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DD2695 Royal Docks Social Infrastructure and Climate Change Investment 2024-26

Key information

Decision type: Director

Directorate: Housing and Land

Reference code: DD2695 Royal Docks Social Infrastructure and Climate Change Investment 2024-26

Date signed:

Date published:

Decision by: Tim Steer, Executive Director, Housing and Land

Executive summary

In February 2024, the Mayor (under cover of MD3230) approved expenditure of up to £64.31m for the next five-year Royal Docks Delivery Plan period (2024-25 to 2028-29) to deliver programmes and projects designed to achieve three strategic outcomes: economic prosperity, growth and investment; environment, wellbeing and community; and culture, identity and perception. The Mayor also delegated authority to the Executive Director of Housing and Land to approve, through Director’s Decisions (DDs), the income and detailed spending proposals for each project that is to be funded within this £64.31m expenditure budget envelope.
This DD seeks approval to spend up to £100,000 of revenue expenditure to be spent over two years from 2024-25 and 2025-26 to deliver two specific pieces of strategy work: delivery of a Social Infrastructure Implementation Plan, so that new infrastructure across the area can be planned and delivered to meet the community’s growing needs; and a Royal Docks response to the London Borough of Newham’s Just Transition strategy and Mayoral policies related to greening, water management, flood mitigation and heat reduction to address climate change.
In accordance with Royal Docks Enterprise Zone (EZ) Programme Board governance and funding responsibilities for all Royal Docks EZ projects, the investment set out in this DD was considered and endorsed by them on 22 February 2024.
 

Decision

That the Executive Director of Housing and Land approves up to £100,000 of revenue expenditure in 2024-25 to deliver two specific pieces of strategy work: delivery of a Social Infrastructure Implementation Plan; and a Royal Docks response to the London Borough of Newham’s Just Transition strategy and Mayoral policies related to greening, water management, flood mitigation and heat reduction.

Part 1: Non-confidential facts and advice

1.1.    The Royal Docks is one of London’s largest regeneration and investment opportunities, at the centre of an expanding east London region. Once the UK’s gateway to world trade, today the Royal Docks is re-emerging as a major new business and visitor destination, with approximately £5bn worth of investment planned over the next 20 years, delivering up to 38,600 new homes, 55,000 new jobs and up to 4m square feet of commercial space. 
1.2.    Major anchor organisations such as Tate & Lyle, ExCeL, London City Airport, and the University of East London are located in the Royal Docks, making it a strategically important economic centre for London. In 2022, City Hall relocated to the area, the Elizabeth Line opened; and major cultural partners invested in the area. These events signal a substantial eastward realignment of the city’s cultural, economic and political centres.
1.3.    The Royal Docks and Beckton Riverside area is vast, comprising over 900 hectares of land; 91 hectares of impounded water; and 12 miles of prime waterfront. It sits at the confluence of two growth corridors; an Opportunity Area; and London’s only Enterprise Zone (EZ). These factors make it poised for rapid growth. It consists of six distinct waterfront neighbourhoods, in one of the UK’s youngest and most diverse areas. Over 175 hectares of land are in public ownership. The GLA is bringing forward seven major development sites, representing a mix of residential, commercial, cultural and industrial development. 
1.4.    The Mayors of London and Newham have jointly been delivering the regeneration of the area through its EZ status, funded through the ringfencing of business-rate income collected within the EZ since its inception. The area’s designation as an EZ has helped unlock significant public-sector investment; and the establishment of a dedicated Royal Docks delivery team that is helping to coordinate the area’s comprehensive redevelopment. 
1.5.    In February 2024, the Mayor (under cover of MD3230) approved expenditure of up to £64.31m for the next five-year Royal Docks Delivery Plan period (2024-25 to 2028-29). This is to deliver programmes and projects designed to achieve three strategic outcomes: economic prosperity, growth and investment; environment, wellbeing and community; and culture, identity and perception. The Mayor also delegated authority to the Executive Director of Housing and Land to approve, through DD forms, the income and detailed spending proposals for each project that is to be funded within this £64.31m expenditure budget envelope.
1.6.    This DD seeks approval to spend up to £100,000 of revenue expenditure to deliver two specific pieces of strategy work: delivery of a Social Infrastructure Implementation Plan, so that new infrastructure across the area can be planned and delivered to meet the community’s growing needs; and a Royal Docks response to the London Borough of Newham’s (LBN’s) Just Transition strategy and Mayoral policies related to greening, water management, flood mitigation and heat reduction to address climate change. 
 

2.1.    Strategic Outcome 2 is structured around five delivery objectives: building more affordable homes; enhancing social infrastructure; responding to the climate emergency; empowering communities; and building community health and wealth. These are discussed in more detail below. 
Building more affordable homes 
2.2.    The Royal Docks and Beckton Riverside’s Opportunity Area Planning Framework (OAPF) sets a housing target of 38,600 new homes. Both the London Plan and the LBN draft Local Plan set a strategic target of 50 per cent of this to be affordable, subject to viability. The Royal Docks Team (RDT) will continue to work proactively with developers and investors across the area to not only deliver more affordable homes, but also enable new tenure delivery to meet more targeted needs. Over the next five years, approximately 2,300 new homes will be built in the Royal Docks, of which 1,000 will be affordable. The RDT will not directly fund the new affordable homes in the Royal Docks, but will use its role in managing the GLA’s land portfolio to work with partners to identify and bring forward surplus public land, where there is development capacity. 
Enhanced social and green infrastructure
2.3.    The Royal Docks as an area has historically lacked good social infrastructure and community amenities. In recent years, new cultural and community spaces have opened, including new play and green spaces. However, an additional 100,000 residents are projected to live in the Royal Docks in the future, which will require substantial investment in new social infrastructure. Due to commence within the Delivery Plan period are new primary schools at Thameside West, Silvertown and Beckton Riverside; several health centres; a community centre and meanwhile activity in each new development; and a significant amount of new public walking routes, parks and squares, including a new four-acre park in Thameside West. Therefore, over the next two years, the RDT will work with LBN and key partners to develop a joint Social Infrastructure Funding and Delivery Plan – so that the location and timing of new infrastructure across the area is carefully planned, coordinated and delivered to meet the growing community’s needs. 
2.4.    The Social Infrastructure Delivery Plan will build on the need and demand assessment in the LBN Local Plan, the Royal Docks & Beckton Riverside OAPF, and the planning applications for the individual strategic sites in the Royal Docks. The work will explore options with the One Public Estate Northeast London Place Pilot (OPE Place Pilot) for co-location of health, education and community services, as well as options for co-design of the new facilities. 
2.5.    The RDT will work with partners to support the delivery of Mayoral policies and targets, including increasing tree canopy cover and green cover, to ensure the Royal Docks contributes to the London target of over 50 per cent green cover by 2050. The RDT will also ensure that Biodiversity Net Gain and Urban Greening Factor requirements are delivered on all development sites and the public realm. Additionally, these efforts will be aligned with the statutory Local Nature Recovery Strategy for London, which is currently under development.
2.6.    The GLA investment of £50,000 will be used to pay for consultancy services to support work with LBN, social infrastructure providers, commissioners, developers and landowners to develop a detailed funding and delivery plan for the different elements of social and green infrastructure. It will identify options for temporary provision to deal with short-term capacity constraints and explore options for co-design and co-location in the permanent provision. 
Respond to the climate emergency 
2.7.    Working with the Royal Docks Centre for Sustainability, the RDT will convene partners to support the LBN’s Just Transition Plan and Mayoral policies and targets related to water management, flood mitigation and heat reduction. Central to this will be a commitment to sustainable building practices and energy efficiency from new developments and the integration of climate adaptation measures into the built environment to help mitigate climate risks. This includes: investment from The Silvertown Partnership and EoN in a new low-carbon heat network at Silvertown; a new primary sub-station at Beckton Riverside, which will increase electricity capacity and facilitate a transition to renewable sources; and ExCeL targeting a BREEAM rating of ‘Excellent’ for its new extension, ensuring 100 per cent of its electricity comes from renewable sources, and offsetting its gas supply to achieve carbon neutrality. 
2.8.    The RDT will also work with partners to implement all recommendations from the GLA’s Royal Docks and Beckton Riverside Integrated Water Management Strategy (IWMS) for the Royal Docks and Beckton Riverside OAPF area. The focus will be on enhancing "blue green infrastructure" across the area to ensure sustainable water management, reduce sewer overflows, and adapt to future climate changes. Furthermore, the RDT will facilitate the continued implementation of the IWMS, ensuring ongoing adaptation and resilience. 
2.9.    As an area vulnerable to flood risk from the Tidal River Thames, the RDT will work with partners within the six waterside neighbourhoods to integrate adaptation strategies for tidal flood risk and the Riverside Strategy approach. The RDT will also identify opportunities to incorporate the broader benefits outlined in the recently updated Thames Estuary 2100 Plan.
2.10.    The RDT is committed to fostering a green tech cluster in the Royal Docks. By leveraging the Royal Docks Centre for Sustainability, utilising existing commercial spaces and creating new opportunities, the Royal Docks is poised to be a key player in advancing London’s green tech sector and addressing the city’s climate emergency.
2.11.    The GLA investment of £50,000 will be used to pay for consultancy services to work with partners to produce a response to LBN’s Just Transition strategy and Mayoral policies and targets, which sets a framework for an equitable approach to dealing with climate change. Given the scale of investment, development, change and the existing community in the Royal Docks, a collective response and set of commitments is appropriate. This response will set out the existing projects, proposed new ones, and potential further opportunities focusing on environmental sustainability, greening, water management, flood mitigation and heat reduction to address climate change. It will highlight lead partners, funding, delivery programmes, and impact. This will cover climate resilience as well as achieving net zero.
2.12.    The investment proposed will provide technical and consultancy support to engage with stakeholders, the Royal Docks Centre for Sustainability, and LBN to document progress to date, committed projects, new programme options, and gaps in the response. This will enable stakeholders to work collectively on a shared vision and set of actions; and enable LBN to have clarity about the response to the Just Transition strategy.
Build community health and wealth
2.13.    In addition to physical regeneration, over the next two years, the RDT will work with partners to further embed a fair living wage culture within the area’s business community; and to widen commitment to LBN’s Community Wealth Building pledge. This includes improving access to highly skilled jobs and training opportunities for local people and disadvantaged communities. The RDT is currently partnering with and co-funding UCL’s Institute for Global Prosperity on the Prosperity in East London study (running from 2021 to 2031), tracking the prosperity of over 4,000 households in 15 regeneration areas. The resulting pioneering model, baseline and evidence base, co-produced with Citizen Scientists, will continue to inform the Delivery Plan to enable hyper-local targeting of regeneration investment towards tackling poverty and inequality; and supporting a good quality of life for Newham and local residents.
2.14.    LBN experiences poor air quality, particularly near busy roads and in areas of dense construction, which significantly impacts the health and wellbeing of residents. The RDT will work with partners to ensure that new developments and activities contribute positively to the Mayor’s air quality targets.
Empower communities 
2.15.    The RDT will support local people to influence the area’s ongoing regeneration through resident participation groups and a public engagement programme, which champions co-design. This includes the facilitation of several groups and forums, such as the Royal Docks Networking Forum, the Developers Forum, a new Sustainability Network, Dock Local Panel and Creative Connectors. The RDT will continue to fund LBN’s People Powered Places programme and provide opportunities for communities in the Royal Docks to directly deliver projects that will improve quality of life in the local area.
2.16.    Budget breakdown

 

 

2024-25

2025-26

 

Objective

RDT-funded activities

Rev

Cap

Rev

Cap

Totals

Building more affordable homes

-

 

 

 

 

 

Enhancing social infrastructure

The production of an Infrastructure Implementation Plan for infrastructure across the Opportunity Area (including social infrastructure) (funding of £50k)

£25,000

 

£25,000

 

£50,000

Responding to the climate emergency

Assessment of how the LBN Just Transition Plan and Mayoral policies can be implemented in the Royal Docks (funding of £50k).

£25,000

 

£25,000

 

£50,000

Empowering communities

-

 

 

 

 

 

Building community health and wealth

-

 

 

 

 

 

 

Totals

£50,000

 

£50,000

 

 

Total revenue

£100,000

Total capital

£0.00

3.1.    Section 149(1) of the Equality Act 2010 provides that, in the exercise of their functions, public authorities must have due regard to the need to:
•    eliminate discrimination, harassment, victimisation and any other conduct that is prohibited by or under the Equality Act 2010
•    advance equality of opportunity between persons who share a relevant protected characteristic and persons who do not share it
•    foster good relations between persons who share a relevant protected characteristic and persons who do not share it. 
3.2.    Protected characteristics under the 2010 Act are: age, disability, gender reassignment, pregnancy and maternity, race, religion or belief, sex, sexual orientation and marriage or civil partnership status (the duty in respect of this last characteristic is to eliminate unlawful discrimination only). 
3.3.    An Equality Impact Assessment (EqIA) was prepared in 2023 to support the development of this new Royal Docks Delivery Plan. As the 2024 Delivery Plan was developed as a continuation of the Royal Docks programme, the EqIA sets out how the proposed programme of activity might impact different groups, including those who share protected characteristics. 
3.4.    The EqIA assessment makes recommendations for how any potential adverse equality effects may be mitigated, and any potentially positive equality effects enhanced. These recommendations were used to inform the 2024 Delivery Plan, with further detail about how they may be actioned and monitored. 
3.5.    Strategic Outcome 2 projects will directly contribute to the Mayor of London’s key strategies and policies and the policies of LBN in the Local Plan and Just Transition strategy. These policies and strategies are underpinned by a very clear commitment to equality, diversity and inclusion; and are central to our ambitions for the Royal Docks, as a sustainable, liveable and cohesive place that prioritises the wellbeing and prosperity of all its communities. 
3.6.    The work on social infrastructure is designed to respond directly to the need and demand identified in the LBN emerging Local Plan and ensuring that the right social infrastructure is in place, at the right time and in the right locations to support diverse communities.
3.7.    The work on the response to the Just Transition strategy will link to the equalities-led approach of LBN’s work. This is focused on ensuring equity in the response to climate change and the Royal Docks work will respond to that need.
3.8.    Equalities considerations will also be considered by the GLA in connection with all work procured, with the GLA Equalities Officer consulted to help ensure approaches are inclusive and accessible. All recruitment will fully comply with the Equality Act 2010 and fulfil the requirements of the Public Sector Equality Duty as set out in the section 149(1) of the Equality Act 2010.
3.9.    This decision is therefore expected to have positive impacts on persons with a protected characteristic under the Equality Act.
 

Links to Mayoral strategies and priorities
4.1.    Strategic Outcome 2 of the Royal Docks Delivery Plan will help deliver against a range of Mayor of London policies including the London Plan; the Economic Development Strategy; the Equality, Diversity and Inclusion Strategy; the Strategy for Social Integration; and the Healthy Streets Approach. It is aligned with the Mayor’s Equalities Framework to consider the requirements of relevant equalities groups.
4.2.    The overall objective of this approval is to accelerate and maximise the regeneration of the Royal Docks EZ and wider opportunity area, through successful cultural placemaking and place marketing. Over the next plan period, there will be a stronger focus on strategic partnerships and place-based working, with RDT using its resource and influence to help convene, facilitate, broker and support partners to deliver cohesive, sustainable, vibrant places where people want to live, work and visit. The proposed initiatives and interventions set out have been informed by the ongoing involvement and input of stakeholders and local communities. 
4.3.    There are no conflicts of interest to declare from anyone involved in the drafting or clearance of this Decision form.
Key risks and issues
4.4.    The key risks, and mitigations, are detailed in the table below. 

Risk

Likelihood

Impact

Mitigation

Enhancing social and green infrastructure

Risk of a lack of coordination between the various parties involved in the provision on new infrastructure and this leading to impaired outcomes (for example, between the providers who will operate the spaces and the developers who will design and build the spaces).

High

Medium

  • RDT to act as a conduit for the flow of information to inform providers’ plans and to ensure LBN, NHS, etc are aware of developers’ plans as early as possible.
  • The Infrastructure Implementation Plan will provide more information and guidance to providers and developers.
  • The potential to use the OPE Place Pilot work to widen understanding.

Risk of a lack of funding to cover the complete costs of design, construction and/or operation of the new facilities. This will reduce the potential beneficial impact of the infrastructure.

High

High

  • The Infrastructure Implementation Plan will help to identify forecast costs, existing funding allocations, potential funding gaps, and possibilities for other funding sources.
  • The RDT will work with LBN Planning, Education and NHS to agree approach to contributions from CIL and S106.

Responding to climate change

Risk of funding constraints meaning that actions to mitigate climate change are reduced or delayed.

Medium

High

  • The response to the Just Transition Strategy and Mayoral policies will include actions; forecast costs; any savings or income; options for funding; and existing funding.
  • The RDT will work with partners to prepare proposals for funding bids as appropriate.

Risk that updated regulations will require additional changes and shifts in the future that could be foreseen now.

Medium

High

  • The response to the Just Transition Strategy and Mayoral policies will include options to look ahead to emerging policy options.
  • The RDT will also engage with consultations and policy (e.g.: London Plan).

Risk

Likelihood

Impact

Mitigation

Enhancing social and green infrastructure

Risk of a lack of coordination between the various parties involved in the provision on new infrastructure and this leading to impaired outcomes (for example, between the providers who will operate the spaces and the developers who will design and build the spaces).

High

Medium

  • RDT to act as a conduit for the flow of information to inform providers’ plans and to ensure LBN, NHS, etc are aware of developers’ plans as early as possible.
  • The Infrastructure Implementation Plan will provide more information and guidance to providers and developers.
  • The potential to use the OPE Place Pilot work to widen understanding.

Risk of a lack of funding to cover the complete costs of design, construction and/or operation of the new facilities. This will reduce the potential beneficial impact of the infrastructure.

High

High

  • The Infrastructure Implementation Plan will help to identify forecast costs, existing funding allocations, potential funding gaps, and possibilities for other funding sources.
  • The RDT will work with LBN Planning, Education and NHS to agree approach to contributions from CIL and S106.

Responding to climate change

Risk of funding constraints meaning that actions to mitigate climate change are reduced or delayed.

Medium

High

  • The response to the Just Transition Strategy and Mayoral policies will include actions; forecast costs; any savings or income; options for funding; and existing funding.
  • The RDT will work with partners to prepare proposals for funding bids as appropriate.

Risk that updated regulations will require additional changes and shifts in the future that could be foreseen now.

Medium

High

  • The response to the Just Transition Strategy and Mayoral policies will include options to look ahead to emerging policy options.
  • The RDT will also engage with consultations and policy (e.g.: London Plan).

5.1.    The Executive Director of Housing & Land’s approval is sought for revenue expenditure of up to £100,000 to be spent over two years from 2024-25 to 2025-26 to deliver two specific pieces of strategy work, namely, to develop a Social Infrastructure Implementation Plan so that new infrastructure across the area can be planned and delivered to meet the growing needs of the community (£50,000), and a Royal Docks response to LB Newham’s “Just Transition” strategy and Mayoral policies related to greening, water management, flood mitigation and heat reduction to address climate change (£50,000).
5.2.    The funding for this expenditure is expected to be from the ringfenced EZ business-rate income collected within the Enterprise Zone, as agreed in MD3230. Expenditure budget for this and EZ business-rate income funding has been factored into the 2024-25 to 2026-27 Royal Docks budget plans, however, this is subject to final 2024-25 budget approval. Therefore, to mitigate against risk of insufficient funding, a break clause should be included in the contracts, should funding change for future years. Any shortfall in income for future years would also be expected to be met with available funds from the Royal Docks EZ Reserve Account.
 

6.1.    The foregoing sections of this report indicate that the decisions requested of the Executive Director concern the exercise of the GLA’s general powers, falling within the GLA’s statutory powers to do such things considered to further or that are facilitative of, or conducive or incidental to, the promotion of economic development and wealth creation, social development and the improvement of the environment in Greater London. In formulating the proposals in respect of which a decision is sought, officers have complied with the GLA’s related statutory duties to:
•    pay due regard to the principle that there should be equality of opportunity for all people
•    consider how the proposals will promote the improvement of health of persons, health inequalities between persons and to contribute towards the achievement of sustainable development in the UK
•    consult with appropriate bodies.
6.2.    In taking the decisions requested, the Executive Director must have due regard to the Public Sector Equality Duty – namely the need to eliminate discrimination, harassment, victimisation and any other conduct prohibited by the Equality Act 2010; and to advance equality of opportunity, and foster good relations, between persons who share a relevant protected characteristic (age; disability; gender reassignment; marriage and civil partnership; pregnancy and maternity; race; religion or belief; sex; sexual orientation) and persons who do not (section 149 of the Equality Act 2010). To this end, the Executive Director should have particular regard to section 3 (above) of this report.
6.3.    All procurements of works, services and supplies required must be procured in accordance with the GLA’s Contracts and Funding Code; and, where the value exceeds £150,000, in accordance with the Public Contracts Regulations 2015 (the Regulations). Furthermore, the officers must liaise with TfL’s procurement and supply chain team, which will determine the detail of the procurement strategy to be adopted in accordance with the Contracts and Funding Code and the Regulations. Officers must ensure that appropriate contractual documentation be put in place and executed by chosen service provider/supplier and the GLA before the commencement of the attendant works, services or supplies.
 

7.1.    The project will be delivered according to the following timetable:

Activity

Timeline

Commence procurement

October 2024

Appoint consultants

January 2025

Interim reports

July 2025

Final reports

October 2025

 

Signed decision document

DD2695 Royal Docks Social Infrastructure and Climate Change Investment 2024-2026

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