LONDON’S COUNCILS

and

their relationship with small businesses

London Borough of Islington

A Report for the

Greater London Region of the Federation of Small Businesses

by the

FSB’s London Policy Unit

December 2010

Survey Results – Islington

Introduction

On October 20th 2010, the Government announced the results of its Comprehensive Spending Review. Government

departments and local authorities have all been forced to make significant cost savings to help tackle the nation’s

structural deficit.

This has meant that for some time to come, many of the services and facilities which have been available to help small

businesses and the self-employed will no longer exist or be significantly reduced in scope.

In particular, the key functions which local authorities undertake in assisting economic development and job creation in

the area need to be assessed to ensure the best possible value for money and to ensure that they are addressing the key

needs of local businesses and residents.

Against this backdrop, the Federation of Small Businesses felt that it was important to identify the key local issues which

needed to be addressed and the perception which business has of the level of engagement which exists between Councils

and the business community.

In the autumn of 2010, we therefore undertook survey work, asking 660 VAT-registered business owners in London about

the importance of a range of business issues and of their relationship with their local Council.

Methodology

We used an independent research agency, The Demand Generation, to conduct a Survey with the aim of ascertaining the

key issues and the levels of satisfaction with local councils in the 32 London boroughs and the City of London.

Care was taken to ensure that the breakdown of this data, by both number of employees and business sector, matched

the London business profile as closely as possible (using Business Link defined profiles).

A total of 20 completed surveys were required for each of the boroughs, equating to a total of 660 completed surveys.

Surveys were conducted by telephone between 24th September and 1st November 2010.

For each business, it was necessary to confirm that the respondent was the primary contact for dealing with the local

Council and to then confirm in which London Borough their business was located. Each contact was then asked a short

series of questions that had been drawn up by the FSB specifically for this survey.

About the Respondents

Like all the other boroughs we surveyed 20 businesses in the borough of Islington

Industrial Sector

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London business profile* 5.2 8.7 8.1 9.8 1.4 3.2 3.6 11.8 3.7 4.0 21.7 5.0 8.4 5.5

London survey respondents

3.3 7.5 7.4 8.5 1.1 2.4 2 10.5 6.6 6.5 22.9 4.6 9.4 7.3

Islington business profile*

6 11 8 5 1 4 4 15 1 4 25 4 8 4

Islington survey respondents

0 5 10 5 0 0 0 15 0 5 40 5 5 10

* Business Link data headings

Size of Business

Employee Numbers

SIZE 0-4 5-9 10-19 20-49 50-99 100+

London business profile*

78.9 10.8 5.4 2.8 0.9 1.1

London survey respondents

53.4 23.6 13.6 5.7 2.6 0.8

Islington business profile

74.4 12.1 6.8 3.8 1.3 1.6

Islington survey respondents

50 20 25 5 0 0

* Business Link data parameters

The large sample involved in the survey (660 respondents) and the close match between the sectoral profile of

respondents and the profile of London’s business community as a whole (as per the Business Link IDBR 2009 Research)

suggests that the survey can be seen as robust statistical reflection of London’s businesses. In addition, with a sectoral

pattern of respondents similar to the business profile in Islington and with 95% of local respondents being small

businesses employing fewer than 20 people, there is a close match between the survey respondents and Islington’s

business community.

Survey results

All respondents were initially asked to choose their top two priorities within their local borough, with regard to issues over

which the council had responsibility. The responses were combined to demonstrate their main concerns.

On a London-wide basis it is very clear from these results that the top concern for business in London is parking with

almost exactly half of all respondents choosing this as one of their top two priorities. The second priority was waste

collection, closely followed by crime. It is striking that these figures broadly mirror survey work undertaken by the FSB of

its London members 12 months ago.*

* FSB Members Survey Agenda: 2010; London Policy Unit, November 2009.

We gave the respondents an option of ‘other’ and no single suggestion gained more support than the 10 topics suggested.

However, there were some key areas which were suggested across all 33 boroughs, such as, post office provision/closures,

street/traffic management and maintenance, and anti social behaviour.

When analysed by sector and size, parking, while important for all business, was particularly relevant for those businesses

with 5-9 employees, and obviously most important for those sectors involved in delivery (e.g. retail, wholesale and

construction).

As might be expected in an inner London borough, parking is a critical issue for Islington businesses, and given by 75% of

respondents as one of their top two priorities. Perhaps the most striking of the responses is the low figure for those who

place crime as a key priority.

The Council needs to note the various ‘internal’ council issues (planning, regulatory enforcement and business support)

which register more strongly than in the London-wide results).

The FSB has called for actions which could help address many of the concerns highlighted by the survey respondents and

we look forward to engaging with the Council to address these issues.

Council engagement with local businesses

We asked respondents to identify which of the following five statements best reflected their relationship with their local

council.

I have had no contact with my local council about issues which affect my business;

I have contacted them about local issues affecting my business but got nowhere;

I have contacted them about local issues and they were sympathetic;

They have contacted me to ask for my views on local issues affecting my business;

I do not believe they are interested in local issues which affect my business.

It is perhaps alarming that, London-wide, most businesses have had no contact with their local council about the issues

that affect them. This could suggest a lack of knowledge about the ways that local authorities and their decisions impact

businesses. It is however, more likely that this reflects a general sense of disillusion about political structures and

institutions.

When analysed by size it is striking that while only 6% of respondents said they had been contacted by their council to ask

for their views, 50% of businesses with over 250 employees had been consulted. This obviously suggests that councils are

engaging with bigger businesses, and not their smaller counterparts. Equally, larger businesses had found local authorities

sympathetic to their needs. Conversely, small businesses were more inclined to believe the council was not interested in

their views on local issues.

Certain industrial sectors, especially arts, entertainment & recreation, and manufacturing (production) have had more

constructive dialogue while the motor trade, retail, wholesale and property had the least favourable opinions and

experiences of council engagement.

Islington Council should be concerned that 80% of respondents in the Borough have either had no contact with the

Council or believe that the Council is not interested in the issues which affect the business community. In addition, while

the percentage of businesses which Islington has proactively contacted may be higher than in London as a whole, those

who contacted the Council reported receiving a sympathetic hearing.

In the light of this, Islington Council would clearly benefit for increasing the engagement and involvement it has with its

local businesses. Having signed the FSB’s Small Business Engagement Accord, we look forward to working with the Council

to help them deliver its principles.

Details of the Accord can be found at http://www.fsb.org.uk/documents/Londonaccords/

Which council service should not be cut?

The survey was undertaken at the time of the Comprehensive Spending Review (CSR) and intense speculation about cuts

in public services. We were anxious to ascertain which services provided by councils should not be cut.

London-wide the top three areas were:

1. Waste collection

2. Crime

3. Street lighting and other streets maintenance

Professional, scientific and technical businesses, and the education sector were particularly keen to see transport links

maintained, and accommodation, the motor trade and retail were particularly concerned about any potential cuts in

policing.

While few respondents stated that crime was a key priority for their business, 25% were fearful of the impact cuts in

policing and crime prevention would have on their business. A similar figure was recorded for waste collection and

recycling; with Islington businesses also opposed to cuts in street lighting, cleaning and increases in parking charges.

There were also concerns about the impact of cuts in council procurement on local businesses and of reductions in the

level of business support offered by the authority.

What things could the council do to make life easier?

This was also offered as a free form answer and the results are consequently less easily quantifiable. However, we can

identify certain actions which the council could do to benefit the business community. These included on a London-wide

basis:

1. Improved traffic management and parking

2. More procurement opportunities

3. Less red tape

4. Improve street appearance and safety (less road humps, more CCTV etc)

5. Reduced business rates

As might be expected from the previous responses, nearly two-thirds of respondents felt that the Council needed to adopt

a more business-friendly approach to parking, with reduced charges and increased provision for short-stay parking for

those using or visiting local businesses. 20% wanted the Council to do more to minimise the impact of business rates

through the vigorous promotion of Small Business Rate Relief and a sympathetic approach to payment by instalments.

There was also support (20%) for the Council playing a greater role in helping bring businesses together, creating

community cohesion and maximising the positive impact it can have in the local business community.

These are all areas where the FSB has proposed measures to support businesses and such measures can be found at

http://www.fsb.org.uk/LondonManifestos2010 .

Conclusions

There are difficult times ahead. However it is vital that local councils consult with and listen to their business community.

This will avoid expensive mistakes by making sure that what is spent is being spent on the right things to help business

operate effectively and continue to support the local economy and local residents.

The FSB looks forward to working with Islington Council to address many of the issues identified in the survey. We believe

that an increase in the Council’s engagement with local businesses would help deliver improvements for local residents,

the business community and the development of the economy of central London.

For more details contact:

Ted Wigzell Chairman, Central London Branch, Federation of Small Businesses

07801 924 208 tedwigzell@gmail.com

Steve Warwick Chairman, Greater London Region, Federation of Small Businesses

07958 676209 steve.warwick@londonpcsupport.co.uk

Nick Winch London Policy Manager, Federation of Small Businesses

07917 628985 nick.winch@fsb.org.uk

www.fsb.org.uk/london