Local Economic Assessment
Local Economic Assessment
Local Economic Assessment
2
Local Economic Assessment – London Borough of Redbridge
1 Introduction
1.1 Purpose
This Local Economic Assessment (‘LEA’) has been prepared to meet the
Council’s duty under statute. Its purpose is to provide a solid base of evidence
and analysis about economic conditions in Redbridge to help the Council and its
partners better target their work to promote economic growth and prosperity.
This LEA provides an update on the different aspects of Redbridge’s economy
from the previous document published in 2011.
Provide a sound assessment of economic conditions in the area and how they
affect residents and businesses.
Identify the comparative strengths and weaknesses of the local economy and
the nature and form of local economic challenges and opportunities.
Identify the local constraints to economic growth and employment and the risks
to delivering sustainable economic growth.
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Local Economic Assessment – London Borough of Redbridge
The strategy identifies four overarching corporate priorities, to which all work will
be aligned, and details how the Council will deliver on these priorities. The
sections included below highlight any links to employment and skills and
sustainable economic growth.
As the Council is no longer able to deliver the same range of services to all
our residents as was possible before reductions in central government
funding, services must be targeted where possible, as early as possible.
Services will be designed with residents and partners to encourage all to
achieve their full potential.
Key priority projects include providing Council support to local services and
initiatives which address the pressures of the cost of living, such as credit
unions and other sources of support for managing money responsibly, and
improving external support for businesses of all sizes by working with
partners to safeguard employment space at a range of rent levels, facilitate
access to superfast broadband and ensure routes to workforce, training,
skills and labour.
One of the key ways in which this will be achieved is using the Council’s
role in the regional economy to stimulate investment and regeneration and
help to sustain growth by investing in local businesses and encouraging
residents to shop locally.
The next few years are going to be difficult, as the Council faces tough
decisions to prioritise what it does. These decisions cannot be made in
isolation from the local community; there is a real need for meaningful
engagement around which services the Council provides and how those
services are to be delivered.
In preparing their LEAs London boroughs should take account of the London
Plan and the Mayor of London’s strategies for economic development and
transport. In this context, the Mayor of London’s Economic Development
Strategy 2010 (‘EDS’) is the key document which provides part of the basis for
spatial policies in the draft replacement London Plan. Its five objectives are to:
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Local Economic Assessment – London Borough of Redbridge
The EDS is referred to further in the next chapter and information is drawn from
it about how Redbridge fits within the wider London economy. The Mayor’s
Transport Strategy published in 2010 is also referenced.
To this end the Greater London Authority, London Development Agency, the
London boroughs, sub-regional partnerships and London Councils have signed
a Memorandum of Understanding setting out their respective responsibilities
and identifying a minimum core data set which will be used for all LEAs in
London (see Appendix 1). In addition, this LEA draws upon other types of data
relevant to Redbridge including the ‘Redbridge Economic Strategy Development
– Baseline’ (March 2016).
1.5 Monitoring
Monitoring of the key economic issues identified in this LEA will be carried out
as part of the Redbridge LDF Annual Monitoring Report which the Council
publishes annually. This will keep the relevance of the LEA under review and
recommend any future revision as necessary.
5
Local Economic Assessment – London Borough of Redbridge
In 1971 there were over 1 million manufacturing jobs in London, accounting for
nearly one quarter of all jobs. Today manufacturing accounts for about 134,000
3
jobs (less than 2% of total jobs) and this is expected to decline to just 90,000
4
by 2031 .
Meanwhile, jobs in financial and business services are expected to grow from
1.56 million in 2007 to 1.98 million in 2031 (about 38% of all net new jobs in
growing sectors projected between now and 2031). This is projected to be
followed by 360,000 new jobs in leisure and personal services and another
235,000 new jobs in hotels and restaurants. There will be smaller contributions
5
from the education and health sectors (54,000 jobs) and retailing (36,000 jobs) .
1
Functional Economic Market Areas: An economic note. CLG, February 2010.
Section 4.
2
Tourism is considered as an export industry in that it generates foreign income
from international visitors.
3
GLA Draft Economic Evidence Base 2016
4
Mayor’s Economic Development Strategy for London. GLA. March 2015.
5
Ibid.
6
Local Economic Assessment – London Borough of Redbridge
Figure 1: Historic and projected employment (000s) in London’s smaller
6
sectors, 1984 to 2036
6
Source: GLA Economics
7
Source: GLA ‘Draft Economic Evidence Base 2016’
7
Local Economic Assessment – London Borough of Redbridge
London’s contemporary economic success relies on its historic connections with
the world, good transport and communications infrastructure, strong legal and
regulatory institutions and its ability to attract skilled knowledge workers. New
York and Tokyo are its only serious competitors for the position of world leading
financial centre, but that could change because the world economic balance of
power is shifting rapidly.
8
Between 2009 and 2050 the GDP of the G20 nations is expected to grow at an
annual rate of 3.5 percent from US$38.3 trillion to US$160 trillion in real dollar
terms. Over 60% of this expansion is expected to come from Brazil, Russia,
9
India, China, Indonesia and Mexico .
By that time China, India and the United States will have a total GDP 70%
10
greater than all the other G20 nations combined . Europe’s total share of G20
GPD will shrink from 24% in 2009 to 10% in 2050. The UK’s share will fall from
6% to 3% (see Table 1 below). Traditional Western powers like the UK will
remain the wealthiest nations in terms of per capita income, but will be
overtaken by poorer countries as the pre-eminent world economies.
The UK economy has improved its performance across the board in recent
years, but is not as competitive as some of its peers. The World Economic
12
Forum ranks it 10th position, a slip of one place from 2014-15 .
8
The Group of Twenty (G-20) Finance Ministers and Central Bank Governors
was established in 1999 to bring together the major industrialized and
developing economies to discuss key issues in the global economy.
9
The World Order in 2050. Carnegie Institute. February 2010,page 8.
10
Ibid. Page 9
11
Source: The World Order in 2050. Carnegie Institute, February 2010. Page 8
12
World Economic Forum. Global Competitiveness Report 2015-2016. Country
Rankings
8
Local Economic Assessment – London Borough of Redbridge
Projections prepared by independent forecasters who monitor the London
economy show London experiencing a cyclical recovery following the recent
recession, followed by longer-term positive job growth thereafter. Only 13.2% of
the UK population lives in London, however the Capital accounts for 22.6% of
13
Gross Value Added .
Some of the biggest factors involved in the UK’s recent loss of competitiveness
are also centred on London. In 2014-2015 the World Economic Forum rated the
soundness of the UK’s banks as having climbed to 89th place among 144
countries surveyed. UK banks were in 44th spot just the previous year.
13
Regional Gross Value Added (Income Approach), Statistical Bulletin, ONS, 9
December 2015
14
Ibid. Para 5.24.
15
Mayor’s Transport Strategy.GLA, May 2010. Pages 43 and 44
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Local Economic Assessment – London Borough of Redbridge
As an outer east London borough Redbridge is connected via the M11 to the
economic corridor stretching north to Stansted airport, Cambridge and beyond,
and via road and main line rail to Chelmsford and other large centres in
southern Essex and along the northern coast of the Thames Estuary.
Major investment is taking place in two housing growth corridors which impact
directly or indirectly on Redbridge:
16
Ibid. Para 5.17
17
Source: Mayor’s Transport Strategy. GLA May 2010 .
10
Local Economic Assessment – London Borough of Redbridge
Office based
employment
Net demand for
growth
Location office floorspace
% of total (million m2)
Total growth
There is also projected to be a need for between 450,000 square metres and
700,000 square metres of additional comparison retail floorspace in outer
London and between 50,000 square metres and 150,000 square metres of
21
convenience retail floorspace . Industrial employment is expected to continue
its historic decline. As discussed in Chapter 4, the new development will not be
spread evenly, but is likely to cluster in a handful of large outer London town
centres such as Stratford.
Redbridge is an outer London borough forming part of the East London Sub-
22
Region as defined in the London Plan . This also includes the boroughs of
Waltham Forest, Hackney, Havering, Barking and Dagenham, Newham,
Lewisham, Greenwich, Tower Hamlets and Bexley as shown in Figure 3 below.
18
Outer London: Issues for the London Plan. GLA May 2007.
19
Ibid. Paras 1.20 and 1.21
20
Source: The London Plan. Mayor of London, March 2015 Page 155.
21
Outer London: Issues for the London Plan. GLA . May 2007.
22
Note:. The London Plan. GLA, March 2015.
11
Local Economic Assessment – London Borough of Redbridge
Figure 5: London sub-regions
Figure 3
Figure 6 shows the top 10 places of work for employed Redbridge residents at
the time of the 2011 census. Along with Redbridge itself, these destinations
accounted for 78.8% of all Redbridge employees (99,641) in 2011. It is evident
from the table that boroughs towards central London were more important
sources of jobs than immediate neighbours.
23
Figure 6: Location of employment of Redbridge residents
Workplace destinations for other outer London locations display similar patterns
to those seen in Redbridge (see Figure 5 below). This shows how the sub-
regional economy is dominated by radial flows of labour between the outer
boroughs and central London, facilitated by good mainline rail, underground and
road links. The transport network closely mirrors the economic linkages. Via
these links, Redbridge and its neighbouring boroughs provide an important
supply of labour to central London.
23
Source: ONS 2011 Census (via NOMIS)
12
Local Economic Assessment – London Borough of Redbridge
Figure 7: Commuting Patterns in and out of Redbridge
The Table below shows the origin and destination of trips made by
Redbridge residents.
This highlights the large number of residents using public transport to travel
to work; reinforcing the importance of a strong and reliable public transport
network in and around the borough.
24
“Place of Residence by Place of Work,” www.data.london.gov.uk
13
Local Economic Assessment – London Borough of Redbridge
25
Table 4 - Method of travel to work by distance travelled to work :
Table 4 below shows the weekly pay of people who work in selected boroughs
versus the weekly pay of those who reside there. This reveals that the average
pay of people who work in the City of London, Tower Hamlets and Newham is
greater than the pay of people who reside there. The situation reverses for the
outer London boroughs of Havering, Redbridge and Waltham Forest. This
suggests that the outer London boroughs are benefiting by having many
residents who commute to better paying jobs in central London.
26
Table 5 - Annual Survey of Hours and Earnings
25
“Travel to work trends,” www.data.london.gov.uk
26
Source: ONS Annual Survey of Hours and Earnings (via NOMIS)
14
Local Economic Assessment – London Borough of Redbridge
Internationalised centre and self-contained periphery
There can be little room for doubt that office markets in Outer London, with a
small number of exceptions, have been in long-term decline. While a number of
off-centre campuses have absorbed office growth in Inner London (e.g. More
London, London Bridge City and Paddington, and more recently King’s Cross,
Stratford and Waterloo), many corporate office jobs have left Outer London, and
it seems clear that there is a growing number of centres suffering high office
28
vacancy rates with little prospect of growth.
“Job density” is the number of full time jobs in an area divided by the resident
working age population. Reflecting the decline of their traditional manufacturing
base and their limited ability to attract office development, there has been a
29
tendency over time for the job density of all the outer boroughs to decline,
while that of Tower Hamlets has increased. The very high job density of the City
of London is also apparent in Table 6 below, and has increased overall since
2000 after being at a 7-year low in 2007. The low job density figure in
Redbridge may subsequently impact the numbers of both commuting and
30
workless individuals living in the borough .
The change in absolute numbers of jobs in each local authority between 1998
and 2008 is shown in Table 7 below. Because of population growth, some local
authorities including Redbridge have had an increase in absolute numbers of
jobs, despite the fall in job density.
27
Functional Economic Market Areas: An economic note. CLG, February 2010..
28
London Office Policy Review. Radimus Consulting Limited and Roger Tym &
Partners, September 2012. Page 49.
29
For current purposes Newham is being treated as an “outer” London borough
30
Outer London – Economic data and statistics, Greater London Authority,
March 2009
15
Local Economic Assessment – London Borough of Redbridge
Table 6 - Job Density evolution in North East London and City of London
16
Local Economic Assessment – London Borough of Redbridge
31
Table 7 Change in absolute number of jobs 1998-2014
31
Source: ONS Employee Job Estimates/Job Density (VIA NOMIS).
17
Local Economic Assessment – London Borough of Redbridge
3 Redbridge Now
3.1 Strong Population Growth
In May 2014, the Office for National Statistics (ONS) released revised mid-
2012-based population estimates for local authorities in England and Wales.
32
The Redbridge population estimate was 284,600 .
The working age population (all people aged 16-64) in the borough is 190,700
33
(2014); or 65.1% of the overall population .
The working age employment rate for ethnic minorities in the borough is 62.2%,
with the unemployment rate at 10.2%. The employment rate is higher for ethnic
34
minority males at 75%, than for females at 49.8% .
32
Mid-Year Population Estimates for England and Wales. ONS May 2014 Mid
2012 Population Estimate.
33
Labour Market Profile – Redbridge (www.nomisweb.co.uk)
34
“Labour Market Profile – Redbridge,” www.nomisweb.co.uk
18
Local Economic Assessment – London Borough of Redbridge
The working age employment rate for young people (aged 16 – 24) in
Redbridge is 40.3%, compared with 46% for London as a whole and 52.4% for
Great Britain. This places Redbridge 5.7% below the London average and
12.1% below the average for Great Britain. Between December 2010 and June
2015 the working age employment rate for young people in Redbridge
increased from 35.5% to 40.3%, an increase of 4.8%. This compares with a rise
35
of 5% for London as a whole and 2.2% for Great Britain .
The working age unemployment rate for young people in Redbridge is 25.3%,
compared with 18.9% for London as a whole and 15.7% for Great Britain. This
places Redbridge 6.4% above the London average and 9.6% above the Great
Britain average. Between December 2010 and June 2015 the working age
unemployment rate for young people in Redbridge increased from 21.5% to
25.3%, an increase of 3.8%. This compares with a decrease of 3.6% for London
36
as a whole and a decrease of 3.6% for Great Britain .
The working age unemployment rate in the borough is 7.3% (10 400),
compared with London 6.6% and Great Britain 5.7%, which places Redbridge
0.7% above the London average and 1.6% above the Great Britain average.
Between December 2010 and June 2015, the unemployment rate in Redbridge
fell from 8.9% to 7.3%, a decrease of 1.6%. This compares with a decrease of
2.3% for London as a whole and a decrease of 1.9% for Great Britain over the
same period.
The unemployment rate is higher for females (11.8%; 7,500), than for males
39
(6.2%; 5,000) .
Self-employment
The economic inactivity rate in the borough is currently 26%, with just under one
fifth (17.7%) of those wanting a job. The economic inactivity rate has fallen by
3.8% since March 2010. The economic inactivity rate is higher for females
(34.7%) than for males (17.2%).The economic inactivity rate for ethnic
41
minorities is 30.7%. However, it is important to note that economic inactivity
figures can be skewed by the visa status of an individual and their subsequent
eligibility for work and training. Certain visas do not allow an individual to work,
or only allow an individual to work for a small number of hours a week; which in
turn impacts on their economic activity status. Most training courses also have
visa restrictions. There is therefore a gap in the market for organisations that
35
“Labour Market Profile – Redbridge,” www.nomisweb.co.uk
36
“Labour Market Profile – Redbridge,” www.nomisweb.co.uk
37
“Labour Market Profile – Redbridge,” www.nomisweb.co.uk
38
Department for Work and Pensions
39
“Labour Market Profile – Redbridge,” www.nomisweb.co.uk
40
“Labour Market Profile – Redbridge,” www.nomisweb.co.uk
41
“Labour Market Profile – Redbridge,” www.nomisweb.co.uk
19
Local Economic Assessment – London Borough of Redbridge
support all those looking to find work or training and services such as Work
Redbridge, which has no eligibility restrictions, are increasingly important for
ensuring the economically inactive population and all those needing support are
able to access it.
Redbridge has a low take-up of apprenticeships and they are often still
regarded as less important than academic qualifications and academic routes
into employment.
42
Apprenticeship total achievements: 207 (2012/13); (2011/12)
42
Apprenticeships Starts and Completions,” www.data.london.gov.uk
43
Mayor of London’s ’20:20 Vision’ (2015)
44
“Apprenticeships: Delivering Skills for Future Prosperity – Ofsted Survey,”
CSN Policy Briefing
20
Local Economic Assessment – London Borough of Redbridge
45
Table 10: Number of persons per dwelling
Number 1 2 3 4 5 6 7 8+
of
Habitable
Rooms in
Dwelling
All London boroughs must now adhere to the Mayor’s internal space standards
for new dwellings which are stipulated within the London Plan March 2015
(FALP). We set out in table 11 below these standards.
46
Table 11: London Plan space standards
Dwelling
Persons & Beds GIA (sq.m)
Type
Flats 1p 37
1b2p 50
2b3p 61
2b4p 70
3b4p 74
3b5p 86
3b6p 95
4b5p 90
4b6p 99
2-storey 2b4p 83
houses
3b4p 87
3b5p 96
4b5p 100
4b6p 107
3-storey 3b5p 102
houses
4b5p 106
4b6p 113
45
Redbridge Community Infrastructure Plan January 2011 update. London
Borough of Redbridge January 2011. S. 5
46
The London Plan March 2015 – Page 116; Table 3.3
21
Local Economic Assessment – London Borough of Redbridge
The GLA also makes “high” and “low” end population projections which take
account of the actual rate of housing construction in each borough. The “high”
projection is for the population to hit 302,047 by 2016 and 365,240 by 2031.
The “low” projection has the population reaching 265,300 in 2016 and 274,000
47
by 2031 . These figures are challenged by the ONS revisions. The 2011
census confirmed expectations that population growth is far outstripping
expectations, posing a major challenge for future housing and community
infrastructure delivery.
47
GLA 2008 Round Demographic Projections. March 2009.
48
GLA Trend-Based, Short-Term Migration Scenario Population Projections
(April 2015)
22
Local Economic Assessment – London Borough of Redbridge
Figure 9b: Redbridge population projections by age
3.2 Housing
As noted in the previous chapter, economic growth within Redbridge is led by
housing and around 63.6%% of the housing stock in Redbridge is owner
occupied. This compares with a London average of 49.5%% and a national
average of 64.0%. These figures from the 2011 Census reflect the first
decrease in UK-wide home ownership rates in a century.
The 2011 Census revealed that the average household size was 2.8 people.
Wards to the south of the Borough have the highest number of people per
household, exceeding the average figure for London, which is 2.5 people per
household. Clementswood has the highest rate of 3.3 people per household
whilst Snaresbrook has the lowest in the Borough with 2.2 people per
household. Figure 10 below shows the number of dwelling completions by type
of developer for Redbridge from 1980/81 to 2014/15. Over the period 1980/81
to 2014/15, the average number of units completed from all sources was 429
per annum. Following the housing market recession from 2008 to 2011, when
completions fell to a low of 100 units per annum, completions have since
recovered to exceed the medium term average of 429 units per annum in the
three years to 2014/15.
23
Local Economic Assessment – London Borough of Redbridge
49
Figure 10 - Redbridge Housing Completions by type of developer
1980/81 to 2014/15
Figure 11: House Price and Sales Volume in Redbridge September 2013 to
50
August 2015
49
Source: Community Infrastructure Plan January 2011 Update. London
Borough of Redbridge, January 2011. Appendix 1.
50
Source: House Price Index, Land Registry, November 2015
24
Local Economic Assessment – London Borough of Redbridge
The 2013-14 Redbridge Monitoring Report for Housing Needs and
Requirements identified a total requirement of 10,153 homes over the next 5
years. Of this, the market Housing requirement is 923 homes, the intermediate
requirement is 5,335 homes, whilst the social rented housing requirement is
51
3,895 homes.
Table 12 below shows the gradual increase of land values over recent years in
Redbridge. The data below is based on the Savills Development Land Index
which indexes values relative to the peak achieved in 2007 before the onset of
the global financial crisis. The basis of the 2007 base values are taken from the
VOA’s previous Property Market Report publications.
52
Table 12: - Redbridge Residential Land Values
Education
Health
In 2010-12, the healthy life expectancy at birth for males in the borough was 66
and 62.9 for females. This compares to 65.5 for Redbridge males in 2009-11
and 62.4 for females.
51
Redbridge Monitoring Report for Housing Needs and Requirements
52
Property Market Report, Valuation Office Agency, January 2007 (baseline
index point); and, Savills Development Land Index (Savills research) 2016.
53
London Borough of Redbridge Fairness Commission
25
Local Economic Assessment – London Borough of Redbridge
Deprivation
The south of the borough has inner city features, notably around Ilford. This is
alongside less densely-populated, more affluent areas in the north of the
borough. The most deprived areas of the borough are therefore located in the
south, with Clementswood and Loxford the two most deprived wards, and the
least deprived areas being located in the North West, with Monkhams the least
deprived ward (based on rank of average score within London - see table below
for indices of deprivation rank).
In 2015, 17.3% of pupils were known to be eligible for and claiming free school
meals in maintained secondary schools. This figure has fallen from 16.4% in
56
2010, and is below the Outer London average of 14.8% (2015).
In 2014 69.4% of the working age population were in employment (13.5% being
self-employed and 55.7% working for someone else) and 6.8% were
unemployed. Employment rates were higher for men (78.6%) than for women
(60.3%) and the rate for ethnic minorities was 66.3%.
54
“Children in Poverty,” www.data.london.gov.uk
55
“Pupils Eligible for Free School Meals,” www.data.london.gov.uk
56
“Pupils Eligible for Free School Meals,” www.data.london.gov.uk
57
“Pupil Health Outcomes Framework Indicators,” www.data.london.gov.uk
26
Local Economic Assessment – London Borough of Redbridge
58
Table 13: Employee Jobs (2014)
58
“Labour Market Profile – Redbridge,” www.nomisweb.co.uk
59
“Labour Market Profile – Redbridge,” www.nomisweb.co.uk
27
Local Economic Assessment – London Borough of Redbridge
60
Table 15: Employee jobs by Industry (2014)
Despite significant public sector cuts, and in parallel with the last plan, the vast
majority of Redbridge jobs (91.9%) are within service industries and 36.8% (27
400) of these service industry jobs are in public administration, education and
health. This is 14.2% above the percentage of public administration, education
and health sectors jobs in the whole of London (22.6%) and 8.8% above the
percentage of such jobs for Great Britain (28%).
60
“Labour Market Profile – Redbridge,” www.nomisweb.co.uk
28
Local Economic Assessment – London Borough of Redbridge
We note that all sectors to the right of the “Services” bar in the graph above
accumulatively equal the total number of employees within Services.
The largest numbers of residents work in the Public Admin, Education and
Health sector with 27,400 employed in this sector.
Table 17 (overleaf) shows the employee jobs by industry, broken down by ward
in 2008. The largest labour market is Clementswood ward, which is dominated
by public sector employment. This is followed by Valentines, Seven Kings and
Newbury. Due to the fact that significant numbers of the Redbridge workforce
are employed in public administration, education and health industries, the
impending public sector cuts are likely to have a notable impact across the
borough, but particularly in the wards of Clementswood, Seven Kings and
Newbury, where the largest numbers are employed within the public sector.
61
Table 16 - Employee by industry per ward 2011
Administrative Associated
Professional
Ward & Sectorial Professional &
(%)
(%) Technical (%)
The largest employers in Redbridge (by number of employees) are the London
Borough of Redbridge (2,600 employees), Barking, Havering & Redbridge NHS
Trust (1,000 employees), Kapa Limited (800 employees), the Metropolitan Police
(700 employees), Interserve Facilities Services (650 employees), M&S On Time
62
Limited (650 employees) and Barnardos (600 employees) .
61
Source: ONS: Ward Profiles – Local Labour Market Area Comparison 2011
62
Redbridge Economic Strategy Development – Baseline (2016)
29
Local Economic Assessment – London Borough of Redbridge
Employment in the various sectors is not evenly distributed across the borough.
The Central and Crossrail sub-areas rely heavily on roles in the public sector,
accounting for 41% and 45% of all jobs respectively. In the Hainault sub-area,
there is a high concentration of roles in advanced manufacturing and construction,
and in wholesale and retail. In Ilford, there is a high concentration of roles in
information and communications technology, as well as business and professional
services. Wanstead and Woodford also has concentrations of information and
63
communications technology as well as manufacturing and construction .
As a % of Economically
Ward Unemployed
Active Persons
Aldborough 657 9.4
Barkingside 538 8.9
Bridge 458 7.5
Chadwell 704 10
Church End 343 5.1
Clayhall 511 8.2
Clementswood 926 14.5
Cranbrook 618 10.4
Fairlop 476 7.5
Fullwell 554 9.3
Goodmayes 771 12.5
Hainault 626 10.6
Loxford 1,141 16.9
Mayfield 705 11.3
Monkhams 218 4.2
Newbury 838 10.8
Roding 492 7.6
Seven Kings 891 12.8
Snaresbrook 322 4.9
Valentines 874 13.2
Wanstead 346 5.7
63
Ibid
64
Source: ONS: Labour Market Profile 2014 – Redbridge
30
Local Economic Assessment – London Borough of Redbridge
The top three industries in Redbridge are construction, retail and professional
66
and scientific & technical with more than 1000 businesses in each . Although
the number of public administration and defence industries is relatively low, as
previously outlined, these industries employ the largest numbers of employees.
The UK government continues to aspire for the British economy to remain one
of the most powerful economies in the world. This can be achieved by
supporting new and innovative sectors that can provide a “knowledge base”
economy. Future investments are likely to be made in sectors such as
67
technology, science and financial services . Redbridge is therefore well placed
to benefit from this focus, particularly with large numbers of scientific and
technical industries.
65
Source: Redbridge Economic Strategy Baseline (2016)
66
Redbridge Economic Strategy Baseline (2016)
67
Building Britain’s Future, HMG, June 2009. Chapter 3 [Investing for the Future: Building
Tomorrow’s Economy Today]
31
Local Economic Assessment – London Borough of Redbridge
68
Table 18: Businesses by sub-areas
68
Redbridge Economic Strategy Baseline (2016)
69
Source: Redbridge Economic Strategy Baseline (2016)
32
Local Economic Assessment – London Borough of Redbridge
70
Figure 15 – Employment in Redbridge 2015
The table below shows the median weekly gross pay in London’s boroughs.
Redbridge residents’ weekly pay is significantly higher than the UK average.
70
Source: Redbridge Economic Strategy Baseline (2016)
33
Local Economic Assessment – London Borough of Redbridge
However, Redbridge has high rates of both business formation and failure,
commonly referred to as business ‘churn.’ In 2013 there were 2,430 enterprise
72
‘births’, 1,525 enterprise ‘deaths’ and 12,085 active enterprises . Business
survival rates are relatively low, with around 36% of businesses surviving the
first five years of trade, which is slightly lower than the London average of
73
37% .
74
Table 20 - UK Business Counts (2015) :
71
“Labour Market Profile – Redbridge,” www.nomisweb.co.uk and Redbridge
Economic Strategy Baseline (2016)
72
“Business Demographics and Survival Rates,” www.data.london.gov.uk
73
Redbridge Economic Strategy Baseline (2016)
74
“Labour Market Profile – Redbridge,” www.nomisweb.co.uk
34
Local Economic Assessment – London Borough of Redbridge
75
Figure 16: Company Employment size in Redbridge
Large businesses (though few in number) still account for a large share of total
employment (Figure 14).
75
Labour Market Profile – Redbridge (via NOMIS)
76
Business Support in Redbridge: A report to the Redbridge Chamber of
Commerce, page 6
77
Business Support Feasibility Study: A report to the Redbridge Chamber of
Commerce, page 14
35
Local Economic Assessment – London Borough of Redbridge
Figure 17: Number of employees for each size of business in Redbridge
78
2015
Redbridge has high rates of both business formation and failure (sometimes
called “churn”). Between 2004 and 2010, the average net increase in business
births v. business deaths was 150 businesses per year. However, from 2011
and onwards to 2013, the net annual increase in businesses in Redbridge has
increased considerably with an average of 583 additional businesses per year.
Indeed, a significant increase on the previous year was recorded in 2013, with a
net increase of 905 businesses. This is shown in Figure 18 below.
79
Figure 18 Redbridge Business Churn
78
Source: ONS UK Business Count (2015)
79
Source: Redbridge Borough Profile November 2015, page 179
36
Local Economic Assessment – London Borough of Redbridge
80
Table 21 - Business Demography
Table 22 shows the survival rate of start-up businesses in Redbridge from 2008
to 2012. The highest rates of survival are in the first year. In 2012, only 36.3%
of businesses that started up between 2003 and 2008 had survived. This is
lower than the 37.1% London average or 46.6% 41.2% national average.
81
Table 22 - Business Survival 2008-2012
Business survival
Year
of birth
Births 1 Year 1 Year 2 Year 2 Year 3 Year 3 Year 4 Year 4 Year 5 Year 5 Year
Survival % Survival % Survival % Survival % Survival %
2008 1,420 1,320 93.0 1,005 70.8 735 51.8 625 44.0 515 36.3
2009 1,485 1,290 86.9 1,035 69.7 800 53.9 640 43.1 .. ..
2010 1,525 1,315 86.2 1,065 69.8 805 52.8 .. .. .. ..
2011 1,770 1,670 94.4 1,325 74.9 .. .. .. .. .. ..
2012 1,825 1,660 91.0 .. .. .. .. .. .. .. ..
80
ONS Business Demography 2013
81
ONS Business Demography 2013
37
Local Economic Assessment – London Borough of Redbridge
The factors identified are echoed in the Redbridge Economic Strategy Baseline
(2016) which identifies the key constraints to business growth as follows, in the
order of relative importance:
Government regulations
Availability of skilled labour
Cost of premises
Transport within London
Cost of labour; availability of affordable premises; crime
Transport in and out of the Borough
Size of premises
Proximity to customers
Access to finance
Proximity to suppliers.
82
Table 23 - Constraints to Business Growth 2014
82
Sources: London Annual Business Survey,2014 LDA and Sources of
Endogenous Growth in Outer London: A Case Study for North East
London(should now be “East”), LDA September 2014.
38
Local Economic Assessment – London Borough of Redbridge
was a decrease of 8.19% proceeded by further decreases of 28.82% and
30.5% January 2013 to January 2014 and January 2014 to January 2015
respectively. The number of claimants at January 2015 in Redbridge was 3,270.
By October 2015 this had fallen by a further 14.22% to 2,805. The highest
number of claimants in the borough between January 2008 and October 2015
was in the month of September 2011, when there were 7,580 (Nomis December
2015).
84
Figure 19: Male unemployment (ages 16-64)
85
Figure 20: Female unemployment (ages 16-64)
84
Redbridge Economic Strategy Baseline (2016)
85
Redbridge Economic Strategy Baseline (2016)
39
Local Economic Assessment – London Borough of Redbridge
Table 24 - JSA claimants in Redbridge wards – highest and lowest, August
2008 - October 2015
The wards with persistently high numbers of JSA claimants have experienced
rises in numbers during the recession but many were long term unemployed
and were already out of work before the downturn. The more affluent parts of
the borough have suffered from higher rises in unemployment as residents
there were more likely to work in the financial services sector in central London
and were disproportionately likely to be made newly redundant.
40
Local Economic Assessment – London Borough of Redbridge
86
Table 25 - JSA Claimants
JSA Stock
Total Aged 16-14 Aged 25-49 Aged 50-64
(Date)
November 2014 3,505 845 1,985 680
January 2015 3,270 635 1,950 685
February 2015 3,215 660 1,880 675
March 2015 3,145 645 1,835 665
April 2015 3,065 585 1,805 670
May 2015 3,140 610 1,850 680
June 2015 3,000 580 1,765 655
July 2015 2,945 590 1,690 660
August 2015 2,900 620 1,620 660
September 2015 2,900 630 1,605 670
October 2015 2,805 560 1,555 690
Claimant numbers, on the whole, have fallen from month to month since
November 2014 to October 2015 across all age groups except for the 50-64
age group which has remained relatively unchanged since November 2014 –
albeit that it has risen by 1.4%. The concern with the number of claimants in the
50-64 age group is that they often find it more difficult to return to employment
and may not have the skill set organisations required. Where these individuals
remain out of employment for long periods they become more dependent on
public services and support. With increasing retirement ages, this could see
some individuals out of work for well over 10 years.
An internal JCP document (Labour Market Bulletin for Redbridge 2010) showed
that although the overall employment rate was 67.9% for the borough, the rate
was 73.5% where ethnicity was stated as “white” but 63.7% where ethnicity was
stated as “ethnic minority”.
86
Source: Jobseeker’s Allowance by age and duration with proportions,
NOMIS, December 2015
41
Local Economic Assessment – London Borough of Redbridge
Barriers to Employment
DWP figures indicate that 8 400 Redbridge citizens were claiming ESA in May
2015, and those claiming, who are unable to work due to illness or disability,
face barriers in accessing training and employment. More co-ordinated, joined-
up help and advice will need to be provided to support ESA claimants into work
and increase awareness and understanding of employee health issues amongst
businesses and employers.
Number Percent
Females who are economically inactive 32,900 34.7
- aged 16-64
87
Family and Childcare Trust: Childcare Costs Survey 2015, as cited in
Redbridge Economic Strategy Baseline (2016)
88
NOMIS, Annual Population Survey 2015
89
Childcare Provider Audit Questionnaires, October 2009
42
Local Economic Assessment – London Borough of Redbridge
Education
Redbridge was rated one of the highest performing local education authorities in
90
Britain by the Observer newspaper . The borough continues to promote
education as a lifelong opportunity and invests in education facilities and
programs for all its residents.
91
Figure 22: Participation in higher education
Different services for career advice, support and guidance are available for
young people aged 13 to 19 years old. Working together these providers offer
information, advice and guidance about choice of career, employment and
training, support with CVs and interview skills.
Skill Levels
The draft Employment, Skills and Enterprise Plan for Redbridge contains an
assessment of the reasons people are out of work and this identified the level of
skill as the major issue in accessing employment opportunities.
90
http://www.guardian.co.uk/education/2007/oct/18/schools.uk2- is there
nothing more recent than this ?
91
Redbridge Economic Strategy Baseline (2016)
43
Local Economic Assessment – London Borough of Redbridge
Table 28 - Skill levels as a percentage of the working age population
92
(2014)
The borough has a relatively highly skilled population. 45% of residents are
qualified to NVQ Level 4 and above, equivalent to degree level. This is lower
than the London average (49.1%), but higher than the national average
(36%).However, it is noteworthy that this represents a significant reduction from
2013, when 49.2% of the population were qualified to NVQ Level 4 and above.
Despite the relatively high number of people with NVQ Level 4 qualifications,
there are still high numbers of people in the borough with no qualifications. In
2014 8.9% of residents had no qualifications. Those with no qualifications had
gone down considerably in 2013 to 6.8%, but 2014 saw the number increasing
94
again .
92
Source: NOMIS – Labour Market Profile - Redbridge
93
“Labour Market Profile – Redbridge,” www.nomisweb.co.uk
94
“Labour Market Profile – Redbridge,” www.nomisweb.co.uk
95
“LSCC June 2014 Skills Report,” www.lscc.co
44
Local Economic Assessment – London Borough of Redbridge
nursing care, civil engineering and construction, hospitality and entertainment
and catering and we must ensure training providers are offering training
appropriate to these growth sectors. The success of local sector strategies can
give a significant boost to the local economy and the retail and business support
services are experiencing growth in Outer London boroughs, such as
Redbridge.
Additional feedback from businesses has also made clear many individuals lack
basic ICT skills, which are increasingly becoming a basic requirement of many
employment positions. Although there are a variety of providers of ICT training
within the borough, many are costly or at inconvenient times, especially for
parents. More training providers are beginning to offer free basic ICT skills
certificates, however as yet, there is little evidence of the take up or impact of
this.
ESOL Needs
65% of primary school students and 57% of secondary school students in the
borough are known or believed to have a first language other than English
(2015). This compares to 59.4% of primary school students and 50.9% of
96
secondary school students in 2010 .
96
“Percentage of Pupils by First Language,” www.data.london.gov.uk
45
Local Economic Assessment – London Borough of Redbridge
97
Languages
The actual number of languages spoken may be higher than this as there were
896 pupils identified as EAL but without a language specified. The number of
pupils shown as speaking an unidentified non-English language varied widely
between schools and may decrease in the future.
Ilford has been confirmed as one of the Greater London Authority’s Housing
Zones; an initiative designed to promote housing development in London and
improve town centres. This is expected to trigger investment for around 2 000
new homes in the area over a six year period, subsequently helping to create a
sense of place in Ilford, increasing the area’s overall desirability and helping to
attract further investment and development. A mix of housing tenures is being
sought, including homes for sale, private rent and affordable housing. The
development could support up to 4,000 jobs and 150 apprenticeships in the
construction supply chain, with potential for around 300 construction jobs and
20 apprenticeships to be created each year in Ilford for the next 5 years and the
Council will also be working closely with contractors to ensure a local dividend
in terms of associated employment.
Crossrail
97
2010 Local School Census
46
Local Economic Assessment – London Borough of Redbridge
to ensure a local dividend in terms of associated jobs and apprenticeships
The Redbridge Economic Strategy Baseline (2016) concludes that Crossrail will
be an asset to the borough, although the benefits will not be universal. Indeed,
it is thought that the new link will benefit only a small number of key locations,
particularly Ilford. The construction of the line will provide benefits in terms of
training at the Tunnelling and Construction Academy, which will help to
strengthen and distinguish the skills and employment offer of the borough.
Redbridge has two BIDs, located in Hainault and Ilford, and in their first terms
they both delivered over £3 million of investment into their respective areas
improving safety, promotion and creating more welcoming and vibrant
environments. Ilford BID currently brings in around £425 000 of investment per
annum. Both have secured second terms and Hainault is re-balloting for a third
term which if successful will run from April 2016 to March 2021.
98
“Further alterations to the London Plan March 2015,” www.london.gov.uk
47
Local Economic Assessment – London Borough of Redbridge
The International Monetary Fund predicts global growth for 2015 at 3.1 percent,
0.3 percentage points lower than in 2014, and 0.2 percentage points below the
99 100
forecasts in the July 2015 World Economic Outlook (WEO) Update / . In the
United Kingdom, termed an “Advanced European Economy”, growth for 2015 is
projected at 2.5% and 2.2% in 2016.
This has direct consequences for all local authorities and their ability to deliver
services and infrastructure (see below for discussion of the capital funding
needs of Redbridge). This situation is especially dangerous for Redbridge
because local job creation is so heavily dependent on public spending. As
discussed in chapter 3, the public sector has been the mainstay of job creation
in Redbridge over the last decade. If this source of new jobs dries up or should
the local public sector workforce actually contract, it will pose a major challenge
for the borough. The Borough must therefore respond to emerging growth
sectors and ensure people are suitably qualified.
99
Imf World Economic Outlook (WEO): Adjusting to Lower Commodity Prices,
October 2015.
100
Ibid. Page 54
101
Ibid. Page 54, Table 2.4
48
Local Economic Assessment – London Borough of Redbridge
The Westfield shopping mall which completed at Stratford in 2011 is the largest
urban shopping centre in Europe with 177,000 square metres of floor space and
includes over 300 stores, 12 cinema screens, two hotels and 5,000 car parking
spaces.
Stratford City is also planned to host 465,000 square metres of new office
development. By comparison, the total gross office floorspace required in
Redbridge between 2007 and 2031 is estimated to be just 23,680 square
102
metres . There is some doubt that the full extent of office development will be
realised at Stratford, but only because other office mega-schemes are under
construction at Canary Wharf or planned at Wood Wharf and Greenwich
103
Peninsula .
High population growth and real growth in expenditure creates demand for new
retail and leisure space. By 2030, there is forecast to be demand for at least
23,911m2 of new comparison retail floorspace and 8,562m2 of retail
convenience floorspace (retail capacity assessment 2015), that will also need to
be supported by new leisure uses to ensure a diverse mix of uses and ehance
town centre vitality. In addition to scale, new retailing in particular will need to
respond to the changing ethnic mix in LBR.
Ilford faces an ongoing issue with an oversupply of “low grade” office space.
The area has too much low quality office space, which is often left vacant and
only capable of generating low rents. This simultaneously puts off businesses
from setting up in the area and potential developers from creating new,
purpose-built, more desirable office accommodation. It is noteworthy that the
projected demand for new office space in Ilford is in negative figures, which
104
contrasts with many other areas of the borough .
The Council should consider how it might best facilitate joined up working
between key stakeholders including the planning department and developers
wherever possible to safeguard business property and ensure supply meets
demand and projected future demand. Permitted Development Rights which
allow the conversion of office floorspace to residential risk further exacerbating
this issue.
105
As well as improving its retail offer, the East London SRDF suggests that
Ilford will have to reinvent itself as a leisure and evening economy oriented
destination if it is to successfully respond to the growth of Stratford.
102
Ibid. Pages 53 and 59.
103
London Office Policy Review. Radimus Consulting, November 2009. Page
viii.
104
Retail, Leisure and Office Demand Study for London Borough of Redbridge
105
Sub-regional Development Framework East London. Mayor of London. Map
2006. Page 48.
49
Local Economic Assessment – London Borough of Redbridge
BIDs
The borough hosts two Business Improvement Districts (BIDs) at Ilford and
Hainault Business Park. These are geographical areas in which the local
businesses have voted to invest collectively to improve their environment and
come with a number of business benefits. They work on behalf of businesses in
the area to create an attractive, welcoming, vibrant and economically successful
trading area.
Crossrail
The arrival of Crossrail in 2019 will change economic conditions in other ways.
As well as improving rail capacity and speed, Crossrail will provide London’s
first ever direct east - west connection without the need to change modes of
transport through the central London bottleneck. As such it will help break down
London’s historic longitudinal divide.
It will allow Redbridge residents to more easily access large pools of jobs in
places such as the West End and Heathrow. The estimated journey time from
Ilford to Heathrow will be 58 minutes. It may stimulate more local employment if
highly accessible sites around the Redbridge Crossrail Stations can attract
some new office investment.
Better access is a two-edged sword. Crossrail may also increase the leakage of
retail spending from Redbridge to other centres along its route.
The Area Action Plan boundary encompasses the area running from the
eastern edge of Ilford Metropolitan Centre, along the High Road, through Seven
Kings, Goodmayes and Chadwell Heath Town Centres to the Borough
boundary in the east. All three of these stations (Seven Kings, Goodmayes,
Chadwell Heath) are on the proposed Crossrail route.
50
Local Economic Assessment – London Borough of Redbridge
The Council chose this pattern as the most sustainable approach to growth
because:
The town centres enjoy the best transport connections and thus are the
best locations to concentrate jobs, services and community facilities.
It preserves the extensive areas of Green Belt, open space and areas of
nature conservation value that are critical to the borough’s environmental
quality.
Industrial uses in the remaining Business Areas are protected by LDF policy,
although mixed-use schemes are permitted. However, some of these Business
Areas suffer from high vacancy rates and the London Plan states that (apart
from the Strategic Industrial Locations) Redbridge is a borough where
108
“managed release” of industrial land to other uses is appropriate over time . At
least one such Business Area at Chadwell Heath (Grove Farm) is effectively
making that transition now and if the long-term decline of industrial employment
continues in time other areas may follow suit.
Rapid population growth and the introduction of the National Planning Policy
Framework (NPPF) have made it necessary for the Council to embark on a new
Local Plan to replace the Core Strategy and other LDF documents.
107
Core Strategy Development Plan Document. London Borough of Redbridge,
March 2008. Strategic Policy 7, Page 26.
108
London Plan. Subregional Development Framework. East London. GLA.
May 2006. .
51
Local Economic Assessment – London Borough of Redbridge
The emerging plan identifies Ilford, Crossrail Corridor, Gants Hill, South
Woodford and Barkingside as the boroughs main “Investment and Growth
Areas” where new homes, jobs, shops, and supporting infrastructure will be
targeted. This includes provision for some development of land previously
designated as Green Belt that no longer meets the core purposes of such a
designation. Wanstead is no longer earmarked for major growth despite its
accessibility, on account of the need to be sensitive to existing character.
Simply building homes for a growing population is only half the story. In order to
ensure that continued housing growth is sustainable, the Council and its
partners must also be able to deliver adequate infrastructure to ensure that the
availability and quality of community services and facilities is maintained or
improved. The Redbridge Community Infrastructure Plan (December 2009)
estimates the amount, costs and sources of funding for many types of
community infrastructure needed to support housing growth in Redbridge until
2017. The key findings in relation to identified need are shown in Table 30:
52
Local Economic Assessment – London Borough of Redbridge
NHS/PCT Responsibilities
11 GPs, 392m2 specialist care, 50 hospital 21.9
beds
Learning & Skills Council/Further Education Providers’
Responsibilities
1,286 Further Education Places 6.9
Total 227.8
“There is a danger that the low carbon economy is viewed as separate from the
rest of the economy when, to meet challenging carbon reduction goals and
remain competitive, the whole economy will need to become low carbon”.
London Assembly, July 2009
Improving efficiency and cutting costs –rising energy costs and alternative
sources of energy, energy efficiency, and ‘greener’ (money-saving and money-
making) practices
109
Source: Redbridge Community Infrastructure Plan 2007-2017. December
2009.
53
Local Economic Assessment – London Borough of Redbridge
For the economic growth of the Borough to be sustainable, environmental
impacts need to be considered. The Redbridge Environmental Action Plan
(REAct) is a Borough-wide strategy that sets out how the Council and its
partners will achieve a cleaner, greener and more sustainable Redbridge. It
includes key environmental aims and targets and how the Council and its
partners will work together to meet them.
Competitiveness
Increased tourism
In order to prevent the worst scenario and the most severe impacts of climate
change, emissions need to be brought down to the level that balances the
Earth’s natural capacity to remove greenhouse gases from the atmosphere. The
Stern Review estimates the annual costs of stabilisation at 500-550ppm CO2e
to be around 1% of GDP by 2050. The review indicates that in the absence of
action to control emissions, the overall costs and risks of climate change will be
equivalent to losing at least 5% of global GDP each year into perpetuity. If a
wider range of risks and impacts is taken into account, the estimates of damage
110
could rise to 20% of GDP or more .
110
Lord Nicholas Stern, The Stern Review: The Economics of Climate Change
(2006) Executive Summary
111
Redbridge GIS Team estimation, Planning and Regeneration
54
Local Economic Assessment – London Borough of Redbridge
‘Greener’ business
112
GLA, Rising energy prices and their effects on environmental behaviour (July
2008)
113
Innovas Ltd (2009) for LDA, Greening Expectations: London’s Low Carbon
Job Prospects (September 2010)
114
Innovas Ltd (November 2009)
55
Local Economic Assessment – London Borough of Redbridge
A local low carbon economy offers the potential for unemployed Redbridge
residents to acquire new skills and gain employment in this growing sector.
While the majority of jobs will be higher skilled, around 1 in 3 jobs will require a
Level 2 qualification or below. In 2009/10, approximately 10,000 learners
started Further Education courses relevant to ‘low carbon’ in London: none of
these courses were available in Redbridge. Redbridge colleges should be
encouraged to run courses and modules that relate to the low carbon sector
and raising awareness of low carbon jobs in secondary schools should be
considered.
Land
Land use in Redbridge is predominantly urban. Parks and Open Spaces cover
45.03% of the Borough and include 35 Sites of Importance for Nature
Conservation, half of which are ‘managed positively for nature conservation’..
The Green Flag Award recognises green spaces where the environment is of a
high quality and well managed, and where all members of the community have
access. 3 green spaces in Redbridge were awarded a Green Flag in 2010:
Hainault Forest Country Park, Valentines Park and Elmhurst Gardens, all of
which are operated by the Council in collaboration with ‘Friends of’ parks
groups.
56
Local Economic Assessment – London Borough of Redbridge
Water and flooding
The River Roding and, to a lesser extent, Seven Kings Water are the principal
watercourses in Redbridge. Under the Water Framework Directive (WFD), the
Roding has been classified as having poor ecological status, and the Seven
Kings Water has been classified as moderate ecological status. They need to
achieve good ecological potential by 2027.
Air
There has been a slow decline in the Borough’s air quality in recent years. Of
the four recording stations, the average reading for oxides of nitrogen (NOx)
was 46.3 μg/ m³ in 2009, 46.8 in 2010, and 47.2 in 2011 Readings for 2012 and
2013 are only available for 2 of the 4 stations and do not therefore provide
meaningful comparisons to the previously stated figures. The average reading
116
for 2012 was 42.6 and 40.2 for 2013 . These readings are all above the 40 μg/
m³ which is considered acceptable for human health. It should be pointed out
that the readings are mostly taken along busy roads and often reflect through
traffic such as on the A406 (north circular), M11 and A12.
115
Redbridge GIS Team estimation, Planning and Regeneration
116
2014 Air Quality Progress Report for London Borough of Redbridge,
February 2015
57
Local Economic Assessment – London Borough of Redbridge
The Borough of Redbridge is a low emission zone (LEZ), a Transport for
London (TfL) allocation that sets emissions standards for diesel vehicles
entering or driving in Greater London. The LEZ commenced on 4 February
2008 and applies to vehicles over 3.5 tonnes and buses and coaches over 5
tonnes with more than eight seats, plus the driver's seat. Failure to comply with
the standards currently results in financial penalties.
The low emission zone charge has a potential financial impact. The businesses
most affected by the LEZ are the smaller and marginal operators (for all the four
117
vehicle types identified) . Many of these are owner-operators where the
management of the vehicle fleet may be only one small aspect of running their
business. Many of these operators would be unlikely to have formulated ‘fleet
management strategies’ and may not have either the awareness, skills or
funding to develop an efficient response to the scheme.
Carbon emissions
Redbridge has one of the lowest carbon footprints of all London boroughs. It
also has a relatively low industry base compared to other London boroughs.
Waste
The recycling and composting rate in Redbridge ranks 23rd out of all London
119
boroughs. This falls within the 3rd quartile .
Environmental Cleanliness
117
TfL, Proposed London Low Emission Zone- Economic And Business Impact
Assessment (Nov 2006)
118
London Borough of Redbridge, Annual Monitoring Report, 2013 - 2014
119
CRC annual report publication: 2013 to 2014
120
Redbridge Economic Strategy Baseline (2016)
121
The Mackinnon Partnership, Hainault Business Park Pre-Ballot
Questionnaire: Report to the London Borough of Redbridge and Hainault
Business Park Ltd (August 2010)
58
Local Economic Assessment – London Borough of Redbridge
they were either “very satisfied” (65%) or “satisfied” (31%) with current BID
management. 75% are in favour of a paid management structure to the BID.
The BID projects attracting the highest satisfaction are those related to security,
signage and recycling.
59
Local Economic Assessment – London Borough of Redbridge
Strengths Weaknesses
Strong network of town centres and Ilford Local economy fairly self-contained and not
has sub-regional economic “clout” export-oriented
Good rates of small business formation High Levels of UE, particularly in the South of
the Borough
Two Business Improvement Districts (BIDs)
Lack of inter-borough (North-South public
Redbridge Business Network transport links
Profitable green spaces Retail sector does not include leading quality
retail operators
Opportunities Threats
60
Local Economic Assessment – London Borough of Redbridge
5 Policy Directions
5.1 A sustainable pattern of development
Redbridge has historically been a dormitory borough to some degree, with
nearly two thirds of employed Redbridge residents working outside the borough.
While the borough’s access to the central London jobs market is one of its
strengths, Crossrail offers opportunities for Redbridge to promote a more
sustainable pattern of development by facilitating appropriately configured
business space for small and start-up businesses. The borough also needs to
reduce reliance on public sector jobs due to their long term vulnerability, which
the improved attractiveness of the area could help to facilitate.
Wholesale and retail trade, financial and professional services and public sector
jobs are the mainstays of employment today. For Redbridge residents who work
outside the borough, financial and professional services and public sector jobs
are relatively more important. Within Redbridge, employment in the retail and
wholesale trade overshadows the financial and professional services sector, but
the contribution of both these sectors to employment within the borough has
fallen. However, the borough is located within a strategic position with the
Thames Gateway and London-Stanstead-Cambridge corridor, offering
opportunities to be a key employment hub, attracting works from both within
Redbridge and from along the Crossrail corridor. There is evidence of strong
entrepreneurial spirit in Redbridge with growing numbers of business start-ups
and microbusinesses, which is likely to increase when Crossrail services
commence. Businesses continue to move eastward as a result of increased
occupancy costs in the central boroughs.
Strategic Industrial Locations in the borough are functioning well, with good
occupancy rates and relatively high employment. The town centres are also
faring well in comparison to other areas and the main town centres anticipate
continued improvement as a result of Crossrail services, which will speed up
access from neighbouring areas.
The emerging Local Plan seeks to capitalise on the factors above and to
provide a clear direction of where future growth will be focused in the five
growth and investment areas.
2. Fiscally: By setting the level of Council Tax and Council fees and
charges for other services and facilitating business growth by re-
gearing the level of business rates now permitted by granting of more
local control by the Treasury.
61
Local Economic Assessment – London Borough of Redbridge
4. Investing in human “capital”: Such as schools and other educational
and training facilities and services; affordable housing; providing leisure
facilities and parks and gardens for recreation.
Local businesses are also likely to benefit from emerging Local Plan policies
aimed at:
62
Local Economic Assessment – London Borough of Redbridge
Equipping local people with the skills they need to capitalise on new
opportunities through training.
The borough should aim to maximise the number of jobs available to residents
to avoid the need for seeking employment elsewhere, thus improving
sustainable land use and generating local growth. Although many residents are
attracted by high levels of remuneration at financial and business services of
central London, attracting new businesses to the borough could provide an
alternative. The borough could then address the likelihood of a reduction in out-
workers reducing average income per head.
While some residents will choose to shop outside the borough, rather than in
Ilford or one of the other town centres, the good accessibility of Redbridge
brings many advantages. By focusing growth in the town centres including
Ilford, the retail offer will improve, generating a critical mass of retailers that is
capable of retaining existing users, attracting new customers who currently use
other centres, and enhancing attractiveness to business providers.
63