London Economic Development Sustainability Appraisal

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London DevelopmentAgency

Sustainability Appraisalof Mayor's RevisedEconomic DevelopmentStrategy

Sustainability Appraisal Report

October 2009


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Document Revisions

No. Details Date

1 Draft Report October 09

2 Final Report October 09


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Non-Technical Summary

This section sets out the Non-Technical Summary of the SustainabilityAppraisal (SA) Report produced as part

of the appraisal undertaken to inform the revised Economic Development Strategy (EDS)for London.

The following sections explain what the revised EDS is, provide an outline of its content and describe the

relationship of the SA with the EDS. An outline of the SA process and the role of the SA Report in this process are

described together with the findings and recommendations arising from the SA. For more information on this

public consultation and how to give us your views, please see the final page in this section.

What is the Economic Development Strategy?The Economic Development Strategy (EDS) is one of the Mayoral strategies which is required under the Greater

London Authority Act 1999 (GLA Act) and the Regional Development Act 1998 (RDA Act). The LDA is

responsible for preparing a draft for publication on behalf of the Mayor. The EDS sets out a strategic direction,

clear medium term priorities and proposals for interventions and proposed strategic partnerships that will

collectively support sustainable economic growth for London.

Section 7A(4) of the RDA Act, as amended by the GLA Act, requires that the LDA keep the revised London EDS

under review, and empowers it to submit proposed revisions to the Mayor. The last revision of the EDS was

published in January 2005. There is now a need to revise the EDS to reflect a number of changes including:

a new Mayoral administration;

a very different economic climate;

an increased emphasis on climate change;

the progress towards the Olympic and Paralympic Games; and

Crossrail.

The Mayors Spatial Development Strategy The London Plan and the Mayors Transport Strategy are also beingrevised so there is a significant opportunity to fully align these three strategies.

The draft revised EDS sets out the following vision for London:

Over the years to 2031, and beyond, London should excel among global cities, expanding opportunities

for all its people and enterprises, achieving the highest environmental standards and quality of life and

leading the world in its approach to tackling the urban challenges of the 21st century, particularly that of

climate change.


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Achieving this vision will mean making sure London makes the most of the benefits of the energy,

dynamism and diversity that characterise the city and its people; embraces change while promoting its

heritage, neighbourhoods and identity; and values responsibility, compassion and citizenship.

The chosen strategy seeks to enable the London economys strengths to flourish and address weaknesses. As a

result, the revised EDS proposes five economic objectives:

Objective 1: to promote London as a city that excels as a world capital of business;

Objective 2: to ensure that London has the most competitive business environment in the world;

Objective 3: to drive Londons transition to a low carbon economy and to maximise the economicopportunities this will create;

Objective 4: to give all Londoners the opportunity to take part in Londons economic success, accesssustainable employment and progress in their careers; and

Objective 5: to maximise the benefits to London from investment to support growth and regenerationand from the 2012 Olympic and Paralympic Games and its legacy.

These objectives have then been reflected in separate chapters of the draft EDS which also contain specific

proposals on how the objective will be realised. These themes have been adopted into the structure of the SA to

provide a logical frame of reference between the SA and the emerging EDS.

What is a Sustainability Appraisal?

The sustainability appraisal of the EDS has been undertaken in a manner that incorporates the requirements of the

European Unions Strategic Environmental Assessment (SEA) Directive (2001/42/EU) and the transposing UK

Regulations1. This sustainability appraisal (incorporating the requirements of the SEA Directive (see box)) will be

referred to, hereafter, as an SA.

The objective of the European Union Directive 2001/42/EC on the assessment of the effects of certain plans and programmes on theenvironment (the SEA Directive) is to provide for a high level of protection of the environment and to contribute to the integration ofenvironmental considerations into the preparation and adoption of plans and programs with a view to promoting sustainable development, byensuring that an environmental assessment is carried out of certain plans and programs which are likely to have significant effects on theenvironment

In addition to the environmental effects required by the SEA Directive, the aim of the SA is to identify, describe

and evaluate the likely social and economic effects of implementing the EDS. Where the SA identifies likely

significant adverse effects, it should also detail proposals on how to avoid, manage or mitigate these effects.

1 European Union Directive 2001/42/EC (known as the SEA Directive) was transposed into UK legislation on the 20th July

2004 as Statutory Instrument No. 1633 The Environmental Assessment of Plans and Programmes Regulations 2004.


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Where positive effects are identified, measures to enhance them may also be proposed. An overview of the key

stages of the SA process is presented below:

Figure NTS.1 Overview of the Sustainability Appraisal Process

Figure NTS.1 sets out the 5 stages (A to E) of the SA process (as outlined in Government guidance2). The

Scoping Report (that reflected the completion of Stage A) was consulted on by statutory consultees in August and

2ODPM (2005) Sustainability Appraisal of Regional Spatial Strategies and Local Development Documents

Stage A: ScopingSetting the context, establishing the

baseline and deciding the scope of theappraisal

Stage B: AppraisalDeveloping and refining the strategic

options for the EDS and appraising theeffects

Stage C: ReportingPreparing the Sustainability Appraisal

Report

Stage D: ConsultationConsulting on the draft revised EDS

and SA Reports

Stage E: MonitoringMonitoring of significant effects from

the implementation of the EDS

Appraisal Process Key Outputs

Scoping Report

(August 2009)


(October 2009)

Post Adoption Statements

(Early 2010)

DevelopmentoftherevisedEconomicDevelopmentStrategy


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September. A summary of the results of this consultation are included in the SA Report and the consultees

responses have been considered both in the SA and also within the EDS.

What Approach was Taken to the Appraisal?

The appraisal of the EDS for London has been undertaken using an objectives-led approach. The work undertaken

at scoping (the review of the baseline information, the review of plans and programmes and the identification of

key issues) has been used to develop 16 SA objectives that cover the key sustainability topics for London. These

objectives reflect the following themes:

1. Regeneration and land-use

2. Biodiversity

3. Health and well-being

4. Equalities

5. Housing

6. Employment

7. Stable economy

8. Flood risk and climate change

adaptation

9. Climate change mitigation andenergy

10. Water quality and waterresources

11. Waste

12. Accessibility and mobility

13. Built and historic environment

14. Liveability and place

15. Open space

16. Air quality

Each objective is supported by a series of guide questions. The SA objectives cover all of the topics that the

appraisal is required to include information on (as set out in the SEA Directive). In addition, the ODPM guidance

indicates that the SA process should also cover social and economic issues such as economy, society, education,

skills, transport, equality and diversity. This also reflects the requirement of the Government Office for LondonCircular 1/2008 (Section 2.7) to have regard to:

the effect on the health and health inequality of persons in Greater London;

the effect on climate change, and the consequences of climate change; and

the achievement of sustainable development in the United Kingdom

The SA identifies and appraises those effects arising from the major themes identified in the EDS and the proposals

identified to address those themes. Specifically, the SA considers the extent to which the EDS proposals contribute

towards achieving the SA objective (e.g. Biodiversity) when considered against the baseline set by the existingEDS. The guide questions have been used to assist the appraisal of the potential effects in a qualitative manner,

ensuring consideration is given to relevant influencing factors. The direct, indirect and cumulative effects of each

theme have been considered.

The EDS is a strategic document for Londons growth and economic development, and as such, makes reference to

geographic locations for development and investment, for example in specific areas such as the Central Activity

Zone, Inner London, Outer London etc. The more specific proposals in the EDS are with respect to geographic

area, the more precise the appraisal process can be in terms of identifying spatial effects. Any such location specific


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effects within Greater London (for example increased employment for a local community from a regeneration

schemes in the Thames Gateway) have been identified and referenced in the appraisal where appropriate.

Consideration has also been given, where relevant, to wider areas of effect that extend beyond the boundary ofGreater London and across the UK.

Scoping Consultation

Consultation was undertaken on the Scoping Report for a 5 week period from 8th

August to 12th

September 2009. A

number of organisations were invited to comment including the statutory consultees under the SEA Regulations.

Four responses were received from the Environment Agency, Natural England and English Heritage as well as

from the GLA Sustainable Development Policy team. In addition, the responses received from the consultation on

the Scoping Report for the Integrated Impact Assessment (IIA) of the London Plan were also taken into account.

Organisations were given the option not to comment on the Scoping Report for the EDS if they had already

commented on the IIA for the London Plan and felt their comments sufficiently addressed any issues in the SA of

the EDS scoping report.

What Alternatives for Implementing the EDS were Identified?

The SEA Directive states that the Environmental Report should consider reasonable alternatives taking into

account the objectives and the geographical scope of the plan or programme and give an outline of the reasons

for selecting the alternatives dealt with (Article 5.1 and Annex 1(h)). However, it is the role of decision makers

and not the sustainability appraisal to decide which alternative should be chosen. The SA provides information onthe relative sustainability performance of the alternatives to inform the decision.

A number of potential broad policy proposals are set out in the draft revised EDS. These reflect work that has

considered a number of spatial development options along with consideration of different paths to sustainable

economic growth. The draft revised EDS states that the Mayor has explored alternative assumptions about where

economic development might go, for example through the Outer London Commission, and concluded that a

strategy of strengthening and widening growth, particularly in outer London, is desirable, but that it is equally

essential to consolidate the unique strengths of central London. The responses to Rising to the Challenge (the

earlier Assembly and Functional Bodies consultation draft of this Economic Development Strategy)

overwhelmingly endorsed the Mayors proposed strategic approach.

In this appraisal and given the context of the existing London economy, the scope of alternatives may be limited to

providing differing priorities between a range of proposals to meet the draft revised EDS objectives. Recognising

the priority that could be given to climate change from the Stern Review and the Governments Low Carbon

Transition Plan, and reflected in the draft revised EDS Objective 3, to drive Londons transition to a low carbon

economy, there could be are a number of alternative responses that could effect such a transition at different rates.

These are:


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Option 1 A Transition to Low Carbon Economy (LCE) Strategy This potential option isconsidered to include a significant focus on proposals that seek to help address climate change.

Conceptually this option would concentrate on the types of proposals within Chapter 3 (Transforming

to a low carbon economy) of the draft revised EDS with a potential substitution of some of the

proposals with significantly different aims. An example might include business support to sectors that

can have the greatest effect on the reduction of Londons Carbon Footprint. This might also include a

greater transfer of effort towards facilitating domestic and commercial energy efficiency and

supporting sectors;

Option 2 Economic Strategy with significant LCE proposals This option reflects the currentbalance of proposals within the draft revised EDS. It is similar to Option 1 as it recognises that the low

carbon economy should be a significant part of Londons EDS yet it maintains a greater balance of

proposals that include support to of wider economic and social objectives; and

Option 3 Continuation of policies and proposals within existing EDS This option includes acontinuation of proposals within the existing EDS which does not explicitly recognise the low carboneconomy as a key objective.

An appraisal of the likely high level (strategic) effects of these reasonable alternatives (Option 1, 2 and 3) against

the sustainability themes (environmental, economic, and social), which cover the sixteen SA objectives is

presented.

Table NTS 2: Appraisal of Options

SustainabilityTheme

Option 1: A Transition to LowCarbon Economy (LCE)Strategy

Option 2: Economic Strategywith significant LCE proposals

Option 3: Continuation ofpolicies and proposals withinexisting EDS

EnvironmentalObjectives

By basing the revised EDS on LCEobjectives, it is considered likely thatthe Strategy will be significantlyaligned with the environmentalobjectives, especially those relating toclimate change adaptation andmitigation. The scale of long-termeffects might be greater in this Optioncompared with the other options(Option 1 and 2) if it is assumed thatmore resources will be focussed onLCE objectives.

The revised EDS includes a number ofsimilar themes to the existing EDSalthough it includes a new group ofproposals to promote the developmentof a low carbon economy which areexpected to have significant long-termeffects on some of the environmentalobjectives. The effects (andcontribution) of this option are notassessed to be as high as those fromOption 1 but greater than Option 3.

The exiting EDS focussed on fourobjectives; places and infrastructure,people, enterprise, marketing andpromoting London.

This included the commitment toconsider whether proposals weresustainable, yet did not include assignificant proposals to mitigate andaddress the effects of climate change.

This is assessed to have the leastcontribution compared with Options 1

and 2.


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SustainabilityTheme

Option 1: A Transition to LowCarbon Economy (LCE)Strategy

Option 2: Economic Strategywith significant LCE proposals

Option 3: Continuation ofpolicies and proposals withinexisting EDS

EconomicObjectives

The LCE objectives do support thegrowth of sectors that will be importantto London with commensuratebenefits. However, If it is assumed thatthe focus on low carbon sectorsreduces some support to some otherhigher value added, more resourceintensive sectors, this may overlookpotential opportunities to create wealth(with associated knock-on benefits)and fail to realise Londons economicpotential.

The revised EDS includes a number ofsimilar themes to the existing EDSalthough these have been revised totake into account the changing rolesand the effect of current globaleconomic situation.

This Option (2) is expected to have thegreatest contribution to economicobjective over the short to long-termcompared with alternatives (Option 1and 3).

The existing EDS includes a widerange of proposals that are expectedto strongly contribute to economicobjectives. However, as the baselinehas changed - the UK is in a period ofrecession and the future roles ofdifferent agencies likely to be involvedhas changed, it is less likely that theproposals would deliver significantbenefits without significant revision.This Option (3) therefore is notexpected to contribute to the economicobjectives as well as Options 1 and 2.

Social Objectives Tackling climate change is important to

the long-term social welfare of Londonand, as the Stern Report recognised,there are potential longer termeconomic benefits where investment inmitigation and adaptation occurs early.However, a revised EDS needs toinclude a balance of proposals totackle a range of social issues.

The revised EDS includes a number of

similar themes to the existing EDSalthough these have been revised totake into account the changing rolesand the effect of current globaleconomic situation as well asanticipated social issues.

This Option (2) is expected to have thegreatest contribution to socialobjectives over the short to long-termcompared with alternatives (Option 1and 3).

The existing EDS includes a wide

range of proposals that are expectedto strongly contribute to socialobjectives. However, as the baselinehas changed - the UK is in a period ofrecession and the future roles ofdifferent agencies likely to be involvedhas changed; it is less likely that theproposals would deliver significantbenefits without significant revision.

This Option (3) therefore is notexpected to contribute to the socialobjectives as well as Options 1 and 2.

The preferred option was Option 2; a revised EDS which includes significant proposals to address the low carbon

economy yet retains a wider balance of economic proposals. The Mayor has concluded that the approach of

encouraging consolidation of strength in business service and finance, together with some diversification into other

growth sectors will be the most effective.

What were the Key Significant Effects?

Proposal Development and Iterations

The development of the draft replacement EDS has been an iterative process involving technical experts advising

on the potential effects that may arise and proposing suggestions to improve the early drafts of the policies and

liaising with the EDS team at the LDA/GLA. Table NTS 2 records the suggestions made and the responses

following their consideration by the EDS authors during the drafting of the replacement plan. Changes suggested

included policy amendments and clarification of policies and supporting text. For example it was recommended

that reference to social care be included in proposal 2H.


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Table NTS 2: Commentary on Development of EDS

Chapter or sub-section

Comment, Query or Recommendation

Chapter 1

Proposal 1b

3rd para

The current structure of independent agencies with their own funding streamsdoes not incentivise collaborative working. Could this be expanded on?

More in second draft

Proposal 1j Is this the responsibility of the Major? Proposal has been modified, butMayor has a legitimate interest

Chapter 2

Introductory text

2nd para

The introductory text needs to include a sentence on improving quality of lifeand the link to increased productivity.

Better in next draft

Proposal 2k Link with social care important here, especially in terms of addressingunderlying problems faced by London.

Agree: amended in next draft

Chapter 3

Does greening of transport require its own proposal? (or is this in TransportPlan)

In new draft & MTS

Should there be a proposal that relates to supporting education and publicawareness of climate change and greening the economy?

Yes in new draft

Chapter 4

Key stages described Early years and schooling, gaining and retaining employment, progressing andacquiring higher skills what about re-investing experience through theelderly?

Yes in new draft

Proposal 4c 3rd para: This para discusses measures that have been less successful todate how will these measures be tailored or improved upon then to improvetheir efficacy?

This proposal does not discuss measures for removing barriers for all targetgroups for example does not mention people with disabilities, elderly, orlesbian, gay and transgender people.

2nd to last para: The key agencies also need to work to improve the careerprogression prospects so that in-work poverty can be cut. is careerprogression the crux of the issue or is it wages that are too low to supportbasic standards of living?

Last para: If there are fewer jobs available in average pay sectors, thisproposal does not describe how it will support making more of these available.

Suggestion is that proposals to overcome institutional barriers within

businesses to improve employment are addressed e.g. promoting theconcept of part time working for single mothers.

See new draft which has madesubstantial additions

Proposal 4e The normal presumption of many economists is that higher skills are requiredin future economy this is important for innovation and technologicallydemanding employment. It has been suggested by some commentators that itis in fact wider skills that are demanded. Workers in most sectors now have tobe able to use ICT, wordprocess documents, use a range of communicationand interpersonal skills, etc. As this is not recognised these are not wellmonitored but is clearly a key barrier to employment for many.

Agree in new draft

Chapter 5

General Seems to avoid mention of sustainable development Amended in new draft


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Appraisal of Draft Revised EDS

This section presents a summary of the appraisal undertaken of the revised EDS. The summary of effects has

followed the thematic structure of the EDS and is presented against the five topic chapters of the EDS. In predicting

and evaluating the effects of the EDS, all effects have been considered, including those that are minor or non-

significant, but which could combine to create a significant cumulative or synergistic effect. Where only a minor

effect has been predicted this has been noted.

Chapter 1: London: World Capital of Business

The proposals outlined in this chapter will have significant positive effects for the economy and employment

through wealth creation and business development.

This chapter seeks to position and promote London as the undisputed world capital of business. The proposals aim

to achieve this through developing relevant partnerships, marketing and promotion and taking advantage of the

opportunities presented by the 2012 Olympic Games.

This chapter includes a strong focus on the active marketing and promotion of London worldwide. These actions

are important in ensuring that London maintains its current position as one of the foremost places to do business

and can facilitate the attraction of further business and visitors to the capital. Drawing further business and visitors

will initiate positive socio-economic effects for the capital. Critically, proposals include plans to synchronise

various promotional initiatives in a more coordinated and collaborative manner. Better coordination will improve

the effectiveness and hence value for money of promotional programmes.

The 2012 Olympic Games can serve as a strong promotional tool for London, highlighting it as a place to visit for

tourists as well as the business opportunities available here. The Games may also impact on Londoners health and

well-being around the time of event and, if successful, include useful lessons for future regeneration projects

The development of a trade strategy with China and India can significant to the long-term stability of the economy

as the link with economies of China and India will be important to diversify market opportunities for Londons

firms as well as potential positive indirect cultural and social benefits. These economies are important global

players and there are many strategic opportunities for businesses in London. Trade is an essential component to

business growth and development in the global markets and trade strategies typically serve to improve linkages and

help identify key opportunities and markets. As well as the economic benefits, there may be wider social benefits.

help to promote awareness of and appreciation for different cultures and their diversity. Any positive spin-off

effects in this regard, however, would likely be minor.

There is some uncertainty regarding the potential success of promotional activities to stimulate the economy in

times of recession. Global market factors will be an important influence economic recovery and the economic

objectives of the chapter.


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Chapter 2: Improving Londons Competitiveness

The proposals outlined in this chapter will havesignificant positive economic effects and positive social effects

through its focus on increased productivity and improving the quality of life of Londoners.

This chapter seeks to ensure that London has the most productive business environment in the world through

supporting increased productivity and competitiveness through innovation, business support and attracting

investment, as well as through improving the quality of life for Londoners.

Several proposals in this chapter are aimed at fostering innovation among Londons businesses through

collaborations, promoting linkages and direct support. There is also a key focus on developing business skills and

enterprise capability (i.e. developing the skills that underlie turning an idea into a sellable product) of Londons

citizens. Innovation is a crucial to Londons place as a premier place for business and these proposals can have

positive economic effects for the city. The focus on increasing skills and knowledge can also have beneficial social

effects through improving career progression and incomes but will require some effort to ensure that target groups

that are most in need (in terms of skills barriers to participating in the labour market) can be reached by proposals

The proposals put forward in this chapter may have both positive and negative environmental effects. Where

proposals support innovation in green technologies or creating transport, water or energy infrastructure there can be

positive effects, although the significance thereof cannot be ascertained at this stage. However, economic growth

(as supported by this chapter) is often associated with negative environmental externalities (such as greater

emissions from industrial and power generation activities, increased congestion with associated air quality effects,

and increased demand for scarce and stressed resources) and so a positive overall outcome will only result where

such growth occurs sustainably.

There are several proposals aimed at supporting, strengthening and diversifying the economy including supporting

a business friendly regulatory environment and building on opportunities with neighbouring regions. Developing

opportunities with other regions can create synergistic and wider beneficial effects for London. Proposals also

include a focus on business support, particularly for SMEs. SMEs are important employers in London and

supporting their development and survival could have positive employment effects. Where business support is

directed at communities and target groups that may experience barriers or exclusion there may also be positive

effects for equality. It is noted however that the dual objectives of supporting businesses with the greatest return to

the London economy and those that deliver equality objectives may be at odds with one another and it is important

that both of these objectives receive attention in design and focus of business support programmes.

Proposals in this chapter also focus on improving the quality of life for Londoners on a number of fronts including

addressing the quality of health and reducing health inequalities, reducing crime and improving the cultural,

sporting and entertainment offer. These proposals, whilst having positive social effects, can also positively

contribute to economic objectives, for example higher levels of health and well-being can contribute to reduced

rates of absenteeism and increased efficiency of workers. Co-ordinating activities to improve the quality of

environment will have positive environmental and social effects and support a range of sustainability objectives

including open space, biodiversity, air quality, liveability and place and health and well-being. The focus on


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increasing the provision of arts and cultural facilities in Outer London will improve accessibility to these facilities

and have positive impacts on equality. Most of these facilities are currently located in central London and

expanding their geographic distribution will help make these more accessible to people who currently mayexperience financial or travel barriers to accessing these.

Chapter 3: Making the Transition to a Low-carbon Economy

The proposals outlined in this chapter will havesignificant positive effects for the environment and the economy

through the promotion of the low-carbon industries and sectors.

This chapter is aimed at driving Londons transition to a low-carbon economy through measures to reduce

Londons carbon emissions and taking advantage of the economic opportunities that will arise.

The investment required to shift London to a low carbon economy (e.g. in the creation of green infrastructure such

as the move to a decentralised energy supply) will create direct jobs and business opportunities as well as create

wider supply chain and multiplier effects and positively contribute to creating employment opportunities for the

city. Proposals which aim at the development of low carbon skills may have positive effects including raising of

incomes and facilitating career progression. It will also help to create the supply side conditions necessary to take

advantage of economic opportunities.

There are significant economic opportunities presented through the growth and development of green sectors and

industries. London could benefit from the proposals through the principle of first mover advantage. This refers to

the benefits gained with being among the first in a new market segment e.g. through technological leadership.

Considering the global trend in moving towards green and low carbon technologies there could be significant wider

benefits for London with being seen as a leader in this regard. The establishment of exemplary projects such as the

proposed Green Enterprise District in the Thames Gateway and the Low Carbon Zones may have important

beneficial impacts through giving boost to new and emerging green industries or sectors that could benefit from

increased exposure and support.

There is expected to be some increased costs to businesses to upgrade to more energy efficient, water and waste

systems driven by increased regulatory encouragement to switch to more efficient systems and low carbon

technologies. However, investment in many of these measures will have positive payback over time and it is

expected that the long-term effect would be cost-neutral to cost-beneficial. This is especially the case as there are a

number of programmes that support businesses, such as the Building Energy Efficiency Programme, which

identifies cost neutral means to achieve energy efficient measures.

There are wide ranging positive direct and indirect environmental effects arising from the proposals in this chapter.

The most significant positive effects relate to climate change mitigation and reducing energy usage through

providing the infrastructure to move to a low carbon economy as well as reducing demand for purchased and

generated electricity (for example through energy efficiency awareness programmes to businesses). These

programmes will contribute to improved resource efficiency and more sustainable development patterns.


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There are also significant positive effects from proposals in reducing water consumption and diverting waste from

landfill. Other positive effects include improvements in local air quality from reductions in emissions and climate

change adaptation through the Mayors work with businesses on improving building design and business continuityplans.

Chapter 4: Extending Opportunity to all Londoners

The proposals outlined in this chapter will havesignificant positive economic and social effects by extending the

economic opportunities to all Londoners.

This chapter aims at giving opportunity to all Londoners to participate in the economy and take advantage of

Londons economic success by addressing issues such as housing, skills and training and removing barriers in the

labour market.

The proposal seeks to address issues relating to child poverty and help give children the best start in life through

continued lobbying and raising awareness for this cause. Where these actions increase funding for or enhance the

efficacy of the work of the London Child Poverty Commission there will be positive social effects in poverty

reduction and equality.

Another focus area of this chapter is the provision of housing, including affordable housing. This can contribute to

enhancing the liveability and sense of place in local areas where there are reductions in overcrowding and poor

quality housing. This proposal can also contribute to regeneration of areas, although the extent of this effect is

dependent on specific projects. New housing may also positively contribute to environmental objectives such as

energy and water through better design and altering consumption patterns in the home as promoted by policies such

as the London Plan and the Code for Sustainable Homes.

A major focus in this chapter is on the labour market and more specifically on removing barriers and encouraging

greater participation by all groups in society. Despite London being one of the top business centres in the world, it

still experiences relatively high levels of unemployment in comparison to the rest of England. There currently exist

barriers that prevent certain segments of the population, for example Black, Asian and minority ethnic groups,

disabled and single parents from effectively participating. This chapter includes proposals that will focus on

increasing participation of young people, removing barriers and disincentives and improving training and

employability support. These proposals can initiate a range of positive effects including increased employment

participation rates, improved incomes from improving the skills set and improved productivity.

Quality of life can be affected by issues such as having access to adequate housing and rewarding jobs which can

help improve self esteem, protect mental health and give individuals a sense of empowerment. Policies in this

chapter which address provision of adequate and affordable housing and employment and skills development can

therefore indirectly contribute to improved general levels of health and well-being. Proposals that seek to promote

volunteering can contribute to social cohesion and sustainable communities through creating a network of social

relationships among people in their own communities and help connect people from different backgrounds.


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Chapter 5: Investing in Londons Future

The proposals outlined in this chapter will havesignificant positive social and economic effects through enhancing

the effectiveness of investment to support growth and regeneration.

This chapter seeks to maximise the benefits to London from investment to support economic growth,

competitiveness and regeneration. The proposals aim at directing investment that creates supply side conditions to

enable the further growth and development of the city.

The proposals seek to direct development towards Outer London and improve the effectiveness of hubs in outer

London (identified in the London Plan as Strategic Outer London Development Centres). This will seek to reduce

the disparities that currently exist in the economies of Inner and Outer London, promoting equality by ensuring a

greater spread of economic benefits (e.g. jobs and services) to areas and communities that may currently find

experience barriers such as accessibility and affordability that prevent them from accessing these. These proposals

will also have positive effects for the economy and employment.

Improving hubs incorporates the provision of a range of activities including employment, retail, housing and

leisure, thereby helping to create sustainable and mixed-use communities. More accessible employment

opportunities in local areas can help create the potential for reduced commuting and more sustainable travel

patterns. These proposals will have positive effects for housing and regeneration of strategic areas as well as the

economy and employment. New housing may indirectly support water and energy objectives through compliance

with legislation which seeks to reduce energy and water consumption in new homes. New construction activity

may negatively contribute to waste generation in the capital although this is not considered to be significant as it

will be covered by planning legislation.

The chapter also seeks to promote the relative strengths of Central London through maintaining sufficient quality

workspaces and improving the capacity of transport systems into and out of the City. According to the 2008

European Cities Monitor availability of and value for money for office space are both areas in which London is not

currently a leader. The provision of more and quality workspace may therefore have positive benefits in attracting

more businesses to locate in London. In addition to advancing London as a premier business location where support

may allow for provision of premises demanded by businesses or the development of key infrastructure (including

green infrastructure). This will have associated impacts on wealth creation and employment. The success of

proposals in contributing to the economy will, however, ultimately be determined by wider macroeconomic factors

affecting the global slowdown in economic activity.

The proposals also support coordination with Transport for London for delivery of transport networks both within

London and with neighbouring regions, particularly in relation to the freight and logistics sector. This will

positively support the growth of London and enable the city to take advantage of economic opportunities. The

proposals also focus on encouraging more journeys by foot and by bicycle. This can help reduce congestion and the

associated negative effects for businesses, quality of life and air quality. There may also be benefits in terms of

increased health and wellbeing for Londoners.


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Health and well-being is supported by a variety of policies in this chapter, including those that will affect

reductions in poverty or improved access to services, encouraging more journeys by foot, bicycle, result in

improvement in local air quality through reduced vehicle usage. In addition the 2012 Olympic Games can serve asa catalyst to increasing participation in sporting and recreation activities and more active lifestyles in general. What

are the conclusions and key findings of the appraisal?

Overall the appraisal of the draft revised Economic Development Strategy has found the proposals to be broadly

positive when considered against the 16 sustainability appraisal objectives. In addition, no proposals were

considered in the appraisal to contribute negatively to the objectives. Not unexpectedly, the promotion of a stable

economy as well as employment objectives receive strong support in the proposals of the revised EDS as does

climate change with significant positive effects are expected against both of these objectives. Other key areas

where positive effects are expected are employment, equalities, health and well-being and accessibility.

Some of the key strengths of the revised Economic Development Strategy include:

Strong support for maintaining a strong and diverse economy that creates the conditions for supportingeconomic growth and achieving the objectives of the revised EDS.

A strong, comprehensive approach to tackling climate change notably through mitigation of emissionsand creation of green infrastructure. The proposals include actions to taking advantage of the

economic opportunities presented by these activities.

A wider approach to economic development that includes a commitment to improving the quality oflife of Londoners that addresses key aspects of poverty and exclusion.

However, there remained some uncertainty regarding the potential effects of a number of proposals where specific

details of measures that would be undertaken to fulfil the proposals are to be defined in later local policy or where

proposals relate to the Mayors success in influencing national policy.

More generally, the revised EDS did not include many proposals to address demand side stimulus measures to

boost the economy, which might be expected in response to the current recessionary period. This may reflect the

plan period.

Proposals to address housing needs and delivery were not covered in detail here and it was recognised that this may

lie more fully under the remit of other agencies such as the relatively newly formed HCA or be more fullyaddressed at local development plan policy making level. In addition, a greater focus on regeneration might have

been expected, but it is recognised that the specific details of different regeneration proposals will be defined out at

a local level.

Whilst proposals (especially in Chapter 3) are generally very supportive of the broader climate change goals to

(reduce emissions) it is not possible to appraise whether these contributions will be sufficient to meet the broader

requirements to reduce emissions by 80% by 2050 (as specified in the Climate Change Act 2008). It is understood

that specific recommendations may be set within an Implementation Plan for the revised EDS and it is


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recommended that these are appraised to consider the potential contribution of proposals to Climate Change, and

sustainability, objectives and regional targets. It would be helpful if the implementation plan also sets out potential

intended outputs and outcomes to aid future evaluation. There were a limited number of proposals addressingspecific environmental issues such as biodiversity, reducing flood risk and improving water efficiency but as these

are outside the scope of the objectives of the revised EDS and included within other policy at this and more local

levels (particularly the London Plan), this is not a concern.

The draft revised EDS makes clear steps towards a Sustainable London which, given that any major conurbation is

inherently unsustainable (with inherited patterns of infrastructure, resource consumption and waste creation) is

important. The draft revised EDS, together with the Mayors Transport Strategy and London Plan, can help ensure

that London will be considered to be more sustainable in the future than it is at present. A significant challenge

will remain to be addressed through the monitoring and implementation of the final EDS to move London further

given its over all contribution to the UK environmental and carbon footprint.

How will any Effects be Monitored?

It is a requirement of the SEA Directive to establish how the significant sustainability effects of implementing the

EDS will be monitored. However, as ODPM Guidance (ODPM, 2005) notes, it is not necessary to monitor

everything, or monitor an effect indefinitely, instead monitoring needs to be focused on significant sustainability

effects.

Monitoring the EDS for sustainability effects can help to answer questions such as:

Were the appraisals predictions of the sustainability effects accurate?

Is the EDS contributing to the achievement of the desired SA objective?

Are mitigation measures performing as well as expected?

Are there any adverse effects? Are these within acceptable limits or is remedial action desirable?

Monitoring should therefore be focussed upon:

Significant effects that may give rise to irreversible damage, with a view to identifying trends beforesuch damage is caused.

Significant effects where there was uncertainty in the SA and where monitoring would enablepreventative or mitigation measures to be undertaken.

Proposals are presented in the SA Report that outline the proposed indicators to be measured to enable the effects

of the revised EDS to be assessed in future years.


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What are the Next Steps?

This Non-Technical Summary of the SA Report for the draft revised EDS provides a summary of the informationpresented in the SA Report. The full SA report should be referred to for more detailed information. The SA Report

and the consultation on it fulfil the requirements of Stage C of the SEA process and sets out the assessment of the

EDS.

This SA Report will be presented for consultation alongside the EDS and will run till 12 January 2010. Feedback

received from consultees in relation to the SA will be documented and considered. The EDS may be amended and

revisions to the SA may be made. A post adoption statement will be produced to highlight how any

recommendations of the SA were integrated into the EDS.

How to give us Your Views?

We would welcome your views on this Sustainability Appraisal Report for the draft revised EDS for London. This

SA Report supports the consultation on the draft revised EDS and needs to be read in conjunction with the draft

revised EDS.

All responses on the draft revised EDS and /or the SA Report must be received by 5pm on Tuesday 12th

January

2010. If you decide to respond in this way, the form can be submitted by letter, fax or email to:

Letter: Philippa VenablesLondon Development Agency

Palestra

197 Blackfriars Road

SE1 8AA

Email: [email protected] SA of Revised EDS as the title.

Please note that if you send a response by email it is not necessary for you to also send a hard copy. If your

response only covers the SA Report please make this clear in the subject line of your response. All responses will

be made available for public inspection.


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Contents

1. Introduction 1

1.1 Context 1

1.2 Purpose of this Sustainability Appraisal Report 2

1.3 Sustainability Appraisal 3

1.4 Report Structure 5

1.5 Consultation and Stakeholder Engagement 6

2. The Mayors Draft Revised Economic Development Strategy for London 9

2.2 Introduction and Context 9

2.3 The Need for a Review 9

2.4 Aim of the Revised EDS 10

2.5 Reasonable Alternatives 13

3. Methodology 17

3.2 Overview 173.3 Scope of the Appraisal 17

3.4 Establishing the Context 20

3.5 Appraisal Objectives and Guide Questions 21

3.6 Completing the Appraisal 25

3.7 Assumptions and Technical Difficulties 26

3.8 HRA 26

4. Appraisal and Reporting 28

4.2 Introduction 284.3 Reasonable Alternatives 28

4.4 Revised EDS Vision and Objectives 30

4.5 Chapter 1 - London: World Capital of Business 32

4.6 Chapter 2 Improving Londons Competitiveness 38

4.7 Chapter 3 Transforming to a Low Carbon Economy 48

4.8 Chapter 4 Extending Opportunity to all Londoners 55

4.9 Chapter 5 Investing in Londons Future 64


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4.10 Cumulative Effects of EDS 73

4.11 Health Impact Assessment 75

4.12 Community Safety Impact Assessment 76

5. Conclusion 77

5.2 Key findings from Sustainability Appraisal 77

5.3 Monitoring of Significant Effects 78

5.4 Quality Assurance 81

5.5 Next Steps 81

Table 2.1 Revised EDS Objective, Themes and Proposals 11Table 3.1 Scope of Annex I Issues and SA Objectives 17Table 4.1 High Level Strategic Appraisal of the Reasonable Alternatives 29Table 4.2 Compatibility between EDS Objectives and the SA Objectives 31Table 4.3 Appraisal of Proposals in Chapter 1 in comparison with SA Objectives 37Table 4.4 Appraisal of Proposals in Chapter 2 in comparison with SA Objectives 46Table 4.5 Appraisal of Proposals in Chapter 3 in comparison with SA Objectives 54Table 4.6 Appraisal of Proposals in Chapter 4 in comparison with SA Objectives 62Table 4.7 Appraisal of Proposals in Chapter 5 in comparison with SA Objectives 71Table 4.8 Cumulative Effects Assessment of the London Plan, the Economic Development Strategy and the Mayors

Transport Strategy 74Table 5.1 Proposed Monitoring Measures 79

Figure 1.1 Overview of the Sustainability Appraisal Process 4Figure 3.1 Central Activities Zone, Inner and Outer London 19

Appendix A List of AbbreviationsAppendix B Review of Policies, Plans and ProgrammesAppendix C Response to Scoping ConsultationAppendix D Iterative Comments and ResponsesAppendix E Health Impact AssessmentAppendix F Community Safety Impact AppraisalAppendix G Detailed Assessment MatrixAppendix H Quality Assurance Checklist


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1. Introduction

1.1 Context

The Economic Development Strategy (EDS) is one of the Mayoral strategies which is required under the Greater

London Authority Act 1999 (GLA Act) and the Regional Development Act 1998 (RDA Act). The London

Development Agency (LDA) is responsible for preparing a draft for publication on behalf of the Mayor. The EDS

sets out a strategic direction, clear medium term priorities and proposals for interventions and proposed strategic

partnerships that will collectively support sustainable economic growth for London. The last revision of the EDS

was published in January 2005.

There is now a need to revise the EDS to reflect a number of changes including a new Mayoral administration, a

very different economic climate, an increased emphasis on climate change and the progress towards the Olympic

and Paralympic Games and Crossrail. In addition, the Mayors Spatial Development Strategy The London Plan

and the Mayors Transport Strategy are also being revised, so there is a significant opportunity to fully align and

optimise the synergies between these three strategies.

1.1.1 Requirement for Appraisal

The LDA (on behalf of the Mayor of London) is required to undertake a Strategic Environmental Assessment

(SEA) of its plans and programmes3. The SEA main aim is to contribute to the integration of environmental

considerations in the preparation and adoption of plans to promote sustainable development.

Sustainability Appraisal (SA) is an appraisal process based on the principles of SEA but with a wider focus that in

addition to environmental issues includes consideration of the social and economic aspects of sustainability. The

(then) Office of the Deputy Prime Minister (ODPM)4

produced guidance5

for regional and local planning

authorities on how to undertake SA which integrates the process of appraisal with the requirements for SEA. This

SA for the Mayor of Londons revised EDS adopts this integrated approach. This is also in line with the approach

that has been undertaken for alterations to the London Plan.

3 Under the European Directive 2001/42/EC (known as the SEA Directive) which has been transposed into UK Law through

the Environmental Assessment of Plans and Programmes Regulations 2004 (Statutory Instrument 1633). These regulations

apply to a wide range of plans and programmes, focusing on those that are considered to have potentially significant effects on

the environment.

4 Now known as Communities and Local Government (CLG).

5 ODPM (2005) Sustainability Appraisal of Regional Spatial Strategies and Local Development Documents.


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SA also assists the Mayor in fulfilling the duties under the GLA Act to promote social development, environmental

improvement and contribute to the achievement of sustainable development, within the UK.

The Mayor also has a duty under the GLA Act (2007) to promote the reduction of health inequalities and to have

regard to the effects of Mayoral strategies on reducing health inequalities in London. Health Impact Assessment

(HIA) provides the basis for considering health issues in policy development in London in a stand alone manner;

however, there are clear benefits to integrating the approach to HIA with the existing SA to ensure that cumulative

effects on health are comprehensively considered. The approach taken in this SA has sought to include HIA, where

appropriate.

There is a statutory requirement for the GLA to follow Section 17 of the Crime and Disorder Act (1998). The

newly enacted Police and Justice Act (2006) has broadened the scope of Section 17 to encompass misuse of drugs,

alcohol and other substances, anti-social behaviour and behaviour adversely affecting the environment. As part of

the completed SA, a specific Community Safety Impact Assessment (CSIA)6

has been undertaken and which is

integrated in the SA to achieve these duties.

The GLA Act also requires the Mayor to ensure that potential equality impacts are considered in the development

of plans and strategies. An Equalities Impact Assessment (EqIA) is the method employed to consider the impacts

of any policies upon a number of specific groups7. A full EqIA of the EDS has been undertaken separately by the

LDA, the conclusions of which will be considered as part of the SA for consistency and to ensure that the

requirements of the Race Relations Act 1976 (statutory duties) Order 2001, Disability Discrimination Act (2005)

and Equality Act (2006) to promote race, disability and gender equality are met.

1.2 Purpose of this Sustainability Appraisal Report

The purpose of this Sustainability Appraisal (SA) Report is to present the findings of the appraisal of the Mayors

draft revised EDS for London against a range of social, economic, environmental, health and equality objectives.

Where any significant adverse effects are identified, mitigating measures have been proposed, along with an

6 CSIA is a specific assessment to determine the effectiveness of a strategy in preventing crime and disorder and thus

improving community safety. The Crime and Disorder Act (as amended by the Police and Justice Act 2006) places an

obligation on the LDA to do all they reasonably can to prevent crime and disorder. The LDAs Community Safety and CrimeReduction Policy Statement sets out how this duty is fulfilled through promoting community safety (for example, by

embedding Secure by Design principles in development, delivery and evaluation processes, with commensurate guidance and

training for staff to help them evaluate the impacts of programmes on community safety). The CSIA as part of this SA will

identify the methods by which the LDA seeks to fulfil its duty through the revised EDS and assess the effectiveness of those

methods in meeting the statutory duty.

7 The following groups are included in the EqIA: women; Black, Asian and minority ethnic people; disabled people; children

and young people; older people; faith groups; and lesbians, gay men, bisexual and trans gendered people.


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indicative monitoring framework. The SA Report supports the public consultation process on the Mayors draft

revised EDS for London. In consequence, this report has the following aims:

to provide information on the Mayors draft revised EDS for London;

to provide a summary of relevant contextual sustainability information drawing on a review ofrelevant plans and programmes, baseline information and consultees views;

to outline the process of appraisal, the results of the scoping stage consultation and any difficultiesencountered during the completion of the appraisal;

to identify, describe and evaluate the likely significant effects of the Mayors draft revised EDS forLondon and its reasonable alternatives;

to provide potential measures to avoid, reduce, mitigate or offset any potentially significant adverseeffects and, where appropriate, to suggest potential measures to enhance the contribution of the

Mayors revised EDS for London to the achievement of environmental and sustainability objectives;

and

to provide an opportunity for the consultation authorities and the public to offer views on the findingsof the assessment of the Mayors draft revised EDS for London.

1.3 Sustainability Appraisal

Figure 1.1 sets out the five stages of the SA process, as outlined in Government guidance8.

The Scoping Report for this SA Report (the output from Stage A) was issued and consulted on by statutory

consultees in August 2009. A summary of the results of the consultation are presented in Appendix C and the

consultees responses have been considered both in this SA and also within the EDS.

This SA Report for the Mayors draft Revised EDS for London is the output from Stages B and C. It is published

alongside the draft EDS for consultation. The consultation on the SA and draft revised EDS represents Stage D of

the appraisal process.

8 ODPM (2005), Sustainability Appraisal of Regional Spatial strategies and Local Development Documents: Guidance for

Regional Planning Bodies and Local Planning Authorities


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Figure 1.1 Overview of the Sustainability Appraisal Process

The SA process is an iterative one with the interactions between the Scoping Report, SA and EDS intended to

identify, characterise and assess the contribution of the EDS to a range of sustainability objectives. There has beenearly and regular interaction between the EDS authors and the appraisal team to ensure that the draft EDS benefits

from timely input regarding the potential sustainability effects of alternatives and proposals. This is reflected in

commentary in this report.

In order to demonstrate compliance with the requirements of the government guidance on sustainability appraisal, a

completed Quality Assurance checklist is included in Appendix H of this Sustainability Appraisal Report.

Stage A: ScopingSetting the context, establishing the

baseline and deciding the scope of theappraisal

Stage B: AppraisalDeveloping and refining the strategic

options for the EDS and appraising the

effects

Stage C: ReportingPreparing the Sustainability Appraisal

Report

Stage D: ConsultationConsulting on the draft revised EDS

and SA Reports

Stage E: MonitoringMonitoring of significant effects from

the implementation of the EDS

Appraisal Process Key Outputs

Scoping Report

(August 2009)


(October 2009)

Post Adoption Statements

(Early 2010)

DevelopmentoftherevisedEconomicDevelopmentStrategy


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1.4 Report Structure

This Report covers Stages B and C of the SA process (see Figure 1.1). Stage B involves developing and refiningoptions and assessing the effects. It is of note that this stage may include elements that need to be carried out more

than once in the course of the Strategys development.

The SA Report presents the testing of the objectives of the revised EDS against the sustainability appraisal

framework. Next the SA Report provides comment on the development of the revised EDS by considering the

performance of the strategic alternatives against the sustainability appraisal objectives. An important part of this

process is predicting the effects of the revised EDS. This involves identifying the changes to the social, economic

and environmental baseline which are predicted to arise from the revised EDS. Furthermore, these changes are

described in terms of their magnitude, their geographical scale, the time period over which they will occur, whether

they are permanent or temporary, positive or negative, probable or improbable, frequent or rare, and whether or notthere are secondary, cumulative and/or synergistic effects. Next the SA Report presents the evaluation of the effects

of the draft revised EDS. Where appropriate, the baseline information and indicators defined at Stage A are referred

to at this point as this aids understanding of the evaluation of whether or not a predicted effect will be significant.

The appraisal of the effects also includes consideration of the short, medium and long-term as well as considering

the permanence of such effects. Following the evaluation, the SA Report considers ways of mitigating the adverse

effects identified. Finally measures are proposed to monitor the effects of the revised EDSs implementation.

With reference to the above text, the SA Report is structured into the following sections:

Section 2 Overview of the Mayors Revised Economic Development Strategy - Provides a summaryof the Mayors revised EDS and sets out a number of reasonable alternatives to the published version.

Section 3 Methodology - Sets out the methodology for how the appraisal has been undertaken. Thisincludes the appraisals scope, a baseline for the appraisal and the appraisals objectives.

Section 4 Appraisal and Reporting - Provides an appraisal of the revised EDSs Vision andObjectives, draft revised EDSs chapters and their effects, as well as reasonable alternatives:

Section 4.2 - Reasonable alternatives;

Section 4.3 - EDS Vision and Objectives;

Section 4.4 - Chapter 1, London: business capital of the world;

Section 4.5 - Chapter 2, Improving Londons competitiveness;

Section 4.6 - Chapter 3, Transforming to a low carbon economy;

Section 4.7 - Chapter 4, Extending opportunity to all Londoners;

Section 4.8 - Chapter 5, Investing in Londons future.


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Section 4.9 - Cumulative effects of EDS

Section 4.10 - Summary of findings of HIA

Section 4.11 - Summary of findings of CSIA

Section 5 Conclusion - Includes the key findings from the appraisal process, how significant effectsshould be monitored and the next steps for the revised EDS.

1.5 Consultation and Stakeholder Engagement

Consultation and stakeholder engagement are fundamental to the SA process. It reflects the principle that lies at

the heart of the SEA process that plan and programme making is better where it is transparent, inclusive and uses

information that has been subject to public scrutiny. The SA process aims to ensure that the key stakeholders,

those parties who could be affected and the wider public have the opportunity to present their views on the revised

EDS for London.

1.5.1 Previous Consultation

The SA Scoping Report produced was subject to a five week consultation period between 8th August and 12th

September 2009. A number of organisations were invited to comment including the statutory consultees under the

SEA Regulations (namely: Environment Agency, English Heritage, Natural England, GLA, LDA, and Transport

for London, and Government Office for London).

Four responses were received from; the Environment Agency, Natural England and English Heritage as well as

from the GLA Sustainable Development Policy team. In addition, the responses received from the consultation on

the Scoping Report for the Integrated Impact Assessment (IIA) of the London Plan were also taken into account..

Organisations were given the option not to comment on the Scoping Report for the EDS if they had already

commented on the IIA for the London Plan and felt their comments sufficiently addressed any issues in the SA of

the EDS scoping report. The scoping comments received relating to the EDS have been tabulated and are included

in Appendix C. The responses to the scoping on the IIA of the London Plan are held by the GLA.


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1.5.2 Consultation on this SA

This SA Report is being issued for public consultation alongside the draft EDS. In addition to seeking views from

the public on the draft revised EDS and the appraisal of its sustainability, a wider range of stakeholders have been

notified and invited to comment on the SA Report (those include a number of specific consultees set out in Box 1).

The consultation period will run for 12 weeks from the 12 October 2009 to the 12 January2010.

Box 1 Consultees

Natural England (statutory);Environment Agency (statutory);English Heritage (statutory);Homes and Communities Agency;

Government Office for London;Greater London Authority;Mayors Office;London Assembly;Transport for London;London Development Agency;London Councils;London Sustainable DevelopmentCommission;London Health Commission;London First;Friends of the Earth;The London Civic Forum;London Community Recycling Network;Social Enterprise London;NHS London;

Healthy Urban Development Unit;London Sustainability Exchange;London Remade;Big Lottery Fund;Regional Public Health Group;Environment Council;London Voluntary Services Council;Sustain;Centre for Safety, EnvironmentalManagement for Business (MiddlesexUniversity);Envirowise;Carbon Trust;Merton Chamber;Business Link in London;The Work Foundation;Institute for Sustainability;Julie's Bicycle;North London Strategic Alliance; andThe neighbouring regions (EEDA andSEEDA)

HIA Specific Consultees:London Health Commission;NHS London;Healthy Urban Development Unit;

GLA;Regional Public Health Group;London Councils;Government Office for London;London Sustainability Exchange;NHS Innovations; London Health Forum;Healthcare for London;Kings Fund;London Mental Health CEO Group;London Health Observatory;London Food;London Sustainable DevelopmentCommission; andLondon Ambulance Service.

CSIA Specific Consultees:London Met Police / Met Police Authority;London Fire Brigade;London Councils;

Relevant GLA team;Community Safety Teams / Drug ActionResponse Teams in boroughs;London Action Trust;London Probation Service;London Voluntary Services Council;Government Office for London; andCommunity Safety Advisory Service.


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How to give us your views

We would welcome your views on this Sustainability Appraisal Report for the draft revised EDS for London. This

SA Report supports the consultation on the draft revised EDS and needs to be read in conjunction with the draft

revised EDS.

All responses on the draft revised EDS and /or the SA Report must be received by 5pm on Tuesday 12th

January

2010. If you decide to respond in this way, the form can be submitted by letter, fax or email to:

Letter: Philippa Venables

London Development Agency

Palestra

197 Blackfriars Road

SE1 8AA

Email: [email protected] SA of Revised EDS as the title.

Please note that if you send a response by email it is not necessary for you to also send a hard copy. If your

response only covers the SA Report please make this clear in the subject line of your response. All responses will

be made available for public inspection.


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2. The Mayors Draft Revised Economic

Development Strategy for London

2.2 Introduction and Context

This section provides an overview of the draft Revised Economic Development Strategy (EDS). It highlights the

need for a review of the existing EDS (Section 2.2) and how that process has been undertaken. It also provides a

summary of the structure of the draft revised EDS and its associated content (Section 2.3).

2.3

The Need for a ReviewThe EDS is one of the Mayoral strategies which is required under the Greater London Authority Act 1999 (GLA

Act) and the Regional Development Act 1998 (RDA Act). Section 7A(4) of the Regional Development Agency

Act (1998), as amended by the Greater London Authority Act (1999), requires the LDA to keep the EDS under

review, and empowers it to submit proposed revisions to the Mayor.

In consequence, the LDA is working with GLA to prepare a second revision for publication on behalf of the

Mayor. The EDS describes the London economy and how it is performing; indicates areas of strength and

weakness and also will provide recommendations for the GLA functional bodies and other agencies, in terms of

direction, strategic partnerships and interventions, through an implementation plan.

The last revision of the EDS was published in January 2005. With a number of fundamental changes such as a new

Mayoral administration in place, a different economic climate, an increased emphasis on climate change and the

need to move to a low carbon economy, progress towards the Olympic and Paralympic Games and Crossrail, there

is a need to revise this document. The Mayors Spatial Development Strategy The London Plan and the Mayors

Transport Strategy are also being revised so there is a drive to fully align these three strategies.

Health (including health and health inequalities), sustainability (including environmental, social and economic

impacts) and the promotion of community safety (including the reduction in crime and the fear of crime) are all

statutory duties of the Mayor and the GLA Group, including the LDA. The GLA Group is required to have regard

to the achievement of health, equality of opportunity and sustainable development in all its activities under theGLA Act. In addition, promoting the improvement of the environment in Greater London is one of the principal

purposes of the GLA (GLA Act 30 2c) and the statutory purpose of the LDA, under the RDA Act (1998), is to

contribute to sustainable development. Also, under the Natural Environment and Rural Communities Act (2006),

every public authority must, in exercising its functions, have regard, so far as is consistent with the proper exercise

of those functions, to the purpose of conserving biodiversity.

In line with these requirements, the GLA Group takes a holistic approach to sustainable economic development

which aims to achieve positive social, economic and environmental outcomes. Furthermore, the GLA Act (2007)


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gave new health responsibilities to the Mayor in addition to his existing duty to promote health, specifically a duty

to work to reduce health inequalities. The Mayor is now required to develop and lead a London-wide Health

Inequalities Strategy, working with health partners. The GLA Act (2007) also gave the Mayor new duties toproduce climate change mitigation and energy and climate change adaptation strategies for London. The EDS

will have a key role in shaping and delivering these strategies, particularly in terms of the Capitals transition to a

low carbon economy.

GLA, TfL and the LDA have a duty under section 17 of the 1998 Crime and Disorder Act (as amended by the

Police and Justice Act 2006) with regard to various strategic planning and policy functions. Section 17 requires that

due regard is given to both the likely effect of the exercise of those functions on crime and disorder in their area

(including anti-social and other behaviour adversely affecting the local environment); and the misuse of drugs,

alcohol and other substances in its area.

The Mayor and the GLA Group also have obligations as set out under the Compact with the Voluntary and

Community Sector (VCS), Working Together. Whilst these obligations do not confer a statutory duty, they are

viewed as part of best practice by public sector bodies in working with the VCS. As such, they should be taken into

account across all areas of the GLA Group, to ensure that in this area as in others, the GLA Group are using this as

one of a suite of tools to deliver sustainable benefits to all Londoners, including those sometimes termed hard-to-

reach, and who may be disengaged from other public or private sector provided services.

The Mayor agreed that setting a revised EDS as early as possible would not be possible with further alterations and

subsequently announced a full review of the Greater London EDS. In May 2009, the Mayor published an issues

paper Rising to the Challenge which set out the Mayors broad intentions for building Londons economic future.

Consultation on the proposals lasted until mid July 2009, the findings of which were fed into the development of

the replacement EDS.

2.4 Aim of the Revised EDS

The draft revised EDS sets out the following vision for London:

Over the years to 2031, and beyond, London should excel among global cities, expanding opportunities

for all its people and enterprises, achieving the highest environmental standards and quality of life and

leading the world in its approach to tackling the urban challenges of the 21st century, particularly that ofclimate change.

Achieving this vision will mean making sure London makes the most of the benefits of the energy,

dynamism and diversity that characterise the city and its people; embraces change while promoting its

heritage, neighbourhoods and identity; and values responsibility, compassion and citizenship.

The chosen strategy seeks to enable the London economys strengths to flourish and address weaknesses. As a

result, the revised EDS proposes five economic objectives:


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Objective 1: to promote London as a city that excels as a world capital of business;

Objective 2: to ensure that London has the most competitive business environment in the world;

Objective 3: to drive Londons transition to a low carbon economy and to maximise the economicopportunities this will create;

Objective 4: to give all Londoners the opportunity to take part in Londons economic success, accesssustainable employment and progress in their careers; and

Objective 5: to maximise the benefits to London from investment to support growth and regenerationand from the 2012 Olympic and Paralympic Games and its legacy.

The draft revised EDS also sets out the key themes around which the LDA wishes to build Londons economic

future. These themes have been adopted into the structure of the SA to provide a logical frame of reference betweenthe SA assessments and the emerging EDS. Table 2.1 below sets out the draft revised EDS themes, together with

the theme objectives and the draft proposals for achieving each objective.

Table 2.1 Revised EDS Objective, Themes and Proposals

EDS Theme EDS Objective EDS Proposals

London: businesscapital of the world

1. To promote London asa city that excels as a

world capital of business.

The Mayor will work with partners to strengthen the promotion of London as a globalleader and will encourage promotional agencies to work collaboratively.

The Mayor and GLA Group will work with London Organizing Committee for theOlympic Games (LOCOG) to promote London to the world, taking full advantage ofthe 2012 Games opportunity.

The Mayor will work with partners to develop a comprehensive international tradestrategy to increase Londons exports, particularly in rapidly developing marketssuch as India and China.

Improving Londonscompetitiveness

2. To ensure that Londonhas the most competitivebusiness environment inthe world.

The Mayor will work with partners to further develop Londons capacity forinnovation, particularly for SMEs, by encouraging collaboration across sectors,promoting more productive links between business and academia, providing supportfor innovative activities, promoting entrepreneurial skills and helping in accessingfunding.

The Mayor will promote cost effective business support programmes for Londonsbusinesses, and especially its SMEs, working with central government, the LDA,local authorities and business representative organisations in London.

The Mayor will monitor the factors affecting Londons competitiveness so as toidentify where corrective action is needed to address factors having a negativeeffect.

The Mayor will continue to be an active champion of business and will lobbygovernment and encourage an open and competitive business-friendly environmentand a flexible and skilled labour market.

The Mayor will work with partners to ensure costs to business are kept as low asrealistically possible.


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EDS Theme EDS Objective EDS Proposals

The Mayor will work with the neighbouring regions to achieve mutual economicbenefits.

The Mayor will work with boroughs and other partners to improve the quality of theenvironment in London.

The Mayor will work with the NHS and partners to improve health in London andreduce health inequalities.

The Mayor will work with partners to improve and promote Londons overall cultural,sporting and entertainment

London Economic Development Sustainability Appraisal

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Transcript of London Economic Development Sustainability Appraisal