Return on Capital

a prospectus for the future

of the London Thames Gateway
Foreword
As the economy moves successful bid to host the 2012 Olympic and East London has the lowest GVA per head in
out of recession but Paralympic Games. the capital at around 69% of the UK average.
constraints on the public While inner West London contributes around
finances tighten, the task We are renewing and revitalising a major 5 times the UK average (at 507%), inner East
for any new government part of our capital city and in doing so, are London’s contribution is significantly lower at
will be to ensure that generating increased wealth for the UK 57% above the UK average.
scarce public resources economy. The most recent figures show that
are used to best effect in London contributes around 20% of the UK’s So as we look to our future and the next
supporting the country’s wealth and that GVA1 per head in London Parliament, we believe that it is right to ask
return to growth. But is 65% higher than the UK average. This whoever forms the next government to take
government is not supports the widely acknowledged view of a number of essential steps to ensure the
just there to spend our money; it must also London as the UK’s economic powerhouse, continued success of the London Thames
create the conditions for growth and the but continues to mask significant disparities Gateway. The sub region can drive up its
prosperity of its citizens. And now more than between different parts of the capital. Like performance as a wealth creator which
ever it must seize opportunities not only to the rest of the Thames Gateway, East London supports the rest of the UK economy and
support growth but also to improve the life is less productive than the rest of the region. deliver the largest single share of London’s
chances of those who need most assistance. Even so, it is estimated that at today’s prices, growth, to truly become a place which works
raising the productivity of the Thames for those who live here now and in the future.
The Thames Gateway has been a government Gateway to the same level as the Greater This is about making the right choices; the
priority for more than a generation, and a South East would contribute around £13bn to London Thames Gateway has now reached
comparison with the London Docklands UK GDP2. In other words, success here has the critical mass which means that further
today and thirty years ago shows what can a national impact, and without this success, development here will continue to generate
be achieved with the right determination and other parts of the country suffer too. positive economic benefits and form an
focus, and a willingness to support actions essential component of the UK recovery.
that don’t bring overnight success. There is already a commitment by all the
Olympic boroughs to achieve convergence
Without this determination and focus, we with the rest of London. Given the scale of
would not have had Canary Wharf; Greenwich contribution the Thames Gateway as a whole
Peninsula; the Royal Docks; City Airport; is capable of, it makes clear economic sense
the DLR; the Jubilee line extension. Without to broaden the convergence commitment to
this underpinning infrastructure, we would all the London Thames Gateway boroughs. Lord Falconer
not have been able to mount a credible and This would make a real difference; outer Chair, Thames Gateway London Partnership

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Gross Value Added, a measure of the contribution to the economy of each individual producer, industry or sector
2
Gross Domestic Product, the measure of total economic activity
Ten essential steps
We are committed to making the London Thames Gateway a place which exploits its opportunities for the benefit of its citizens, generates
wealth for the rest of the country, and strives to become a sustainable sub-region which enhances rather than damages the environment. We
can do a lot ourselves, and in partnership with the private sector. But government also has an essential role in the London Thames Gateway,
and we think it is important for that views on how this should be carried out are heard. From government, we want to see:

1 2 3
Delivery of Existing commitment to build High Speed 2 route to include An agreed and funded
essential the eastern end of Crossrail to London Stratford station, as package of river
infrastructure Abbey Wood and Shenfield met, the place at which to connect crossings along the
and consideration of the further the UK growth areas with our London Thames
extension to Ebbsfleet before any international rail link Gateway
decisions or commitments are
made on the western end

4 5 6
Realistic funding The ability to accommodate A new methodology for Funding for growth
support for higher student numbers in our calculating the population areas which takes
growth areas local universities and colleges to data that determines local account of the effects of
meet local needs authority funding significant population
increase

7 8
The right Strong national leadership for The right mix of delivery
governance the Thames Gateway project bodies in the London
Thames Gateway

9 10
Developing Collaborative decision Freedom to deliver on our
the right making with locally placemaking principles for
relationships elected representatives making the London Thames
about the future Gateway a place which works for
development of the its residents and businesses now
London Thames Gateway and in the future

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Delivery of essential infrastructure
Good transport and infrastructure are received a major boost with the parts of the London Thames Gateway
key enablers for sustained growth and Jubilee line extensions and Docklands by providing a vital link to the centre
development. Good connectivity drives Light Railway. Both demonstrated of London and, if extended beyond
up housing densities to the point which that transport is the missing link in Abbey Wood to Ebbsfleet, to the
they can support employment, health, securing investment and driving the rest of the Greater South East. This
cultural and other facilities. It supports growth in East London. matters because of the need to be
the development of mixed communities well connected to areas on the fringes
and tenures and reduces car travel and East London’s public transport is still of London, such as Dartford and
pollution. It brings in new investment, far behind other parts of the capital, Thurrock, which provide workers for
new businesses and sustains high but many of TGLP’s transport priorities London whilst also creating jobs for
streets. are finally in the process of being the residents of neighbouring London
delivered. This includes extensions to boroughs.
In the parts of London where the East London Line, enhancements
connectivity is good, places thrive, to the Docklands Light Railway, TGLP campaigned to ensure that
people and businesses grow, and early phases of Thames Gateway Crossrail commitments would deliver
communities flourish. But where Transit, station access schemes for the London Thames Gateway as
public transport has been neglected, and improvement packages to town well as those living in West London. It
the impact is quite the reverse. It is a centres. is essential that existing commitments
characteristic of the London Thames to Abbey Wood and Shenfield are
Gateway that despite significant These projects are each important and honoured, and consideration of further
investment in transport, pockets of need to be sustained. But while we extensions favour the East rather
isolation remain where connectivity is welcome the significant investment than West London subsequently. 75%
poor–for example in areas like parts of already delivered, we already know of people working in Canary Wharf
Leyton and Chingford which have poor that we need further action. travel in from the west; Crossrail must
access to job opportunities. extend eastwards to ensure that people
Crossrail - the vital key living in outer East London and beyond
Building on new foundations have as much chance to access these
Most significant is Crossrail, which jobs as those in the west.
The London Thames Gateway region will fundamentally transform large
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 1
TGLP wants to see between Crossrail, High Speed 1 and
Existing commitment to build the High Speed 2. The case stacks up
eastern end of Crossrail to Abbey even more strongly when you consider
Wood and Shenfield met, and Stratford as the location for the largest
consideration further extension urban retail development in Europe as
to Ebbsfleet before any decisions well as the new parkland to be created
or commitments are made on the as a legacy of hosting the Olympics.
western end. The existence of a major rail hub at
Stratford therefore serves multiple
purposes: improving strategic rail
Linking the London Thames Gateway routes linking Eurostar services to
and growth areas other parts of the UK and enhancing

2
Stratford as a destination for visitors to
Another important opportunity is its retail and leisure facilities, including
the prospect of the new High Speed the Olympic Park.
Rail connections between London,
the north, and the rest of Europe. TGLP wants to see
London Stratford station is set to High Speed 2 route to include London
become the major East London hub Stratford Station, as the place at which
and routing High Speed 2 through this to connect the UK’s growth areas with
hub presents a major opportunity to our international rail link.
consolidate its position.

TGLP also wants to see High Speed

Worth knowing...
1 international trains stopping at
Stratford International station as The rate of increase in the working
soon as possible. Stratford is the only population at Canary Wharf more
location in London with the potential than doubled following the creation
to provide seamless connections of increased capacity after the
Jubilee Line station opened in 1999.
5
River crossings component elements once there is
agreement on the package.
New river crossings continue to be
a clear and urgent priority. It has There is already some evidence to
long been accepted that further new suggest that uncertainty may be
crossings are needed to stimulate causing some developers to reconsider
future economic growth. They would the viability of their plans on both
enable residents and businesses to sides of the river, particularly during
harness the whole London Gateway, the current challenging economic

3
with businesses south of the river able circumstances. This is economically
to access opportunities in the north damaging and must be resolved.
where significant developments are
taking place. In the process it could
TGLP wants to see
generate thousands of new jobs.
Working with the Mayor of London, an
Working with the Mayor of London, agreed and funded package of river
TGLP wants to see an agreed and crossings along the London Thames
funded package of river crossings Gateway.
along the London Thames Gateway
stretch of the River Thames. It is a
matter of concern that, following Worth knowing...
the return of PFI credits for the
Following the path of the Thames,
previously proposed Thames Gateway
stretching 21 miles between Kingston
Bridge, the proposals in the Mayor’s
Bridge and Tower Bridge there is on
transport strategy along these lines
average one road bridge almost every
are unfunded. We urge the government
mile, but not one single road bridge
to work with the Mayor towards a
in the 19 miles between Tower Bridge
funding solution, involving a range of
and Queen Elizabeth II Bridge.

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Realistic funding support for growth areas
In hard economic times, the key focus where employment opportunities
for any Government is to support are abundant. But people in the
economic growth. London is central London Thames Gateway continue
to the UK’s economic performance, to underperform compared to
critical for our future global the regional average. Only 32% of
competitiveness and for supporting the residents have skills qualifications to
move into recovery. NVQ4 – compared to a regional average
of 39%, although it does fare better
The Thames Gateway is London’s when looking at the national average of
largest area of opportunity. It has 29%. And we have higher numbers of
the greatest potential and all the residents with low or no skills.
ingredients to drive the recovery of
the UK economy including access to Too many of our people still do not
a growing population of increasingly have the skills and ambition to seize
skilled young people. The London what is on their doorstep, or within
Thames Gateway has the potential easy travelling distance. We must
to deliver the largest share of the therefore find new ways to encourage
£13bn (at today’s prices) that would skills development and aspiration
be achieved if the productivity of the in our young people, and support
Thames Gateway area rose to the enterprise and innovation for all.
average of the rest of the Greater
South East; investment here will Some progress has been made in
generate the best return on capital. raising aspirations and creating
increased demand from local people
Investing in our people for higher education in the London
Thames Gateway. Since 2000, there has
In some parts of the UK, people lack been an increase of almost 43% in the
the opportunities for employment. number of residents participating in
This is not the case in London, higher education, with the result that
over 87,000 local people were
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undertaking some form of higher its position as a growth area and its Using the right numbers - a hidden
education study during 2008. Now, it is unique demography, a commitment to borough?
critical that we are able to deliver the accommodate higher student numbers
places to meet this demand. should be made to local universities TGLP works closely with partner
and colleges in the London Thames organisations across London and
The London Thames Gateway’s Gateway. the broader Thames Gateway. We
unique position as an economic driver support London Councils’ Manifesto
means that we should be allowed This aspect is also important because for Londoners which lays out the deal
to accommodate higher student of the key contribution of higher for devolution and the role to be played
numbers to meet local needs. Recent education institutions to the London by government, local authorities, and
government announcements of Thames Gateway economy and the role citizens.
reductions in student funding mean of high quality research and innovation
that the aspirations of young people in attracting to the sub-region We particularly support London

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will be constrained just as significant knowledge economy companies and Councils’ concerns about the use of
improvements in results are evident the high quality, high skills jobs that existing population data for calculating
in local schools and colleges. The sub they in turn create. local authority funding via the
region has been particularly badly Revenue Support Grant (RSG). Official
hit this academic year, where, for TGLP wants to see statistics struggle to keep pace with
example, the University of East London The ability to accommodate higher our growing population. This causes
has seen a 48% rise in the number of student numbers in our local huge challenges, particularly for
applications for student places, well universities and colleges to meet local the London Thames Gateway inner
above the national average increase. needs. boroughs. Through a combination of
migrant populations, undercounting,
We must do everything possible to and the hidden homeless, we estimate
maintain our ability to support this the London Thames Gateway is home
strengthening interest in higher Worth knowing... to the equivalent of an additional
education from our local teenagers. borough, in terms of people using local
The eight HEI members of TGLP
In recognition of the particular services but not recognised in official
generate almost £1.7bn of economic
demands in East London because of output in the London region and in statistics. This means that service
excess of £2.6bn nationally. 8
delivery is automatically overstretched In order to do so, there needs to be
and underfunded. A new way of an effective mechanism for funding
keeping track of population trends growth areas which reflects the

5
must be found so that resources can be fact that provision for significant
allocated fairly and reflect population growth has to be anticipated. If we
changes more rapidly. are building large developments to
accommodate growth, we must plan
TGLP wants to see for the social infrastructure, green
A new model for collecting population space and essential services these
data and allocation of local authority new communities will need – and to
funding via Revenue Support Grant. ensure these services are developed
in parallel with housing delivery and
not in some distant future. It is vital
Building mechanisms for funding that growth area funding mechanisms
growth support this approach. Historically,
this has not always been the case.
Revised SHLAA3 Projections suggest TGLP will continue to work with

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that by 2031 over a third of London’s London-wide and national decision
population will be based in the makers to identify the best model for
London Thames Gateway, which this crucial growth area.
will absorb nearly half of its growth.
Thousands of new residents will join TGLP wants to see
the existing communities across the Funding for growth areas which takes
13 boroughs. The challenge we face account of the effects of significant
will be in ensuring that both the new population increase.
and the settled populations are able
to capitalise on the new opportunities
around them. 3
Strategic Housing Land Availability Assessments, required
under Planning Policy Statement 3 (PPS3), aim to identify land in
9 an area suitable for housing development
The right governance

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Strong national leadership the potential of the London Thames
Gateway.
Since the early 1980s governments
of both main parties have recognised
Thames Gateway (or East Thames
TGLP wants to see
Corridor, as it was known) as a
Strong national leadership for the
priority growth area. This, particularly
Thames Gateway project.
when coupled with strong national
leadership, has been crucial in
driving forward some of the major
projects that have started to capitalise
on the huge potential of the area.
Worth knowing...
However, regeneration and economic Effective leadership will support
development are long term projects. a growth in population equivalent
There is a significant risk that if this to the City of Cambridge (131,000
priority status is taken away, this people) and some 62,000 new jobs
important progress will be lost. from sites like the Olympics and
its legacy, Stratford City, Canning
Similarly, the Thames Gateway project Town and Custom House, the Royal
has made its greatest advances Docks and Beckton for Newham.
when strong national leadership
has supported and encouraged local
aspiration and enterprise. TGLP We are concerned that debates on the
would favour the return to a senior future of the Thames Gateway have
government minister with authority tended to focus on picking apart how
and cross government responsibility the project has been structured rather
for the Gateway to support the Mayor than focus on why it is so important
and local authorities in delivering that it succeeds.

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TGLP would support a review of
Thames Gateway structures to enable Worth knowing...
the most effective delivery, on the
basis of a starting presumption that As a result of successful working
local authorities rather than national between the boroughs, national
government are best placed to and regional government, Barking
determine the nature of appropriate Riverside is the largest brownfield
delivery mechanisms on the ground. regeneration site within the UK, one
However during this crucial period, of the largest development sites in
structural reorganisation must not be London, and the largest housing
allowed to hamper efforts to deliver development within the Thames
the major infrastructure and housing Gateway regeneration area.
projects that the London Thames
Gateway so urgently needs. Tower Hamlets achieved the
highest number of completed new
Furthermore, we strongly believe homes (2,887) in 2008-9 in London.
that the national leadership referred
to above is essential if the desire to The waiting list for social housing in
streamline the existing “alphabet Waltham Forest is the equivalent to

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soup” of bodies involved in delivering 40-50% of the total housing in the
the Gateway is to be achieved. area.

Government at all levels could

benefit from development on
TGLP wants to see London’s Brownfield land mass
The right mix of delivery bodies in the almost half of which is located in
London Thames Gateway. the London Thames Gateway area.

11
Developing the right relationships
Effective government collaboration with locally elected representatives
and on the basis of a thorough
In a time of tightening public finances, consideration of the options. Partners
public investment has to be made to in the London Thames Gateway
go further. That means trusting those are realistic about the pressures
who are delivering on the ground – our the country faces and do not seek
boroughs and their partners in the sub exemption from them, but believe it
region – and giving them maximum is essential that decisions take full
flexibility over how, when and where account of the economic potential

9
they use their resources to ensure the of the sub region, and its capacity to
right focus on local and sub-regional generate positive economic returns.
priorities. All levels of government
must be mindful of the people they
represent and think about how to work TGLP wants to see
together to best serve the interests of Decisions on funding to be made
their constituents. in partnership with locally elected
representatives.
The London Thames Gateway is not
starting from scratch; part of our
potential comes from our success
to date. This is our opportunity
to maximise its value and deliver Worth knowing...
sustained benefits for future
generations. The Young Mayor Programme in
Lewisham has been running for 6
In spite of the temptation to make years and continues to extend its
snap decisions and announcements influence and profile. The turnout
regarding future funding, it is vital that for 2009-10 was a record 52.5%.
all decisions are made in partnership
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Freedom to deliver is an example of a local initiative which
national and regional government
The Draft London Plan says that in the should support and help facilitate.
next ten years, 45% of new housing
provision will be within the London However, for this to be effective it is
Thames Gateway. How these homes vital that the innovation and ideas of

10
are delivered will be the defining TGLP’s boroughs and Higher Education
legacy of the Thames Gateway project. institutions must be allowed to thrive.
Residents in the Gateway deserve high
quality, well designed, sustainable TGLP wants to see
homes, just like everyone else. Older Freedom to deliver on placemaking
people, people with disabilities, principles for making the London
families with children, single occupiers Thames Gateway a place which works
- all need housing that suits their for its residents and businesses now
needs and that they are proud of. and in the future.
Too often, the London Thames Gateway
has been seen as a place where quality
Worth knowing...
can suffer. This must no longer be the
case. As a result of successful collaboration
between national, regional and local
To counter this drift, TGLP has government Dagenham Dock has
adopted a framework of principles been transformed over the last decade
for placemaking that are consistent from a run down, semi-derelict,
with national regulations and meet low grade former industrial site
into a Sustainable Industries Park.
local needs and ambitions. These A new generation of environmental
Placemaking Principles should be technology businesses is a showcase
used to guide future development for how going green can support
across our sub region. We believe this the economy, generate jobs and
regenerate brownfield land.
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Why is the Thames Gateway important?

Ken Livingstone
Lord Heseltine
Former Mayor of London

“The Thames Gateway is one of the “Given its proximity to central

most important areas for growth and London, its excellent transport links
investment in our country.” and the availability of large areas of
Sir David Melville former industrial land that is ripe for
redevelopment, Thames Gateway is
Chair a sound investment and will be an
Lifelong Learning UK excellent business location.”
“The Thames Gateway is a coherent
sub region located in an economically
potent area of the UK. Uniquely we
have the organisations to develop its
infrastructure and the skills of its
residents.”

Baroness Valentine

London First

“The South Bank has seen

extraordinary change in the past
decade. Why not the same for East
London in the next?”
 Professor Anne Power Professor Tony Travers
Centre for Analysis of Director, LSE London
Social Exclusion, LSE
“The London end of the Thames “Thames Gateway matters to the UK
Gateway is a huge potential asset, because the area provides London
rebalancing a global city that is with the capacity to grow, but without
skewed westwards, and countering eating up green land. To make the
ugly low density sprawl beyond area work effectively will require
London’s Eastern boundaries. It has Tony Pidgley concentrated effort and commitment.
the potential to save energy, provide The very scale of the Thames Gateway
affordable homes with good transport Chairman, Berkeley Group makes it both a challenge and an
links, and protect the flood plains and opportunity”.
estuary of a great river.” “Having been a member of the Outer
London Commission I recognise how
important it is that the Boroughs to
the East of London make the fullest
contribution to London’s growth and
success.”

Sir Terry Farrell

Architect

“The Thames Gateway could become

the world’s first truly sustainable eco-
region.”
About the Thames Gateway London Partnership

The Thames Gateway London With an independently appointed Contact us

Partnership (TGLP) is a cross-river, Chair, our work is democratically
cross-party organisation, made up of accountable through our local authority Thames Gateway London Partnership
the 11 local authorities and the eight membership. 8th Floor, Anchorage House
universities in the Thames Gateway 2 Clove Crescent
London area, Dartford Borough The proposals in this document take East India Dock, London E14 2BE
Council, the local Learning and Skills account of the helpful contributions
Council (until March 2010) and NHS made at our Facing the Future seminar Tel 020 7673 4578 • Fax 020 7673 4899
London. Representing the whole of series sponsored by the London www.thames-gateway.org.uk
the London Thames Gateway (LTG) Development Agency.
area, we campaign on behalf of our
members to ensure the area is able to Statistics have been supplied by our

images thoughout: www.london2012.com

London 2012 photographs and computer-generated
live up to its enormous potential and partners and the TGLP Knowledge
remains a key national and regional Platform using various sources
priority. including ONS.