Verbal update
Minutes:
Councillor Gideon Bull, the Cabinet Member for Local Investment and Economic Growth, reported on key developments within his portfolio. He stated that the Council was still committed to community wealth building, which had become even more important due to the forthcoming recession. There had been a severe downturn in trade for most businesses in the borough. Hospitality businesses had been particularly badly hit and there were a comparatively high number of these within the borough. The labour market had also been badly affected and 25,000 people had been furloughed alone in Tottenham. The government had introduced the Kick Start programme to provide opportunities for young people but there was currently a lack of detail about how this would work in practice.
He reported that footfall in Wood Green High Street was almost back up to pre-pandemic levels but the level of spending had not yet recovered. It was likely that this was due to lack of job security amongst residents. He paid tribute to the Council officers who had worked hard to ensure that the business grants that had been made available by the government had been distributed. In addition, officers in Haringey Adult Learning Service (HALS) had moved very quickly to switch courses on-line. Laptops and other IT hardware had been made available where required.
He reported that close to £50 million of grants for small business, hospitality and leisure businesses had been allocated by the Council so far. A lot of engagement had taken place with businesses and, in particular, he was keen to ensure a good relationship with the Wood Green Bid. In addition, work was also taking place with key anchor institutions in the borough, including the North Middlesex and Whittington hospitals.
It was important that as much of the Council’s budget as possible was spent locally as this generated wealth in the local community. Close to 30% of Council contracts now went to local organisations. Insourcing was a key part of this policy and contracts were constantly being reviewed. Approximately 100 staff had recently been brought back in-house as part of the insourcing of facilities management as part of this policy.
In answer to a question, he stated that the Council’s Economic Development Strategy remained the driver behind the vision for the local community. However, the focus would not be the same as it was before the pandemic. Reassurance was being given to businesses in the borough that Haringey remained a good place to do businesses and efforts were also being made to attract new businesses to set up in Haringey.
Peter O’Brien, Assistant Director for Regeneration and Economic Development, reported that the Council’s Economic Development was informing all of the action that was currently being taken. This emphasised that a good economy was one that benefitted everyone and this was a deliberate move away from the focussing purely on growth. Plans were being put together for the next 12 to 18 months and focussing on re-opening, recovery and renewal. There would be targeted programmes aimed at supporting local residents and businesses. There was likely to be a large rise in unemployment when the furlough scheme ended though.
It was noted that the crisis had affected groups of people in different ways. Those who suffered from disadvantage had been hit harder. Young people had been affected particularly badly. Businesses had not been impacted equally. Retail, hospitality and the creative industries had been the most severely affected. There were nevertheless some areas where there were potential opportunities such as the green economy. In addition, work could also be done to enable local businesses to become part of the on-line economy. Work had been viewed as the route out of poverty but, with lower levels of job vacancies and a depressed economy, this might no longer be the case and other options for supporting the community would need to be developed.
The Cabinet Member reported that the Business and Planning Bill would give local authorities more scope for supporting businesses when it became law. For example, it would provide greater flexibility in allowing forecourt seating in restaurants. Engagement was taking place with residents, businesses and ward Councillors on initiatives. In answer to a question, he stated that advice and guidance had been given to shops in Wood Green on how to re-open safely following lockdown. There needed to be a strong corporate message about Haringey being a place to do business. He felt that there was particular scope to develop the early evening and night time economy in Wood Green. There was a positive relationship between the Council and the Wood Green Bid. There were some encouraging signs regarding the recovery of the area but residents needed to feel more secure in their employment before their spending levels recovered.
Mr O’Brien reported that the recovery of local high streets was likely to take place in stages. However, it was inevitable that some retailers would close. Most successful high streets were not reliant entirely on retail and also had facilities such as libraries, health centres and work space. Diversity was therefore important and options for filling empty shop units could be explored with landlords. In respect of the night time economy, it was agreed that this issue would be discussed with Wood Green ward Councillors (Action – Assistant Director - Regeneration and Economic Development).
In answer to a question regarding “pop up” shops, Mr O’Brien stated that there had not been much use of units for these purposes during the last recession as there had not been the level of vacant units that there had been in some other areas. They could play a part in lifting high streets though and the Council could assist by encouraging their use. However, charity shops could sometimes impact negatively on established shops selling similar goods.
In answer to a question regarding the low take-up of apprenticeships in the construction industry, Mr O’Brien reported that young people had a poor perception of the sector. They were also not fully aware that it was relatively well paid. Work was being undertaken with Haringey Construction Partnership to identify the key challenges that employers faced. There was a need for a regular supply of skilled staff and some skills were very difficult to find. Demand for such skills remained strong, despite the pandemic. It was acknowledged that more work needed to be undertaken with schools to promote opportunities in construction.
The Cabinet Member commented that Haringey Construction Partnership played an important role in bringing businesses in the sector together so that they were able to exchange ideas. He also raised the importance of the creative sector to the borough and, in particular, fashion. In answer to a question, it was noted that there currently was a lack of information on businesses that had not survived lockdown. Businesses had indicated at the start of lockdown that they had funds to survive for approximately three months. Many were now relying on short term and time limited government assistance. Future surveys of local businesses would provide details on the impact on businesses.
In answer to a question, the Cabinet Member reported that £3.13 million had been allocated to the discretionary grants scheme for small businesses in the borough. Over 3,000 businesses had received grants so far and the Council was on course to allocate all of the funding. Four priority areas had been identified and some businesses had not been eligible, such as ones located in shared retail space. However, grants were payable to those responsible for paying the business rates and therefore did not necessarily benefit all businesses in such accommodation.
Members thanked the Cabinet Member and officers for their kind assistance.
RESOLVED:
That the potential for the development of the night time economy in Wood Green be discussed by the Cabinet Member for Local Investment and Economic Growth and relevant offices with Wood Green ward Councillors.