The pressure on affordable workspace for SMEs in London is increasing.
Sixteen per cent of industrial land was lost between 2001-2015 and if the trend continues, industrial land in London could fall a third by 2041.[2]
In outer London, almost one fifth of workspace could be lost to residential homes.[3]
Since 2013, the relaxation of permitted development rights has led to the conversion of 1.47 million square metres of office space to residential homes.[4]
Demand for flexible, yet well-connected workspace has increased in London. Affordability is a key concern for SMEs and co-working models can help combat the high cost of rents.
The London Assembly Economy Committee publishes its report ‘Helping SMEs to thrive’ today. The report sets out the challenges facing SMEs in London and what the Mayor can do to help SMEs prosper in the capital.
The report makes a number of recommendations to the Mayor of London:
- Look into creating more flexible workspace in London by using available space more smartly. This will help reduce business overheads for micro and start-up businesses.
- Commission research into the reasons why businesses are leaving London and identify which types of businesses are moving and the impact this has on local communities.
- Bring together innovative planning policy by local authorities to create new affordable workspaces for SMEs.
Fiona Twycross AM, author of the report, said:
“SMEs are the life blood of London’s economy and our local communities. Yet, they are struggling to find work space that is flexible, affordable and well-located.
The Mayor of London needs to address this issue to ensure the continued success of this city.
We need concrete proposals to maximise affordable workspace and to fully understand why SMEs are leaving London. The voices of micro and small businesses must be heard when it comes to shaping the city.”
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Related documents
Helping SMEs to thrive
Notes to editors
- ‘Helping SMEs to thrive’ report attached.
- Economic Evidence Base for London, Greater London Authority, November 2016
- London Development Database, includes data provided by London boroughs to June 2016
- Mayor’s press release, 3 June 2016
- Fiona Twycross AM, former Chair of the Economy Committee, is available for interview. Please see contact details below.
- As well as investigating issues that matter to Londoners, the London Assembly acts as a check and a balance on the Mayor.
For media enquiries, please contact Lisa Lam on 020 7983 4067. For out of hours media enquiries, call 020 7983 4000 and ask for the London Assembly duty press officer. Non-media enquiries should be directed to the Public Liaison Unit on 020 7983 4100.