The Thames Gateway Regeneration Project - Thomson Snell and ...

The Thames Gateway Regeneration Project –A business perspectivewww.ts-p.co.uk

IntroductionBetween September 2005 and June 2006 partners at leading regional law firm Thomson Snell & Passmore (TS&P)undertook detailed face-to-face interviews with 51 companies in the North Kent area of the Thames Gateway region –representing a combined turnover of £3 billion and employing over 11,000 people.All types of businesses were represented in the study, from sole traders to international corporations. Sectorscovered included construction/real estate, manufacturing, education/training, hotels & leisure, transport & logistics,business services, Housing Associations, professions, consumer services, insurance, retail, health and mining.The interviews covered topics as far reaching as awareness of the regeneration project and attitudes towards its likelyimpact, communication with the development agencies, views on infrastructure development, the local workforceand the commercial challenges specific to the participating companies and their sectors.This report summarises the main findings of the research and provides valuable insight into how the Thames GatewayRegeneration Project is currently viewed by the indigenous business community and how it might develop in the future.

About The Thames GatewayThe Thames Gateway is the largest regeneration zone inWestern Europe and has been identified by the Government as anational priority for regeneration and growth. It extends for 40miles along the River Thames from London Docklands toSouthend in Essex and Sheerness in Kent.The Thames Gateway has 1.6 million residents, approximately700,000 households and currently supports some 500,000 jobs.Its development potential lies in the 3,800 hectares of brownfieldland, much of it being former docks, warehousing, industrial andquarries, as well as its location – it is next to the economic heartof London and directly en route to the accessible markets ofNorth West Europe.Reproduced with the permission from The Department for Communities and Local GovernmentAbout The Thames Gateway Regeneration ProjectThe Government’s vision is to transform the region by:building 120,000 homes by 2016creating up to 180,000 jobscreating sustainable communities with good local facilities,services and jobs and transport links to access services, jobsand trainingimproving educational facilities to enhance the local skills baseand enable people to move from declining industries intogrowing economic sectorsbringing major improvement to the image and environment ofthe Gateway, including higher quality design and attractiveopen spaces, with improved access to the river.The development is split into zones each with a different agencyresponsible for delivery:In LondonLondon Thames Gateway Development Corporation(includes Lower Lea Valley and London Riverside – Barking &Dagenham, Havering & Newham)Woolwich Regeneration Agency and Greenwich PartnershipBexley Regeneration Partnership.There are nine zones of change in London:Isle of DogsGreenwich, Deptford and LewishamStratfordLower LeaRoyal DocksBarking Town CentreLondon RiversideCharlton to Crayford.For the EastThurrock Thames Gateway Development CorporationBasildon Renaissance PartnershipRenaissance Southend.There are three zones in South Essex:ThurrockBasildon and Castle PointSouthend and Rochford.For South EastKent Thameside Delivery Board (Dartford & Gravesham)Medway Renaissance PartnershipSwale Forward.There are four zones of change in North Kent:Kent ThamesideGrainMedwaySittingbourne-Sheerness.Reproduced with the permission from The Department for Communities and Local Government1

About Thomson Snell & Passmore in theThames GatewayTS&P attributes much of its success to having lawyers who reallytake the time to understand clients and their needs. So when thefirm considered opening a new office in the Thames Gatewayarea its first priority was to learn about the issues facingbusinesses in the area and to understand their requirements forprofessional advice.The partners in the Thames Gateway team representing theconstruction, property, dispute resolution, employment andcommercial disciplines, devoted time to this research project tolearn first hand and from the horse’s mouth what the ThamesGateway business community thought and wanted. The firmopened its Thames Gateway office in May 2005.Whilst providing the firm with valuable insight into how to servethe area better, the firm believes that the survey information willalso be valuable to the local authorities, development agenciesand other bodies who are tasked with developing theappropriate infrastructure and realising the area’s potential. Thebroader community will also benefit from learning how theirbusiness colleagues view the present and future challenges forboth enterprise and individuals and what can be done to ensurethat the area continues to succeed and grow. Those interviewedalmost exclusively come from the South East region of TheThames Gateway Regeneration Project (Appendix 1 provides anoutline of the planned regeneration taking place in closeproximity to them).About Thomson Snell & PassmoreTS&P is a leading regional law firm in the South East (with a HeadOffice based in Tunbridge Wells, Kent). The firm servicesrequirements across the legal spectrum, has recognised expertisein all practice areas and a reputation based on a tradition of clientcare going back to 1570. With over 80 lawyers and employing afurther 120 staff, the firm possesses a strength and depth ofexpertise which only a handful of firms can claim in the SouthEast outside London. In addition, the firm boasts 11 lawyers whoare recognised as leaders in their field (Chambers Guide to theLegal Profession 2006/2007).AcknowledgementsTS&P would like to thank the senior executives of the 51organisations who participated in this research. The firm wouldalso like to thank the many authorities, agencies and professionalswho gave freely their time and expertise in supporting the firm’swork to date in the Thames Gateway area.2

Executive summaryThe main findings of the research were as follows:About the Thames Gateway RegenerationProjectWhilst many of those interviewed appear to lack detailedinformation about the Thames Gateway Regeneration Project,the majority of the businesses regard the project positively andare cautiously optimistic about the benefits that it will bring.However, 78% of the respondents believe the new jobs andnew businesses created by the project will present a realchallenge for local businesses and nearly half of the sample feelthat the needs of London are being given too much emphasisover the needs of North Kent.There are significant concerns about the transportinfrastructure for the region and the increased future pressureon local services. Nearly all participants identified healthprovision as being a particular challenge. Concern also extendsto the perceived conflicts between the planned increase inhousing and the needs of local business and industry.One of the most worrying results was that 70% of thoseinterviewed reported that they had not been consulted abouttheir views on or needs of the regeneration project. Ofthose who had been consulted, it was largely as a result oftheir own initiative as they are in construction and propertyrelated organisations. Attitudinal responses indicate that twothirds of the sample had not been made to appreciate thesignificance of the developments. More positively, two thirdsof the businesses interviewed were positive about thelikelihood of being involved in future consultation projects.One explanation for the apparent lack of communication andinvolvement is that the regeneration project is beingsupported by so many different delivery bodies that themessage has become fragmented. The Government and localdevelopment agencies therefore need to work more closelytogether and invest more in communicating with and involvinglocal businesses – particularly the smaller enterprises – in theregeneration project and conveying the full range of initiativesplanned and their likely impact.Another concern is that amongst those interviewed there is ahuge diversity of opinion in terms of the critical success factorsfor successful regeneration which indicates that the developmentagencies are facing many and varied expectations.Issues facing Thames Gateway businessesThe major issue of concern for those interviewed appears tobe recruitment – particularly with regards to the availability ofappropriately skilled staff at an affordable level. This iscompounded by the fear that new businesses created orattracted by the regeneration project will increase competitionfor skilled workers. Businesses see the development of thelocal workforce as a top priority.Many of the businesses interviewed are experiencingmanagement issues with strategy, planning, managing growthand marketing – which could be rapidly and relatively easilyremedied by greater provision of business advice by eitherpublic or private sources. Yet over 50% of those questionedfelt that they were effectively serviced by the local provision ofprofessional financial, legal, property and business services.A significant number of the participating businesses indicatedfinancial issues – whether this was in managing day-to-daycash flow or for investment in organic or acquisition growth.This would suggest that banks and private finance providerswould need to look carefully at the particular needs ofbusinesses in the area if the opportunities to grow createdby regeneration are to be realised.Legislation, regulation and increased Government interventionare high on the agenda for many businesses within theThames Gateway – as they are for all businesses within theUK. TS&P has already begun to address this need by itsinnovative programme of free seminars in 2006 which havehelped nearly 300 businesses in the Thames Gateway learnmore about the law and its impact on their business today andin the future. The next series of seminars will commence inMarch 2007.There is a wealth of additional detailed information regarding theparticipants’ detailed views of the regeneration project and itsimplications for transport, health, education, utilities and socialamenities, which are not, for the sake of space, published inthis document.3

Research resultsBusiness issuesIssues facing your organisation?Whilst the range of responses to this question wasunderstandably varied some key common issues emerged. Inorder of the most frequent responses the top ten issues are:GFHEIJDCABA Recruitment issues – particularly thelack of skilled workersB Competition – split evenly betweenUK and overseasC Regulation – keeping up withnumerous laws and regulationsD Expansion – premises, planning,recruitment etcE Planning – both general business andmarketing planningF Service improvementG EconomyH Keeping existing clientsI Creating new businessJ Business mergers and takeoversWhilst some of these might be seen as constraints, what theyindicate is that with suitable action – such as workforcedevelopment at a regional level and business support to assistwith managing planning, expansion and compliance – there is awill and significant potential for growth within the area. There isclearly a need for more business support advice provided by thepublic and private sectors.“The three main issues facing my business are 1) finding newbusiness, 2) retaining existing business (it is very competitive),3) bureaucracy – employment law and health & safety”Commercial servicesThere were many comments relating to the increased overheadfrom Government intervention and bureaucracy in areas asdiverse as minimum wages, emission regulations, environmentalcontrols and health & safety regulations. In terms of land andproperty, there was frequent mention of areas of outstandingbeauty, green belt assignment and planning restrictions constrainingdevelopment and expansion. This suggests that either specialprovisions need to be made within the regeneration area or thatadditional advice and support should be provided to helpThames Gateway businesses cope with these issues.“1) Planning – the length of time taken to processapplications 2) Inland Revenue red tape and 3) the lack ofqualified personnel” Construction/property development“Labour costs, legislation (especially employment) andbusiness rates” ManufacturingSeveral respondents mentioned a lack of public and privatefunding which suggests a greater demand for investment. Thiscan either be encouraged by the development agencies orprovided by local private equity providers. There were alsoseveral mentions of mergers and acquisitions leading to marketconsolidation and the impact that this will have on smallerbusinesses and customers. This would suggest that the localbusiness support agencies and advisers tailor their services to theneeds of the smaller organisations.“For our business, the issues are; acquisition of furthersuitable sites; climate controls and protecting our local climate;local factors such as unemployment, local economy etc”Leisure“TUPE issues. Staff recruitment. Information and the need toknow what is likely to happen in the future”Property management“Demonstrating that we are providing a good service andimproving performance/quality and efficiency (getting bestvalue from our resources)” Housing“Corporate takeover and market strategy. Operations in nicheindustries such as cars, fresh fruit and steel exports – stabilityof these sectors is crucial for us” TransportThere were a few mentions of the changing nature of the areawith concerns that further provision for housing and greaterenvironmental controls combined with increased competition willlead to a further reduction in the little remaining manufacturingwithin the area.Issues facing your sector?Considering the variety of sectors represented in the study, wewere surprised to find a high degree of consistency in the issuesmentioned. In order of the most frequent responses the top tenissues are:GFEHIDJCABA Skills shortageB Legislation and regulationC CompetitionD EconomyE Financial managementF Government supportG Strategy and planningH Land/property resourcesI Social change/attitudesJ Market uncertainty4

“We are growing and hungry for space but are limited due toplanning limitations. A number of the local areas are stronglyprotected by the environmental lobby. Some land has beenearmarked for housing but not enough for industry. You simplycannot have everybody commuting to work as fuel is avaluable and diminishing resource so you need localemployment. Fruit packaging and distribution are bothexpanding” TransportOf these issues, only Government support and land/propertyresources would appear to be specific to the Thames Gatewayregion. Perhaps easiest to address would be an immediateincrease in the funding for the local agencies to provide furthermuch needed support for the local business community –whether this is for training and development, access tomanagement advice or information on market changes and howto respond. More challenging perhaps, would be greaterinformation about the available land and property bank and thelikely future demand, and perhaps a relaxation of some of therestrictions to enable development in the short term.“Our industry is in a mess – there is over-capacity and adisorganised structure. There is also a lot of competitiveness”Manufacturing“Changes in legislation. Social changes in what is acceptableand greater emphasis on home life. Need to raise the profileof childcare – it is seen as a soft industry but is actually verytough and therefore we need to attract the right type of people”Childcare/educationThe other issues are those commonly experienced throughoutthe UK business community. The prevalence of financialmanagement, business strategy and costs and pricing issueswould suggest gaps in the Thames Gateway market for which,hopefully, local agencies and professionals can provide assistancein the short term. New consultancy firms may assist in the longerterm as the region develops.“Cash flow, planning structures and future workload”Professional servicesThere was significant evidence of the impact of internationalissues on business in the Thames Gateway area, whetherfrom overseas competition in Eastern Europe or the Far East,escalating fuel and raw material costs or fluctuating exchange andinflation rates. This would suggest the need for greater help forbusiness in understanding (and anticipating) international trendsand markets. Aligned to this issue was the frequently reportedchallenge of keeping abreast of all the information about presentand future domestic market changes – on a general level as wellas for particular sectors. This would suggest the need for agreater degree of collaboration between businesses in theThames Gateway area – so that the burden of collecting marketinformation and research can be shared. Such collaboration mayalso lead to a more cohesive voice for the local businesscommunity in lobbying for the resources and changes it needs.Perhaps one of the existing business membership organisationscan step into this role. It would certainly seem that a greaterdegree of communication amongst the construction and propertybased organisations would lead to more focused action on theland and building issues.“Too much red tape, including legislation from Europe –pollution control, paperwork. A lack of joined up thinking andstrategy. Poor infrastructure and a gridlocked road system”Aggregates“Overseas competition. Smaller customers disappearingtherefore playing with the bigger boys who are further drivingdown prices” Equipment sales“Profit margin. Regulations. Competition from Europe – whichhas cheaper overheads” Distribution/logistics“Falling retail prices. Transparency of internet pricing. Marketstability” Importer/export“Government change. Legislation. Keeping abreast of marketwants and needs” Education/trainingThere were several mentions of the role of the media inthwarting the success of the region – whether this was innegative or unbalanced reporting of the regeneration project,insufficient support given to local businesses or creating unrealisticexpectations in terms of property and investment opportunities.“There is an upward trend but the press, publicity and localmessage is wrong” Wholesale/distribution5

Local financial, professional and business advice servicesDo you believe that business in this region is effectively cateredfor by the provision of?:ServiceBanking servicesAccountancy servicesLegal servicesProperty consultantsBusiness interest groupsYes55%59%59%57%58%No36%29%29%25%42%Don’t know9%12%12%18%0%Whilst these figures would indicate a pleasing level of satisfactionamongst those interviewed, it is clear that there is still room forimprovement. A significant number of responses indicated thatservice was patchy and dependent on specific locations, and thatthere was a large number of smaller providers. In addition theneeds of particularly large or medium sized businesses were notadequately being met and there were several indications of useof advisers outside the Thames Gateway area (although notnecessarily London).Business interest groups mentioned included Business Link,Chamber of Commerce (North Kent), Federation of SmallBusinesses, Institute of Directors and River Medway BusinessUsers Association. Many respondents acknowledged that they didnot get involved with their local business support groups andseveral commented that there was duplication and confusion inand about the services provided by different groups.When asked what else would benefit them, the respondentsrequested more diversity at networking events and greaterprovision for those in tourism and retail sectors. There wereseveral requests for more vehicles to exchange businessinformation – led by local entrepreneurs rather than public agencies.Regular bulletins about progress and plans for the area and fornews of businesses moving into the region were also requested.“Something centred around the issues of construction, who isdoing what, where and when” Construction“There is no forum for North Kent in terms of tourismservices. The South East of England tourist board used to bequite active in this area but it is not clear what body hasreplaced it and how it works” Retail/wholesale“More vehicles for the exchange of business information andopportunities” Commercial services“Networking groups outside of the Chamber of Commerceand Institute of Directors to talk about business issues. Aforum for business leaders to share ideas, information and tonetwork in order to bring together people from differentbackgrounds” Housing“I would like to see more facilitation for larger employers onissues such as recruitment, education etc”Electronics manufacturing6

Awareness of the Thames GatewayRegeneration ProjectWhat do you know about the Thames GatewayRegeneration Project?The respondents were split into three groups: those that have ahigh degree of knowledge, those that have some knowledge andthose that have little knowledge. The construction and propertycompanies were the main members of the group with a highdegree of knowledge. The individual responses indicate thatwhere an initial incorrect impression had been formed, nofurther attention was paid to the potential impact and benefits tobusiness. Many responses indicated that individuals may havepicked up on just one element of the project such as theproposed housing development.CBAA Very LittleB A littleC A lot“Familiar with sustainable communities agenda through theODPM and Swale Forward who liaise with local and centralagencies. We work with the ODPM and with SEEDA and soare fully conversant and familiar with the sustainablecommunities agenda. We have a slightly more limitedengagement with the wider project” Housing“Developing the whole of the Eastern corridor by bringing innew industries and housing” Education“I know that they are building 180,000 new homes but noinformation otherwise” Transport and distribution“The Thames Gateway is an expanding area. Regenerationsums up what is happening. From what I can see it is goodand of high quality and that infrastructure is being provided”Professional services“I don’t know a great deal. There is meant to be a lot ofhousing but the figures vary. I imagine that local authoritiesrequire mixed use and therefore some commercial andresidential development is planned. There is a lot of moneycoming into the area” Construction“We are aware of it. We have been to several seminars throughthe Institute of Directors and local Chamber of Commerce.It has been talked about a fair amount” Human resourcesOverall, the results showed that despite good events by anumber of bodies such as the Institute of Directors, localChambers of Commerce, Common Purpose and SEEDA, theoverall communications programme had been ineffective for themajority of the respondents and that the opportunity exists toinvolve local businesses and alert them to the support that mightbe available to them.It was interesting to note that a significant number of respondentsrelied solely on information that was reported in the local pressand as such had an incomplete or unbalanced view of the project(for example housing issues reported more fully than businessissues, focus on major developments such as Ebbsfleet or portdevelopment). This reliance on local reporting – and its naturalfocus on issues relevant to residents and consumers – may haveinadvertently reinforced the incorrect view that the project wasof little significance to local businesses.“Remarkably little. Only what we see in the press – that a lotof houses are being built on a flood plain and in quarries”Electronics“Only what I have read in the local paper” Construction“General knowledge but you must realise that TG Essex andTG Kent are two different things” Office supplies7

What are your initial views about the Thames GatewayRegeneration Project?Despite the reported lack of detailed knowledge of theregeneration project, 50% of those interviewed felt positivelyabout the project and could see the huge potential andopportunities it would bring. There was recognition that it was anambitious long term project and that this would ensureimprovements were sustainable. Some acknowledged that thearea was desperately in need of development and drew parallelswith the stunning results achieved at Canary Wharf. Somecommented on the visible improvements that were alreadyevident and the increased confidence amongst the public.“The Government must encourage businesses into the area. Itis a sensible area to be improving in view of proximity toFrance and the continent” Insurance“A project designed to pump considerable Governmentfunding into the area to improve standards and facilities bothsocially and economically. The Thames needs to be broughtback to life as does this region and the Government fundingput in place is designed to ensure that happens” Childcare“It comes out in the press in a haphazard way, e.g. 50,000new homes along the river. I spent a lot of time working atCanary Wharf and if we could do something similar I think itwill be successful. The area has a lot of wasted space andgeneral depression after the dockyard. Providing all theinfrastructure preparatory work is done then I am positive”Travel“Disappointed that Manston is not the third airport as thiswould have been very good for Kent and very few houseswould be affected. Otherwise the project is very good forKent, for the economy and for the UK as a whole”Insurance“It is a major project. Employment and housing will increaseand create wealth. It has a positive spin and everybody istalking about it. People are talking about communities andnot just bricks and mortar” Property development“It would be great if in fact it actually happens” AutomotiveOthers were concerned about the infrastructure deficiencies andthe slow progress and some saw an inherent conflict betweenthe needs of housing and industry or the impact on local peopleand local businesses. There was a minority who were cynical andsceptical and more than a few who felt that the project neededto be “more joined up” – particularly with regards to theinterdependencies between increased housing and greaterdemand for local services and the impact on business.“A lot of talk. Moving away from the traditional manufacturingindustries – square pegs in round holes” Manufacturing“A little sceptical. From an industrial sense, it all appears to beabout building a lot of houses and improving the quality of lifebut what are all these people going to do for work apart frombuilding, plumbing etc? What is going to be manufacturedhere? Major industry appears to be leaving these shoresanyway and so what will all these extra new people do otherthan possibly commute to London?” Manufacturing“Not quite joined up the dots, good idea but too manyquangos and consultants and not confident that they willpromote local suppliers” ConstructionThe major concern here is that half of the respondents hadneutral or negative attitudes towards the project which againsuggests that greater effort should be made to communicate theaims and progress of the project and to involve more of thebusiness community (and the local people) in the project.8

Awareness of types of businesses growing or looking tolocate in the area?60% of the respondents said that they were not aware of thetypes of business growing within or those looking to locate intothe area compared to 40% who felt they were aware.“In terms of relocation it is essentially the service industriessuch as call centres. In terms of those growing there are thedistribution/logistics companies, call centres, finance housesand banks” Human resources“Moving out of London for cheaper and better qualityheadquarters, smaller businesses are trying to grow – mostlywarehousing, printing and manufacturing industries”Building constructionAre you aware of any of the proposed developments inKent Thameside, Medway and Swale?Over half of those interviewed were not aware of the specificdevelopments. Whilst 15 said they were aware of developments inall three areas, eight mentioned Medway and a further six saidthey were aware of developments in Kent Thameside and Swale.This suggests that communication about the proposeddevelopments has been on a local basis and that those within theregion generally were not aware of how the various projectsthroughout the regeneration project were linked. The ‘bigpicture’ has not been communicated effectively.Has your organisation been approached by any local orregional government bodies or intermediaries to getyour views on what North Kent needs?A total of 70% said that they had not been consulted. Ofthose who responded positively – most of these were in theconstruction or property sectors. No recurring agency wasmentioned but Kent County Council, Business Link, CommonPurpose, Chamber of Commerce and SEEDA were mentionedonce each. This supports the above views that with so manydifferent authorities and delivery agencies involved, the messagehas not reached many businesses.Interestingly, a large number of those questioned reported thatthis research project by Thomson Snell & Passmore was the firsttime that their views were elicited and it was therefore the firsttime that they had considered seriously what they hoped theregeneration would achieve for them.Is your organisation involved or aware of any projectsor initiatives which are intended to give localcommunities the opportunity to contribute ideas toand benefit from the regeneration project?BAgain, this result echoes the other findings. Three quarters ofthose interviewed felt there was little or no involvement for thecommunities in the regeneration project – a worrying indicationof the perceived lack of involvement of those more likely to beaffected by the project. The need for better communications isagain underlined.If not, do you think this is something which yourorganisation would get involved with in the future?CCABAA NoB Yes – knowC Yes – involvedA No/unlikelyB Yes/possiblyC Don’t know/no commentThe good news for the likely success of the project overall is thatthe vast majority of businesses surveyed would be keen to getinvolved in projects to help local communities contribute ideas toand benefit from the regeneration project. Such a wealth ofpotential support should be harnessed and directed by thoseresponsible for the projects although it is unclear which agencymight take on this task.9

Impact of the regeneration project on businessHow has your business been affected or how do youexpect your business to be affected by the ThamesGateway Regeneration Project?PositiveOver half of those who perceived the impact positively saw thekey opportunities as being more business, better transport andinfrastructure and better training/skills. A third saw more generalbenefits such as economic and environmental improvementsand expansion.Overall, those with a positive view saw the regeneration projectattracting more (and larger) businesses, more people and moreinvestment to the area, which in turn would lead to morewealth, more customers and increased demand for theirproducts and services as well as increased property asset valuesand a more positive attitude by local people.Some commented on the value of an improved profile andawareness of the area and its improved accessibility toLondon leading to a range of benefits including a better locallabour market.NegativeThe majority of those viewing the impacts negatively saw the lackof infrastructure and the ensuing traffic congestion as a concern.There were various mentions of the wisdom of housing andmajor developments in flood plain areas and concerns that theproject was focused too much on housing with insufficientattention paid to other regeneration such as industry.There were contradictory views about the impact on the localworkforce – some feared the enhanced train links would lead toan outflow of quality local workers whilst others saw theincreased population facing a dearth of well paid local jobs.One respondent commented on the need for regeneration to beconsidered at a regional level rather than a local level to avoidunanticipated problems being created in nearby areas of Kent.Others feared that resources and attention would be focused onnew communities at the expense of established ones.How do you think the proposed developments in KentThameside, Medway and Swale might impact onyour business?EDG H IFCJBADon't know/no commentPositivelyNo impactMore people purchasing commercialproperty in the areaIncreased businessNot applicableMore people coming into the areaLose out to competitionBetter infrastructureProvide industrial developments“Greater number of rental properties and more people lookingto buy” Property investment“Nothing would damage our ability to perform and we onlysee potential benefits” Electronics“Positively – always opportunities. Stock transfers will berelevant” Housing“Favourably provided that the zoned areas for industrialdevelopment remain as they have been discussed with us”Industrial processing“Cynically the big boys will have all of it – if the £1 million to£2 million one-off jobs soak up all the labour” Construction“It will worsen the road system and therefore congestion.Financially I do not believe it will make any difference”PrintingWhere there was awareness of the developments, the reactionwas largely positive with an increase in business, betterinfrastructure and more people moving into and buying in the areaanticipated. A concern is that half of those interviewed wereunaware of the developments and therefore unable to commenton what the impact on their business might be. This lack ofawareness could be a threat to indigenous North Kent businesses.ABCDEFGHIJOther key concerns were increased competition – particularly iflarger businesses won the lion’s share of resources and benefits –and overcrowding. There were also fears about priority beinggiven to larger companies, increased environmental protectionismand increased demand on local services and resources.10

Factors affecting the success of theregeneration projectDo you understand what is meant by the phrase“building sustainable communities”? If so, what do youthink are the key components?The incredibly varied responses to this question would indicatethe need for a clear and concise definition of the term and itsimplications and benefits. Infrastructure was frequentlymentioned. Many offered their guesses and their own views.Many different components were mentioned although rarely alltogether: houses, jobs, roads, hospitals, play areas, schools andshops. Some neatly summed up the requirements as thoseaddressing “living, working and leisure” to enable a community to“survive and flourish”. Some mentioned the need for safety, selfsufficiencyand the relationship to business and industry.What three key elements would you say are vital to thesuccess of the regeneration project?The challenge for the development agencies is in meeting theincredibly diverse range of views expressed in response to thisquestion. Not surprisingly, infrastructure (whether for transport,business, leisure or socialising) was the most frequentlymentioned. But there was also strong support for careful planning(and control) of the overall project that pays sufficient attention tothe local stakeholders – whether businesses, investors or thepublic. Public and private investment were seen as critical aswere employment opportunities. There were frequent mentionsof the need to get the right balance and integration of housingand business.Do you feel that the large landowners and developersare being sufficiently proactive in terms of developingbusiness and residential sales?A total of 32% felt that the landowners and developers werebeing proactive and 28% felt they were not. A further 18% feltthat this varied depending on residential (yes) and business sales (no)and also on public authorities (yes) and private landowners (no).Some landowners and developers were mentioned specifically asbeing proactive and these included Land Securities, the Ministryof Defence and SEEDA. There were comments that someappeared to be waiting for land/property values to increase beforereleasing them for development and the lack of any speculativecommercial builds.If we could start with a clean slate, what are thefacilities which you think would be most important toprovide for businesses?There’s no surprise that transport infrastructure came top of thelist. The need for good quality business space and businesssupport services is perhaps more interesting as these arecomparatively quicker and easier needs to address.Demonstrating again the very different needs of businesses in theThames Gateway area is the diversity of opinion on what themost critical issues are. Some of the more surprising responsesincluded: more manufacturing businesses, good leisure facilities,High Streets, parking, sewerage and water facilities, tax breaks,industrial storage and warehousing.Yet there were also many other more specialist elementsmentioned such as the need for specialist housing (single people,physically disadvantaged people), facilities for young people andthe need to generate the right image of the area.11

Attitudes towards the Thames GatewayRegeneration ProjectResultsStrongly agreeStatement123456789AgreeThe sheer scale of the regeneration of theThames Gateway is too big to be realisticThe vision of the Thames Gateway RegenerationProject has been communicated effectively to myorganisationThe Millennium Dome is a case study exampleof being overly ambitious and the Thames GatewayRegeneration Project is likely to experience similarproblemsCanary Wharf has taken 25 years to be asuccess – the success of Thames Gateway is goingto take longer than thisThe growth in population will present the NHSwith many challengesLondon’s future economic growth is dependenton the Thames GatewayEconomic development in the Thames Gatewayis a social imperativeThe creation of thousands of new jobs and manynew businesses will create a very competitivemarket which will be a challenge for local businessesToo much emphasis has been given to theneeds of London and not enough to theneeds of North KentDisagree Strongly disagree Don’t knowNeither agree nor disagreeComments1 Whilst a number of respondents feel the Thames GatewayRegeneration Project is too big, the majority disagree with thestatement which indicates that the project has the support ofthe business community participating in this project.2 Perhaps this is the most alarming result from this survey –nearly three quarters of the participants had not been made toappreciate the significance of the developments.3 66% disagree with the statement suggesting that comparisonswith the large scale Dome project are inappropriate, that theThames Gateway Regeneration Project is not seen as beingtoo ambitious and that is it more likely to provide a long termlegacy.4 Whilst a third expect the Thames Gateway RegenerationProject to take more than 25 years, nearly 50% disagree withthe statement indicating that they expect the benefits of theproject to be realised more quickly. This may indicateunrealistic expectations which the Government anddevelopment agencies would do well to heed and manage.5 Overwhelming agreement with this statement shows that thehealth provision within the Thames Gateway is amajor concern.6 Opinion appears to be divided as to how important theThames Gateway is to the future economic growth ofLondon – with slightly more (nearly half) disagreeing with thestatement.7 60% agree with this statement which suggests support for theregeneration project.8 This reflects the fear that the majority of the participantsexpressed – 78% felt that local businesses will suffer from theincreased competition created by the new businesses and jobscreated by the regeneration project.9 Nearly half of the participants agreed with this statementwhich suggests the balance of the regeneration project shouldbe reassessed to ensure that the North Kent area receivesadequate attention and investment within the project overall.12

The Thames Gateway TeamKamal AggarwalEmail kaggarwal@ts-p.co.ukPartner in the Commercial Unit which forms part of the Dispute Resolution Team. Kamal is head of ourThames Gateway office. Kamal acts mainly for commercial organisations ranging from Plcs, UK subsidiaries ofoverseas companies, large and small private companies, partnerships, LLPs and owner managed businesses.Particular specialisms include applying for or opposing urgent injunction applications, disputes involvingdirectors, shareholders, partners and/or members, contract disputes involving either UK or overseas partiesand/or subject matter, agency, competition, gaming, insolvency, intellectual property and passing-off disputes.Kamal is a member of the Common Purpose North Kent Advisory Group, Director and Company Secretaryto North Kent Chamber of Commerce, sits on the Shadow Board of Thameside Housing Association and isa member of the Institute of Directors.“All in all, the consensus appears to be ‘so far so good’ but that we must not deviate from ensuring that we deliver trulysustainable communities and a legacy based upon quality with community pride at its heart.”Joanne GallagherJoanne, Partner in CompanyCommercial, has acted for a variety ofdifferent sized commercial clients in amixture of industry sectors. She isexperienced in corporate finance andtransactional work, includingacquisitions and disposals of companiesand businesses, management buy-outs,company restructurings andreorganisations, joint ventures, bank lending and other debt andequity finance, partnership matters and limited liabilitypartnerships structures. She also handles a broad range ofcommercial matters. She has acted for various transactionsincluding US clients to assist with reverse takeover by UK Plc ofprivately owned US entertainment firm (value £190m), instructedby UK Plc in relation to the acquisition of a group of IFAs in samefield of activity (value £6m) and has been instructed by a privatelimited company in relation to disposal of assets in car industry toanother company in same industry sector (value £3m).Email jgallagher@ts-p.co.ukNick HobdenNick, Partner and head of theEmployment Team, advises on allemployment matters. His experienceincludes advising multi-nationalemployers on international assignmentpolicies and procedures for placing UKand other employees in foreignjurisdictions, drafting and negotiatingservice agreements, policies includingdisciplinary and grievance procedures, drafting and negotiatingnon-core documentation such as redundancy policies and bestpractice guidelines in cases of large scale redundancies andadvising employers and former employees in respect of breachof fidelity, garden leave and restrictive covenants provisions,handling injunction proceedings in the High Court. He haspresented seminars to regional Chartered Institute of PersonnelDevelopment, Masters Degree law students at LondonUniversity as well as other employment law briefings andtraining programmes to organisations in the telecoms, facilitiesmanagement and insurance sectors.Email nhobden@ts-p.co.uk“The interviewees care deeply about the region and it reallymatters to them that the agencies responsible for regeneratingthe region engage with them and get it right.”13

Nick HortonNick, Partner in the Commercial Unitwhich forms part of the DisputeResolution Team, handles complexcommercial, property and professionalnegligence disputes and specialises inTown & Country planning matters,environmental litigation and health &safety prosecutions. He has also actedfor Claimants and Defendants in manydisputes since 2001, covering corporate and commercial law,company restoration, insolvency, partnership and directors’disqualification, and undertakes some competition law work. In2001 Nick obtained the prestigious Higher Rights of Audiencequalification which entitles him to appear as an advocate in all civilCourts and tribunals in England and Wales. He also holds aDiploma in Litigation awarded jointly by Law South andNottingham Law School.Email nhorton@ts-p.co.ukPaul VinerPaul, Partner in Commercial Property,deals with a wide range of commercialproperty transactions with an emphasison work involving corporate clients’property portfolios, and propertyaspects of corporate deals. Hisexperience includes freehold sales andpurchases for owner occupierbusinesses, acquisition and disposal forinvestors of pre-let retail and industrial property, and the grantingand taking of leases of all types of office/retail/warehouse spacefor landlords and tenants.Email pviner@ts-p.co.ukChris WhittingtonChris, Partner in Commercial Property,specialises exclusively in constructionand has acted in both non-contentiousand contentious matters, advisingemployers (including developers ofboth commercial and residentialproperty, major retailers, education andhealthcare bodies, leisure and fitnessproviders, chemical manufacturers),contractors, sub-contractors and consultants. The main emphasisof his work over recent years has been on the non-contentiousside: advising on procurement methods, and drafting, vetting, andnegotiating building and engineering contracts, collateralwarranties, bonds and guarantees and other similar associateddocumentation, as well as professional appointments forconsultants. On the contentious side he has handled disputesboth in litigation through the courts (mainly TCC) and arbitration,and also latterly adjudication. The nature of the disputes hasincluded the interpretation of contracts, quantum meruit claims,defects, payment, determination, loss and expense, and delay.Email cwhittington@ts-p.co.ukRoy WillisRoy, Partner in Commercial Property,deals with the negotiation andacquisition of land for developmentincluding conditional contracts andoptions and the negotiation of planningand infrastructure agreements. Roy alsohas extensive experience in acting forlandlords and tenants on all aspects ofnon-contentious landlord and tenantissues from the grant of leases to estate management of retail,office and warehouse premises. His past projects includeassisting in the site assembly of a brownfield site for aninstitutional investor for mixed-use development with its sale onto a shopping centre investor, the acquisition of brownfield andgreenfield sites for residential development, involvement in thescheme for the regeneration of Kings Cross, the refurbishment ofa shopping centre in Surrey, due diligence in respect of portfolioacquisitions for investment purposes and lettings in a new mixedusedevelopment for institutional investors including the grant ofleases to anchor tenants.Email rwillis@ts-p.co.uk14

Appendix 1 – Greater detail of the planned regeneration taking place in North KentThe overarching body in North Kent is the Thames GatewayKent Partnership (TGKP). This provides the strategic leadership, coordinationof funding bids and joining up the key projectsidentified across Kent Thameside, Medway and Swale. Theobjective is to deliver high levels of job growth and quality of lifeimprovements in order to maintain its share of the ongoingfunding programme provided by the Department forCommunities and Local Government (DCLG) – formerly knownas the Office of the Deputy Prime Minister (ODPM) which is setto be £850 million by 2008. TGKP works with the KentThameside Delivery Board, Medway Renaissance Partnership andSwale Forward implementing the regeneration programme.Kent Thameside Delivery BoardThere will be 22 square miles of regeneration, delivering 30,000new homes and 50,000 new jobs. Ebbsfleet International Station willbe 17 minutes from Central London and two hours from Paris viathe new Channel Tunnel Rail Link (CTRL).The Kent Thameside Delivery Board is the delivery vehicle forthis area which is focused on the urban areas of Dartford andGravesham. It has put in place a regeneration framework, aproject framework and a dedicated delivery team.Through this it has been able to provide a clear vision of the area,set strategic objectives and identify major opportunities. This isfollowed through with constant progress reports all backed by adelivery team which supports all partners in the delivery of theprojects, promotion of the area and co-ordination of futureinvestment.Advice and support to Kent Thameside Delivery Board isprovided by The Kent Thameside Economic Development Boardand the Dartford and Gravesham Local Strategic Partnership.Regeneration activities:to develop economic and business competitivenessto promote integrated transportto deliver innovative mixed-use developmentto integrate communities and improve quality of lifeto raise standards of learning and skillsto provide an enhanced built and natural environment.These include:EbbsfleetThe new international and domestic high speed rail interchangeon the CTRLWill become a major new commercial and retail centre acting asa focus for growth in the South EastWill provide 4.8 million square feet of high quality officesCreate some 3,000 new homes commencing with the first phaseimminent at Springhead to the south providing 600 new homesUp to 1.8m square feet of leisure, retail and community facilities.The Bridge264 acre site next to QEII Bridge1,500 new homes1.5 million square feet of business space, including a Science &Technology Park and Innovation CentreCreation of 7,500 new jobs.Eastern QuarryAt 750 acres this is one of Europe’s largest brownfieldregeneration projectsDevelopment phased over 20 years7,250 new homesUp to 1.6 million square feet of officesUp to 1.2 million square feet of community, leisure and shoppingfacilities.15

Medway Renaissance PartnershipEntering its delivery phase having secured public investment of£100 million into its regeneration programme. This is forecast todeliver a minimum of £1 billion investment over the next 20 years.Significant progress has been made with:Rochester RiversideA 74 acre site promoted by Medway Council and SEEDA andone of the flagship regeneration sites of Thames Gateway. This10 to 15 year development will include:between 1,700 and 2,000 new homeshotels and conference facilitiesstart-up and grow space for small businessespubs, restaurants, shops and cafés.Strood Riverside and Temple WaterfrontHousing and high quality open space400 apartments.Swale ForwardA local partnership to help ensure that the area’s priorities aredelivered effectively. It is co-ordinating a programme of projectsworth £26 million.Major Site developments include Sittingbourne Town Centre,Kent Science Park, Queenborough Regeneration, SittingbourneRelief Road.Swale Forward is also supporting three projects which will haveimpacts across Swale:Education and Skills – improving learning and skills in localcommunitiesSustainable Communities – new provision for voluntary andcommunity activityEnvironment – enhancement of open spaces and routes,improved access to coastal and waterside areas andimprovements in the quality of the urban environment.Chatham Centre & WaterfrontUp to 950,000 square feet expansion of the retail centre, newbusiness space and waterfront housing.Gillingham RiversideA 23 hectare site which is in its development period of2005-2010 will encompass:approximately 800 to 1000 new dwellingsapproximately 200 new jobsmarine activities and increased public access to the river.16

Disclaimer This research was undertaken and analysed by lawyers in the first year of establishing TS&P’s office in the Thames Gateway. No liability is accepted for theaccuracy of the information or for any loss or damage caused by use or reliance on the information.© Thomson Snell & Passmore 2006. All Rights Reserved. Thomson Snell & Passmore is regulated by The Law Society

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