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