MD2804 Economic Recovery and Reopening Fund: Central Activities Zone

1.1. COVID-19 has had a devastating effect on London’s economy and society, unlike anything the capital has seen since World War II. A national recovery plan will be required to rebuild the economy, and recovery to pre-pandemic levels of growth, employment and tourism could take years.

1.2. The Mayor has responded by establishing a London Recovery Board, supported by a London Recovery Taskforce. The GLA and London Recovery Taskforce have committed to taking a missions-based approach to the London Recovery Programme. The GLA’s programmes and associated budgets have been reviewed and restructured to support the London Recovery Missions and the GLA’s Recovery Foundations.

1.3. The capital’s economy accounts for a quarter of the UK’s total economic output and pre-COVID, London benefitted from huge levels of international and domestic tourism, driven in large part by the city’s world-leading cultural and visitor attractions. But visitors have virtually dried up due to the pandemic. City Hall analysis of forecasts by VisitBritain showed that consumer spending in central London by overseas tourists was £7.4 billion lower throughout 2020, while domestic tourists will have spent £3.5 billion less, and commuters £1.9 billion less than in the previous year.

1.4. The capital, and specifically its Central Activities Zone, will play an essential part in recovery, delivering jobs and growth. London’s recovery will rely on getting domestic, and, as restrictions ease, international tourists and Londoners to return to central hospitality, retail and cultural districts as soon as it is safe to do so.

1.5. On 22 February 2021, the Government published a four-step roadmap to ease restrictions across England and provide a route back to a more normal way of life. This is complemented by a London specific reopening roadmap published by the London COVID Business Forum. Through this forum, the Mayor, London Councils and London business stakeholders worked together to develop a three-phase approach to support London’s economy during transition out of lockdowns and restrictions throughout 2021-22.

1.6. As progress is made along the Government reopening roadmap, there is an urgent need to support London’s safe reopening and put in place the building blocks for longer term recovery, so jobs are protected, London maintains its competitive global position and the harm done to many communities is minimised and reversed.

1.7. The London Roadmap highlights the need for:

• a consumer confidence campaign aimed at reassuring Londoners and tourists about how they can safely return to high streets and public spaces within any remaining social distancing restrictions; and

• a multi-agency plan on the safe use of public realm and outside space to facilitate alfresco dining and socially distanced shopping on London’s high streets.

1.8. The Roadmap is iterative and will continue to be developed with London stakeholders. A public version of the Roadmap is available online at: /publications/roadmap-safe-and-full-reopening-londons-economy-next-12-months.

1.9. An urgent decision is needed on several funding streams to provide resilience and action now, during transition out of lockdown and the first stages of the Government reopening roadmap, which will fall at the earliest on 12 April, 17 May and 21 June.

1.10. This decision seeks delegated authority to the Executive Director, Good Growth, for expenditure of up to £5m for London’s economic recovery through supporting major cultural events and activity, public realm activation, communication and marketing campaigns to encourage return to central London. These programmes will contribute to a range of Recovery Missions and Foundations. Decisions made by the Executive Director will be supported through the governance structure outlined at 1.19.

1.11. Delegation is being sought to facilitate a responsive and adaptable approach to the CAZ support programme, allowing it to take account of COVID-19 restrictions and in particular the Government’s roadmap for easing lockdown and opening-up the economy, which they have made clear is subject to change depending on the data. Experience of the past year shows that the transmission rates change rapidly; and, further, the Government has several reviews underway, including of social distancing restrictions and air travel, which will have a significant impact on the use and timing of this fund.

1.12. An internal governance structure will be set up to appraise detailed investment proposals and support decision-making. Records in writing will be kept of all underpinning decisions and progress of the programme including the decisions on expenditure will be reported to the London Recovery Board.

1.13. All short-term recovery activity both supports and links to the grand challenge of the city’s longer-term Recovery programme, led by the London Recovery Board: to restore confidence in the city, minimise the impact on London’s most vulnerable communities and rebuild the city’s economy and society.

Financial support to help plan the safe reopening of Central London

1.14. The Mayor’s budget for 2021/22 includes £5m to support the roadmap and the eventual reopening of central London, including a brand-new drive to attract visitors back to hard-hit retail, hospitality and cultural venues and events and to help businesses, jobs and growth as London comes out of lockdown. In addition to this funding, £1 million of LEAP revenue funding was previously agreed for similar purposes under MD2739.

1.15. These funds will be integrated and managed as a single programme budget to help culture, retail, hospitality and events sector businesses based or operating in central London to recover from the economic shock brought about by the public health action taken to tackle the Covid-19 pandemic. These sectors disproportionately employ disadvantaged Londoners, so their decline has a serious impact on inequality in the city. Activity will encourage a responsible recovery in consumer spending, built on consumer confidence.

1.16. The aim is to use this funding for initiatives to support the full and safe re-opening of London’s economy, including campaigns to attract visitors back to the Central Activities Zone (CAZ), so to protect jobs and kickstart growth by contributing to the resurgence of economic activity in the CAZ.

1.17. To support this work London & Partners (L&P) is bringing together partners to develop a London Recovery Marketing and Activation Steering Group with support from the GLA. Through this steering group, London-wide activity will be coordinated, commissions agreed, and pledges of funding and other resources sought. The group will take forward five workstreams (with sub-groups to lead these where needed) covering:

• umbrella messaging;

• public transport;

• tourism;

• workplace return; and

• coordination and Infrastructure.

1.18. This governance structure will address the need for a clear multi-agency communications plan which builds public, consumer and business confidence, with a single co-ordinated London-wide message informed by engagement with business.

1.19. In addition, a GLA Review Panel consisting of the Deputy Mayor for Culture and Creative Industries, Deputy Mayor for Business, and Executive Director, Good Growth will monitor the use of the total GLA and LEAP budget of £6m (and staff resources supporting this work). It will review progress on behalf of the Mayor and advise the Executive Director, Good Growth in the exercise of the delegations set out in this decision.

1.20. The proposed marketing and communications activity will help deliver the Mayor’s Recovery missions by:

• improving consumer confidence;

• positioning local spending as an act of solidarity with the city – creating social norms;

• encouraging Londoners to share their passion for the city, giving others confidence to experience it too;

• showcasing how businesses are responding to the new aspirations of Londoners; and

• reinforcing behaviour messages around public health, public transport and active travel.

1.21. The proposed activation projects and events will help deliver the Mayor’s Recovery missions by:

• working in partnership with culture, retail, events and hospitality to add value and amplify activities which bring footfall and profile back to central London;

• co-ordinating, curating and commissioning tactical activity, particularly in the public realm; and

• building consumer confidence through a clear and compelling offer that encourages visitors back.

1.22. In delivering the fund, we are seeking rapid deployment, with low administrative overheads based as far as possible on working through existing structures, partnerships and programmes rather than developing new ones.

1.23. The scale of the challenge means that it will be important to leverage additional funds wherever possible. Significant match funding will be sought for this work, along with benefits in kinds from commercial partners and others. The London Recovery Marketing and Activation Steering Group will coordinate negotiations with partners around resource contributions.

1.24. The Team London Ambassador 2021 programme will incorporate the re-opening plans for central London into its summer visitor welcome programme. An Expression of Interest offering volunteering opportunities will be sent out in early Spring 2021.

1.25. This visitor welcome programme will start with the UEFA EURO 2020 programme in June 2021, with ambassadors providing a weekly service from Thursday to Sunday throughout the Summer. The exact number of sites will be determined when more information is available on the planned opening of attractions/facilities at specific locations. Budget has been confirmed to support a core programme but in the event there is a significant increase in number of events relating to activity funded by this decision, additional budget would be required. This could be considered from this fund once the need and appetite for volunteer deployment is confirmed.

2.1. The Objectives of this investment are to:

• fund marketing and activation projects to support the full and safe re-opening of London’s economy, including campaign activity to attract visitors back to the Central Activities Zone (CAZ) and London’s major attractions;

• provide a coordinating function to support the return to normal high street, night time and cultural activity within central London in step with the Government’s COVID-19 Response - Spring 2021 Roadmap; and

• help deliver wider promotional, economic and brand benefits for the whole of London.

2.2. The GLA investment will deliver the following outputs:

• a consumer confidence and tourism marketing campaign with strategy and messaging informed by consumer research and testing in order to encourage domestic and international tourism to Greater London and to encourage international tourism to the United Kingdom by way of Greater London;

• coordination and support of ambitious cultural activities, events and seasonal programming, and investment in public realm activation to attract visitors;

• positioning local spending as an act of solidarity with the city – creating social norms;

• encouraging Londoners to share their passion for the city, giving others confidence to experience it too;

• reinforcing behaviour messages around public health, public transport and active travel;

• work undertaken in partnership to coordinate and deliver initial recovery marketing and activation work; and

• providing resources for the GLA, local authorities, Business Improvement Districts and strategic groups overseeing COVID-19 Transition and Recovery.

2.3. This will achieve the following outcomes:

• Londoners and visitors to London are reassured it is safe for them to return to central London in line with public health advice and government restrictions, measured by polling and marketing data;

• increases in demand, footfall and transport usage, including at congregation points in the CAZ measured by TfL data and by spend and footfall data from the London Busyness project;

• increase retail and hospitality spend to support recovery of high street, cultural and night time businesses, measured by spend data from the London Busyness project; and

• delivery of coordinated communications messaging, strategic and local planning, economic interventions, regulation and enforcement approach to increase footfall and activity in the CAZ, measured against the project plan.

2.4. Specific London & Partners marketing campaign objectives will be set in consultation with

partners. Specific activation objectives will be set in consultation with the Marketing and Activation steering group.

3.1. Under Section 149 of the Equality Act 2010, as a public authority, the Mayor of London must have ‘due regard’ to the need to eliminate unlawful discrimination, harassment and victimisation as well as to advance equality of opportunity and foster good relations between people who have a ‘protected characteristic’ as defined in the Equality Act 2010 and those who do not.

3.2. Evidence has shown that BAME Londoners have been disproportionately impacted by the current crisis both in terms of the health impact, as well as often facing specific barriers to accessing support available from HM Government. Additionally, the economic impact on BAME Londoners is expected to be higher.

3.3. Recent research by Arup has indicated that the proportion of the CAZ workforce from ethnic minority backgrounds is broadly in line with that of London as a whole (although the proportion for the CAZ’s resident population is higher) and drawn from across the city. As a result, protecting jobs and growth in this high-employment area will be of benefit more widely for London’s BAME communities.

3.4. The Arup research also highlights that the CAZ also has an important role to play in terms of cultural diversity with, for example, London’s 52 LGBTQ+ night venues being overwhelmingly concentrated in the CAZ. Promoting economic activity and footfall in the CAZ will help safeguard this wider contribution and communities.

3.5. The project will be promoted through a marketing campaign, which will reflect the diversity of London and will seek to actively promote good relations between people of different characteristics. Moreover, by engaging with a wide range of residents, workers and visitors, as well as through London’s Business Improvement Districts and local authorities, we will ensure that the messaging created is targeted across a broad array of audiences.

3.6. The funding will work with delivery partners to ensure engagement with community and faith groups in order to access harder to reach communities to avoid discrimination and make sure there is equality of opportunity.

3.7. The Unit will ensure that all organisations who are in receipt of GLA grant funding, or who are contracted by the GLA have equality policies, in place and are committed to proactively applying the principles of the Equality Act 2010, and to regularly refresh their equality and diversity policies and practices.

Links to Mayoral strategies and priorities

4.1. In June 2020, the Mayor and GLA established the London Recovery Board. The London Recovery Board Grand Mission is to restore confidence in the city, minimise the impact on communities and build back better the city’s economy and society. In particular, this work links to the High Streets for All Recovery Mission which is tackling creating thriving, inclusive and resilient high streets and town centres, with culture, diverse shops, and jobs within walking distance of all Londoners. The high streets across central London and the CAZ are pivotal to the economic and social recovery of London, as well as the wider UK.

4.2. The London Recovery Board is supported by a Recovery Taskforce, which will coordinate actions to meet these challenges. The London Recovery Taskforce has committed to taking a missions-based approach to the London Recovery Programme.

4.3. The programmes and activities outlined in this decision play an important role in supporting London’s Recovery Missions and the GLA’s Recovery Foundations, to help Londoners recover from COVID-19.

4.4. The Mayor has been clear about his concerns on the impact to central London if appropriate funding and support is not in place to encourage people back to the CAZ in 2021. This package of support therefore forms a key part of the Mayor’s response to support London’s economy through and beyond the current crisis.

4.5. The Mayor’s Budget for 2021/22 includes £5m to support the reopening of central London, including a brand-new drive to attract visitors back to hard-hit retail, hospitality and cultural and night time venues and events, and to help businesses, jobs and growth as London comes out of lockdown.

4.6. The London Roadmap for the Full and Safe Reopening of London’s Economy highlights the need for:

• a consumer confidence campaign aimed at reassuring Londoners and tourists about how they can safety return to high streets and public spaces within any remaining social distancing restrictions; and

• a multi-agency plan on the safe use of public realm and outside space to facilitate alfresco dining and socially distanced shopping on London’s high streets.

4.7. The Mayor’s Economic Development strategy sets key priorities to support growth and ensure London’s economy will continue to thrive and is open to business. The Culture Strategy for London: Culture for All Londoners is the Mayor's landmark strategy for culture and outlines an ambitious vision, which aims to provide Londoners with access to culture on their doorsteps. Culture for All Londoners has a clear focus on keeping the city at the top of its creative game and ensuring there are cultural opportunities in every corner of the capital.

4.8. There are links to national Government priorities as well. On 22 February, the Government published a four-step roadmap to ease restrictions across England and provide a route back to a more normal way of life. It sets out how restrictions are expected to be eased and the economy is gradually and safely reopened. This project supports the safe reopening of the central London in step with this roadmap.

Impact assessments and consultations

4.9. A London COVID Business Forum was established in late 2020 to discuss and consult with local authorities and key business stakeholders on the full and safe reopening of the London economy. The Forum has been consulted on this approach. The situation with COVID-19 remains fluid and dynamic and consultation will be ongoing throughout the pandemic and as London lifts restrictions.

4.10. London & Partners have also undertaken a consultation exercise with key stakeholders. Key findings of that engagement include:

• London needs recovery marketing;

• the approach must be phased over 2021;

• transport, workplace and the visitor economy are inextricably linked;

• there is a role for the GLA in curating this offer, as well as promoting it;

• data will play an important role;

• central London is the priority;

• recovery marketing will need to be funded from multiple sources; and

• governance is key.

4.11. The GLA’s Cultural Strategy Group for London (known as the Mayor’s Cultural Leadership Board) is a statutory group comprising of senior leaders from across the creative and cultural industries. These ambassadors shape the Mayor’s Culture Strategy and represent diverse voices across the industry. The Board has continued to meet over the past year to advise on the GLA’s recovery response.

4.12. The GLA has held more than 12 culture roundtables during the pandemic as well as 29 workshops and roundtables with 24 Hour London stakeholders to ensure its response is industry and local authority led. These meetings have helped shape recovery activity in relation to culture.

4.13. During 2018-19, the Mayor’s Culture Strategy was subject to a 12-week consultation with stakeholders and the public. Feedback was gathered through events, roadshows, written feedback and via Talk London. The Culture Strategy also underwent an Integrated Impact Assessment (IIA) during the initial drafting, and a further review following consultation feedback. Some of the key positive findings from the strategy consultation included that:

• arts and culture have a positive influence on health and wellbeing. This link should be promoted and better facilitated; and

• participation in culture supports social cohesion, inclusion and sense of identity, and creates vibrant places and communities.

4.14. The London Night Time Commission’s Think Night report and recommendations were informed by specialist evidence sessions and consultation responses from 83 individuals and organisations representing public authorities, residents, businesses and community groups.

Risks

4.15. The risks facing central London are unprecedented and potentially catastrophic for its economy. These proposals go some way in driving footfall back to central London and supporting businesses to survive the current climate, but without securing additional funding, the penetration levels across London’s CAZ will remain low. This risk will be mitigated by continuing to lobby HM Government for further funding to support the CAZ, and by bringing in partnerships to match and amplify investment.

4.16. Ongoing and proactive risk management will be undertaken throughout delivery of the programme and supported by a GLA working group comprising senior officers from the GLA’s Culture and Creative Industries, External Relations and Economic Development teams.

4.17. Operational performance management includes:

• delivery of programmes and projects;

• decisions for consideration by the GLA Review Panel;

• considering project variations and change control within delegations and if required prior to presentation at programme board;

• monitoring spending at project/programme level;

• consideration and endorsement of projects for closure; and

• oversight of the completion of project dashboards.

4.18. Key risks and issues:

4.19. The London Recovery Board Grand Mission is to restore confidence in the city, minimise the impact on communities and build back better the city’s economy and society. In particular, this work links to the High Streets for All Recovery Mission which is tackling creating thriving, inclusive and resilient high streets and town centres, with culture, diverse shops, and jobs within walking distance of all Londoners. The high streets across central London and the CAZ are pivotal to the economic and social recovery of London, as well as the wider UK.

4.20. The Mayor’s Economic Development strategy sets key priorities to support growth and ensure London’s economy will continue to thrive and is open to business. The Culture Strategy for London: Culture for All Londoners is the Mayor's landmark strategy for culture and outlines an ambitious vision, which aims to provide Londoners with access to culture on their doorsteps. Culture for All Londoners has a clear focus on keeping the city at the top of its creative game and ensuring there are cultural opportunities in every corner of the capital.

5.1. This decision requests approval for the expenditure of £5m to support London’s economic recovery following the Covid-19 pandemic. The expenditure will be split:

• £2.5m on marketing and communications to attract tourists back into central London;

• £2m to support events, hospitality and cultural activities to encourage visitors to the centre of London; and

• £0.5m for programme management and contingency.

5.2. The expenditure will be funded from the Support for Reopening of London Economy programme within the Supporting Business, Jobs and Growth budget incorporated in the Good Growth directorate.

6.1. The foregoing sections of this report indicate that the decisions requested of the Mayor fall within the statutory powers of the Authority to promote and/or to do anything which is facilitative of or conducive or incidental to economic development and wealth creation within Greater London and in formulating the proposals in respect of which a decision is sought officers have complied with the Authority’s related statutory duties to:

(a) pay due regard to the principle that there should be equality of opportunity for all people;

(b) 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 United Kingdom; and

(c) consult with appropriate bodies.

6.2. Furthermore, decision 1 also falls within the statutory powers of the Authority under section 378 of the Greater London Authority Act 1999 (the “Act”). Under that section, the Authority has the power to do anything for the purposes of encouraging people to visit Greater London and to encourage people from outside the United Kingdom to visit the United Kingdom via Greater London. As set out at paragraphs 1.17 and 2.2 above, the Central Activities Zone project aims to promote, inter alia, tourism.

6.3. In taking the decisions requested of him, the Mayor 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 between persons who share a relevant protected characteristic (race, disability, gender, age, sexual orientation, religion or belief, pregnancy and maternity and gender reassignment) and persons who do not share it and foster good relations between persons who share a relevant protected characteristic and persons who do not share it (section 149 of the Equality Act 2010). To this end, the Mayor should have particular regard to section 3 (above) of this report.

Procurement of services

6.4. Officers must ensure that any external services, supplies or works required for the Central Activities Zone project be procured in accordance with the Authority’s Contracts and Funding Code and with the assistance of Transport for London’s commercial team. Furthermore, officers must ensure that appropriate contractual documentation be executed by both the Authority and the relevant contractors prior to the commencement of the said services, supplies or works.

Income from sponsorship and grant funding

6.5. Decision 1 above requests approval for the seeking and receipt of income from sponsorship and other contributions. Pursuant to section 93 of the Local Government Act 2003, the Authority has the power to charge for discretionary services. However, the officers should note that this power is subject to a duty to ensure that, taking one financial year with another, the income from the charges must not exceed the costs associated with the provision of the services. Furthermore, under section 378(9) of the Act, the Authority may receive contributions towards its expenses in carrying out its functions. Accordingly, to the extent that income is unrelated to sponsorship – for example funding provided by third parties such as project stakeholders – that income may also be received by the Authority for the purposes of the Central Activities Zone project.

The delegation

6.6. Any function exercisable by the Mayor on behalf of the Authority may also be exercised by any member of staff of the Authority albeit subject to any conditions, which the Mayor sees fit to impose. To that end, the Mayor may make the requested delegation to the Executive Director, Good Growth, if he so choose.

Funding

6.7 To the extent that the Authority receives funding in support of the Central Activities Zone project, officers must ensure that the Authority comply with the conditions impost upon the funding by the grantor. Furthermore, if the Authority provides funding to third parties in furtherance of the project, officers must ensure that the funding be distributed in accordance with section 12 of the Contracts and Funding Code and that the Authority enter into a funding agreement with the recipient(s), before any part of the funding be paid.

7.1. Proposed timetable:

7.2. The above timetable is dependent on progress against the Government’s roadmap and the easing of social distancing regulations. It may change in line with this.

Planned delivery approach

7.3. This work will consist of five workstreams:

• coordinating an ‘umbrella’ London message throughout the initial stages of recovery;

• building confidence to return to public transport;

• encouraging and promoting tourism (including culture, retail, hospitality, leisure);

• supporting a return to the workplace;

• central co-ordination and infrastructure comprising:

 visit London: curated content, listings, data feeds and bookings; and

 offer & activation: coordinated themes, seasonal programming and signature events to drive safe visitor traffic; co-ordinating, curating, commissioning and amplifying cultural activity and events, particularly in the public realm.

7.4. The workstreams complement each other. There will be no visitor economy if people do not feel safe on public transport; people will not travel if they have nowhere to go to eat or visit; workplace returners will increase leisure spend; and leisure experience may encourage office return.

7.5. Marketing activity will be delivered to a wide range of London, UK and international audiences informed by the social distancing, travel restrictions, marketing insights and intelligence.

7.6. Activation activity will take place in or near the Central Activities Zone broadly as defined in the London Plan and to support major venues. Online resources will provide support for events and activities organised outside of the projects directly delivered by this project. Possible routes to distribution of funding include via partnerships or grants to Business Improvement Districts for urgent activity, an open or targeted grants programme with prospectus approach or commissioning activity directly.

7.7. Cultural, public realm and night time activation activity will support and amplify existing sector plans, adding value, leveraging support and coordinating bigger cut through by working together. A coordinated story will ensure that consumers are aware of what is on offer, alongside clear safety and confidence messaging. London is renowned for its world-leading culture, and an activation campaign will mirror this quality, ambition and diversity.

7.8. A broad seasonal approach is likely to be taken, focusing strategically – for example through Spring Alfresco, Summer Families and Lates, Winter Lights. Themes that work in central London but will be applicable across London will encourage wider participation. Tactical signature commissions, events and activity alongside outdoor activity will encourage both footfall and social distancing, and creative and flexible programming could be used in conjunction with other data to ‘move’ audiences throughout the city. The approach will take advantage of and amplify other major activity including the UEFA EURO 2020 cultural programme in June/July 2021.

Timeline for activities

7.9. Exact timing of activities will be dependent on progress against the Government’s roadmap and the easing of social distancing regulations.