Key information
Decision type: Mayor
Reference code: MD1605
Date signed:
Decision by: Boris Johnson, Former Mayor of London (May 2008 - May 2016)
Executive summary
London & Partners (L&P) have produced a draft 2016-17 business plan. In line with their 2014-17 strategy, L&P will work to deliver jobs and growth in London by attracting investment and visitors. The highlights of L&Ps 2016-17 business plan are:
• The launch of Phase II of the Mayor of London’s Export Programme
• The publication of a ten-year London Tourism Strategy
• L&Ps most ambitious commercial income target
The process this year varies somewhat from previous years as a result of an increased role for the London Assembly as part of a commitment to greater transparency by the GLA and L&P.
GLA’s Investment and Performance Board approved L&Ps 2016/17 business plan in principle on 10th December 2015. This Mayoral Decision requests approval of L&P’s business plan for 2016/17.
Decision
That the Mayor approves the London and Partners proposed business plan for 2016-17.
Part 1: Non-confidential facts and advice
1.1 London & Partners (L&P) have produced a draft 2016-17 business plan. In line with their 2014-17 strategy, L&P will work to deliver jobs and growth in London by attracting investment and visitors.
1.2 In 2015, the GLA endorsed the following two-year funding allocation for L&P (MD 1493):
• 2015-16 £12.446m
• 2016-17 £11.219m
1.3 The Grant Agreement between the GLA and L&P states that no funding will be payable for any financial year prior to the GLA’s approval of the business plan for that financial year.
1.4 In 2015, a Deed of Variation to L&P’s Grant Agreement was made to increase the transparency of L&P’s operations, including by bringing forward the decision making process for L&P’s business plan to facilitate the Assembly reviewing how L&P intends to spend the GLA grant as part of the Assembly’s scrutiny of the Mayor's budget.
1.5 In order to accommodate the above, the business planning round for 2016-17 began in October 2015, around three months earlier than in previous years.
1.6 L&P have shared their draft business plan with the London Assembly and it was discussed at their plenary on November 4th 2015. IPB gave in-principle approval of L&P’s draft business plan on December 10th 2015.
2.1 L&P have produced a 2016-17 business plan, in line with their 2014-17 strategy, which has been scrutinised by the London Assembly, endorsed by IPB and needs to be signed off by the GLA in order to release funding, as per the Grant Agreement.
2.2 In line with its 2014-17 strategy, L&P will work to deliver jobs and growth in London by attracting investment and visitors. L&Ps (draft) objectives are to:
• Deliver additional jobs and economic value for London, by convincing visitors, students and businesses to come to and invest in the Capital, and helping London based businesses to export.
• Strengthen London’s reputation as a cultural centre and a leading destination for life sciences and high technologies.
• Secure support and active engagement from institutions, businesses and high profile individuals with an interest in London’s international promotion.
• Build L&Ps reputation as a world leading promotional company.
The highlights of L&Ps 2016-17 (draft) business plan are:
• The launch of Phase II of the Mayor of London’s Export Programme
• The publication of a ten-year London Tourism Strategy
• L&Ps most ambitious commercial income target
2.3 A summary of L&Ps 2016-17 targets, compared against L&Ps 2015-16 targets, is set out below:
[1] Includes commercial income, match funding and benefits in kind for tourism marketing activities and trade and investment activities, income from L&P’s office and income from Dot London Domains Ltd.
[2] At the IPB meeting on December 10th it was agreed that regeneration target would be reviewed and be stretching. It will consider smaller projects and Outer London as well.
3.1 L&P officers have worked with the GLA Diversity and Social Policy to ensure that L&P’s business plan adheres to the Public Sector Equality Duty.
Key Risks and Issues
5.1 The GLA approved core grant funding for L&P remains at £11.66 million for 2016/17 although year on year comparisons of overall funding are affected by forward funding and other minor adjustments. Funding is subject to approval of the business plan. This compares to the GLA’s own grant funding from Government in 2016-17 which is anticipated to reduce by over 20 per cent. The GLA has also approved the retention by L&P of all revenues generated in 2015-16 and 2016-17 from Dot London.
6.1 The decision requested of the Mayor falls within his statutory powers and duties acting on behalf of the GLA under the Greater London Authority Act 1999 (the ‘Act’).
6.2 Officers should ensure that the grant agreement between the GLA and L&P continues to be managed in accordance with the terms of the agreement.
7.1 The next steps following this Mayoral Decision are summarised below:
Annex 1 – L&P 2016-17 Business Plan
Signed decision document
MD1605 L&P Business Plan 2016-17 (signed) PDF
Supporting documents
MD1605 Appendix L&P Business Plan 2016-17