Croydon Economic Development Plan 2013-2018

Croydon EconomicDevelopment Plan2013-2018Draft for consultation -November 2012Croydon Economic Development Plan 2013-20181

forewordThis 5 year Economic Development Plan has been assembledfollowing a series of consultation events and face to face meetingswith key stakeholders including private sector businesses and publicand third sector agencies. This document therefore identifies thekey themes, priorities and delivery mechanism to achieve ouroverall long term vision of being London’s most enterprising areaby 2040.We need to work hard to enhance Croydon’s position as a keyregional employment hub for London and the South East. Ourpublic transport network and connectivity to Central London andGatwick and our road links into the UK motorway network are amajor advantage that we will utilise to, for example, promote tokey intermediary bodies and locational decision makers for inwardinvestment purposes.Croydon Economic Development Plan 2013-2018An overarching principle of thoseinvolved in the development of thisstrategic document surrounded theneed for the document to be activeand evolving over the period. Thereforethis is a plan rather than a strategyemphasising that the delivery of theactions is key. The Council alsorecognise that it is primarily the privatesector that will drive this agenda withthe Council undertaking the enablingrole of ensuring the right infrastructureand conditions are in place for businesses to thrive. In line with thisunderstanding, the role of Croydon Congress, our local strategicpartnership and Develop Croydon, an active forum for investorsand developers will be essential. The plan will be owned byCroydon Development and Cultural Partnership as the economicdriving force of these partnership arrangements.During the consultation exercises there was a high and welcomelevel of agreement as to the key priorities with an acceptance thatduring the first phases of the 5 year lifecycle we must concentrateefforts on the redevelopment of Croydon Town Centre. Thistherefore forms the critical priority and driver from which otherobjectives will naturally flow. For example, a modern vibrant towncentre with the right mix of office, housing, retail and leisureuses will assist us achieve our other priorities such as inwardinvestment and business retention. The attractiveness of our towncentre offering employees as well as residents and visitors’ highquality retail, restaurants, leisure and cultural facilities will in itselfgenerate further investment. At the same time we will continue tosupport out district centres as important hubs of local employmentand economic activity.We are also fully aware that the effects of the prolonged economicdownturn and public expenditure cutbacks require a differentapproach to economic development. There needs to be a greaterrecognition and push to provide for micro and SME businesseswho increasingly will drive growth. Our commercial officeaccommodation therefore needs to be re-engineered with smallermore flexible floorplates and allied leasing arrangements. We willconsider different emerging sectors with economic growth potentialand how they can be encouraged to stay or come to Croydon.This, in turn will require a more responsive education and trainingcurriculum that equips our young people and residents with theskillsets to take up the opportunities as we move towards economicgrowth. Our new Innovation Centre is being developed with theaim of providing the support infrastructure to enable new highgrowth businesses to flourish in Croydon.Thank you for your contributions to the development of this plan todate, we recognise the Plan is aimed much wider th an those whotook part in the consultation process. We should be assessed by ourability to deliver and very much welcome your ongoing input into thiscrucial plan on which Croydon’s economic prosperity will depend.Councillor Vidhi MohanCabinet Member, Communities and Economic Development2

contentsintroduction 4setting the scene 5improving the town centre 12inward investment & business retention 16enterprise & innovation 20business promotion and delivery 23employability and skills 25key indicators 29next steps 29Croydon Economic Development Plan 2013-20183

introductionCroydon Economic Development Plan 2013-2018About this PlanThis document, Croydon’s five-year Economic Development Plan, setsout the proposed interventions and commitments which will representthe first phase towards achieving the borough’s 2040 vision.Croydon’s vision was published in 2011 following a three-yearprogramme of engagement with more than 20,000 residents whowere asked to ‘imagine Croydon’ in 2040. That vision is:In 2040 we will be London’s most enterprising borough – a citythat fosters ideas, innovation and learning and provides skills,opportunity and a sense of belonging for all.This Economic Development Plan identifies the infrastructureimprovement and investment, the business growth, the support forpeople and the metropolitan centre and district centre investmentswhich are designed to move the borough towards that goal.This cycle of the borough’s economic development will be extremelytough and Croydon Metropolitan Centre has been prioritised as thefocus for much of the activity envisaged because of its potential tobe a driver for the borough’s overall economy. However, Croydon’sother town and district centres provide essential roles and theremust be a commitment to ensure the buoyancy of these districtcentres.Croydon is 12 minutes from Central London and 14 minutes fromGatwick Airport by train giving it an unrivalled strategic locationin South London. By building on the borough’s locational strengths,there is the opportunity for Croydon to develop as a vital, modernemployment hub which serves both London and the South Eastand, in turn, provides a range of opportunities for local people.ChallengesThe current economic climate and changing demands frombusinesses mean that the borough is at a crossroads in terms of itseconomic future. In particular:• There are almost 12,000 businesses operating in the boroughbut the number of private sector jobs has declined significantlysince 1998 and the public sector, a mainstay of the localeconomy for a number of decades, is itself now contracting.• According to the 2011 Census information Croydon’spopulation is 363,400 making Croydon the largest localauthority in London. Over the last 10 years Croydon’spopulation has increased by 32,813 people, which represents a10% increase, which is 2.9% higher than the national average.This trend will increase pressure on existing services andrequires additional job opportunities to cater for the expectedpopulation increase.• The borough has a significant office offer but many buildings donot provide the environment which modern occupiers demand.• Historically, Croydon has been attractive to some of thelargest employers in London but globalisation means that it iscompeting with international as well as national locations toretain those organisations and attract new ones. The borough’scommercial stock needs to diversify to foster start-ups, retainSMEs as they grow as well as continue to attract largerorganisations.• 28 of the country’s 30 largest retail operators trade out ofCroydon – but retail facilities are below those expected bymodern shoppers and relatively few people see Croydon as anevening or overnight location.• Croydon’s transport connections are exceptional. Commitmentsto extend capacity provide a huge opportunity as investorslook for added value impacts during a time of financialconstraints and reduced investment.• The borough’s residents are better skilled than many partsof London – with the borough performing just below theLondon average in terms of the proportion of residents thathave the top level skills (NVQ level 4 & 5). These high levelskills are increasingly required by future employers as London’semployment becomes increasingly characterised by knowledgebased industries. This progress needs to be maintained.• The employment rate is comparable with other areas but ahigh proportion of young people are out of work and thereare pockets of the borough where economic inactivity isunacceptably high.This document identifies a series of commitments and aspirationsaimed at addressing the challenges and opportunities presented tothe borough which in turn will help deliver the long-term vision. Itdraws heavily on work done in recent years in developing Croydon’sCapital Strategy, Skills & Employment Plan and the OpportunityArea Planning Framework in relation to Croydon Town Centre.4It is acknowledged that not everything can be achieved overnightin the current economic climate – some aspirations will only beachievable in the longer term but are relevant in the context of thisfive year plan.

setting the sceneNational Policy DriversThe resources available to Croydon Council to deliver the EconomicDevelopment Plan are limited with the vast majority of publicfunding to support local economies channelled through variousnational, regional and sub-regional agencies. Moreover, the councilalso recognises that to deliver economic growth and prosperityfor Croydon it is the private sector that will lead with the Councilproviding an ‘enabling role’ through the provision of the rightinfrastructure to let business and enterprise develop and thrive.Allied incentives notably the New Homes Bonus will bring aboost to Council finances. The localisation of council tax and theintroduction of Universal Credit are other areas which need to bemonitored as to their potential impact on local economic growth.Universal Credit with its design on ‘making work pay’ that willreplace Jobseekers Allowance and the ‘passported benefits’ (suchas housing benefit & tax credits) will assist active jobseekers obtainjobs who are expected to be at least 35% better off when taking ajob. Currently the difference between taking a job and remaining onbenefit can be as low as 10%.With regard to publicly funded provision the Government hasintroduced a series of policy initiatives and legislative changesto support local economic growth and the council will assessthe relevance and suitability of these new initiatives to promoteeconomic development within the borough.The main methods and channels for assisting economic growth are:Localism ActThe Localism Act became law in November 2011. It devolvesgreater powers to councils and neighbourhoods and aims togive local communities more control over housing and planningdecisions. Specific elements of the act such as Community Rightto Challenge and the allied 2012 Public Services Social ValueAct may stimulate new (particularly social enterprise) servicedeliver models and ‘neighbourhood’ and grassroots enterprisedevelopment. Local authorities will also have more flexibility toexplore different avenues for delivering services under the power ofgeneral competence.National Skills PolicyWithin this national policy priority area resides apprenticeshipspromotion and support for small and medium sized enterprises(SMEs) with fewer than 250 employees. Croydon and itspartner agencies within the Skills and Employment StrategyGroup (a borough-wide partnership between the public, privateand community sector, leading on the skills and employmentagenda) are actively involved in both the direct provision andpromotion of apprenticeships with Croydon employers. The Groupview apprenticeships as an ideal solution to future workforcedevelopment and local employment for borough residents.Welfare ReformsThe Welfare Reform Act introduced a wide range of reformsthat make the benefits and tax credit system fairer and simplerby incentivising work through, for example, the introduction ofUniversal Credit will come into effect in April 2013 with its’ overallaim of reducing worklessness and poverty.Croydon Economic Development Plan 2013-2018Local FinanceWithin the overall Government commitment of devolving powersfrom Whitehall there are a number of structural changes that comeinto effect in April 2013. These include business rate retentionand council tax localisation that are based around the concept of‘risk and reward’. There will be new ’financial risks’ with localgovernment finance increasingly being tied to the local economyand benefit bill. For example, a relocation decision of a majorbusiness over which a local authority may have little control willhave a significant impact on its finances. It is therefore crucial forthe whole council to be actively engaged in the positive promotionof Croydon as a first class business location with agile, proactiveservices to attract and grow new and retain existing businesseswithin the borough.Welfare to Work ProgrammesFrom April 2011 Jobcentre Plus (JCP) increased flexibility to makedecisions on how best to help local people into work and can nowdeliver more personalised support to all customers.JCP has also been given the responsibility to work with localbusinesses and organisations to support people through the ‘GetBritain Working’ measures which include:• Work Programme – The new Work Programme is theflagship of the Government’s plans to reform welfare-toworkprovision in the UK. In Croydon the 3 main PrimeContractors (i.e. service providers), Action for Employment(A4E), Careers Development Group (CDG) and SEETEC areall members of the Skills and Employment Strategy Group.5

setting the scene• New Enterprise Allowance – The new enterpriseallowance (NEA) supports those local JSA registeredunemployed who are looking to start a business byproviding access to finance and valuable support from localentrepreneur mentors.The Government has also initiated a series of measures designed topromote sustainable growth through:Growing Places FundThe Growing Places Fund and its equivalent in London (the LondonGrowth Fund) is designed to get stalled sites for developmentmoving again; provide additional funding for infrastructure projectsalready in the pipeline; and promote wider economic growth andthe delivery of jobs and houses. The Growing Places InvestmentFund has provided funding to the Ruskin Square development.Croydon Economic Development Plan 2013-2018• Structural reform priorities that can benefit the wholeeconomy in planning, competition, trade and investment,regulation, access to finance and corporate governance.• Removing barriers in sectors where there are clearopportunities for growth and where Government canmake a difference, starting with the following sectors:construction; retail; healthcare and life sciences;professional and business services; advanced manufacturing;and digital and creative industries. Two mechanisms tosupport delivery included in this are Tax Increment Finance,to support key infrastructure and other capital investments,and the New Homes Bonus, to incentivise local planningauthorities to increase housing provision. The latter hasparticular attraction to Croydon with planning permissionsalready in place for 7,500 new homes in the town centreand other pipeline developments in, for example, Cane Hill.Local Enterprise Partnerships (LEPs)Local areas are able to take a lead in developing economic growththrough Local Enterprise Partnerships (LEPs) whose role is to actas the sub-regional coordinating body for economic developmentand regeneration. Croydon is a member of the Coast to CapitalLEP and will support the work of the recently established LEP forLondon – the ‘London Enterprise Panel’.Inward InvestmentThe national inward investment arrangements take over thedelivery of inward investment support from the former RegionalDevelopment Agencies in England with the signing of a contractwith UK Trade & Investment whilst in London this will be managedthrough ‘London and Partners’ with which Croydon has developeda relationship with promoting the area to overseas investors.Business SupportBusiness Link retained a national web service providingonline support to individuals and businesses advising themon starting, improving and growing their business online athttp://www.businesslink.gov.uk. This will be replacedfrom 17 October 2012 by a new website.gov.ukThere are a number of national schemes for businesses to supporttheir growth potential such as those looking for an experiencedbusiness mentor http://www.mentorsme.co.uk; schemes to identifyand accelerate growth such as Growth Accelerator Scheme http://www.growthaccelerator.com. This development forms an elementof the emerging ‘enterprise’ support framework for the borough ledSkills and Employment Strategy Group.There are two major funding programmes managed through the LEPs:Regional Growth Fund (RGF)The £1.4 billion Regional Growth Fund is operating between 2011and 2014. It has been designed to support the creation of privatesector employment in those areas of the country likely to face themost substantial fall in public sector employment. The emphasis ison the direct involvement of the private sector in formulating bidsto the RGF.Youth ContractIn response to the challenge of youth unemployment theGovernment announced a £1billion Youth Contract to help youngunemployed people get a job. The Youth Contract, which launchedin April 2012, will provide nearly half-a-million new opportunitiesfor 18-24 year olds, including apprenticeships and voluntary workexperience placements.In Croydon, take up to date has been slow and Croydon will beworking with providers over the coming months to promote theprogramme to employers across the borough.6

setting the sceneRegional and Sub-Regional contextNotwithstanding some of the challenges noted above Croydon willremain a key centre of business, employment, retail and transporthub for London and the wider south east sub-region. For exampleour significant cluster of ‘insurance businesses’ is a regionalstrength that we should aim to build upon. We will therefore seekto attract businesses where we already have significant clusters.Croydon’s involvement in the ‘Coast to Capital’ Local EnterprisePartnership also offers opportunities for the borough to attractinward investment given its strategic location as the southerngateway into Europe’s largest single customer market – London.The official opening of Croydon University Centre in September2012 through its strategic partnership with Sussex University notonly provides degree level courses in Croydon; it also providesan additional inward investment tool as high growth firms viewproximity to a HE institution as a key locational factor. Thepotential for business and HE collaborations in the forthcomingCroydon Innovation Centre will be another key driver of economicgrowth that the borough and its partners will utilise this centre asa marketing tool to promote in its inward investment prospectus.Delivery & Policy ContextThis plan identifies how, through working with a range ofstakeholders and by strategic commissioning, Croydon willdevelop interventions that move the borough towards its vision ofeconomic prosperity. In doing so, it recognises that reductions inpublic funding require the Council and its partners to focus scarceresources on key priorities.The mix of factors such as land-use, investment, physicaldevelopment, infrastructure, business support, education andtraining that influence economic development means that thereare a whole range of policy areas that need to be aligned to bringabout economic growth.At the borough and sub-regional level there are a number ofrelevant strategies and plans that either link to or support deliveryof our economic priorities and help create the right conditions forfuture growth and that will help deliver our priorities over the nextfive years. The key documents are:Croydon Opportunity Area Planning FrameworkPrepared jointly by the Council and the Greater London Authority,the OAPF provides the planning policy framework to guidedevelopment and investment in Croydon’s metropolitan centre.The OAPF works in tandem with the six masterplans that coverdifferent areas of the centre.Capital Strategy 2010-2030It sets out how Croydon will finance, allocate and manageinvestment in assets efficiently to achieve the vision set out in WeAre Croydon, the Vision for Croydon established in 2011.Croydon’s Infrastructure Delivery PlanThis plan identifies the hard, social and green infrastructure neededto support and underpin Croydon’s growth through to 2031. It formspart of the evidence for the Local Development Framework [LDF].The Skills and Employment PlanIt sets out the agreed priorities for raising the skills levels, creatingsustainable employment and increasing the overall employment ratewithin the borough’s communities.The Core StrategyThe Core Strategy provides planning, design and delivery guidancefor future development and regeneration of Croydon MetropolitanCentre. It provides clarity for investors, developers and the localcommunity to help maximise and co-ordinate investment anddevelopment opportunities.Connected Croydon Delivery PlanThe plan is a programme of co-ordinated public realm projectsand transport improvements that will transform the MetropolitanCentre into a more walkable and liveable place. The £48m schemewill improve public spaces and transport links with a view tomaking the Croydon Metropolitan Centre a more user-friendly andinviting place. This will be achieved through greater considerationfor pedestrians’ needs, and a co-ordinated approach to newdevelopments that create seamless links in and around the towncentre and residential areas. The plans will create an attractiveenvironment to secure greater inward investment.Croydon Economic Development Plan 2013-20187

setting the sceneDevelopment & Delivery PartnersCroydon Economic Development Plan 2013-2018Realising Croydon’s aspirations requires a collective effort. Therange of businesses that will have a role in achieving Croydon’svision are varied. Our successful collaborations with stakeholdersdelivering our economic priorities to date will provide a ‘blueprint’for the delivery of the priorities within this plan. We will needincreased collaboration with the Local Strategic Partnership(Croydon Congress), Croydon Council Urban Regeneration Vehicle,Coast to Capital LEP, Croydon Adult Learning and Training andothers to build on this foundation for on-going collaboration.This needs to include co-operation with partners to promotethe borough, work with landowners and developers, exploringCorporate Social Responsibility and engagement with residents andbusinesses to drive forward economic growth.Croydon is in a unique position being part of two Local EnterprisePartnerships – Coast to Capital and London Enterprise Panel.This strategic positioning will be affirmed further through activeengagement in defining how these partnerships will establishthemselves as economic growth areas and how Croydon’s economycan both contribute and benefit.Five Economic Prioritiesfor CroydonCroydon is a major economic hub which acts as a bridge betweenthe wider south east region, including Gatwick airport, andLondon. Its gateway status is recognised by Croydon’s prominencein both the London Plan and the Mayor’s economic strategy.The national economy has not returned to growth following therecession of 2008/09 and this has impacted on both central andregional government policy and funding priorities as well as privatesector investment decisions and finance.Put simply, the economic environment is tough and not guaranteedto improve within the five-year lifespan of this plan. Therefore,Croydon needs to carefully prioritise what it can do to support thelocal economy by delivering on a number of key priorities.Croydon’s priorities in terms of economic development are veryclear. To achieve its vision, the three economic priorities from itslast Economic Development Strategy Refresh remain pertinent.They are:• Enterprise and innovation• Inward investment and business retention• Jobs, employability and skillsAn additional priority of Business Promotion and Delivery has beenidentified as part of the preparation undertaken in developing thisPlan; this priority is contained within the inward investment andbusiness retention and enterprise and innovation priorities.These priorities are still wholly live – the challenge is that theCouncil and its partners are more constrained in their ability todeliver by tighter public sector finances and will have to prioritise.Therefore, the delivery focus for Croydon for the next five yearswill be through the following five economic priorities:1. Begin to create an improved town centre mixMuch of the building stock in Croydon town centre is out-of-dateand the balance between retail, leisure, offices and residential doesnot fit 21st Century choices made by individuals and companies.During the next five years partners will need to ensure the retail offerand wider retail realm is redeveloped in a way that enhances theretail and leisure offer to attract more families to the town centre.Improvements to the quality of streets, pedestrian routes through thecentre and access to the main rail stations will also be important.Proposals for developments to improve the retail offer in the twoshopping centres (Whitgift and Centrale) will be welcome andproper consideration and support will be required from all majorstakeholders to realise them.2. Deliver a pro-active inward investment serviceCroydon is a significant metropolitan centre in London and its offer isbroad, ranging from offices to hotels and from bars to theatres. Witha varying quality of building stock and unhelpful media perceptionsabout aspects of the town centre, marketing for inward investmentneeds to be well targeted, with simple messages underpinned by astrategic framework. Croydon has strong comparative advantagecompared to other outer London locations and would benefit froman inward investment service that targets companies to encouragethem to locate to Croydon. Building on Croydon’s existing service,this initiative would look at both domestic and overseas markets toidentify these opportunities as the borough’s proximity to GatwickAirport is an excellent asset providing access to Europe’s largestcustomer / consumer market London.It will also be important to make sure that the investors we targetknow all about the planned improvements to Croydon - utilisingreal development examples to convince investors and their agentsthat Croydon really is changing for the better, positively promotingthese developments will be key to these messages.10

setting the scene3. Retain existing businesses and growing the business baseAs well as seeking to attract businesses to locate in Croydon, thecurrent business base is just as vital and needs an equally robustapproach. Croydon must provide support to business, particularly SMEs,micro businesses and new entrepreneurs in the borough to facilitatetheir formation and growth and linking them to suitable workspacein appropriate locations within the borough. Croydon’s aspirationto be the number one business location in south London should besynonymous with being a centre for enterprise and innovation.Large companies and ‘corporates’ will be encouraged to offercontracts of appropriate value to enable local SMEs to competesuccessfully for those contracts and enter new supply chains.4. Positive Promotion of Croydon5. Improving the employability of Croydon’s residentsAccessing the job market has become increasingly challengingfor Croydon’s residents. Changes to the sectors that make upLondon’s economy, increasing requirements for higher levels ofskills and a rise in those who find themselves unemployed meanthat we require a co-ordinated approach to ensure local peopleare best placed to take up the opportunities that emerge overthe coming years. Only by understanding the needs of employersthrough a co-ordinated programme of activity can we ensure thatresidents are prepared for the world of work.Our priority will be to reach down into schools, work with youngpeople and vulnerable adults to ensure that they are able to makepositive choices, obtain suitable skills and overcome the barriers togaining and sustaining employment through lifelong learning.Our aspirations and delivery priorities are all mutually reinforcingbut tackling unhelpful perceptions underpins everything. Croydonis not always painted in a positive light by the media and whilstaspects need to improve, there are many positives about theborough. An early priority for the plan is to begin to tackle someof the negative myths about Croydon through communicationsactivity and over the medium to long-term this will be linked toan approach to promoting Croydon to potential inward investors- using positive statistics, developments and projects and positivechanges that are actually occurring, rather than using examplesfrom plans where there is uncertainty about delivery.ThemesEconomic PrioritiesThe above five economic priorities will be addressed through setsof actions as specified in the following sections of the plan. Theseactions are supported by case studies outlining major initiativeswhich are already in place.The following flowchart demonstrates how these elements of theproposed economic development process fit together:Set of ActionsCroydon Economic Development Plan 2013-2018Enterpirse and innovationInward investment andbusiness retentionJobs, employability and skillsCreating the right towncentre mixProactive inwardinvestment serviceRetain existing business& grow business basePostively promote CroydonImprove skills andemployability of residentsImproving the town centreInward investment &business retentionEnterprise and innovationBusiness promotionand deliveryEmployabilty and skills11

improving the town centreCroydon Economic Development Plan 2013-2018For many, Croydon is synonymous with its Town Centre and forgood reason.With 550,000 sq m, of commercial space, the town centrerepresents one of London’s biggest commercial locations and iscurrently South London’s largest shopping centre. It is home to 28of the UK’s 30 largest retailers and retail provision totals 270,000sq. m. There is a strong hospitality offer with over 1,000 hotelbeds, the hotel sector are performing well and additional capacityis in the pipeline.However, lack of investment over the past three decades or sohas undermined the centre’s offer, resulting in private sector jobsdecreasing, buildings which do not meet modern needs and poorquality public realm.Around 30% of Croydon’s office stock is vacant and levels areparticularly high within the main core of the area known as NewTown and East Croydon. Retail turnover at £770m per annumis down 15% on 2005 figures. The strong `bedspace’ offer ishowever not translating into a quality night-time economy andoffer which remains quite narrow in its focus on young drinkersand whilst hotel figures suggest significant numbers of visitors stayovernight, more needs to be done to improve the quality of theleisure, restaurant and cultural offer. Unlike some comparablelocations, there are few residential dwellings at the heart ofthe town centre, with less than 1,000 residents living within thecommercial district.Working with the Mayor of London’s team at the GLA, the Councilhas developed Croydon’s Opportunity Area Planning Framework(OAPF) which sets out how this decline will be reversed.The focus will be on a strategy to bring a new community into thecentre to generate activity, renew and grow the retail core, revivethe town centre high street and focus new high quality commercialspace around New Town and East Croydon as well as improvingthe public realm.The housing developments to support a larger residentialcommunity within the town centre must be at a pace that issensitive to market demands. A phased approach is required toprevent the problems of over supply witnessed elsewhere in townsand cities across the UK.Realising the aspirations within the OAPF will be a cornerstoneto the priorities for business growth, inward investment and skillsimprovements set out in this document.The following OAPF priorities are essential pre-requisites forattracting and retaining businesses:• Support for the development of 28,000sqm of additional retailfloorspace with a focus on growth in the primary comparisonretail areas along North End and in the Whitgift and Centraleshopping centres and an approach to enlivening Croydon’s HighStreets.• Realising 7,300 new homes for 17,000 new people bringing lifeto the town centre.• A focusing of the office offer into core areas. This includessome 230,000 sq. m of new office space around New Townand East Croydon areas and release of 135,000 sq. m ofoutdated space in more peripheral office locations withrefurbishment or replacement of stock and encouragement ofnon-office uses.• Support for the creative industries via innovation hubs andmanaged workspace.• A refreshed cultural offer around Fairfield Halls.Improved public realm is also a core theme of the OAPF and is vitalin terms of realising business growth. The OAPF identifies the needfor a joined up public realm network across the whole of the towncentre. The quality of public realm influences people’s perceptionsof an area and determines how much time they want to stay inthe place. It forms a vital part of decision making around businessretention and inward investment as well as pride of people inthe place they live and work. Arrival spaces, quality of buildings,safety and permeability are particularly important for incomingbusinesses.Commitments on transport capacity are again fundamental toCroydon’s future. Travel times to central London and Gatwick arecentral to the borough’s offer and the East Croydon interchange isa vital gateway for the business community.The Connected Croydon Programme provides the transportinfrastructure plans to improve links in the town centre. As well asthe construction of an additional footbridge to ease congestion andimprove links to the commercial area from East Croydon station,new public realm and transport improvements are already in placebenefiting from £17million of funding from the Mayor’s office.12

improving the town centreMore widely, by 2019 public transport improvements will includeadditional tram services, enhanced Thameslink services [boththe number and the length of trains] and there will be additionalSouthern suburban trains. These improvements evidence Croydon’sfirst class public transport network, a major factor for many inwardinvestors.The OAPF sets out components which will help to attractinvestment. In short these include:• Allowing flexibility• Removing unnecessary barriers• Acknowledging interdependencies• Supporting investment• Securing public funding.These components should be supported by a comprehensivebusiness support programme as set out in this plan. As a borough,Croydon must understand what makes it attractive to businesses(its offer), sell its strengths, address misconceptions, act on itspromises and make business feel wanted and welcome. Approachesto these issues are summarised in this document.There is acknowledgement that actions speak louder than words– the business community will judge Croydon on delivery of itspromises not rhetoric. Therefore, it is essential that these prioritiesare underlined by a robust approach to financing and the need toalign financial conditions with expectations in an investment marketwith a current aversion to risk. The proposals envisaged over thenext 20 years require £300m of infrastructure investment andCroydon has committed to channelling its resources with existingfunds identified which total up to £176m – from the Mayor’sRegeneration Fund, the Council’s Capital Programme, the Council’sUrban Regeneration Vehicle and via the Community InfrastructureLevy. We will also explore additional opportunities that cansupport the delivery of infrastructure improvements and businesssupport services including further Section 106, New Homes Bonus,Business Rate retention, public sector funding, public borrowingagainst future income to pump prime as well as reviewing otheroptions such as Tax Increment Finance (TIF).Pipeline activity is testimony that developers see value in investingin Croydon. Current schemes include:• Development by Stanhope and Schroders at Ruskin Square torealise a new 9 acre city quarter. The scheme will be a mixeduse development comprising offices, 550 apartments, shopsand restaurants.• Menta’s £250 million scheme on the Cherry Orchard Roadside of East Croydon station which will include a landmark 55storey residential tower, a boutique hotel, community amenitiesand significant public realm improvements.• A modern urban village of over 900 homes at New SouthQuarter led by Barratt Homes, alongside Wandle Park, setaround courtyards and landscaped gardens and with the RiverWandle running through its heart.• An iconic 45 storey tower and a new one-acre public space atSaffron Square being developed by Berkeley Homes. The towerwill house shops, cafes, restaurants, gym and offices, togetherwith 755 residential units.• The Croydon Council Urban Regeneration Vehicle [CCURV], aunique partnership with John Laing, is creating a new publicservice delivery hub that will house the Council and otherservices from 2013. CCURV is also delivering the WaddonLeisure Centre [swimming pool, sports hall, a gym andcommunity space] and 119 affordable homes provided by theHyde Group, with completion in 2013.• In 2012 Croydon College opened a multi-million poundextension, hosting new industry-standard facilities and a newlibrary and conference centre as part of its’ new status as aUniversity Centre with Sussex University.In total, seven sites are currently under construction in themetropolitan centre, a further 13 sites have planning approval and12 more are in pre-application discussions.Croydon Economic Development Plan 2013-201813

improving the town centrePriorities and ActionsCroydon Economic Development Plan 2013-2018There are a number of initiatives and developments that arealready in train to develop the town centre. The following havebeen identified as pivotal to delivering economic growth over thenext five years.Delivering comprehensive development of the retail realmto ensure a mixed economy• Realise developments & infrastructure improvements to createoffice/business space & connectivity that meets the needs offuture users through schemes to ensure supply of stock meetsdemand from businesses.• Support potential retail newcomers in the town centre with newtrading initiatives and opportunities afforded through largerretail partners.Encourage a diverse mixture of office, leisure, retail andresidential uses to create a stronger offer while developinga safe and attractive night time economy• Support Croydon BID and the range of business partnerships todevelop initiatives that encourage more visitors and residentsto use the town centre through a range of initiatives to ensurethat vacant units are let.• Develop a model for high street management and roll over todistrict centres to ensure diverse economy is developed.• Develop initiatives resulting from the changes to business ratesand the advent of local control.Ensure that business accommodation reflects the flexibleoffice and B1 use class to provide the right environmentfor emerging sectoral clusters• Track business base movement and trends to support anyemerging growth sectors.• Promote newly established clusters and use as a marketing toolto attract new businesses to the town centre.• Enable support services such as warehousing, logistics, etc.provide necessary services to new retail environment.• Ensure education and training providers are aware of the skillssets required to access jobs in the new emerging high growthsectors.14

improving the town centreCase StudiesCroydon BIDCroydon’s Business Improvement District is geographically one ofthe largest BID areas in the country, representing approximately580 companies. Established in 2007 for five years, businesses havenow voted for the BID to build on its success to date and continueuntil at least 2017.This partnership of local business, the Council and otherstakeholders has been working towards enhancing the town centrewith much of the funding coming from the levies provided bybusinesses. The BID has secured £7.5 million additional investmentinto the town centre and has seen key achievements in improvingthe street scene, cleanliness, improving way finding and increasingvisitor numbers.Through the Croydon Business Crime Reduction Partnership,the work of the BID to fund additional police support and otherinitiatives resulted in a 10% reduction in overall crime, includingreported retail theft down by 55%. This lays the foundation for thecreation of a safe night time economy.Croydon’s Portas PilotCroydon Council has been successful in securing a £100,000 awardas part of central government initiatives to improve the performanceof Town Centres as a result of the Portas Review in 2011.Croydon is one of 12 centres, out of 371, that applied in the firstround of funding across the country, selected to be a Portas Pilot,which will bring a tailored package of support as well as the grant.The focus of the scheme will be to help transform the Old Towninto a thriving market, food and cultural quarter – emphasising itslocal heritage.A newly-formed Town Team, comprising of local traders andbusinesses, council officers, Croydon BID and other stakeholderswill have a full-time base in the area.Projects are likely to include improvements to shop fronts, creationof a member-owned cooperative to provide small loans andestablishing a new food court in Exchange Square.Through an enterprise for heritage project, in association withthe Prince’s Trust, the team will be also looking to support a newgeneration of young entrepreneurs by giving them the help theyneed to get into business in the historic Surrey Street market.Croydon Business Rate Relief SchemeThe initiative runs from October 2012 to March 2015. It is targetedexclusively in and around the town centre in the area which isreferred to as “Croydon New Town” in the list of the Mayor ofLondon’s Opportunity Areas for business and employment growth.The scheme aims to:• Create or maintain 1,311 gross jobs (based on 69 companiesleasing premises at an average of 19 employees)• Support 839 indirect jobs• Reduce vacancy by 9% in office accommodation stock withinCroydon New Town.Companies with less than 250 employees and a turnover of lessthan £40million per annum are eligible to apply.The Council will be working in partnership with developers,property agents, the BID and South London Business to jointlypromote, this local business rate incentive.Saffron SquareThe mixed use development at Saffron Square will provide 755residential units designed around a one acre public square featuringoffice space, café, bars and a Tesco store. The project is due to becompleted in early 2013.Croydon Economic Development Plan 2013-201815

inward investment& business retentionCroydon’s approach to realising a positive future for its town centrehas been summarised briefly earlier in this document.That work is an important pre cursor to achieving business growthin the borough, either through inward investment or by developingCroydon’s existing business base.Achieving Inward InvestmentThere are a number of additional principles which are vital tomaintaining Croydon’s role as a first class business hub andensuring that the borough remains the most attractive location inSouth London for inward investment:Croydon Economic Development Plan 2013-2018Despite the global economic downturn, London’s economy remainsmore resilient than the rest of the UK. However the rate of growthis not enough to create significant numbers of new jobs. Croydon’svision to create a centre for knowledge, innovation and creativityby 2040 remains a fundamental goal. There is a continuing driveto boost business performance through a number of policy changesand initiatives such as the growth accelerator schemes, incentiveson banks to lend, and a range of other initiatives outlined in theLocal Growth White Paper.Croydon has an important role to play in delivering this growthagenda; predominantly as an office and retail provider. Croydon’soffice base is both a major asset and a significant challenge.Historically, it provided a more competitive alternative to CentralLondon and was attractive to large employers, often public sectoragencies that wanted close proximity to Central London. Today,many of the original buildings are not fit for purpose and thereare few employers seeking the large footprints on which basis theoffices were constructed. In addition, it is the case that much ofthe future economic growth and employment will be created bysmaller businesses. Working with landlords and agents to ensurethe office accommodation is therefore ‘fit for purpose’ is a key partof achieving the vision.Croydon must re-invent itself and is well placed to do so albeitduring extremely challenging times for investors. Transportconnections are better than they have ever been and must be thebasis for reaffirming Croydon’s role as a significant office hub forLondon. The growth of Gatwick Airport as a genuine businessgateway also provides Croydon with an important USP in terms ofits ability to serve both the London and the South Coast markets.Ensuring flexibility in the property offerFew inward investors are large scale and Croydon’s approachshould be about facilitating potential business relocations of allsizes and ensuring that they are supported to stay and grow. Inthe current and future economic climate over the timeframe of theplan, occupiers will be looking for flexibility both in relation to leaseterms and the nature of premises. Croydon must work with propertyagents and as the planning authority continues the ‘business friendly’approach to ensure the borough meets that challenge.Links with Gatwick airportThe growth of Gatwick provides an enormous opportunity forCroydon both in terms of direct jobs and associated businessinvestment. Gatwick continues to add more destinations andoperators which will provide clear promotional opportunities tomarket Croydon. The nature of business flights and future growthplans for the airport are an important context for businesses whowant to capitalise on the considerable supply chain opportunities aninternational airport creates.Those selling London for inward investment must understandCroydon’s offer and must buy into the principle of Croydon as agenuine high quality offer. The work of Croydon’s own team will bemultiplied several times over if those promoting London as a wholebelieve in the product.The evidence built up by those in the borough working withpotential occupiers needs to be collated, analysed and used interms of both lobbying and future policy development. This willensure the match of supply and demand.16

inward investment& business retentionPurley Way must be a vital part Croydon’s wider offer as wellas the more localised commercial offer at New Addington. PurleyWay in particular represents a substantial employment zone key forthe distribution and retail sector. The borough benefits from beingable to provide either a town centre environment or an out of townlocation for occupiers. The two should be complementary in termsof Croydon’s overall business base. The challenges in the towncentre are well understood and articulated. However, businesses atPurley Way equally face barriers, including traffic congestion, andthese need to be similarly addressed.The Government objective of ‘rebalancing the economy’ with amuch greater focus on manufacturing should be explored. A supplyof new high quality ‘BI’ / light industrial units should be a priorityto ensure our business space offer is comprehensive.The planning process is also an important factor. Releasing theright commercial buildings for alternative uses is vital to ensuringthe right future building mix in the metropolitan centre but blanketconversions could quickly see a range of businesses pushed out.Collating strong evidence to support good policy decisions is coreto this plan.The Coast to Capital [C2C] LEP strategic focus also providesopportunities for international growth and entrepreneurship.Increasing the ability of local businesses to compete in theinternational marketplace will continue to be an aspiration ofCroydon. Businesses that trade internationally deliver 60% of UKproductivity growth and, through the C2C LEP and Croydon’s owninitiatives, businesses should be supported to develop internationaltrade links.Business RetentionCroydon’s current 12,000 strong business base is one of theborough’s most important assets. Retaining existing businesses andfacilitating their future expansion is an essential part of any approachto business growth. In terms of businesses, ICT, business support,retail, professional/technical services and construction feature moststrongly with a similar profile to the rest of Outer London.Ironically, the point at which many businesses are most at riskof relocating away from an area is when they are growing. Boththeir reasons for locating in Croydon in the first place and theirproperty needs will be re-assessed as they grow. Croydon needsto understand the ‘pushes’ and ‘pulls’ of such business decisions.First class communications with the existing business base is key tomaintaining this knowledge and ensuring that issues are addressedspeedily comprehensively to retain existing businesses.Croydon Economic Development Plan 2013-201817

inward investment& business retentionPriorities and ActionsThe following priorities have been identified as paramount tosuccess in growing Croydon’s business base:Updating Croydon’s business offer via implementation ofthe OAPF policiesCroydon Economic Development Plan 2013-2018Supporting businesses to improve profitability• Contract procurement and trade links – build on the ‘Built toCompete’ and ‘Gateway Asia’ initiatives to broker relationshipsbetween major employers and SMEs, and supportinginternational trade.• Establish opportunities for business to business networking.• Social Enterprise development to play a role in delivering localservices through the Social Value Toolkit.Building up the boroughs evidence base in terms ofbusiness ‘pushes’ and ‘pulls’ to ensure sound decisionmaking• Create a regular forum for property agents to shareinformation and understand the position regarding local supplyand demand for business accomodation.• Hold planning surgeries to ensure a ‘business friendly’ input toplanning considerations and to inform policy making.• Continue progress in implementing the OAPF implementationand associated masterplans.• Assessment of barriers at Purley Way & New Addington anddevelopment of an associated support plan.Ensuring first class communications between businessesand Croydon’s stakeholders• Identify and have regular one to one dialogue with Croydon’slargest 100 businesses.• Establish an annual business growth summit to understand thebarriers to growth and retention.Creating links with external agencies who will helpCroydon implement its proposals• Develop an engagement strategy for London’s influencersincluding London and Partners.• Create a formal link with Gatwick Airport covering businessroutes and employment opportunities.• Provide support for businesses to develop international tradelinks through the C2C LEP.18

inward investment& business retentionCase StudiesRuskin SquareBuilt to CompeteCroydon’s focus on modern office premises around transporthubs has been initiated by the development of Ruskin Square, amixed use development comprising approximately one million sqft of Grade A offices and 550 new residential apartments withina masterplan including restaurants, cafes and retail uses coveringnine acres adjoining and linked to East Croydon Station via a newfootbridge.The development will become a primary gateway into the borough,occupying a key site between the town centre and the busytransport hub at East Croydon Station. Over 20,000 people arelikely to use the new direct connection to the town centre daily.The development will include an energy centre and estatemanagement facilities, new vehicular access, approximately 250 carparking spaces, public open spaces and an entertainment venue.The development represents the first phase to develop the officeoffer around East Croydon station in line with the masterplans.Enterprise Opportunity Centre, Wandle VillageA new Enterprise Opportunity Centre is under construction as partof the Barratt’s development and represents an excellent exampleof Croydon’s commitment to fostering new business start-ups andinnovation amongst existing businesses. The Centre will providesubsidised managed offices and workspace for new business startupsand existing small businesses. To assist new enterprises thereis no long-term lease requirement associated to occupancy. Thescheme will have an easy access letting policy through a straightforward licence to occupy approach.The 42 office spaces, of varying sizes will be supported byadditional services including reception, conference rooms, showersand telephone answering service.The site will be managed by Croydon Business Venture and will addto their portfolio of managed business accommodation at AcornHouse and Park House in the Town Centre.Croydon Built to Compete project has been running since 2008 andhas now grown to become one of the best performing of its kind inLondon and across the UK.The project creates new market opportunities, growth and jobsvia physical regeneration and infrastructure projects by buildingthe capacity of SMEs to tender and win contracts whilst assistingthem to become sustainable businesses. By using sustainableprocurement, as a catalyst and driver for change, the projectstimulates demand by building on existing relationships with privatesector partners. Funded by the European Regional DevelopmentFund [ERDF], the project is delivered by Business to Business onbehalf of the Council. It works with major employers to lever spendinto the local economy and brokers opportunities between theseemployers and the SMEs. Achievements to date include £4million ofcontracts secured and 40 jobs created.The Council successfully applied to extend ERDF funding throughto 2014 which would allow the project to continue to supportCroydon’s businesses at a time of continued need.Renaissance developmentAbstract (Croydon) Limited - a wholly owned subsidiary of MarkGlatman’s Abstract Securities began construction works in June2012 on a speculative high-quality office scheme, ‘Renaissance’ at9-16 Dingwall Road, Croydon, close to East Croydon station.The building will have an end investment value of £35 million and itwill be able to accommodate around 1100 staff when it completesin August 2013. The company will build 100,000 sq. ft. of ‘GradeA’ office space, on the 1.13 acre site.The building will offer an extremely high specification and willcomprise five floors offering well designed, very flexible floorplatesof 20,000 sq. ft., which will be easily capable of subdivision.Targeting a BREEAM 2011 ‘Excellent’ environmental accreditation,it will be one of the first speculative office buildings in the UK toachieve this standard. It will also achieve an EPC ‘B’ rating.Croydon Economic Development Plan 2013-2018The site is nearing completion and the Enterprise Centre is due toopen in the spring of 2013.Renaissance is Croydon’s first speculative commercial officedevelopment in 20 years.19

enterprise & innovationCroydon Economic Development Plan 2013-2018A large part of Croydon’s business/employer base is definedas SMEs. Currently, 87% of businesses are SMEs, employing40% of the total workforce. Not only is a diverse business basecentral to Croydon remaining a vibrant metropolitan centre withan enterprising economy, but future business growth must bebased around encouraging this SME base to flourish. Encouraginginnovation via promotion and support of new start-up microbusinesses is key to this process.The role of SMEs has been recognised by the CoalitionGovernment. Its Bigger, Better Business – Helping SmallFirm Start, Grow and Prosper [2011] initiative sets out theGovernment’s plans for supporting business including on-lineinformation provision through www.gov.uk website, the networkof business mentors, the Business Coaching for Growth service,and the new Enterprise Allowance scheme that aims to encourageunemployed people to start their own business.This national policy approach must be supported at a local level bybespoke solutions to business support that reflect Croydon’s uniqueoffer and operating characteristics.Over recent years Croydon has developed a range of innovativeservices to support new and indigenous business with the aim ofstimulating an enterprising and entrepreneurial culture. The focusshould now be on an approach that builds upon the successful workthat has already taken place, and which encourages innovativeideas and new ways of co-ordinating and delivering the supportthose businesses need.This focus will include the development of services that build uponestablished business clusters and those we are seeking to attract.Evidence suggests that groups of businesses operating in the samesector often ‘co-locate’ in close proximity to one another andbecome significant drivers of economic growth.Barriers to starting up a business in CroydonIn supporting business start-ups and innovation, there are somekey issues to consider.In recent years business survival rates in Croydon have matchedthe London rate of 73% of businesses remaining in business afterthe first two years [GLA Economics 2010]. However, these figuresdon’t include changes over the last two years and more recentfigures are expected to see a reduction in both survival ratesand new business start-ups. In addition, many long establishedbusinesses are being lost from high streets and towns across thecountry. According to a recent Centre for Cities report, the declinein publishing, ICT, financial and insurance services sectors overa ten year period [1998-2008] has continued with many othersectors experiencing shrinkage.Where there is growth potential businesses are seeking supportiveand positive conditions to allow their businesses to flourish.Croydon needs to establish and promote its credentials as a placewhere business can thrive in a way that makes it a location ofchoice for those considering starting or growing businesses.Creating the right environment is essential. Those providingpremises for start-up businesses have recognised that, whilstaffordable space is paramount to a successful model, there isboth added value and improved success rates to be realised bygenerating a ‘premises plus’ model. This includes, for example,the opportunity to engage with other businesses via both formalinitiatives such as networking events and informal facilities such asa café where networking is a more evolutionary process. Similarly,for micro businesses an area of managed workspace where userscan utilise accommodation on an ‘as they need it basis’ is helpful.This approach also allows business clusters to emerge amongst themicro business community.20A sectoral analysis of businesses should be undertaken to identifythose innovative sectors that we should be seeking to attract anddevelop. Coast to Capital LEP has identified the following sectorsas potential high growth sectors for the partnership area:• Health and life sciences• Advanced engineering• Digital media• Finance and business services and• Environmental technologies.Croydon will take into account what impact these sectors mighthave on the borough’s economy and what special measures toattract them might be applied.Technology hubsThe Hub concept is founded on the idea that there is no shortageof good ideas that can solve some of the key issues faced todaybut it is the lack of collaboration and support structures that arepreventing many of these ideas to become innovative solutions.Technology hubs are open and creative spaces combining businessincubation, innovation labs and a community of people who cancreatively come up with practical solutions to emerging problems.The process of creating an Innovation Centre in centralCroydon has already started. The concept of offering highgrowthbusinesses a well-managed, high-tech, modern businessenvironment is a proven way of revitalising business districts andCroydon will greatly benefit with such a set-up.

enterprise & innovationWorkspace providers have not traditionally seen outer London asa strong location for such activity but attitudes are changing andCroydon has seen recent activity from this sector including flexibleworkspace such as Matthews Yard. The borough also has excellenthub opportunities at Addington Business Centre, Lombard House[Purley Way], Progress Way Business Park, Acorn House, Park Houseand the imminent Enterprise Opportunity Centre at Wandle Village.The current difficulties in the labour market have seen record levels ofpeople entering self-employment, with many having previously workedin the informal economy. Many of these will remain independenttraders while some struggle to flourish. However, Croydon should bein a strong position to help those in self-employment to grow but,more than that should ensure sufficient support is in place to allowthem to make the transition to formal businesses.Both for start-up businesses and existing small businesses,mentoring could play an important role in their future success. Largebusinesses are increasingly expecting greater returns from theirCorporate Social Responsibility activity and see mentoring supportfor small businesses as a worthwhile activity especially where thereare industry links. A business to business mentoring programmecould make a real difference to Croydon’s SME community.One of the most significant constraints on small business is thedifficulty of accessing finance. Banks have significantly tightenedup their lending criteria. Helping small businesses to access financeshould be an aspiration in taking this plan forward.Priorities and ActionsThe following priorities have been identified as paramount to successin encouraging start up activity and innovation across Croydon:Provide appropriate infrastructure for business incubation,growth and clustering• Identify and promote suitable buildings for SME occupationwhile working with others to promote better use of space.• Undertake a campaign of lobbying to workspace providerspromoting Croydon as an investment location.• Provide appropriate workspace - take a proactive approach inhelping SMEs find suitable premises in Croydon.• Realise support for innovation hubs and small business premisesvia CIL/S106 agreements.Provide opportunities for entrepreneurship, innovation,continuous improvement and investment in skills• Create Enterprise and Innovation Hubs – through existing andfuture workspace development, create a collaborative networkof SMEs to share knowledge and resources and encouragelocalised supply chains.• Assist start-ups to take advantage of wider initiatives such ason-line information provision through www.gov.uk website,the network of business mentors, the Business Coaching forGrowth service, and the new Enterprise Allowance scheme viasignposting.• Establish an Innovation Centre as a hub for high-growthbusinesses.• Investigate the benefits of annual innovation awards to bringthis emerging industry base to the surface.Provide intensive business support for micro businesses• Provide on-going support via web based/social networking/telephone advice services.• Co-ordinate and signpost to appropriate specialist advice andservices.• Create a one to one, tailored business review service,aiming to develop specific business plans unique to individualenterprises.Encourage business to business mentoring and networking• Support Business to Business mentoring – working withpartners including, Business & Enterprise Group, South LondonBusiness and the Chamber of Commerce to provide supportstructures to improve communication and networking betweenlarger, more established businesses and SMEs, micro businessesand entrepreneurs to assist their development and growth.• Encourage initiatives from workspace providers and businessesthemselves to establish small business networks.Croydon Economic Development Plan 2013-201821

enterprise & innovationCase StudiesMatthews YardCroydon Innovation Centre – a vertical science parkCroydon Economic Development Plan 2013-2018Matthews Yard is in the heart of Croydon’s Old Town, adjacentto Surrey Street Market. It offers affordable workspace for smallbusinesses and freelance workers. Built in the goods bay andstorage area of Caters supermarket, Matthews Yard features officespace, including printing and high speed internet, for an annualsubscription. Packages are designed to suit every need, from “club”which allows one day of access per month, to “workaholic”, whichincludes unlimited use as well as a 30 per cent discount on foodand drink.There is currently capacity for up to 60 subscribers to work at anyone time. The site includes a Members Lounge and a cafe open tothe public.Croydon Enterprise Loan FundThe Croydon Enterprise Loan Fund is an enterprise growthprogramme designed to support businesses in the borough ofCroydon which have not been able to access or secure conventionalfinance for their business.The loan fund supports businesses which have not been ableto secure funding through the main stream channels, but candemonstrate that their business model is sound and a business planis in place, including ability to repay back the loan.At the end of June 2012 the position of the main CroydonEnterprise Loan Fund was as follows:• 92 loans totalling £916,550 drawn from January 2008 to June2012• 18 loans were repaid in full, along with 11 others deemedunrecoverable bad debts valued at £57,022 (primarilyattributed to business start-ups during the early stages of thescheme).• The outstanding balance has been reduced to £419,685across 63 loans and the balance is generally reducing byapproximately £12,000 per month.Croydon Innovation Centre is being set up specifically to enablehigh growth businesses to achieve their potential. The Centre isaddressing a gap in the current market by creating an environmentwith exceptional facilities designed to foster positive businessto business collaborations and attract investors, partners andcustomers.Most important to the model is the quality of services andmanagement that will enable an entrepreneurial community.Experienced staff will help business develop the focus, confidenceand skills they need to succeed. By working with an existingUniversity affiliated Innovation Centre, we aim to give Croydon’sentrepreneurs access to wider national networks of experts,academic facilities and investors.The on-tap expertise, along with the flexible, stepped rent optionsfor occupiers limits risk for start-up and early-stage businessesand enables them to achieve success with ideas that under othercircumstances would not have made it to the market.The Innovation Centre will be located over two floors and 20,000square feet of an existing office building in Central Croydon. TheCouncil will work with the centre manager and the Landlord tocreate a vertical science park that enables those businesses thatgrow on beyond the Innovation Centre to take up space on anotherfloor, propelling Croydon forward as the tech hub for south Londonand the coast to capital corridor.The loan fund is expected to be self-sustained by end of 2015.22

usiness promotion and deliveryCroydon has an impressive record of place marketing and thecontinued success of Develop Croydon as a brand and as a vehiclefor the private sector to promote the borough will be important tofuture economic growth.Businesses within the borough remain frustrated about perceptionsof Croydon which they see as unfair for a location that theybelieve is first class for running a business.Businesses want a plan which addresses those misconceptions –establishing and selling the fact that the Croydon experience isbetter than perceived.There are good examples of such regeneration activities aroundCroydon’s district centres. The aim is to build on these successesand make the district centres vibrant business and community hubs,well used and supported by local residents.Priorities and ActionsEstablishing positive messages to attract new businesses andinvestment will be key to future growth. The following representthey key priorities and actions to achieve this:Whilst there are challenges, around the night time economy forexample, business leaders believe the borough needs to do more tocreate a very strong business location.Place marketing is vital to Croydon’s future – in a tough economicclimate with little growth forecast the only option is to addressdirect competition head-on in a battle for market share.Croydon does have a strong reputation in terms of its visionand dedication to supporting business. Reputations with businessleaders are earned by on the ground delivery not rhetoric andCroydon’s track record in this respect is excellent. The messagesneed to be stronger for the wider public.A major challenge is continuing to maintain the reputation fordelivery during tough financial times when budgets are being cut.Croydon, above all else, must continue to be a business friendlyborough which delivers on its promises and makes effective quickdecisions. In addition to current activity, this should includeregular communication with Croydon’s largest businesses anda commitment to address issues which arise as a result wherepossible. It also means retention of an effective enquiry handlingservice to ensure a comprehensive response to enquiries whichcome into the borough from existing and prospective businesses.This service should continue to be supported by accurateintelligence provided by the Croydon Observatory to ensure robustplanning and service development over the lifetime of the plan.District centresRe-establish Croydon as the first choice location forbusinesses looking for a south London location• Develop an area based marketing campaign through ‘DevelopCroydon’.• Develop a programme of engagement with strategic foreignembassies.• Take a pro-active approach to joint activities with London andPartners.• Establish an influential presence to promote Croydon’s offerat regional partnerships, e.g. Coast to Capital, South LondonBusiness, South London Partnership, etc.Address misconceptions about Croydon, via anappropriate external communications strategy• Undertake a ‘did you know’ style campaign within and beyondCroydon.• Develop a media campaign to address misconceptions.Be ‘best in business’ in terms of service delivery toorganisations in the borough or considering it as alocation• Establish an Inward Investment Board to monitor the quality ofdelivery and potential investors.• Establish a Business Charter – Business protocol to be agreedby Croydon Council, Croydon BID and other stakeholders anda robust approach to monitoring success.Croydon Economic Development Plan 2013-2018The importance of our district centres to local residents and localbusinesses in their role as service centres is crucial. A survey ofthese centres will be undertaken as a Phase 2 project to identifyboth their future support and development needs and opportunitiesto deliver ‘evidenced based’ improvements through local initiativessuch as BIDs, local business partnerships, etc.23

usiness promotion and deliveryCase StudiesCroydon Economic Development Plan 2013-2018Coast to Capital Local Enterprise PartnershipCoast to Capital is a business led, public/private sector LocalEnterprise Partnership [LEP] working to drive forward economicdevelopment in the area encompassing the major business centresof Croydon, Brighton and Gatwick.Coast to Capital focuses on promoting new enterprise andsupporting businesses to trade both nationally and internationally.It capitalises on the major business centres of Gatwick, Brightonand Croydon - an area which has a business community of 79,000firms and some 721,000 jobs.Coast to Capital will promote Croydon’s significance as a centrefor employment growth and private sector opportunity and aims toprovide the conditions for the creation of 100,000 new jobs overthe next 25 years.The two top priorities of Coast to Capital are:• To significantly increase the number of firms who tradeinternationally - 60% of UK productivity gain is driven bybusinesses that are internationalised• To increase levels of enterprise and business formation so thatthe longer term competitive health of the area is secured.Croydon Council Urban Regeneration Vehicle [CCURV]The Croydon Council Urban Regeneration Vehicle is a 28-yearexclusive partnership between Croydon Council and John Laing toregenerate a range of key sites across Croydon borough.This new model of public/private partnership is the first of itskind in the UK utilising a local asset backed vehicle which seesan investment of equity by John Laing to match land invested bythe Council. The partnership sees a 50/50 share in profit and willsustain the on-going regeneration activity across Croydon.Through this scheme CCURV retains control over key developmentand ensure that they meet the design and quality aspirations forthe borough.A number of schemes are already underway including thedevelopment of Bernard Weatherill House providing 240,000sq ft of office space and accommodation for Croydon Counciland a range of public sector partners alongside the Town Hallto be completed by summer 2013; Waddon Leisure & SocialHousing, partnering with Hyde Housing to develop a new districtCentre, completion is scheduled for 2013. There are number ofother potential schemes in the CCURV pipeline including TabernerHouse and mixed use developments at College Green andCoulsdon.Over £6m of supply chain contracts have been awarded to Croydonbusinesses with local SMEs being engaged through Business &Enterprise Group ERDF support.London Enterprise PanelThe London Enterprise Panel is the local enterprise partnership forLondon. It is co-Chaired by Mayor of London Boris Johnson andHarvey McGrath. Its membership is drawn from London’s businesscommunity and local authorities.The purpose of the London Enterprise Panel is to advise the Mayorof London on action to:• Provide strategic investment to support private sector growthand employment;• Promote enterprise and innovation and the acquisition of skillsfor sustained employment in London;• Protect and enhance London’s competitiveness.Because of London’s unique governance arrangements, the Panel’srole will not be the same as that of the local enterprise partnershipsthat have been established elsewhere in the country. For example,in London, the functions of the former London Development Agency(the Regional Development Agency for Greater London) havebeen folded into the GLA and will not be taken on by the LondonEnterprise Panel. The Panel will therefore have an advisory roleand work within the framework set by the London Plan and otherMayoral strategies. Whilst the Panel may make recommendations tothe Mayor with regard to funding and policy decisions, the Panel willnot deliver services such as business support.24

employability and skillsIn shaping Croydon’s future, job growth must be backed up witha commitment to improving the skills of local residents to accessthe jobs which are created. The availability of a strong skills baseamongst Croydon’s residents will be a key element both of itsinvestment offer and delivering the vision for Croydon to have adistinct and vibrant economy within Greater London.Going ForwardThe rest of this section of the Economic Development plan doesnot seek to duplicate what is in the Skills and Employment Plan.Rather, it considers what Croydon and its partners can do to tietogether these priorities with wider efforts to realise businessgrowth in the borough.Croydon’s Skills & Employment PlanThe starting point for identifying interventions to support thosewho are economically inactive in Croydon is the borough’s Skillsand Employment Plan, 2013-18.The Plan has been developed by a partnership with betweenpublic, private and voluntary sector and aims to directly addressworklessness and skills gaps through a co-ordinated borough-wideapproach.It considers how to address the 22.7% of working age residentswho are economically inactive [totalling 52,000 people],recognising that this is an increase of 12.6% since 2008 and asimilar increase in percentage terms has occurred in those claimingJob Seekers Allowance over the same period.It also highlights that skill levels are a significant issue. Theproportion of working age population with no skills has fallento 8.9% [December 2011] and is below the London average.However, those with NVQ 4 level [37.0%] remain below theequivalent figure for the rest of London. The demand for high levelskills in London and the south east is high and growing becauseof the nature of the prominent sectors in the Capital. Thereforesupporting residents to achieve higher level qualifications is an ongoing challenge.As a result, four objectives were identified in the strategy:• Supporting Croydon’s residents to develop the right skillsat the appropriate level to be competitive in the labour marketand secure employment;• Working with Croydon employers and those in the widersub region to increase the number of jobs and ensure that localresidents are considered as a priority for filling these vacancies;• Supporting young people to be employment ready;• Developing a co-ordinated borough wide approach todelivering the skills and employment agenda.Economic ContextIn considering priorities for action in terms of realising theobjectives of the Skills & Employment Plan, wider economic contextis important.Threats to Croydon’s labour market have been set outelsewhere but, in short, employment projections for the boroughshow a decrease of approximately 2000 jobs over the next 10years. This plan seeks to address this projection.Croydon’s employment is predominantly distributedacross three significant economic sectors. First, publicadministration, education and health provide 27,000 jobs. Second,financial and business services employ around 25,000. Finally, some21,000 are employed in retail, wholesale, hotels and restaurants.46% of Croydon workforce is employed in sectors that areprojected to shrink over the next five years; the public sector isone amongst these. With 30% of residents working in this sectorthe impact on unemployment and need to target activities atsupporting movement into different sectors is vital. With continuedreductions in public sector funding and only modest growthexpected in financial and retail sectors, Croydon must capitaliseon the expected growth in business services, media and hospitalitythrough its inward investment, Town Centre and business supportprogrammes.Although the borough employment rate remains relatively high[70.7% in June 2012], this rate masks significant pockets ofunemployment and economic exclusion amongst Croydon’sneighbourhoods, particularly New Addington, Fieldway, Selhurst,Broad Green and South Norwood.Croydon Economic Development Plan 2013-201825

employability and skillsCroydon Economic Development Plan 2013-201826Youth unemployment18-24 Youth unemployment has been steadily on the rise over thelast 10 years, reaching similar levels experienced some 20 yearsago, towards the end of the last recession. Croydon currently isin the top 25% of boroughs with the highest claimant count (6thhighest in London) and on par with the likes of Tower Hamlets,Lewisham, Waltham Forest and Barking and Dagenham. Mediaobservations about the lost generation are particularly relevantto Croydon as we have one of the largest youth populations inLondon (2nd largest in London) after Barnet, but significantlyhigher levels of youth unemployment and NEETs than Barnet.Tackling youth unemployment is therefore one of the council’s toppriorities.Working with the most excludedWhilst existing employment & skills initiatives have seen somesuccess, results have been mixed in terms of helping particulardisadvantaged groups in deprived neighbourhoods. Many residentsexperience multiple barriers to becoming economically activeand sustaining employment once they are in a job. Such individualsneed to be motivated to agree a routeway into work. Key strandsof work in the future will be to identify who existing provision istargeted at, identify gaps and target families and neighbourhoodsto ensure that support is available to access and remain inemployment. Additionally support is needed to help residentsremain in work.Addressing economic inactivity cannot be seen as ‘one sizefits all’. Additional barriers such as poor health, language andhousing that prevent residents from securing employment need tobe assessed and addressed. Basic skills as well as vocational skillare paramount.Moreover work to address economic inactivity needs to havestrong links with Croydon’s work to support troubled families.At times, this will require a focus on workless families who havesuffered generational employment for many decades, and is unlikelyto be tackled by mainstream national initiatives such as the WorkProgramme.Engagement with schools is essential to ensure that our youngpeople are given the best possible opportunities to either enterfurther/higher education or the job market. Major improvementshave been made in this respect on which Croydon can build.• In 2011, nearly 61% of pupils achieved five or more GCSEA* to C grades, including English and maths, the eighthconsecutive year of improvement.• Croydon’s performance at Key Stage 2 in the percentage ofpupils achieving Level 4+ in both English and maths has risenyear on year from below the national average in 2008 toabove in 2009 and 2010, with the 2010 figure standing at74%, 1% above the national picture.• In July 2011, 65% of schools were judged good or better byOFSTED compared to 59% in July 2010.Croydon must also ensure that the work of its colleges to equipthe borough’s young people reflect the needs of employers as theeconomy recovers and is responsive to differing future economicscenarios.Key to delivery is a simple and more responsive system whichenables partners to participate more effectively through enhancededucation and employment links to business, facilitating employers toshape the education and skills provision and improve understanding ofthe workplace amongst job seekers, students and professionals in thefield needs to be a core feature of future provision.EarningsEarnings of Croydon residents are lower than London levels. Grossweekly pay is £35 lower and hourly pay is £1 lower than Londonearnings indicative of a local labour market which is dominatedby certain sectors where there has been a continuous demand forlower skilled, lower paid jobs such as in retail. This explains whyearnings are below London rates, but does not yet match levelsexperienced in boroughs where the wage discrepancy is higher(more than £50 for gross weekly) for example, in Barking andDagenham and Waltham Forest which tend to experience greaterlevels of social and economic deprivation. In this regard, Croydonshares similar levels of earnings as other outer London boroughssuch as Ealing, Hillingdon, Sutton and Havering. This is likely to beexplained by higher levels of commuting of professionals to the Cityand West End. Maximising opportunities for career progression,together with skills development is key to increasing earnings.OccupationsCroydon is one of the largest business and retail centres in SouthLondon, and consequently has higher concentrations of businessesin the retail, business administration and finance / insurancesectors. The largest employer by far is the public sector (education,health and public administration) followed by the retail, businessadministration, professional, scientific and technical and financeinsurance sectors. Although previously high levels of employmentthrough Croydon Council and the NHS, future employmentopportunities will be limited, signalling the end of the labour market’sover reliance on the public sector. It is clear that more needs to bedone to support business growth and rebalancing.

employability and skillsPriorities and ActionsSupporting Croydon residents to develop the right skills atappropriate level to be competitive in the labour marketand secure employmentIncrease the number of jobs and ensure that localresidents are considered as a priority for filling thesevacancies• Deliver apprenticeships particularly for the borough’s youngresidents.• Focus interventions on vulnerable adults, including those withoutEnglish as a first language, people with learning disabilities andthose living in families with multiple barriers to employment.• Identify and tackle gaps in Work Programme provision so thatthe most vulnerable are not excluded.• Encourage entrepreneurship and self-employment.Developing a co-ordinated borough-wide approach todelivering the skills and employment agenda• Facilitate a lead Body to co-ordinate borough wide approachto all employment and skills activity.• Develop a partnership model to improve engagement of thosefurthest from the labour market.• Develop local labour schemes & Apprenticeship models.• Develop and provide sector-based job brokerage services.• Engage with Croydon Education Business Partnership –Capital South.• Work with the third sector to provide volunteeringopportunities as a route way to employment opportunities.• Compete for Work Award - a recognised competence card,securing an interview with employers who have signed up tothe scheme.• Employer Engagement - building on discussions withCroydon BID to develop a co-ordinated wider programme ofengagement.Support young people to be employment ready• Work with schools, colleges and youth provision to providework related training.• Develop a borough wide mentoring programme linking businessmentors with students.• Support the introduction of the EBacc qualification.• Provide skills training and a route for young people who havecompleted secondary or further education who prefer enteringemployment than continuing to higher education.• Deliver a comprehensive careers guidance service in schoolsand colleges• Develop a vocational and Pre-Employment Training Programme– co-ordinated support including debt management, financialcapability and digital inclusion.Croydon Economic Development Plan 2013-201827

employability and skillsCase StudiesCroydon Adult Learning & Training Service [CALAT]New Addington Construction Skills CentreCroydon Economic Development Plan 2013-2018Croydon Adult Learning and Training [CALAT] has been in existencefor over 60 years and is one of the largest adult learning services inthe country. CALAT deliver courses from several core sites aroundthe borough offering 1452 part time courses to over 7371 learnerswith over 11,500 enrolments in 2010-11.CALAT offers a range of vocational and employability courses,including first step courses that enable people to progress and extendtheir qualifications and skills. Accredited provision includes coursesin Health and Social Care, Childcare, Beauty and ComplementaryTherapies, ICT, Health and Fitness, Horticulture and Gardening,Creative Arts and Crafts, Languages, Interpreting, Wider Schools’Workforce [WSW] Teacher Training, Business, Skills for Life [ESOL,English and maths]. Accredited courses are also run for learners withlearning difficulties or disabilities.Courses are delivered from pre entry level to level 3 on the nationalqualification framework, with most courses delivered below Level 2.CALAT also has a highly successful Family Learning programme whichworks closely in partnership with Early Years and Family SupportServices [EYFSS] and local schools to deliver learning to families inCroydon.CALAT works with local employers, schools and the council to provideworkforce development training, 173 learners participated in fundedlearning in the workplace with a success rate of 93%. In 2011-12CALAT worked with 58 employers. In addition 9 apprentices workingfor Surrey and Sussex Health Care Trust started apprenticeships inbusiness administration, health and social care and management.University Centre CroydonUniversity Centre Croydon is one of the largest providers of HigherEducation between London and Brighton. It has grown out of a longand distinguished history of high quality university level educationat Croydon College. The University Centre has recently enteredinto a strategic partnership with the highly respected University ofSussex, which is ranked amongst the top 10 universities in the UK.The majority of the Higher Education courses are validated by theUniversity of Sussex.The Construction Skills Centre is run by Croydon College. Thecentre is located in New Addington, one of the most disadvantagedneighbourhoods within the borough. This allows the college toengage with some of the hardest to reach learners within the area,most of whom are either long term unemployed or Not in Education,Employment or Training (NEET). The majority of the learners whoengage with the centre are ex-offenders both 16-18 and 19+ whowant to re-engage with education, training and or employment andthe college has already developed extensive links and strategies inorder to overcome the barriers to learning this client group present.Each candidate is equipped with a construction sector qualificationawarded through City & Guilds, a CSCS operative’s card, anelectronic portfolio and a CV. Attention is paid to ensuring thatcandidates leave the project “work ready”.Social Value ToolkitThe Social Value Act was introduced in March 2012 and comes intoforce in January 2013. It introduces, for the first time, a requirementon all public bodies to consider how the services they commissionand procure will improve the economic, social and environmentalwellbeing of the area.Croydon Council will therefore need to look beyond the financialcost of a service that is being commissioned and also consider whatwill be the collective benefit to a community of a decision to awarda contract. Social value in effect asks the questions for every £spent how much of that will be retained in the local area. It willallow procurement managers to include in tender documentationrequirements and information that cover local training and supplychain opportunities and environmental improvements. Prospectiveservice providers will therefore submit their tender that includesstatements covering how they propose to achieve the requirements.as part of the selection process.28The combination of high quality, innovative courses and excellentstaff to student ratio makes the University Centre an outstandingchoice for university level education. Learners can study all coursespart-time, combining learning with earning. University CentreCroydon offers annual bursaries on full-time courses and the fees formany of our courses are amongst the lowest in the region.

key indicatorsThe key indicators will be drafted and agreed once the Plan is finalised after the consultation period. These will align with the priorities andactions within each section. It is proposed that these will be high level indicators and more specific targets to be reflected in the delivery plan.Key indicators would include (but not be limited to):• Net increase in business base by sector• Consistent retention of existing business base• Reduction in unemployment levels• Increase in skills levels and others• Upward trends in footfall and retail sales in the town centre.next stepsThis draft Economic Development Plan will be out for public consultation until the end of December 2012.Developing the first delivery plan will be carried out parallel to this process securing partners to deliveragainst the agreed priorities.Delivery will start in April 2013.Croydon Economic Development Plan 2013-201829

notesCroydon Economic Development Plan 2013-201830

Croydon Economic Development Plan 2013-201832