Mayor unveils first projects to benefit from £112m investment fund
Funding follows landmark deal with Government for London to retain business rates
Investments aimed at creating jobs and generating growth across the capital
The Mayor of London, Sadiq Khan, has revealed the first projects to be supported by a £112 million investment fund, generated from growth in business rate receipts in the capital.
Part of the funding announced today will go directly into the Mayor’s already established Good Growth Fund, which will be used to support a range of community projects across London, as well as new affordable artists’ workspaces in parts of London undergoing wider regeneration and a study into the economic opportunities in London’s West End.
The money has been awarded from the Mayor’s £112 million Strategic Investment Fund (SIF), which was established following last year’s landmark deal between the Mayor, London’s boroughs, the City of London Corporation and central Government.
Under the terms of the deal, the capital will retain 100 per cent of any increase in business rate receipts above the Government’s baseline during the financial year 2018/2019.
The SIF was established to invest the Mayor’s share of the retained business rates in projects which will contribute to the sustainable growth of London's economy, which in turn will result in an increase in London’s overall business rate income.
The first tranche of funding is as follows:
- £5 million to boost the Mayor’s Good Growth Fund. The Mayor launched the Good Growth Fund in June 2017 to support growth and community development in which Londoners themselves play an active role. It has supported projects including improvements to the world-famous Undercroft skate park at the South Bank Centre and the regeneration of shop fronts and public spaces in local town centres such as Plumstead High Street. This additional £5 million will enable more community projects to be funded.
- £1.16 million investment in affordable workspaces: Second Floor Studios & Arts in Deptford (which include 80 studios for visual artists) and Studio Voltaire in Clapham (which will provide 7,900 sq ft of affordable workspaces for artists).
- £50,000 for a study into the impacts and opportunities of good growth in London’s West End: the study – a partnership between the Mayor and Westminster City Council, which will also fund the project – will explore how the economic potential of this world-famous shopping and entertainment district can be maximised.
A total of £90 million will allocated from the SIF over the next year.
The Mayor of London, Sadiq Khan, said: ”This is a clear example of how devolution can have a positive direct impact on Londoners’ lives, by creating jobs and driving economic growth. By developing projects which work closely with local communities we can engage Londoners in shaping the future of their city.
“The investments made through this fund show the breadth of ways in which we can encourage a dynamic and well-balanced economy – from supporting small-scale projects and local initiatives to major improvements to our transport network and upgrading our infrastructure.
“I look forward to announcing many more projects receiving funding in the coming months.”
Chair of London Councils, Cllr Peter John, said: “This is a fantastic example of London government working together to secure a deal on behalf of our city that will in the make a difference to hard-working Londoners.
“As promised, the Mayor, the boroughs and the City of London are now investing a share of London’s business rates to support growth across the capital.
“We look forward to announcing further targeted investments in the coming months to ensure the business rates funding we receive delivers strategic benefits to London’s business community.”
Notes to editors
In the first funding round, a total of £90 million will allocated across four themes:
o Commercial development in Opportunity Areas – £60.2 million
o Affordable housing delivery – £14.2 million
o Supporting local economies and small businesses – £6.48 million
o Support London’s industrial strategy – £10.01 million
In 2017, the Mayor, London’s 32 boroughs and the City of London Corporation established the London Business Rates Pool, with the agreement of central Government.
This means London retains 100 per cent of any growth in business rates income over and above the business rates baseline set by Government for the financial year 2018/2019.
As part of the deal the Mayor agreed to allocate all of the GLA’s share of the growth (£107 million) to fund strategic investment projects through his Strategic Investment Fund (SIF). The fund was topped up with an additional £5 million from the GLA’s own resources, to a total of £112 million.