Aerial view of East London

London’s Infrastructure 2050: progress update - December 2016

Strategic Infrastructure Investment Programme for London

As a growing city, London requires a programme of infrastructure investment that is responsive to strategic requirements, that is integrated, and above all else, deliverable. 

In response to this, work is underway developing a Strategic Infrastructure Investment Programme for London (SIIP), building upon work undertaken in 2014 developing the London Infrastructure Plan 2050 and informed by the Mayor’s revision of London’s major strategies including the Mayor’s Transport Strategy and the London Plan.

The Mayor commissioned development of the SIIP in order to:

  • Identify strategic objectives, opportunities and challenges for infrastructure in London, particularly related to infrastructure delivery
  • Develop an agreed evidence base of strategic infrastructure projects and requirements that will support London’s growth to 2035. This evidence base will draw from existing plans and strategies and other information about capacity and future demand.
  • Identify integrated packages of projects that work successfully together in particular areas and in addressing pan-London objectives like improving air quality and achieving greater social inclusion.

Alongside this process, the Mayor has requested that a new strategic project assessment framework be developed– to ensure projects align with Mayoral policy and wider strategic objectives for London. This will represent the first time the Mayor has comprehensively assessed strategic infrastructure requirements across sectors at the project level.

Proposed projects will be included in the database that underpins the London Infrastructure Mapping Application

The project is supported by two working groups formed of infrastructure advisors (advisory group), including borough representation, and London’s largest infrastructure providers (utility group). Both groups will be chaired by Deputy Mayor for Planning, Regeneration and Skills Jules Pipe CBE.

Advisory Group - Scope and Membership

The Advisory Group has been established to develop a framework to assess London's infrastructure requirements and provide recommendations on how infrastructure projects should be packaged, phased and delivered in order to support London's growth.

Membership:

Jules Pipe CBE, Deputy Mayor for Planning, Regeneration & Skills, GLA  (Chair)

Ian Birch, Transport Economist, Transport for London

Richard Brown, Research Director, Centre for London

Chris Choa, Vice President, AECOM

John Dickie, Director of Policy and Strategy, London First

Dr Liz Goodwin, Senior Fellow and Director Food Loss and Waste, World Resources Institute

Clare Hebbes, Head of Infrastructure, Development, Lendlease

Sue Kershaw, UK Infrastructure Head of Project and Programme Management, KPMG

Matthew Kuhn, ICE London Vice Chair and Programme Manager, Thames Estuary Asset 2100

Suzanne Moroney, Director, Institution for Civil Engineers (observer)

Oliver Steele, Economic Policy Manager, Mott MacDonald

Katharina Winbeck, Head of Transport, Environment and Infrastructure, London Councils

Saffron Woodcraft, Anthropologist, UCL Institute for Global Prosperity (IGP)

Utility Group - Scope and Membership

The Utility Group will review the programme as it is progressively developed and provide technical input, advice and data to support programme development. The group will have responsibility for validating and endorsing recommendations made by the advisory group.

Membership:

Jules Pipe CBE, Deputy Mayor for Planning, Regeneration & Skills, GLA (Chair)

Mark Adolphus, Director of Connections, UKPN

Alistair Borthwick, Director of SSE Enterprise, SSE

Dan Butler, Head of Public Affairs, Virgin

Andrew Campling, General Manager – London & South East, BT    

Bob Collington, Managing Director - Water, Thames Water

Paul Harwood, Director, Strategy & Planning – South, Network Rail

Wayne Hubbard, Chief Operating Officer, London Waste & Recycling Board

Martin Lunn, Head of Technical Strategy & Support, Essex & Sussex Water

Stephen Martin, Director of Asset Strategy, Affinity Water

Tracey McIntyre, Head of Operations – Replacement, SGN 

Simon Moody, Deputy Director – London Area, Environment Agency

Lester Sonden, Wholesale Services Director, Sutton & East Surrey Water

Ed Syson, Director of Operations, National Grid         

Lucinda Turner, Head of Borough Planning, Transport for London

Your thoughts on strategic challenges and opportunities:

The SIIP will identify strategic challenges and opportunities related to the delivery of large infrastructure projects in the capital. It will start to provide a first level of response for the most acute ones. Some of these challenges and opportunities will be pan-London, some more specific to parts of London.

Our initial thoughts on strategic challenges and opportunities include

  • Major-project interrelationships particularly in west London (logistics, skills issue, supply chain, environmental impacts)
  • Capacity of local road networks in SW London and Upper Lee Valley
  • Time-lag between infrastructure delivery in 2030s and growth required in 2020s
  • Commuter rail capacity
  • Water capacity in SE London
  • Encouraging “good growth” through more active transport
  • Improving climate change resilience

We are keen to hear your thoughts and ideas on strategic challenges and opportunities related to infrastructure delivery within the Capital, and also comment on project recommendations essential to London’s long-term growth. Please get in touch by emailing us.

London Infrastructure Mapping Application 2.0 

Work continues developing Phase 2 of the London Infrastructure Mapping Application. The mapping application is an innovative tool designed to visualise a range of infrastructure related data in order to support improved coordination of medium and long term infrastructure planning and delivery throughout London.

Development of this tool would not be possible without the support and input of London’s infrastructure providers, including the Environment Agency, Thames Water, UKPN, SGN, National Grid and Network Rail.

We are currently in the process of enhancing functionalities and improving data.

Over the last six months we have held workshops with the Urban Land Institute, Environment Agency, London’s boroughs & TfL through Urban Design London, and the Institution of Civil Engineers resulting in some great ideas that will improve the tool. .

Our immediate priorities over the next few months will be improving the tool’s reliability and automating data updates, as well as identifying new technologies that could enhance the tool. We are also working with Transport for London to integrate databases used by other platforms such as London Works, which is designed to support improved coordination of roadworks throughout London.

If you wish to be involved in a Senior Users Group to support development of the tool and ensure it is developed in a way that meets your requirements please contact Larissa Suzuki, Project Manager via email.

London Finance Commission 2 - update

The Mayor of London reconvened the London Finance Commission (LFC) earlier this year to review and assess existing arrangements for government funding of London, including capital and revenue. The need for further devolution of fiscal and service delivery powers to London’s government has been made more urgent in light of the UK’s vote to leave the European Union.

The LFC will build on its first report published in 2013 which proposed devolving the full suite of property tax revenues – including council tax, stamp duty land tax and business rates – giving London the ability to invest in its own infrastructure and promote economic growth.

In its interim report published in October, the LFC restated its endorsement of these findings and also made a number of additional proposals including assigning a proportion of Income Tax and VAT to London and devolving London’s share of the apprenticeship levy to the capital. It made the case for a more ambitious programme of devolution, one which can support economic growth in London and across the UK.

The LFC is currently working on the final report which will draw on a range of evidence, including oral evidence sessions held in London, Birmingham and Manchester. It also held a session to take evidence from London’s diverse communities. The report is due to be released early next year.

A City for All Londoners

The Mayor recently published a vision document setting his policy directions for the next four years called A City for All Londoners.  

This document outlines the capital’s top challenges and opportunities across priority policy areas, as well as the changes that City Hall wants to deliver over the next four years.

Included in this document is the Mayor’s commitment to develop a Strategic Infrastructure Investment Programme for London, increase public transport investment, deliver more housing and improve London’s air quality whilst moving towards a zero carbon city by 2050.

These priorities will shape the Mayor’s forward infrastructure agenda, and integrate with strategies under development including the London Plan and Mayor’s Transport Strategy.

Response to the National Infrastructure Commission and Autumn Statement announcements

The Mayor welcomes the Government’s announcement of the new National Productivity Investment Fund (NPIF), which will provide £23 billion of spending between 2017/18 and 2021/22, on technology, housing and transport infrastructure. This investment will be targeted at improving the UK’s poor productivity and lower growth forecasts, resulting from Brexit.

The National Infrastructure Commission will be responsible for making recommendations to support this expenditure, and have recently announced a call for evidence for a national infrastructure assessment. The GLA recently inputted into the methodology that will be used to shape this assessment.

Responses to the call for evidence are to be submitted by February 2017. The GLA Group will make a comprehensive submission on behalf of London. If you wish to input into this submission please contact us

 

Wider South East Collaboration

During the second half of 2016 progress was made on all strands of the Wider South East (WSE) collaboration work – including the strand on infrastructure improvement areas.

The following 13 strategic areas were endorsed by the WSE Political Steering Group as priorities for joint promotion and lobbying:

  • East West Rail and new road link (Oxford -Cambridge)
  • North Downs Rail Link (Gatwick – Reading)
  • A27/M27/A259 and rail corridor (Dover – Southampton)
  • West Anglia Mainline and Crossrail 2 North (London – Stansted-Cambridge-Peterborough)
  • Great Eastern Mainline (London – Ipswich – Norwich)
  • Thames Gateway Essex: C2C and A13 (London – South Essex / London Gateway Port)
  • Thames Gateway Kent: Crossrail 1 extension East and HS1 route (London – North Kent – Channel Tunnel)
  • Lower Thames Crossing
  • Brighton Mainline (London – Gatwick – Brighton)
  • South West Mainline and Crossrail 2 South West (London – Surrey / southern access to Heathrow)
  • Great Western Mainline (London – Reading / western access to Heathrow)
  • Midlands and West Coast Mainline (London – Luton – Bedford / Milton Keynes)
  • Felixstowe – Nuneaton / Midlands

Their identification had been based on broad criteria including real strategic cross-boundary benefits essential for growth and connectivity for the wider area, local commitment and benefits, deliverability, and potential added value with focus on early wins.

All areas have strategic significance for considerable areas within the WSE in their own rights, but as the are at different stages in the development process, the support for individual schemes will be phased. WSE Officers are currently working on a lobbying programme for the 13 schemes, and they are talking to key partners within these areas including the Local Enterprise Partnerships, local/transport authorities, etc about evidence and added value the WSE collaboration can provide. Aspects of the lobbying programme include cost-benefits of individual strategic schemes, their current status and potential lobbying action and their timing.

For 2017 it is also being considered to widen this collaboration strand to include other strategic types of infrastructure including water and waste management.

Further information about the WSE collaboration work can be found here.

Previous Updates

Progress Update: July 2016

A new Deputy Mayor

The Mayor announced last week that Jules Pipe CBE has been appointed to his team as Deputy Mayor for Planning, Regeneration and Skills. Jules will stand down from his roles as Chair of London Councils and Mayor of Hackney to start at City Hall next month. As part of his role Jules will work on key priorities for the Mayor, including:

  • major regeneration projects across the capital
  • providing young people with skills for their future careers
  • ensuring London’s infrastructure needs are delivered to benefit all Londoners

The Mayor also recently announced the appointment of James Murray as Deputy Mayor for Housing and Residential Development, Val Shawcross CBE, as Deputy Mayor for Transport, David Bellamy as Chief of Staff, and Nick Bowes as Mayoral Director of Policy.

They will also each share an interest in the infrastructure work programme.

Developing a strategic investment programme for London

Before the election, we set out the case for London to have a strategic investment programme for infrastructure, covering the various sectors. This would help to align investment decisions and provide greater collective certainty over the pace and places of growth.

Our intention is to develop a programme of investment focused on projects that deliver the
most benefit to London – in terms of housing, enhanced productivity, competitiveness and economic growth, as well as quality of life and other social and environmental objectives.

The need for such a programme of investment is strengthened in view of the recent EU referendum result, the Government’s acceptance that it will amend its fiscal rules, and the growing recognition that investment spending will be an important component of economic growth in future.

The GLA will prepare this plan in consultation with stakeholders, building on our increasing evidence base, including the cost of London’s long term infrastructure requirements.

 

Progress Update: March 2016

Overview of our current work programme

We have developed a flow diagram that provides a single picture of our current work programme. Further information on aspects discussed in this diagram are provided below.

How big is London going to get?

In 2013, we began the 2050 work by looking at the long term population trends of the capital and future potential trajectories of growth, setting out scenarios based on various rates of job creation in the capital. We will update these figures during the summer, although we do not anticipate that the scale of growth will be significantly different from the original projections in terms of the challenge we face. We aim to provide more detail in terms of the spatial and temporal breakdowns of the data.

Yearly updates will then be available on our website and will be included in our Infrastructure Mapping Application for London (IMA LDN). Population projections will also be extended to cover the whole of the Greater South East.

Where will London's growth go?

The London Plan review is underway, which is the primary vehicle for considering how and where London’s growth will be accommodated. A number of planning scenarios are being explored both within London and in areas outside the capital.

Within London

To aid the market, we have categorised all London’s opportunity areas in terms of broad phases of development, from those that are ‘nascent’ to those which are ‘maturing’. In future, as transport and other infrastructures are put in place, about two thirds of London’s growth will be contained within the 38 currently designated opportunity areas (new opportunity areas are being considered at the moment).

We are systematically looking for new sites of development opportunity, adopting various lenses, including borough boundaries, disused land owned by infrastructure providers, areas where public transport would support higher densities and our own local knowledge.

Outside London’s boundaries

The Mayor, the East of England Local Government Association (EELGA) and South East England Councils (SEEC) have been investigating options for more effective collaboration of strategic policy and infrastructure investment. At a Wider South East Summit last December Leaders of local authorities within the Wider South East (WSE) and the Local Enterprise Partnerships (LEPs) discussed the best way forward in terms of the collaboration arrangements and the priority areas of work which include preparation of the next full review of the London Plan, a common understanding of technical evidence, addressing barriers to housing delivery, making the case for strategic infrastructure investment. A Political Steering Group has been established to steer the strategic collaboration activities.

What infrastructure is required across the sectors, given this growth?

We developed a holistic view of what’s needed to keep London competitive and sustainable and improve Londoners’ quality of life. We reviewed the spectrum of infrastructure to understand the overall requirements in transport, housing, schools, waste and reuse facilities, green infrastructure, energy, water, digital, (and we aim to extend this to primary healthcare provision).  The London Plan review will set out in more detail an up to date position of the capital’s infrastructure needs (and on a broader scope as it considers all land uses in the capital).

However, currently, the overall quantum set out in the 2050 consultation document has not significantly altered. Nor has the guiding philosophy of the 2050 plan, which is that infrastructure provision will be driven fundamentally by land use decisions on housing and employment and the transport needed to connect them; in general, other forms of infrastructure should follow that lead.

Updates on specific focus areas

Coordination/transparency of information

The infrastructure mapping application (IMA LDN) is the first tool to aid increased coordination amongst actors involved in planning and delivering infrastructure across London and to provide comprehensive information for better medium and long term investment decisions. The database currently contains over 12,000 infrastructure and construction projects either underway or being planned. The public version of the application is now live and we encourage you to review it.

It is critical that the mapping application is seen as the first version which can and will be improved over time; we would very much like your feedback. With the support of many of the utilities working in the capital and TfL, we have secured £250,000 from London’s lane rental fund to enhance the tool’s capabilities and improve the quality of the underlying data.

Regulation

Our interventions in this regard started from the need to consider investment ahead of need in the electricity sector. We are grateful to various developers, Ofgem, national government, UK Power Networks, London First, and others for helping to find solutions that meet London’s growth without creating ‘stranded assets’. We are now looking to agree an approach or set of approaches that can be applied for electricity and potentially apply to other sectors.

We are also looking to encourage change where needed in areas of coordination, innovation, and consistent use of data. We are working with UK Regulators’ Network and others. We will be promoting closer alignment of London’s growth data and spatial policies with the planning done by the utilities; facilitating cross sector discussions to encourage companies to share plans in draft with each other and with planning authorities so that opportunities for efficiency and coordination can be identified and realised; encouraging the sharing of data for projects on longer term periods to allow more joined-up forward planning; developing common approaches to stimulating innovation across the regulated utilities, sharing best practice; and commissioning research on areas of common interest (such as understanding the wider costs and benefits of disruption, and the impact of investments on the wider economy).

Skills

Skills shortages are one of the top issues in the industry. Delivering all our infrastructure requirements will put further pressure on the sector. For instance, building Crossrail 2, the Thames Tideway Tunnel, and High Speed 2 in the latter half of this decade and in the 2020s will stretch the labour force capable of constructing these major projects. We’ve mapped some of the skill requirements for delivering the projects in the current version of infrastructure mapping application using a tool developed by the Construction Industry Training Board. We are finalising the arrangements needed to keep this updated and we will be looking at other tools and information sources.

Over the next few months, we will be mapping the initiatives ongoing at a national level to identify whether and what further interventions are required at the city level. We will consider the role of our Construction Skills Advisory Group and its relationship with the area review of skills taking place in London, as well as the findings of the Construction Leadership Council, which has been called upon by government to review what skills the sector needs to provide the homes the nation needs.

Innovation and technology

Data can help facilitate coordination and bring down costs. At the same time, London is a key global digital hub with significant app developers, software innovators, and tech pioneers. We will do more to leverage this knowledge into the infrastructure space. Working closely with UK Power Networks, National Grid and Thames Water, we are ready to launch a first challenge through the Smart London Infrastructure Innovation Network - The Smart London District and Infrastructure Innovation Networks identify and link up existing and emerging smart city activity and investments, support SMEs and the wider innovation community to seize market opportunities and scale them up, and provide a pipeline of targeted solutions to partners investing in London’s smart infrastructure and services. Work will continue in this space, collaborating closely with the Smart London Board.