London Councils' response to proposals to revise the Mayor's economic development strategy

London Councils has responded to the Mayor's proposals to revise London's Economic Development Strategy, as set out in the consultation document 'Rising to the Challenge'. The strategy will be implemented by the London Development Agency (LDA).

The key points in the London Councils response are:

• London Councils supports the proposed objectives for the strategy;
• Whilst recognising that the consultation paper is a high-level strategic document, the final EDS needs to be clear about priority areas for investment across London. Investment should be aligned with London boroughs and other public sector agencies;
• The consultation paper breaks London down geographically into the Central Activities Zone (CAZ) and Outer London, with a focus on regeneration in East London linked to the 2012 Olympic and Paralympic Games. The analysis and approach within the final EDS should be more nuanced to reflect the diversity of local economies and communities across London. Local and sub-regional economic assessments should inform different approaches to economic development and regeneration;
• London Councils supports the Mayor's aim to maintain London as a global city and recognises that much of this work will be focused on the Central Activities Zone (CAZ). This approach needs to be balanced with ambitious economic development plans for other parts of London outside the CAZ;
• London Councils also welcomes the Mayor's commitment to support SMEs and start-ups focusing on innovation and entrepreneurialism. This support should focus on start-up and micro-businesses and be reflected in a financial commitment to supporting new businesses. London Councils would like to explore developing a collaborative approach to commissioning business support services between boroughs and the LDA;
• London Councils supports the Mayor's proposal to seek as much flexibility for London in the design and delivery of welfare to work support in London. A new approach to employment and skills provision is needed that gives flexibility at the regional level but also allows flexible delivery at the local and sub-regional level too;
• London Councils would like to see further information and discussion on how the Mayor will approach regenerating deprived communities;
• New and innovative funding mechanisms to secure additional investment in infrastructure should be explored, building on work by the boroughs around asset backed development vehicles and promoting Tax Increment Financing (TIF) models.

A draft Economic Development Strategy will be published in Autumn 2009 and subject to a full public consultation - alongside the Mayor's London Plan and Transport Strategy.