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Central London Forward

Unlocking local growth Central London Forward across central London Central London Forward is the strategic sub-regional partnership of the eight Central London Local Authorities of Camden, Islington, Kensington and Chelsea, Lambeth, Southwark, Wandsworth, Westminster and the City of London Corporation. Established in 2007, it was created to champion the strategic interests of Central London’s residents and businesses as well as to provide a platform for public policy experimentation and collaboration. Central London Forward is at the forefront of developing and delivering devolution to enhance Central London’s growth potential and transform public services so they deliver for local people.

London within the UK London is the engine of the UK economy and drives national productivity and prosperity accounting for more than one-fifth of the UK’s Gross Value Added (GVA)1. London’s workforce is 42 per cent more productive than the UK average2, while businesses that are headquarted in London account for between 5 per cent and 22 per cent of employment in each of the 62 cities in the UK3.

London’s importance to the UK economy is evidenced by its substantial contribution in terms of revenue and taxes. In 2013/14

East of England 130,378

London generated £127bn in tax revenues, one-fifth of the

East Midlands

London

88,835

338,475

total UK revenue and a net contribution to the UK economy of £34bn4.

West Midlands 110,246

Yorkshire and 101,701 The Humber

Total UK GVA £1,525,304

227,232 North West 141,620 FIGURE 1 UK GVA BY REGION AND DEVOLVED ADMINISTRATION, 2013 (£M)

South East

North East 45,374 113,806 South West

Source: ONS

Northern Ireland 1 2 3 4

ONS (2014) Regional Gross Value Added 2013 ONS (2015) Sub-Regional Productivity Centre for Cities (2014) Cities Outlook City of London (2014) London’s Finances and Revenues

52,070

32,841 117,116

Wales Scotland

Yet despite London driving UK growth and prosperity,

FIGURE 2 EMPLOYMENT, UNEMPLOYMENT AND ECONOMIC INACTIVITY IN LONDON SINCE 1992

London and Londoners are becoming increasingly polarised. London authorities include some of the

6000

most deprived areas in our country, house prices and rents are soaring and despite a booming economy London’s employment and unemployment rates

5000

have consistently underperformed against the UK average for more than two decades.

Employment

3000

The importance of London to the UK’s economic

2000

health can sometimes hide the sheer scale of

Unemployed

London’s challenge. Today more than 300,000 Londoners are unemployed and a further 900,000

1000

Londoners (excluding students) are economically

Economically inactive

inactive. This means that the combined total

2015

2013

2011

2009

2007

2005

2003

2001

1999

1997

than the equivalent population of Birmingham.

1995

1993

population of out-of-work Londoners is now greater

0

Central London Forward’s sub-regional footprint

Central London in context

contributed more than £55bn in tax revenue in 2013/14 providing and a fiscal surplus of 35bn to the

UK Exchequer…

Almost 1.8m people live in Central London5, which is one-fifth of London’s population and larger than the UK’s next largest cities such as Birmingham, Manchester, Glasgow and Leeds.

TOTAL POPULATION

Greater London

Central London Forward

Birmingham

Manchester

8,538,689

1,786,329

1,101,360

520,215

Central London is the single dominant source of public revenues, generating tax revenues in excess of £57bn while receiving only £22bn of expenditure on public services. Central London accounts for more than half of London’s total revenues and more than any other region outside of London and the South East.

Surplus

Expenditure

£35,259m

£22,301m FIGURE 3 TOTAL REVENUE AND PUBLIC SECTOR EXPENDITURE 2013/14, CENTRAL LONDON FORWARD (£M)

5 Using Central London Forward’s sub-regional geography

Thousands of people

4000

Devolution and Central London Forward CLF has played a leading role from an early stage in developing London’s thinking on devolution and remains at the forefront, developing and pioneering new approaches in four key areas:

Employment and complex dependency CLF is pioneering devolved approaches to employment support including rolling out the Working Capital pilot (see page 4); playing a leading role in detailed work with Government to co-commission the successor to the Work Programme; and seeking to develop a new financial model that would unlock funding currently focussed on welfare expenditure for

Housing CLF is seeking to maintain and accelerate ambitious estate regeneration schemes across central London which will contribute to housing delivery and mixed communities despite an increasingly challenging policy and financial environment, while working with partners on setting the right framework to leverage joint investment in future ambitious housing schemes in the capital

investment in employment programmes to reduce the overall future welfare burden

Fiscal levers CLF has a long-term aspiration for London and

Skills

Londoners to retain a greater share of London’s net contribution to UK plc, investing in enhancing its infrastructure, services and commercial environment

CLF is establishing a clear role for

to retain the capital’s global pre-eminence and

sub-regions in creating a more responsive adult skills

to boost growth and prosperity nationally. In the

system for individuals and employers in the capital

short-term, CLF is seeking to test smaller tax-raising

that closes the skills gap while supporting more

powers and other instruments which could provide

people into work; including preparing to be

a basis for achieving some of this investment, and to

the first area in London to carry out a strategic

demonstrate new mechanisms for the local retention

area-based review of Further Education provision

and sharing of the proceeds of growth

Working Capital Pioneering collaboration and transformation of public services

Each client will receive dedicated support from a multi-skilled caseworker who will work with them to find out more about the problems they are facing and what assistance they need to get back into work, supporting the client to develop and implement an individual plan of action to move towards sustained employment. Ongoing in-work

KEY FACTS: n Integrated, intensive, personalised approach to employment support for almost 4,000 Work Programme leavers claiming Employment and Support Allowance across central London n Working Capital will help around 650 claimants find and sustain work, saving the Exchequer an estimated £4.4 million net at a Benefit Cost Ratio of 1.4:1 n National pilot and trailblazer for What Works Centre for Local Growth using a Randomised Control Trial method that will be independently evaluated n Test for broader local co-design and co-commissioning of employment support with Government, including integrating public services and developing “risk and reward” financing models for future employment programmes

support will be provided to support clients who have secured work and their employers.

The pilot seeks to bring together evidence of what works at scale – drawing on a contracted, Payment by Results delivery model for employment support and systematically integrating it with local support services. By embedding this support within existing local teams, caseworkers will be able to bring in specialist services such as mental health provision or specific skills training as and when needed at no additional cost. The design of the support package builds on learning from locally-led programmes for cohorts with

Central London Forward is working with Government

complex needs, including borough-led Family

to pioneer a radical new approach to employment

Recovery programmes and specialist health

support which will support long-term unemployed

interventions such as Individual Placement and

Londoners with health conditions back into work. The

Support (IPS) schemes.

£11m, 5-year Working Capital pilot will include 5,000 long-term unemployed residents across the eight CLF

CLF’s ambition is to develop a model which

authorities, working directly with nearly 4,000 clients.

applies local experience in a way which is scalable

It has been developed in partnership with Cabinet

and replicable, in order to shape the future

Office and HM Treasury, the Department for Work

of mainstream national employment support

and Pensions, London Councils, the Mayor of London

programmes. The pilot includes a Randomised

and the London Enterprise Panel and is funded by

Control Trial design and independent evaluation,

the European Social Fund.

with support from the What Works Centre for Local Economic Growth, to secure the most robust

The Rt Hon Greg Clark MP, previously Minister for Cities

evidence of what works. The pilot is expected to

and the current Secretary of State for Communities

show a significant improvement compared to

and Local Government, said: “Working Capital marks

existing local and national programmes,

a significant shift in how employment services for the

with Government having agreed that

long-term unemployed are designed and delivered.

success by Working Capital will open up

We continue to back local leaders, giving them the

opportunities to expand the scheme, aligning

powers and freedoms to transform public services,

with broader discussions on local influence over

create jobs and boost prosperity.”

employment support.

Working Capital will focus on central London

Cllr Sarah Hayward, current Chair of Central

residents who are in the ESA Work Related Activity

London Forward, said: “As the engine of the UK

Group and have left the Government’s national

economy, it’s fitting that Central London is leading

Work Programme without securing sustained work.

the way and showing how people with significant

In most cases, those eligible to participate will have

barriers can move into work with the right support.

been unemployed for at least two and a half years

This is a clear step forward in transforming public

and in many cases much longer, and may have

services in the capital and Central London

significant mental and physical health-related barriers

boroughs look forward to working with Government

to employment, potentially alongside a lack of

and across London to deliver real results which will

confidence, skills or experience.

unlock further devolution.”

www.centrallondonforward.gov.uk Kris Krasnowski, Director of Central London Forward

Central London Forward

020 7332 1253 Kris.Krasnowski@cityoflondon.gov.uk