geographical boundary which only captures a smaller central area in and around the station p 63

64 Recent economic performance Enterprise and Jobs 2.8 Whitechapel has experienced 5% growth in the number of locally based jobs over the past 4 years, equivalent to 800 additional jobs. Whitechapel s local business base has also grown, with a 22% increase in local business units, equivalent to an additional 125 units. 2.9 Despite experiencing growth in both the number of jobs and local businesses in the Whitechapel area over the past 4 years, when compared against other east London and City Fringe locations, growth in Whitechapel has actually been relatively weak Jobs growth in Whitechapel has also been around 6% points behind the London average, and although growth in the number of local units has exceeded the London average, given its strong strategic location for business, Whitechapel should be aspiring to achieve growth in line or beyond that across comparative areas. p 64 Enterprising Whitechapel Strategy

65 Figure 2.1: Job and business growth (%), comparative Boroughs Jobs Growth Hackney Tower Hamlets Newham Islington London Whitechapel 5% 0% 5% 10% 15% 20% 25% Business Growth Newham Hackney Tower Hamlets Islington Whitechapel London 22% 0% 10% 20% 30% 40% 50% p 65

66 2.11 Whitechapel s recent performance can also be captured against comparative evolving toen centres. This highlights both the importance of London s sub-economies as a local base for business, as well as the growth potential of Whitechapel if it s able to better serve its function as a self-contained local economy In relation to other areas, Whitechapel has performed middling in terms of comparative jobs growth over the past 4 years, however comparably weaker when looking at growth in local businesses, lagging behind that across Dalston, Brixton, Shoreditch and Bethnal Green. Implications for Enterprising Whitechapel Recent growth in the number of locally based jobs and business units in Whitechapel reflects the strengthening of the local economy and the growing attractiveness of the area as a business location. With the assets at its disposal however, Whitechapel should be aspiring to be one of London s fastest growing town centres - currently, this is not the case. p 66 Enterprising Whitechapel Strategy

67 Figure 2.2 Job and business growth (%), comparative local areas Jobs Growth Shoreditch Angel Dalston Whitechapel Bethnal Green Peckham Brixton -10% 0% 5% 10% 20% 30% Business Growth Dalston Brixton Shoreditch Bethnal Green Whitechapel Peckham Angel 0% 10% 20% 30% 40% 50% p 67

68 Income and deprivation with the Whitechapel population Bethnal Green Whitechapel Whitechapel boundary Overall 2010 IMD 0% to 10% (most derived) 10% to 20% 20% to 30% 30% to 40% 40% to 50% 50% to 60% 60% to 70% 70% to 80% 80% to 90% 90% to 100 (least deprived) Stepney Limehouse Whitechapel Index of Multiple Deprivation Shadwell 2.13 Despite signs of growth in terms of employment and a strengthening local business base, Whitechapel still faces a number of socio-economic challenges. Whitechapel is home to some of the most deprived communities in the UK. Figure 3.5 illustrates the relatively severe pockets of deprivation prevalent across the area Low average household incomes and high levels of unemployment also illustrate some of the socio economic challenges that exist across the area. In % (1,025 residents) of Whitechapel s economically active resident population were unemployed, compared to 9.7% across Tower Hamlets and 7.3% London average The average household income in Whitechapel is around 40,800, significantly behind the average income across the borough ( 49,200) and the London average ( 46,500) Despite a decline in the absolute number of JSA claimants in recent years, in May 2011 (latest available census of population data) around 6.2% 4 of Whitechapel s working age population were claiming JSA benefits, exceeding the rate across both Tower Hamlets (5.5%) and London (3.9%) Growth in the number of JSA claimants between 2004 and 2014 (indexed to 2004) 4 ONS, benefit claimants- JSA p 68 Enterprising Whitechapel Strategy

69 Figures 2.3 : Average household earnings Mean Household income Thousands LONDON avg. 0 Newham Hackney Whitechapel Tower Hamlets Islington Figures 2.4: Average JSA benefit claimants % of WAP claiming JSA benefits 8% 7% 6% 5% 4% 3% 2% 1% 0 7.3% 6.2% 5.7% 5.5% 3.0% 3.9% Whitechapel Tower Hamlets London p 69

70 provides a more recent snap shot of comparative unemployment trends. The data suggests an improving local situation in Whitechapel, with the decline in the number of JSA claimants in since 2004 proportionately greater than that across both Tower Hamlets and London. Implications for Enterprising Whitechapel The persisting levels of high unemployment and low average household incomes in Whitechapel, have been a constant issue for the area for over 30 years. It is important that the strategy addresses this and ensures that local people (and businesses) are ready to participate in the opportunities which are available from Whitechapel growth. p 70 Enterprising Whitechapel Strategy

71 Figure 2.5: Indexed growth in JSA claimants (2004=100) JSA claimants indexed growth Whitechapel Tower Hamlets London year p 71

72 Business and enterprise in Whitechapel 2.18 Whitechapel s business base is not dissimilar to that of London, although all of the businesses in the area employer fewer than 250 people (the traditional definition for small and medium sized enterprises or SME s) Of these the majority are micro sized enterprises (86%), employing fewer than 10 people. In reality the figure is actually likely to be significantly higher as many of the smallest enterprises are often excluded from government datasets as they fall below the threshold for VAT registration (c 80,000). Figures 2.6 : Whitechapel Business by Employment Size Band (2013) Whitechapel London 0% 20% 40% 60% 80% 100% Micro (0 to 9) Small 10 to 49) Medium sized(50 to 249) Large (250+) p 72 Enterprising Whitechapel Strategy

73 Business Size and Growth 2.20 Despite relatively low levels of growth outlined above, Whitechapel remains an important location for micro and small sized businesses Around 88% of business growth since 2010 was from the growing number of micro businesses (< 5 employees) located in the area and 13% was due to growth in the number of small businesses. Despite a high proportion of business growth in Whitechapel attributable to increasing numbers of micro businesses, when compared against comparable local areas, Peckham, Dalston, Shoreditch and Bethnal Green all experienced a larger proportion of micro sized business growth. Figure 2.7 Proportioned business growth , by employment size band Proportioned Business Growth by size Peckham Dalston Shoreditch Bethnal Green Whitechapel Brixton Angel Micro Small Medium 0% 20% 40% 60% 80% 100% p 73

74 Business start-up rates 2.22 Business start-up data is not available at the local Whitechapel level, however startup rates at the borough and east London (E1 postcode) level provide an indication of enterprise activity in the area Tower Hamlets has a business start-up rate of around 12.2 business start-ups per 1,000 residents, exceeding the London average. This is also the case for Tower Hamlets business survival rate, with 38% of new start-ups surviving after 5 years Tower Hamlets start-up rate is likely however, to be driven by strong business growth in areas such as Canary Wharf, Shoreditch and Bethnal Green, suggesting that Whitechapel is not creating as many new businesses as it could ONS business growth data backs this theory, showing that Whitechapel is performing relatively weakly in terms of recent business growth, falling behind comparative East London city fringe locations such as Shoreditch and Dalston. Other indicators of Enterprise 2.26 While business start-up rates provide an indication of the levels of enterprise within an economy, analysis of other indicators such as the number of sole traders selfemployment and home working levels help to provide additional insight and depth to the analysis. Overall enterprise activity appears to be relatively week across Whitechapel: Figures 2.8 : Business Start-up Rate (2013) and Survival of newly born enterprises (in 2008) Start-up rate per 1,000 residents % Lewisham Survival of new enterprises (%) Newham Haringey Southwark Wandsworth Hackney Tower Hamlets Hammer. &... Kens & Chelsea Islington Lambeth Camden 45% 40% 35% 30% 25% 20% 15% 10% 5% 5 year survival % (of start-ups) p 74 Enterprising Whitechapel Strategy

75 Sole traders: ONS business count data suggests there around 80 sole traders (proprietors) in the Whitechapel area. However, as with micro businesses, the actual number is likely to be much higher, as many sole trader businesses will fall below reporting thresholds. Self-employment: Self-employment levels also provide an indication of entrepreneurial tendencies of the local population, although it should be noted that those in selfemployment may not actually work in the area in which they live. In total there are around 1,100 self-employed people living in Whitechapel. This represents around 11% of all those residents in employment, substantially below the London average of 16%. Home working: Levels of homeworking provide a further indication of enterprising activity, although it should be noted that homeworkers may not necessarily be self-employed or engaging in enterprise. In 2011, there were around 450 homeworkers living in Whitechapel. This represents around 8% of all those residents in employment, falling behind the London and national averages. Implications for Enterprising Whitechapel Whitechapel is clearly under performing in terms of business starts and enterprise compared to the rest of east London. This evidence provides a fundamental rationale for this strategy, meaning raising levels of new business in the area should be a key priority. p 75

76 High level sector composition 2.27 Activities relating to human health are the largest employer in the area, which reflects the presence of Royal London Hospital and Life Science related activities at Queen Mary University. Wholesale and retail is also a large employer in the area and is the most prevalent in terms of number of businesses. Professional, scientific and technical activities, and information and communication sector activities also account for a large proportion of local businesses in Whitechapel More details on the sector opportunities in Whitechapel and their future implications are included below. p 76 Enterprising Whitechapel Strategy

77 Figures 2.9 : Sector Composition, 2013 Jobs by industry % of total jobs % of all businesses % 25% 20% 15% 10% 5% 0% Other Property Manufacturing Business by industry Other Other Public Manufacturing Info & comms Construction Transport & Storage Other public Business & admin Financial &... Arts Accom. & Food Prof, Sci & Technical Education Wholesale & Retail Health Financial & Insurance Property Construction Transport & Storage Education Health Arts Business & Admin Accom. & Food Info & Coms Prof, Sci & Technical Wholesale & Retail Whitechapel London p 77

78 Whitechapel s sector opportunities and specialisms 2.29 Analysis in the reminder of this section considers in more detail, the sectors which will drive growth and differentiate Whitechapel in the future. To facilitate analysis and to provide the foundation for future intervention sectors have been considered in three categories. Identifying Whitechapel s Key Sectors 2.30 In developing an evidence base for sectors which are likely to be of most important in both defining Whitechapel and in driving future economic growth, both existing strengths and future growth prospects have been considered: Existing Whitechapel sector strengths: based on analysis of high level sector data, review of council policy documents and observational analysis, existing sector strengths for Whitechapel include health (Life Science) textiles and fashion, and media and broadcasting. Key London sectors: based on opportunity sectors targets in the London Plan, London LEP Economic Strategy and The mayor s Future priority sectors at the London level include digital and creative industries, and financial and business services. Sector Typologies 2.31 The following three sector typologies are used to group sectors into different groups to help partners formulate a clear and relevant response. Functional: Sectors that serve a local population. Demand relates to local residents & users and should increase as more residents move into an area. The broad response to support these sectors will be to ensure that the space exists to accommodate uses and that the commercial offer meets the needs of the changing local population. In Whitechapel, these include: Retail Food and beverage Public and third sector Defining: Sectors that provide a USP and definition for an area and differentiated it from other locations and competitors. These sectors are part of the areas DNA, but can sometimes require interventions and protectionist policies to support them to stay and flourish. In Whitechapel, these include: Specialist goods and services Media and Broadcasting Arts Textiles and Fashion Valuable: These are the sectors that bring higher value jobs to an area and drive transformational growth through innovation and increased value within the local economy. These sectors typically need bespoke spaces and significant support, intervention and promotion to grow. In Whitechapel, these include: Life Sciences Digital and creative Financial and Business Services 2.32 The diagram opposite plots the 10 sectors/ activities considered in this report against the three sector typologies The sector typologies do not function independently, and considerable overlaps exist with regards to the role of each sector within the local economy. For example, as well as bringing high value jobs to Whitechapel the life sciences sector contributes to the unique identity of Whitechapel. p 78 Enterprising Whitechapel Strategy

79 Food & Beverage Public & Third Sector Placemaking & Functional Financial & Business Services Specialist Goods & Services Retail Arts High Value & Defining & High Growth Life Sciences & Bio Innovation Unique Media & Broadcasting Tech & Media Digital & Creative Textiles & Fashion Sector Typologies p 79

80 Data on Sector Strengths 2.34 To provide a better understanding of the more specific sectors which the Whitechapel economy, further data analysis has been undertaken using UK Enterprise Count/ BRES data. This provides an initial baseline of performance in specific activity areas and their performance against London and other areas It should be noted that this data will not cover all business activity in Whitechapel. Whilst the Standard Industrial Classification (SIC) system, and while this provides a relatively clear and consistent set of definitions, there are a number of limitations, such as: Sectors evolve over time e.g. due to technological progress and official statistics are generally slow to keep pace. Sectors may emerge around new technologies which cut across and underpin many different industries. New industries are emerging within established sectors of the economy which are not captured by the SIC codes (e.g. cyber- security). What is Location Quotient (LQ) The table overleaf (Table 3.1) uses Location Quotient (LQ) to demonstrate Whitechapel s relative strengths in certain sectors. Location Quotient illustrates the relative concentration of activity versus another location. If Whitechapel has an LQ of 1 or more v another area, it means that it has a strong concentration of this particular activity. For example Whitechapel has an LQ of 1.7 v London. This means that the area has 1.7 x the concentration of activity in this sector than in London as a whole The Life Science s sector illustrates this well; although the sector only reports 100 jobs within the government data sets, the QMUL Bio-Innovation centre currently has 450 employees located there. p 80 Enterprising Whitechapel Strategy

81 Figures 2.10: Key sectors job & business growth and Jobs growth by sector Media and Broadcasting Arts Specialist goods & services Digital & creative Textiles & Fashion Retail Life Sciences Food & Beverage Financial and business sector Whitechapel Growth London Growth -40% -20% 0% 40% 80% 120% Business growth by sector Specialist goods & services Media and Broadcasting Food & Beverage Financial and business sector Digital & creative Retail Life Sciences Textiles & Fashion Arts Whitechapel Growth London Growth 0% 10% 20% 30% 40% 50% 60% p 81

82 Table 2.1: Whitechapel s Key Sector Strengths LQ Vs Whitechapel Hackney Islington Newham Tower Hamlets London Whitechapel Absolute % of total Employment Role within London Functional Sectors Human Health , % Education , % Retail , % Food & Beverage % Other public sector % Defining Sectors Specialist Goods & Services , % Textiles & Fashion , % Arts % Media & Broadcasting % Valuable Sectors Digital & Creative % Financial & Business Services , % Life Sciences % p 82 Enterprising Whitechapel Strategy

83 Table 2.2: Whitechapel s Key Sectors Growth, Tower Hamlets London Whitechapel % Change % Change % Change Functional Sectors Human Health % 45,500 20% 1,000 22% Education % 16,700 5% % Retail 500 6% 12,100 3% 100 9% Food & Beverage % 44,500 18% % Other public sector % -10,900-5% <50 8% Defining Sectors Specialist Goods & Services % 15,500 8% % Textiles & Fashion <50 2% 6,400 8% % Arts % 10,400 40% % Media & Broadcasting 0 0% 44,500 26% % Valuable Sectors Digital & Creative 8,700 79% 64,400 27% % Financial & Business Services 22,500 23% 180,700 17% % Life Sciences % -3,000-16% <50 6% Source: ONS, BRES, p 83

84

85 C) WHITECHAPEL HERE AND NOW Central Working, Mile End Road. Photo: We Made That p 85

86 p 86 Enterprising Whitechapel Strategy

87 Observed Activity 3.0 Observational mapping 3.1 As the last section outlined, there are limitations in taking a data only approach to sector analysis, particularly in a place which is changing as rapidly as Whitechapel. Therefore, to ensure capture of the full array of local sector opportunities (including those which may already be ahead of the statistical story), We Made That have led a detailed piece of observational street level research. 3.2 This involved a visual mapping of business and sector activities in Whitechapel; informal consultation with businesses and users; identification of gaps within the local offer; and opportunities to build the short term capacity of each sector. 3.3 It considers, in turn: Life Sciences Digital and Creative Leisure and Amenity Textiles and Fashion (including Wholesale) Arts Specialist Goods and Services (including those serving the local Bengali community) p 87

88 Life sciences 3.4 Barts and The London School of Medicine and Dentistry (Queen Mary University) and Barts and London NHS Trust have a strong presence just south of Whitechapel Road. Of particular importance to enterprise space in Whitechapel is the Queen Mary Bioscience Innovation Centre (QMB), the largest purpose built commercial laboratory space incubator in London, located on the east side of New Road. 3.5 The economic significance of this facility is described in more detail in Chapter 5: The Case for Opportunity Sectors and Activity. Barts and The London School of Medicine and Dentistry presence contrasting in their steel and glass form from their surrounding often dilapidated brick buildings. The cluster of buildings contributes to activity on the surrounding streets as people often move in between them. However, the public space formed in between the QMB and the Abernethy Building/Blizard Building is quite bleak and is usually empty. The quality of public space and positive street presence could be improved in future expansion of such uses. QMB Innovation Centre and The Blizard Institute KEY Gaps in the Offer 3.6 QMB is the only available commercial lab grow-on space currently available in London. A stage 3 incubator, the centre houses established science and technology companies who are looking to expand as well as recent start up companies seeking a base for their laboratory. 3.7 The new buildings have a strong visible Health services Medical research Medical schools Uses shown are indicative and observed only. These may not be the use as defined within the Town & Country Planning (Use Classes) Order p 88 Enterprising Whitechapel Strategy

89 NEW ROAD CAVELL STREET CAMBRIDGE HEATH ROAD VALLANCE ROAD WHITECHAPEL WHITECHAPEL ROAD COMMERCIAL ROAD N 0 200m p 89

90 Digital & creative 3.8 Since the late 1990s inner East London has a vibrant high-tech cluster that is primarily focused in Shoreditch and Clerkenwell. The Tech City initiative was launched in 2010 with the announcement of the government s intention to support and grow this tech hub from Shoreditch across east London and towards the Olympic Park. 3.9 The presence of high value incubator schemes by companies such as Barclays and Microsoft in Dept W on Mile End Road, to the east of the Vision area, indicate the potential for Whitechapel to capitalise upon its location on the affordable fringe of the City and Tech City by attracting dynamic and potentially high-growth businesses Dept W is located on Mile End Road, to the east of the Vision area, trading on this being an edgy location between the City and Canary Wharf. The provision has been set up specifically with tech uses in mind. Central Working, an award winning start-up office venue operator, are the first tenants to be operating in the building. They are currently running two different incubator/accelerator programmes in collaboration with Barclays and Techstars (Microsoft). Spatially, Dept W is defined by a raw industrial aesthetic, with a shared reception, open plan co-working space, meeting rooms of various sizes and a cafe on the ground floor The Pillbox is situated close to Bethnal Green tube station and just to the north of the area boundary. It is a creative hub in a recently refurbished building, housing over 100 businesses and is managed by Workspace Group. The building is particularly marketed at Finance (proximity to City), Technology (proximity to Shoreditch) and Traditional Media businesses (proximity to Wapping). Offices and studios size range from 102 1,062 sqft. with prices significantly over the Whitechapel area average of /sqft p/a, up to 80 /sqft p/a. Amenities include 24 hour access, a café, meeting rooms, Dept W: Central Working lobby Insight from Businesses 3.10 Two key sites, both of which have opened within the last two years, are indicative of the potential for Whitechapel to attract digital and creative businesses. Neither are directly within the Vision area, but both mark a distinctly new occurrence of small to medium sized business space and coworking facilities being delivered away from the conventional city fringe area to the west of the Vision, KEY Technology hub 1 Whitechapel Technology Centre 2 Dept W 3 Pillbox Uses shown are indicative and observed only. These may not be the use as defined within the Town & Country Planning (Use Classes) Order p 90 Enterprising Whitechapel Strategy

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92 the area 5. This vibe can be translated as the cultural offerings an area has to offer. In this respect, Whitechapel should seek to increase and broaden its leisure and amenity offer, as described in more detail in Section 8. The Pillbox co-working space and a staffed reception. Tenants in the Pillbox comprise creative and tech businesses including branding and marketing agencies, online clothing retailers, interactive designers, film makers and production companies. Gaps in the Offer 3.13 The recent opening of both Dept W and the Pillbox indicate demand for higher value tech and creative office space in the Whitechapel area. However, both of these locations lack the transport connections of sites closer to Whitechapel Station. Through conversation with users and tenants of these two facilities, this is felt to be a disadvantage. There is therefore opportunity for well-connected creative and tech workspace to be located near to the Station to be particularly appealing. Such provision could capitalise on the edgy location, whilst also benefiting from excellent transport connections In previous studies of Tech City, a number of businesses identified the vibe and buzz as being integral to their being located within 5. A Tale of Tech City: The Future of Inner East London s Digital Economy, Centre for London, p 92 Enterprising Whitechapel Strategy

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94 Leisure & amenity 3.15 Whitechapel benefits from a selection of cultural assets such as the Whitechapel Gallery and Idea Store. Reports have documented the importance of leisure and cultural uses in being attractors to the types of businesses that are drawn to Tech City. If Whitechapel is to become a highly desirable location for enterprise, its leisure and cultural offer, including its night time economy will also need to develop and diversify Whitechapel Gallery is an important cultural institution, that along with attracting visitors to the gallery, organises First Thursdays in East London enabling public access to over 150 galleries in east London and run free events, exhibitions, talks and workshops The Idea Store is an important landmark and community hub in the area. Along with being a library it offers a wide range of adult learning courses, activities and an extensive events programme. Dessert cafés on Fieldgate Street people dessert after their meal at Tayyabs. Thus a supporting network of businesses has been created on this street. This food culture is a significant asset to the area that should be supported and expanded The Market is a key attraction that brings visitors into the area and creates the vibrancy on Whitechapel Road. However, it creates issues of access and general appearance, that may also be considered problematic from the perspective of attracting new businesses. KEY Cafe / restaurants Takeaways Drinking Establishments Insights from Businesses 3.19 Brick Lane, and by extension parts of Whitechapel, are known for the number of Asian restaurants on offer. Of particular fame is Tayyabs a restaurant serving Punjabi food on Fieldgate Street. The success of this restaurant is apparent by the long queues that spill down the street every evening. Interestingly Tayyabs has also created a local micro-economy on Fieldgate Street. It being a bring your own people buy alcohol from one of the local off licenses before their meal. A number of dessert cafés have also appeared on the street to serve Leisure The market 1. Tayaabs 2. Whitechapel Gallery 3. Ideas Store 4. Genesis cinema Uses shown are indicative and observed only. These may not be the use as defined within the Town & Country Planning (Use Classes) Order p 94 Enterprising Whitechapel Strategy

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96 Gaps in the Offer 3.20 There is currently a lack of hot food offers, particularly around lunch time and during working hours In terms of entertainment, there is only one cinema that is located just east of the boundary, The Genesis. Central Working (Dept W) have used this cinema for special launch events, which demonstrates the value of such leisure uses to attracting enterprise, as well as cultural visitors There is a noticeable lack of hot food offers during the day, and limited evening and night time entertainment opportunities, with these exception of those noted above. Whitechapel Market p 96 Enterprising Whitechapel Strategy

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98 Textiles & fashion 3.23 Historically, the wider area of Spitalfields and Whitechapel has been associated with textile industry ever since the late 17th century, when the French Huguenots settled in the area, bringing with them their weaving skills. Over the years immigrant populations from the Irish to the Bangladeshi have continued to sustain this industry, which remains a significant feature of the area to this day The presence of textiles and fashion in Whitechapel is very apparent, with a large number of shops and market stalls selling fabric, textiles, dresses, scarves, saris and salwar kameez. Supporting services such as haberdashery shops and tailors are also present in the area, suggesting a wider sector cluster There is now evidence of a new wave of younger fashion designers and makers that are moving into Whitechapel. The presence of undergraduate and post-graduate fashion schools at the Instituto Maragoni on Fashion Street and The CASS in Aldgate may also contribute to the evolution of textiles and fashion in the area. Insight from Businesses 3.26 Whitechapel currently plays a significant role as London s garment district. There is a large presence of clothes/fabric wholesalers in the area especially in the south west of the Vision area. A number of these ground level shops, which are only open to wholesale trade, use the upper level floors to store their goods. These uses arguably have a poor street presence, although their use as showrooms serves an important function for the businesses These wholesalers brand themselves as import/export. From conversations with these businesses, it appears that they mainly import from India, Bangladesh and China. Buyers from all over the world, primarily Europe, come to this garment district. The dense concentration of such wholesale shops enable the buyers quick and easy access to multiple locations on foot. Wholesalers then export the goods to the buyer s country. Whitechapel s garment trade thus forms an important link within the web of international global textile trade. KEY A1 Fashion retail A1 Fashion wholesale A1 Textile services D1 Education (fashion) B1 Manufacturing (fashion) Import/Export and textile retailers Uses shown are indicative and observed only. These may not be the use as defined within the Town & Country Planning (Use Classes) Order p 98 Enterprising Whitechapel Strategy

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100 3.28 Our research found the presence of new generation of fashion and making in the area with places such as The Whitechapel Workhouse on Whitechapel Road. These new businesses report that they are attracted to Whitechapel by its historic garment district reputation, functional links to suppliers in the area and access to attractive, if run down, historic buildings at affordable rates. This new community of businesses values craft and quality over mass-production, and offers a range of products services from leather goods, accessories and fashion textiles to bespoke couture sewing. They report a renewed market interest in high-end fabrication, with the Made in London brand becoming increasingly valuable. Further detail of one such business is provided below as a case study. with Hackney Central, creative workspace provision in Whitechapel could therefore act in a co-functioning role with facilities further north - critically with the businesses permanent bases being in the Vision area. This close access to high-end facilities may therefore be a supporting factor for the future of textiles in Whitechapel. Gaps in the Offer 3.29 As discussed above, the garment wholesale businesses in the south west of the Vision area have poor street presence caused by using shop display areas for storage and the nature of their trade not requiring kerb appeal. Yet many of these premises are good quality building stock that could be an asset to a broader retail offer in the area. Consideration should be given to supporting existing wholesalers to improve their appearances, or to relocate their storage capacity lower profile premises where appropriate In considering the future of fashion and textile design in Whitechapel, it is important to acknowledge that the Hackney Fashion Hub is currently under development in Hackney Central, and that this could be a source of competition for such enterprise. Current provision in Hackney is primarily limited to open-access textile facilities, both at the Fashion Hub and The Trampery London Fields, with limited dedicated studio space available. With good public transport links p 100 Enterprising Whitechapel Strategy

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102 Arts 3.31 Despite its proximity to the notoriously creative areas of Shoreditch and Brick Lane, and the presence of the Whitechapel Gallery, the Vision area has a low presence of the arts sector when compared with other nearby areas, for example, Hackney (see Table 3.1) Whitechapel has a high proportion of small workspaces - 31% less than 1,000 sqft (93 sqm), compared with an average of 8% at this size across the City Fringe 6. Average rents in the area are per sqft per annum (2011-present) 7, with the widely accepted range for artists workspace being 9-15 per sqft per annum 8. Both of these facts suggest a suitability for arts sector uses in Whitechapel. Insights from Businesses 3.33 Through observational mapping, only one cluster of fine artists studios were found within the Vision area: Safe Studios. These artists identify themselves as being on the fringe of Spitalfields, as opposed to the beginning of Whitechapel. The artists are housed in two separate buildings: an old converted synagogue, the Development Centre and The Craft Building, a recently completed student housing development. The artists had been working on the site prior to its development and were relocated into studio space provided in the new building. The artists are a mature and well-established group, with a lower presence of young artists on the site There are several third sector organisations promoting the arts in the area including the Brady Arts Community Centre and Vital Arts. 6 Tech City/City Fringe OAPF Property Market Appraisal, URS, Nov Ibid 8. Artists Workspace Study, GLA, We Made That, Sept Cardboard Citizens, and nearby The Rag Factory and Toynbee Studios all work with the performing arts There are also a large number of online and print Bengali newspapers and magazines operating in the area. High concentrations of the businesses are located on the upper floors of buildings located on the High Street including Weekly Bangladesh, The Muslim Weekly and EuroBangla. Notun Din Newspaper is located in the Greatorex Business Development Centre and Mediamohol along with being a marketing agency, is also an independent news provider located in the London Muslim Centre. Gaps in the Offer 3.36 The recent GLA Artists Workspace Study documents a predicted overall decline in KEY Creative industry Media industry 1. Safe Studios 2. The Craft Building 3. Whitechapel Gallery 4. Micro Business Park 5. The Pillbox 6. The Whitechapel Workhouse 7. Brady Arts Centre 8. The Rag Factory 9. Cardboard Citizens 10. Greatorex Business Centre Uses shown are indicative and observed only. These may not be the use as defined within the Town & Country Planning (Use Classes) Order p 102 Enterprising Whitechapel Strategy

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104 artists and creative studios across London due to development pressures; over 3,000 artists studios predicted to be lost in the next 5 years. With its existing supply of floorspace, proximity to areas with high concentrations of studios and local arts schools such as The CASS Faculty for Art, Architecture and Design in Aldgate, Whitechapel is well placed to capture some of this creative capital In discussion with local businesses, a number of features of Whitechapel were described as making it an attractive location for creative uses. In addition to its central location within London, the size of many of the building floorplates (single upper floor of a high street terrace being around 50sqm, Artist s studio in the Old Synagogue for example) was suitable for studio use. The architecture of the high street-facing parades was also attractive to them, with many buildings having large windows and characterful period details. Average rents of around 15 per sqft per annum were felt to be good value, with businesses expressing surprise that rates had remained affordable despite higher levels of flux nearby. The value Safe Studios in the Craft Building of such Low Threshold Enterprise Space (LTES) is advocated in the recent GLA report, Accommodating Growth in Town Centres. The report supports the strategic significance of LTES, which includes affordable creative workspace and artists studios. This low threshold space is important to London s economic ecosystem in providing opportunities for jobs, growth and services, particularly at a local level. Providing this type of workspace in Whitechapel can play an important role in creating a diverse and vibrant local economy in the area Studies have documented the growth of Tech City following high levels of artist occupation in Shoreditch. Whilst there is not necessarily a direct link between artists workspace and subsequently attracting Tech City uses, fostering a strong arts sector in Whitechapel will support an image of the area as dynamic. It is this creative buzz or vibe, which many businesses quote as attractive features of places such as Old Street 9, that is potentially valuable in transforming Whitechapel into a location that high-value uses also find more appealing. 9. A Tale of Tech City: The Future of Inner East London s Digital Economy, Centre for London, p 104 Enterprising Whitechapel Strategy

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106 Specialist goods & services 3.39 The Whitechapel Vision states that, Currently the local community is characterised by an ethnically diverse population with over 50% being within the Asian and Asian British ethnic group. With such a large Asian ethnic population in Whitechapel there are strong international links that exist that create a specific economy where services are provided that cross national borders. For example, there are a number of solicitors and lawyers, especially along Whitechapel Road, providing legal services in immigration and nationality law including student visas; a number of travel, cargo and money transfer agents enabling people, money and goods to cross between Asia and the UK; and educational services providing ESOL and Life in the UK courses to enable foreign citizens to become British citizens The Whitechapel Vision also states that, historically philanthropic, faith and community organisations have been very active in Whitechapel and continue to play an important role in reducing social deprivation. The masterplan must actively support these organisations and seek to address these conditions to ensure it maximises the opportunities from new development, growth and investment in the area to raise the overall standards of living for local residents From our research we can confirm that there are a number of third sector organisations present in the area, clustering at the western edge of the Vision area on the High Street and around Raven Row, as illustrated by the map on the following page. Insights from Businesses 3.42 On Whitechapel Road, the London Muslim Centre is an important religious and community hub where a number of businesses operate from the Business Centre including Muslim Aid and Islamic Forum Trust sharing facilities Raven Row includes a number of charities including British Association for Early Childhood Education, Working Well Trust, Karin Housing Association, London Citizens/ East London Community Land Trust and the Muslim Council of Britain The wider area has a range of third sector organisations working with different focuses, such as: Creative sector: Vital Arts, The Rag Factory (outside the boundary) and Cardboard Citizens. Community Centres: Brady Arts Centre and London Muslim Centre Youth support: Youth Enterprise Co-op, Osmani Centre KEY English teaching centres Immigration & money transfer services English Tuition Uses shown are indicative and observed only. These may not be the use as defined within the Town & Country Planning (Use Classes) Order p 106 Enterprising Whitechapel Strategy

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108 proposed to be delivered in Whitechapel over the next few years, a number of Third Sector businesses are likely to be displaced as a result of development, particularly in the Raven Row area. This has the potential to impact upon the organisations ability to deliver their services, which may have a negative impact on the local community. Raven Row cluster Business Support: Whitechapel Community Trust, East London Small Business Centre (off Brick Lane) Women support: Jagonari Homeless/Displaced Support: The Booth House 3.45 Being in Whitechapel is important for the third sector as their organisations serve the local community and deal with local issues. Having a local presence and grassroots frontage is thus key for the survival of these organisations This third sector presence also presents a key potential route for linking the local community in with the benefits of development in the Whitechapel area. Their networks and connections with local people should be an important route for local recruiting, education and knowledge sharing. In this sense the ongoing presence of these charities and organisations should be seen as an important method of connecting with the local population. Gaps in the Offer 3.47 With the number of new developments KEY Charity / Community support 1 The London Muslim Centre 2 Raven Row cluster 3 The Rag Factory 4 Brady Arts Centre 5 Osmani Centre 6 Jagonari 7 Cardboard Citizens 8 The Booth House Uses shown are indicative and observed only. These may not be the use as defined within the Town & Country Planning (Use Classes) Order p 108 Enterprising Whitechapel Strategy

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111 D) THE CASE FOR OPPORTUNITY SECTORS AND ACTIVITY 4.0 Opportunity Sectors 4.1 Having developed an initial statistical and observational evidence base for identified sectors and activities in Whitechapel, this section provides further specific detail to help support the case for each sector and to inform partner s future interventions and discussions 10. Taking each sector in turn this includes: Further drill down into evidence on current sector performance in Whitechapel Local Strengths identified within the data Prospects for the sector in London as a whole Future potential (prospects in Whitechapel and challenges) Implications for this strategy and partner action 10. To demonstrate the concentration of activities, we use a location quotient (LQ) to show if there is an overrepresentation of business activities in Whitechapel. Where the LQ is greater than 1, this suggests a relative specialisation. p 111

112 Life Sciences Life Sciences (Current Performance) LQ Vs London 1.7 Jobs (2013) 100 Jobs Growth <50 (+6%) Number of Businesses (2014) 0 Growth in Business Base The Life Sciences sector includes activities such as research and experimental development on biotechnology, however excludes the general health sector to avoid skewing the results from the presence of Royal London Hospital and hence a large number of general health occupations. 4.3 The life sciences sector comprises 0.5% of the area s total employment base, equivalent to 100 jobs (Our observational and consultation work in the area reveals this in reality is a lot higher, with at least 400 jobs in the QMU Bio Incubator alone). Whitechapel has a distinct specialism in the life sciences sector, with almost twice the concentration of employment than across London (LQ of 1.7). Employment data reveals recent growth in life sciences jobs based in Whitechapel of around 6%; this however, is also likely to be a lot greater in reality. Local strengths 4.4 Whitechapel s jobs within the life sciences sector is largely driven by activities within the sub-sector comprises other research and experimental development on natural sciences and engineering. The data suggests there is some a strong local specialism within this sub sector, with almost twice the concentration of employment than London. Table 4.1: Local Sub-Sector Specialisms (5 digit SIC) Whitechapel 2013 Jobs growth (%) LQ Other research and experimental development on natural sciences and engineering 100 3% 1.7 Source: ONS, BRES p 112 Enterprising Whitechapel Strategy

113 Wider London prospects 4.5 The London LEP s Jobs and Growth Plan for London states that realising the potential of London s science and technology community key for jobs and growth. Specifically the plan outlines the Life Science sector as a key competitive advantage and on par with the best science cities globally. 4.6 The plan outlines the following priorities of particular relevance to the study: Lever London s knowledge assets: champion London s existing knowledge assets, including its world class research base, to maximise opportunities for collaboration and attract global R&D investment. Create a competitive environment for science and technology firms and investors: ensure London offers the most competitive environment for science and technology businesses to invest and grow. Future potential: Sector prospects 4.7 The UK Life Sciences industry is high-tech, research-intensive, innovative and highly diverse, spanning bio-pharmaceuticals, diagnostics, devices and medical technology engineering. The lift sciences sector plays a key role in sustaining high value jobs and employs around 176,000 people in the UK The UK strategy for Life Sciences 12 sets out a number of key actions to achieve the ambition of making the UK a world-leading place for life sciences investment. These actions include building a fully integrated life sciences ecosystem from its worldclass research and clinical infrastructure; 11 HM Government, Industrial strategy, Progress Report, April Department for Business, Innovation and Skills, Strategy for UK Life Sciences through making it easier for researcher to commercialise academic research and placing clinical research at the heart of the NHS. Future potential: Challenges 4.9 There are a number of challenges currently facing the UK s life sciences sector as a result of rapid global changes. Driving these changes are factors such as lifestyle choices, longevity and a rise in chronic conditions. Adding to the challenges facing the UK is the uncertainty of the current demand and investment into the UK and competition low cost locations outside of the UK Whitechapel s role as both a hub for life science enterprise and in safeguarding science jobs within the capital, also faces a number of additional challenges such as competition from other London locations and from science parks located outside of London which offer more space and capacity for business expansion (follow on space). Implications for Enterprising Whitechapel The Life Sciences sector is undoubtedly Whitechapel s most significant differentiating and value sector opportunity. Existing strengths are somewhat underplayed at a regional level and the sector itself remains quite intangible and hidden when arriving in the area. Plans to support he sector need to tie into London s Med City aspirations and the UK s broader Life Sciences strategy. This will mean the provision of further incubation and move on space within the area as well as a more visible programme of education and outreach to support local participation in the sector. p 113

114 Digital and creative Current Performance LQ Vs London 0.4 Jobs (2013) 500 Jobs Growth (+53%) Number of Businesses (2014) 85 Growth in Business Base (+21% 4.11 The digital and creative sector includes activities such as specialist design activities, photography and publishing of computer games The digital and creative sector comprises 3% of the area s total employment base, around 500 jobs. Although there is a comparably low concentration of employment within the sector compared to London, recent job and business growth data hints at the growing enterprise activity within the sector and suggests that the sector opportunities are ahead of what is currently able to be fully captured within the data. Local strengths 4.13 Although a growing number of businesses within the sector are choosing to locate in Whitechapel there are currently only a few small local specialisms emerging, which partly cross over with other sector activity such as within the arts sector. Table 4.2: Local Sub-Sector Specialisms (5 digit SIC) Whitechapel 2013 Jobs growth (%) LQ Support activities to performing arts < % 2.0 Operation of arts facilities <50 640% 2.0 Source: ONS, BRES p 114 Enterprising Whitechapel Strategy

115 Wider London Prospects 4.14 The creative economy is one of London s key priority growth sectors, and has achieved strong growth in recent years, largely driven by film and broadcasting (47% increase in GVA), and advertising and marketing (86% increase in GVA) 13. London is recognised as one of the world leader in creative and digital industries and as such capitalising its strengths in technology and creativity is identified as imperative for London between now and Future Potential: Sector Prospects 4.15 Creative industries contributed 71.4 billion in GVA in 2012 and provides around 1.7 million jobs. The government forecasts high growth in the sector, with significant enhanced momentum in recent years The ICT sector is one of central government s priority sectors for growth, driven not only by its own high value potential but also its enabling role, helping to drive innovation and productivity in other sectors. As a priority sector for the UK economy, central government is supporting this sector s growth through Innovate UK s Connected Digital Economy Catapult in London and UKTI s Technology Partnership programme, amongst other initiatives The ICT sector contributed around 8% ( 105 billion) to GVA in 2011 and supported 1.3 million jobs in the UK in While the sector took a big hit in 2009 due to the economic downturn, it has grown significantly over the last two years. Future Potential: Challenges 4.18 From a competition perspective, one of the largest challenges to growing the UK s ICT and Digital industry is the threat of international competition, especially in the US and Asia. The threat from international competition is particularly high for this sector given the intangibility and ease of distribution of many of the sector s products Another significant challenge facing the sector, which is particularly prevalent in the Whitechapel area, is connectivity and broadband speeds in the area. Recent analysis by Ofcom 16 reveals the Whitechapel area (E1 postcode) is amongst the worst in London in terms of average broadband speeds, which could potentially restrain future growth within the sector. Implications for Enterprising Whitechapel Given the strength and growth in neighbouring areas, Whitechapel is clearly under performing in the digital sector and as a component in Tech City. This is, in part as a result of the failure of Whitechapel to define its role within Tech City and develop true specialisms. These could be developed through the stronger interface between the digital sector and the arts or health activity which is already strong within the area. Affordable workspaces will obviously be necessary to differentiate Whitechapel from its near neighbours as will improved broadband speed. Ensuring local people have the skills to better interact with the digital sector (in particular Coding) will be crucial to enabling participation and more equitable employment growth. 13 London LEP, London 2036: an agenda for jobs and growth 14 HM Government (2013), Information Economy Strategy 15 HM Government (2013), Information Economy Strategy 16 uploads/2014/07/london-latency-map.jpg p 115

116 Local amenity (Food, beverage and retail) Current Performance Food & Beverage Retail LQ Vs London Jobs (2013) 700 1,300 Jobs Growth (-26%) +100 (+9%) Number of Businesses (2014) Growth in Business Base (+33%) +5 (+5%) 4.20 The, food, beverage and retail sector includes activities such as catering, sale of food, and retail sale via market stalls The food, beverage and retail sector comprise 12% of the area s total employment base, around 2,000 jobs. Business count data hints at the growing enterprise activity within the sector. However, a decline In the number of jobs and the area s low LQ (<1 compared to the London average) suggests that despite the opportunities presented by the growing resident, work day and student population in the area, the full potential of the sector has yet to be realised. resident population, such as retail sale in non-specialised stores and retail sale of meat, to key defining sectors which add to the unique characteristics of the area such as retail in commercial art galleries (primarily the Whitechapel Gallery) and unlicensed restaurants and cafés. Local strengths 4.22 The area s growing population as well as the expected increased footfall resulting from Crossrail, is likely to significantly drive up demand for retail and local amenities in the area. This presents a significant opportunity for Whitechapel to enhance its local offer, retain more resident expenditure and create subsequent jobs growth In the data Whitechapel has a number of local specialisms within the sector, which range from activities serving the local p 116 Enterprising Whitechapel Strategy

117 Table 4.3: Local Sub-Sector Specialisms (5 digit SIC) Whitechapel 2013 Jobs growth (%) LQ Retail sale in non-specialised stores with food, beverages or tobacco predominating Retail sale of meat and meat products in specialised stores Retail sale of sporting equipment in specialised stores % 1.3 <50 144% % 1.5 Retail sale in commercial art galleries % 6.0 Unlicensed restaurants & cafés % 1.8 Source: ONS, BRES Wider London prospects 4.24 The retail sector plays a vital role in the London economy, providing employment and contributing towards the vibrancy of London s high streets and town centres 17. The retail trade currently employs around 400,000 people in London and accounted for over 26bn (8%) of gross value added (GVA) in The anticipated growth in population and disposable income are likely to further support future growth in the sector. Future potential: Sector prospects 4.25 Retail is the UK s largest private sector employer, employing around 3 million people. There are over 189,000 registered retail companies in the UK- 170,000 of which have 17 GLA Economics for The Mayor of London, Retail in London: Looking Forward, January GLA Economics for The Mayor of London, ONS Regional GVA, 2012 fewer than 10 employees 19. Retail is fiercely competitive at the local, national and global level; and is heavily affected by a range of government policy and interventions Town centres and high streets represent around 42% of retail sales, and they are not just about shopping but socialising, entertainment, services and culture. The government through its recent Strategy for Retail Future recognises the importance of town centres and high streets both to local economies and communities. Future potential: Challenges 4.27 Shifts in the retailer/ customer relationship as a result of retailers increasingly moving to multichannel operations, such as e-commerce, m-(mobile) commerce and other 19 Department for Business, Innovation and Skills, A Strategy for future Retail, October 2013 p 117

118 forms of distant selling has had an impact on high streets and shopping centres. This has in many cases reduced the number of physical outlets stores might need or has changed how they use existing space 20. dependent on the attractiveness of the area as a place to live, work and visit These challenges have created a need for new and different retail job roles, however the customer experience remains the most vital success factor. Implications for Enterprising Whitechapel There is clear scope to enhance the local offering and quality both in terms of the high street and the market environment to appeal to the area s ever changing population. As the make-up of the community evolves, the retail offer will need to change too to ensure that the high street remains at the heart of the community. A greater understanding of what specifically is the demand for an enhanced food, beverage and retail offering is needed. This could be achieved through piloting a new uses and activities in the area e.g. food festivals and other events. Whitechapel is already home to a significant quantity of smaller units, some larger floor plates may help attract a broader range of retailers and fully expand the area s offer. Further dialogue with retailers will be required to understand how this should be positioned, particularly given the challenges the sector may face (see above). For the sector to fully harness growth and strengthen both its day and evening economy, it is key that high street and public realm improvements coincide with the provision of space, as the growth of the sector is heavily 20 Department for Business, Innovation and Skills, A Strategy for future Retail, October 2013 p 118 Enterprising Whitechapel Strategy

119 Textiles and fashion Current Performance LQ Vs London 3.0 Jobs (2013) 1,000 Jobs Growth (+31%) Number of Businesses (2014) 55 Growth in Business Base The textiles and fashion sector includes activities such as wholesale and retail of textiles and manufacture of apparel The textiles and fashion sector comprises 6% 21 of the area s total employment base, around 1,000 jobs. Whitechapel has a distinct specialism in the sector, with three times the concentration of textiles and fashion employment than in London as a whole (LQ of 3). Employment data also reveals the growing importance of the sector, however the number of registered business units has not changed over recent years. Local strengths 4.31 The employment location quotient for fashion and textiles in Whitechapel is high across a number of sub-sectors compared to London, indicating some real local specialisms. Particularly noticeable is the concentration of employment in the wholesale of clothing and footwear sector in Whitechapel, which is eighteen times greater than that across London. 21 Note: Figures should not be aggregated across Whitechapel s key employment sectors as a number of sub-sectors have been used in more than one sector definition p 119

120 Table 4.4: Local Sub-Sector Specialisms (5 digit SIC) Whitechapel 2013 Jobs growth (%) LQ Agents involved in the sale of textiles, clothing, fur, footwear and leather goods <50 50% 2.0 Wholesale of textiles % 3.0 Wholesale of clothing and footwear % 18.0 Manufacture of wearing apparel % 5.0 Preparation and spinning of textile fibres <50 350% 2.0 Manufacture of women s outerwear, other than leather clothes and workwear Manufacture of other wearing apparel and accessories <50-39% 3.0 <50-10% 2.0 Source: ONS, BRES Wider London prospects 4.32 The GLA recognises the role of the fashion and textiles industry in both creating jobs, defining the unique characteristics of an area and as a cultural asset. The Hackney Fashion Hub recently received 2m from the Mayor s Regeneration Fund to set up a major fashion and retail destination, which will create jobs and give locals a renewed sense of pride. Future potential: Sector prospects 4.33 The UK fashion and textiles comprises over 79,000 businesses, employs over 340,000 people and has an estimated GVA of over 11.5 billion 22. Textile manufacturing alone is worth 3 billion to the UK economy, where clothing manufacture, the wholesale of clothing and footwear and laundry and dry cleaning services are individually worth over 1 billion The UK Industrial Strategy 23 pinpoints the UK s exporting strength in the fashion and textiles industry, where despite deficit in a number of manufacturing sectors, net export performance in many textile sectors such 22 textiles/#.vobsbnkfz4g 23 Department for business, Innovation and Skills, Industrial Strategy: UK Sector Analysis, 2012 p 120 Enterprising Whitechapel Strategy

121 as man-made fibres and coated fabrics has been relatively strong or improving over the last decade Innovate UK recognises the importance of investment in technologies that aid the competitiveness of the UK manufacturing sector. should be the target. Developing Whitechapel as a centre for innovation and high quality production for the sector should be the priority. Relatively low rents in the area, could help to facilitate this, if spaces are promoted to the right audiences. Future potential: Challenges 4.36 The textile sector has experience accelerating market changes, largely driven by the offshore movement of low and medium value manufacturing to lower-wage economies such as China and India. However increased standards of living amongst the emerging BRIC economies has also boosted consumer demand and reduced offshore cost advantages and a number of UK companies are now increasingly seeking more flexible options of production closer to home The sectors ageing workforce presents a number of skill challenges at a time of increasing global demand, in particular for increased levels of technical skills to exploit the opportunities of growing markets, new technologies and renewed interest in manufacturing in the UK 24. Implications for Enterprising Whitechapel Fashion and Textiles provide help to differentiate Whitechapel. The strength of the wholesale sector is a mixed blessing as this is predominantly housed within ground floor retail units, which could arguably be better utilised for this activity. In developing further specialisms for Whitechapel, an increased focus on highervalue design-led and knowledge-intensive specialisation i.e. higher quality products 24 textiles/#.vobsbnkfz4g p 121

122 Arts Current Performance LQ Vs London 1.8 Jobs (2013) 200 Jobs Growth (+89%) Number of Businesses (2014) 10 Growth in Business Base The arts sector includes activities such as performing arts, artistic creation and operation of arts facilities The arts sector comprises around 2% of the area s total employment base, around 200 jobs. Whitechapel has an established specialism in the sector with a LQ of 1.8 compared to London, which is largely driven by the retail sale in commercial art galleries sub-sector, which is predominantly the activities of the Whitechapel Gallery. spill over benefits from neighbouring strong art and creative areas such as Shoreditch Whitechapel s most notable specialism is retail sale in commercial art galleries (primarily Whitechapel Gallery). This is however likely to be a driver of other specialisms Despite strong growth in employment, the data suggests there has been no increase in the number of new registered businesses within the area. It should be noted however, that the data probably does not fully capture the true growth in business activity in the area, particularly within the arts sector where a lot of small and independent enterprise activity occurs. Local strengths 4.41 The growing attractiveness of the area as a place to live and visit, and the strong presence of Whitechapel gallery reflects some of the local specialisms that have emerged in the area. This is also likely to have been driven by the relative affordability of Whitechapel for small enterprises and the p 122 Enterprising Whitechapel Strategy

123 Table 4.5: Local Sub-Sector Specialisms (5 digit SIC) Whitechapel 2013 Jobs growth (%) LQ Support activities to performing arts < % 2.0 Operation of arts facilities <50 640% 2.0 Retail sale in commercial art galleries % 6.0 Source: ONS, BRES Wider London prospects 4.43 Small and medium sized enterprises (SMEs) in artistic and cultural recognised as key for keeping London distinctive and competitive 25. The London Jobs and Growth plan outlines targeting SMEs in sectors with the potential to catalyse growth and regeneration of town centres, such as arts & culture, and new street markets, as well as reduce vacancy rates in London high streets is key for growth Strong visitor infrastructure is also a key strand of the Mayor s Cultural Strategy. Having a popular and well respected gallery within the wider area means that Whitechapel is part of London s artistic offer. Future potential: Sector prospects 4.45 The creative and cultural industries accounted for 1.68 million jobs in 2012, 5.6% of the total number of jobs in the UK 26. The 25 London Enterprise Panel, Jobs and Growth Plan, April Department for Creative Industries, Economic Estimates, January 2014 industry also generated around 71.4 billion in GVA, which was a 9.4% increase from Create UK sets out a vision for the creative industries by 2020; they aim to grow the creative industries share of both UK employment and GVA, and increase the number of creative industry businesses. They also state the vision of increasing diversity on the creative industries workforce to better align with diversity across the UK s population. Future potential: Challenges 4.47 Create UK 27 identifies access to finance as one of the major challenges for future growth in the sector, particularly for established businesses looking to take the next step and scale their operations still face a financing gap There also a number of other challenges facing the sector, such as the need to nurture 27 Create UK, Creative Industries Strategy, p 123

124 the skills of the next creative generation, support talent for growth, better coordination of skills support at a local, national and international level and enhanced diversity within the sector. Implications for Enterprising Whitechapel The Whitechapel Gallery offers a significant differentiating factor for the area which should form a more prominent part of Whitechapel s offer as both a locations for art and artists and a strong amenity function. The gallery s brand can also offer credibility to any art related provision which may be delivered in the area over the coming decade. Relatively low rents and the existing presence of artists in the area, provides an opportunity to deliver affordable space in a very central location. In particular, this could provide opportunities to exploit links between the arts sector and digital companies in the wider Tech City area. p 124 Enterprising Whitechapel Strategy

125 Media and broadcasting Media & Broadcasting (Current Performance) LQ Vs London 0.2 Jobs (2013) 200 Jobs Growth (+96%) Number of Businesses (2014) 30 Growth in Business Base (+50%) Local strengths 4.49 Analysis at the lower employment level suggests there are no particular specialisms within the sector locally. However the recent growth in local jobs and businesses within the sector, combined with anecdotal evidence of a small number of specialist media and broadcasting enterprises servicing the Bengali community, suggests that there could be an opportunity to develop local specialisms. Wider London prospects 4.50 Media and broadcasting plays a significant role in the capital s strength in technology and creative industries. The London 2036 Agenda for Jobs and Growth supports sustaining and further enhancing the capital s strength in the creative industry sector and outlines that growth since 2009 has been driven largely by film and broadcasting, and advertising and marketing, which are expected to continue to be key drivers of growth. This however, is largely centred on west London and latterly, the Queen Elizabeth Olympic Park. Future Potential: Sector Prospects 4.51 The UK has a real strength in media activities: it has the largest broadcasting hub in Europe, the leading online advertising market in Europe, one of the world s largest music industries in terms of exports and the fastest growing digital economy in the G The UK is home to some of the world s largest publishing companies. It is estimated that the value of the UK publishing industry is 10 billion, with 40% of this coming from exports. Similarly, the UK music industry generates around 3.5 billion globally and is the largest exporter of music after the United States The natural strengths of the UK media sector (and wider creative industries) is the size of the UK s e-commerce market (the largest per head in the world) and how digitally savvy the population is. Research indicates that now four in five Brits are now using internet on the move, thereby increasing the benefits businesses can access by tapping into digital platforms and e-commerce markets The Media sector and its role in the UK s wider creative industries represents one of 28 CBI (2014), The Creative Nation: a growth strategy for the UK s creative industries 29 Creative Industries Council (2014), *Create UK 30 CBI (2014), The Creative Nation: a growth strategy for the UK s creative industries p 125

126 the UK s leading sectors. Future growth is likely to be driven by the gaming, animation and digital creative sub-sector. At the global level, the games sector is projected to grow by 6.5% per annum to 2016 and the UK entertainment and media market alone is forecast to reach 63bn by Future Potential: Challenges 4.55 Create UK (2014) identified a gap in the provision of private funding and debt finance for business expansion and growth that goes beyond initial start-up or individual projects. This financing gap tends to exist particularly in the creative and media sectors for two main reasons. The first is due to a fragmented funding landscape, making it difficult for media firms to understand which financial products they are eligible to access. The second is that traditional financial products are not compatible with media firm business models, whose main assets are IPbased. Implications for Enterprising Whitechapel The sector is not significant part of the local economy, but there is some specialist activity which is no doubt important locally. Supporting this to remain innovative and connected to the sector in London will be important. Clearly improved broadband would help the sector grow and distribute content to wider markets Infrastructure, particularly superfast broadband, is another factor that can act as a barrier to growth in the media sector (as well as the ICT and creative sector). At present 73% of households have access to speeds of 30Mbit/s, although not all are connected due to a lack of Internet Service Provider incentive. Although the UK is on track to achieve the EU 2020 target of 30Mbit/s total coverage and 98% 4G coverage by 2017, Create UK notes that a more strategic long-term vision for digital infrastructure is needed to stay competitive Technology Strategy Board (2013), Creative Industries Strategy Creative Industries Council (2014), *Create UK p 126 Enterprising Whitechapel Strategy

127 Business and financial services Business & Financial Services (Current Performance) LQ Vs London 0.3 Jobs (2013) 1,400 Jobs Growth (-31%) Number of Businesses (2014) 170 Growth in Business Base (+31%) 4.57 The financial and business services sector includes activities such as legal and accounting, financial services and employment activities Whitechapel s financial and business service sector comprise 9% of the area s total employment base, equal to 1,400 jobs. Despite the sector s large employment base, the concentration of activity in Whitechapel is well below the London average (LQ = 0.3) Whitechapel does however, have a strong small enterprise landscape and an increasing number of businesses within the sector are choosing to locate in Whitechapel. The number of local businesses in the sector has grown in recent years by 31%, exceeding the 28% growth across London. Local strengths 4.60 Whitechapel s city fringe location and the future enhanced connectivity through Crossrail makes it extremely well placed as a growth location for financial and business services Employment data implies that Whitechapel has no particular local specialisms in the sector. Advertising and market research activities was the only sub-sector to achieve jobs growth in recent years. Lower level analysis reveals this growth was largely driven by activities of advertising agencies. Table 4.6: Local Sub-Sector Specialisms (2 digit SIC) Whitechapel 2013 Jobs growth (%) LQ Advertising and market research Source: ONS, BRES p 127

128 Table 4.7: Local Sub-Sector Specialisms (5 digit SIC) Whitechapel 2013 Jobs growth (%) LQ Credit granting by non-deposit taking finance houses and other specialist consumer credit grantors Other activities auxiliary to financial services, except insurance and pension funding % % 1.3 Source: ONS, BRES However, looking more closely at jobs in smaller sub-sectors, there are a number of local specialisms in Whitechapel (Location Quotient greater than one against London). Wider London context 4.63 London is one of the world s financial capitals and the lead provider of many professional and support services associated with the financial industry. This includes activities such as legal services, management consultancy and accountancy, for all of which London is a global leader. Additionally, London s financial and professional services market has several key areas of specialism, including Islamic finance, for which the UK has become the leading western centre for Shariah-compliant financial services The London LEP s 2036 Agenda for Jobs and Growth Strategy 34 sets out the key platforms for helping drive jobs and growth in London. The Financial and Business Service sector is identified as one of the key economic priorities for sustaining and developing a platform for growth in the city. The plan sets out the key future role of the sector in contributing to London s growth and the importance of sustaining this sector strength. Future potential: Sector prospects 4.65 Like many other developed economies, there has been a marked shift in the structure of the UK economy towards services, and in particular knowledge intensive services such as Financial and Business Services The UK Professional and Business services sector is now one of the UK s most competitive sectors, generating 11% of UK GVA and 12% of employment 35. In the sector s exports exceeded 50 billion for the first time and it is recognised that a successful professional and business service sector is fundamental to the UK s growth prospects The UK Commission for Employment and 33 City of London (2013), As Indispensable Industry 34 London LEP, London 2036: an agenda for jobs and growth 35 HM Government, Industrial strategy, Progress Report, April 2014 p 128 Enterprising Whitechapel Strategy

129 Skills expects an additional 600,000 UK jobs to be created in the professional and business service sector over the next decade 36. Future potential: Challenges 4.68 The greatest challenge and potential opportunity facing the sector is related to growth in overseas markets, particularly emerging economies. New global hubs competing in the professional services sector have emerged in Dubai, Shanghai, Hong Kong and Singapore. At the same time, emerging economies such as the BRICs represent huge growing markets where UK firms should look to grow their market share. Implications for Enterprising Whitechapel Proximity and connectivity to the City and Canary Wharf means that Whitechapel could conceivably evolve as a location for Financial and Business Service locations. Crossrail in particular could drive a change in perception which could mean that Whitechapel becomes a location where companies are prepared to locate. Further testing of these markets is clearly necessary if a proportion of the commercial space within future developments is to be targeted on the large floorplates these organisations may require Additionally, increased (financial) regulation is putting pressure on the growth potential of the sector. This is particularly the case for smaller businesses who may lack the expertise or resources to conform HM Government (2013), Growth is our Business: A Strategy for Professional and Business Services 37 UKCES (2012), Financial and Other Professional Services Sector Assessment p 129

130 Comparing the sector opportunity 4.70 To help partners better understand and make decisions relating to targeting and supporting specific sectors, a comparison table has been produced to summarise judgements on the relative opportunities in specific Summary of Future Sector Opportunities Sector USP Growth Trajectory Potential for External Investment Delivery of Jobs Food, Beverage & Retail * Textiles & Fashion Arts Media & Broadcasting ** Digital & Creative Business & Financial Services Life Sciences & Health * Based on forecasted population growth ** Specialist content p 130 Enterprising Whitechapel Strategy

131 p 131

132

133 APPENDIX 2 SECTOR DEFINITIONS A.0 Appendix Functional Sectors SIC Code (2 digit) SIC Definition Retail Trade 47 Retail trade, except of motor vehicles and motorcycles Public Sector 84 Public administration and defence; compulsory social security Education 85 Education and education support activities Human Health Activities 86 The provision of health activities Food and Beverage 56 Food and beverage service activities Defining Sectors SIC Code (5 digit) SIC Definition Arts Sector Performing arts Support activities to performing arts Artistic creation Operation of arts facilities Specialist Goods & Services Credit granting by non-deposit taking finance houses and other specialist consumer credit grantors Other activities auxillary to financial services Retail sale of meat and meat products in specialised stores Retail sale of electrical household appliances in specialised stores Retail sale in commercial art galleries Unlicensed restaurants and cafés Textile manufacturing and wholesale Agents involved in the sale of textiles, clothing, fur, footwear and leather goods Wholesale of textiles p 133

134 46420 Wholesale of clothing and footwear Retail sale of textiles in specialised stores Retail sale of clothing in specialised stores of other knitted and crocheted apparel SIC Code (2 digit) 13 Manufacture of textiles 14 Manufacture of wearing apparel Media and broadcasting Book publishing Publishing of newspapers Other publishing activities Printing of newspaperss Manufacture of printed labels Printing (other than printing of newspapers and printing on labels and tags Pre-press and pre-media services Binding and related services Reproduction of sound recording Reproduction of video recording Reproduction of computer media Motion picture distribution activities Video production activities Television programme production activities Motion picture, video and television programme post-production activities p 134 Enterprising Whitechapel Strategy

135 59131 Motion picture distribution activities Video distribution activities Television programme distribution activities Motion picture projection activities Sound recording and music publishing activities Renting of video tapes and disks Renting and leasing of media entertainment equipment Radio broadcasting Television programming and broadcasting activities Advertising agencies Media representation Market research and public opinion polling Valuable Sectors SIC Code (5 digit) SIC Definition Digital & Creative Wired telecommunications activities Wireless telecommunications activities Satellite telecommunications activities Other telecommunications activities Specialised design activities Portrait photographic Other Specialist photography (not including portrait photography) Film Processing p 135

136 74209 Other photographic activities (not including portrait and other specialist photography and film processing) Advertising agencies Ready-made interactive leisure and entertainment software development Business and domestic software development Computer consultancy activities Computer facilities management activities Other information technology and computer service activities Data processing, hosting and related activities Web portals Repair of computers and peripheral equipment Repair of communication equipment Manufacture of computers and peripheral equipment Manufacture of communication equipment (other than telegraph and telephone apparatus and equipment Wholesale of electronic and telecommunications equipment and parts Wholesale of electronic and telecommunications equipment and parts Publishing of computer games Other software publishing Museum activities Operation of historical sites and buildings and similar visitor attractions p 136 Enterprising Whitechapel Strategy

137 91040 Botanical and Zoological gardens and nature reserve activities Performing arts Support activities to performing arts Artistic creation Operation of arts facilities Financial & business services SIC code (2 digit) Computer programming, consultancy and related activities Information service activities Financial service activities, except insurance and pension funding Insurance, reinsurance and pension funding, except compulsory social security Activities auxiliary to financial services and insurance activities Legal and accounting activities Activities of head offices; management consultancy activities Advertising and market research Employment activities Office administration, office support and other business support activities Life sciences Research and experimental development on biotechnology Other research and experimental development on natural sciences and engineering p 137

138 Enterprising Whitechapel Strategy & Technical Evidence REVISION (C) Published by: Regeneris Consulting Ltd 3rd Floor 65 St. John s Street London EC1M 4AN T Written and produced by: Chris Paddock Amy Gilham Florrie Dunn Holly Lewis Pooja Agrawal Hannah Martin Commissioned by: London Borough of Tower Hamlets With thanks to all those who gave their time to contribute to this report. Copyright May 2015