Newham, London. Local Economic Assessment to Newham - Economic Development
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1 Newham, London Local Economic Assessment Newham - Economic Development 2010 to 20279
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3 8. 7BLooking Forward: Planned Investment And The Scale Of Opportunity Summary Newham has the potential to attract approximately 22bn of public and private investment. The Olympic legacy will leave behind world class facilities in the shape of a 25,000-seater stadium, an Olympic quality swimming pool and a high quality urban park. Stratford City has the potential to accommodate 34,000 new jobs by The Royal Docks area has the potential for many thousands of new jobs over the next two decades. London City Airport will continue to expand with an increase of capacity of 50% in Public investment in regeneration is transforming the borough of Newham, initially for the Olympic and Paralympic Games in 2012 and with the objective of creating the right conditions for the private sector to build new homes, and to create new jobs. The total regeneration arc, stretching from Stratford through Canning Town, the Royal Docks and Beckton, is more than 1,142 hectares in size with over 22 billion of investment planned. The most significant regeneration projects planned for the Borough are set out below. 8.2 Regeneration in Newham is a long term project; it has occurred in a number of phases over the last thirty years. The creation of the London Docklands Development Corporation in 1981 saw considerable investment most notably in transport. The DLR opened in 1987 with links to Stratford and further expansion of the service has resulted in extensive provision in the south of the Borough. 8.3 Investment in the 1990s resulted in the creation of the Cultural Quarter of Stratford which includes the Theatre Royal, Stratford Picturehouse and Stratford Circus. The Jubilee Line extension connecting Canning Town, West Ham and Stratford opened in 1999, providing a further link to central London and Canary Wharf. The recent expansion of the ExCeL Centre has increased floorspace capacity by 50% and was completed in May Stratford City 8.4 Phase One of Stratford City, currently under construction by developers Westfield Group, will provide approximately 8,000 new retail jobs in Europe s largest urban shopping centre. This first phase will also include hotel, leisure and commercial/office developments that could add up to 1,100 jobs with an important Visitor economy offer at the heart of the new metropolitan centre. The regeneration of the Old Town as the civic heart of Stratford - based around an alternative offer with additional small shops, a thriving night-time economy, independent cultural venues, and a new market hall - will add to the successful Page 1
4 existing local centre. Strengthening and expanding the existing retail base could add another 1,000 jobs. 8.5 In addition to the first phase of development, Stratford City is set to add an additional 900,000 square metres of new high grade commercial, retail and leisure space to the Town Centre. This will include 465,000 square metres of high grade office space within the Stratford City development and the wider business district. These will be promoted to house new finance and professional services companies, as well as back offices and government offices, offering a competitive alternative to Canary Wharf, Kings Cross and other London locations. There is potential for an additional 25,250 hotel, leisure and commercial/office jobs to be created over the next two decades 8.6 In total, the development has the potential to be the location for just over 34,000 jobs as illustrated below. Throughout the life of the development Stratford City has the potential for 8,400 retail jobs, 23,300 commercial/office jobs and 2,650 hotel and leisure jobs. Job Projections for Stratford City by Zone (Confirmed and Potential Jobs)* Zones Retail Commercial / Office Jobs Hotel and Leisure Jobs Total Jobs Phase 1 (Confirmed) Phase 2 (Potential) All Phases (Confirmed and Potential) 8, , ,700 2,150 25,250 8,400 23,300 2,650 34,350 Source: Westfield (2010). *Job projections are based on English Partnerships Employment Densities as outlined in the Arup Economics & Planning Employment Densities Guide (September 2001) and are not headcount figures and estimates are likely to vary significantly as the development proceeds. Olympic and Paralympic Games and the Olympic Park 8.7 There are a number of developments in Newham associated with the Olympic Park. They include the 80,000-seater Olympic Stadium which after the Olympics it is expected to become a smaller 25,000-seater stadium with a permanent athletics function. The possibility remains open that the stadium could be used by other sports with AEG, the company that owns the O2 Arena in Greenwich, and West Ham United FC interested parties. 8.8 The Olympic Village will be a 3,300 apartment complex with associated facilities for athletes. The legacy plans for this site are still being developed. There will be other employment space in the park though the exact specifications are yet to be determined. The design of the Aquatics Centre prohibits conversion to leisure use. Therefore after the Olympics the Centre will become London s leading facility for aquatic sports and will be reduced in capacity from 17,500 Olympic capacity to a 2,500-seater venue. The investment in the area for the Olympics is a crucial catalyst for further development and regeneration in Stratford and elsewhere in the Borough. Page 2
5 Stratford Town Centre 8.9 Alongside the Olympic Park and the developments at Stratford City, Stratford town centre itself is also set to undergo considerable change as a result of regeneration. A masterplan for the town centre is currently being prepared which will set out the ambitious vision of change necessary to enable Stratford to become a key metropolitan centre within London Stratford has the potential for significant new employment in both retail and office based jobs. The London Plan indicates that 50,000 new jobs could be 1 created in the Lower Lea Valley including StratfordF F. Whilst many of these are expected to be at Stratford City there remains potential for jobs growth in the town centre. Investments may include a possible education hub centred around the University of East London (UEL), Birkbeck with local FE providers In addition, the redevelopment of the town centre is also likely to encompass significant housing development. The London Plan indicated that the Lower Lea Valley, which covers parts of the boroughs of Waltham Forest, Tower Hamlets and Newham (including Stratford), should incorporate 32,000 new homes which illustrates the potential scale of development 2F The Royal Docks 8.12 At its height, the Royal Docks provided employment for over 100,000 people but this has dropped dramatically since the decline of the docks and related employment. Today, it occupies a strategic riverside position close to central London that has excellent potential for transformative change The Royal Docks already host the expanded ExCeL Centre and London City Airport which has the potential to expand. The wider Royal Docks area also contains the University of East London s (UEL) new campus near Royal Albert Dock Plans for the area are still being developed but it is clear that there is capacity to create substantial numbers of new jobs and homes. Looking at the wider Royal Docks area encompassing Canning Town South, Custom House and Beckton, it has been suggested that the area has the potential to accommodate 3 many thousands of new jobs by 2031F F One issue is the tension between possible future housing development and possible future employment uses and related commercial development. Agreeing a coherent vision for this area of the Borough will be a crucial next stage of work and provide a clearer indication as to how the Royal Docks will contribute to Newham s long term objectives One sign of the area s future potential is the planned development of the 30m Siemens Pavilion. The Pavilion will be the centrepiece of London s new Green Enterprise District, an iconic building at the heart of the Royal Docks that will showcase green technologies. The Pavilion will also incorporate a visitor 1 Mayor of London (2009) The London Plan: Spatial Development Strategy for Greater London Consultation Draft Replacement Plan 2 Mayor of London (2009) The London Plan: Spatial Development Strategy for Greater London Consultation Draft Replacement Plan 3 Regeneris Consulting & Innovacion (2010) The Royal Docks Socio-Economic Assessment Page 3
6 attraction component which is expected to attract 100,000 visitors per year. 230 Siemens employees will be based at the Pavilion which will also support a further 50 local jobs. London City Airport 8.17 London City Airport is already a key employer within the Borough. Plans for expansion could see a 50% increase in flight capacity from around 80,000 flights per year to 120,000 per year There has been the suggestion that the airport would look to continue to grow after the current expansion permission has been ratified. There is therefore a need to plan for the developments at the Royal Docks and to understand what the optimum size of the airport should be given Newham s other aspirations for the area. Canning Town and Custom House 8.19 With the DLR upgrade linking Canning Town to Stratford and the arrival of Crossrail at Custom House, Canning Town will offer the opportunity for new retail and leisure facilities including the potential for hotel development within the new town centre. Other sites have the potential for a mix of uses to complement new development at the Royal Docks and Metropolitan Stratford The Canning Town and Custom House Regeneration Programme aims to transform this deprived but highly accessible location with new, high-quality homes and two revitalised town centres. Comprising some 130 hectares, sites at Canning Town and Custom House are expected to deliver up to 10,000 new homes and 2,500 jobs within two newly configured town centre locations with improved accessibility, design and enhanced commercial premises. Other developments have the potential to create an additional 2,500 jobs. This 3.7 billion programme is scheduled to be completed by This will give people the opportunity to stay on in Newham in high quality homes as they progress up the career ladder. It will help us retain the skills base and tackle the churn that makes it hard to establish communities. Building Schools for the Future 8.21 Newham is a Building Schools for the Future (BSF) Wave 1 Authority. While we are awaiting details of the impact on the next stages of the programme, this programme of development will result in state-of-the-art facilities, greatly supporting Newham s live, work and stay agenda, for some of the schools in the borough that are most in need of investment. Challenges Securing investment across the regeneration arc and the long term economic benefits from hosting the Olympics. Ensuring the conditions for continued investment in the Borough. Page 4
7 Opportunities Maximising the benefits of investment for residents and business, including employment opportunities arising from regeneration, particularly at Stratford, Canning Town and the Royals. Reinvigorating town centres to complement the major development areas. Page 5
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