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Factors Affecting the Economic Potential of West London Robert Huggins Enterprise and Regional Development Unit The Management School University of Sheffield [email protected]. West London – boroughs of Hammersmith and Fulham, Hillingdon, Hounslow, Harrow, Brent and Ealing. - PowerPoint PPT Presentation
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Factors Affecting the Economic Potential of West London
Robert HugginsEnterprise and Regional Development Unit
The Management SchoolUniversity of Sheffield
Hampshire
Berkshire
Surrey Kent
Essex
HertfordshireBuckinghamshire
Oxfordshire
Greater London
West LondonWest LondonWest LondonWest LondonWest LondonWest LondonWest LondonWest LondonWest London
M20
West London – boroughs of Hammersmith and Fulham, Hillingdon, Hounslow, Harrow, Brent and Ealing
West London - Some Perceived Strengths
Heathrow - the world’s busiest international airport - excellent export and import access through its international connectivity.
A significant creative industries cluster, embodied by the BBC studios and surrounding audio-visual cluster in White City and Park Royal.
West London is home to some of the biggest blue chip organisations in the world, many of which have their headquarters located there. These include GlaxoSmithKline - Diageo - Cisco - British Airways - IBM - BBC - United Biscuits - BSkyB - Kodak - Bechtel - Carphone Warehouse.
A significant concentration of employment within the transport and logistics sector, particularly within air transport.
The main road and rail links to all parts of Britain and particularly between central London and the Thames Valley and the west of England.
Relatively strong skills base.
West London - Some Perceived Weaknesses
West London lags behind the rest of London in terms of per capita output – approximately 9% lower.
A higher unemployment rate than the UK average and relatively high levels of long-term unemployment - over one in every four claimants within Brent has been claiming benefit for one year or more.
Business start-up rates in west London lag the regional average by some way – there has been a large differential since the late 1990s.
Localities with significant multiple deprivation. West London is perceived to have suffered as a result of
East London’s development, which has been boosted by the of the Docklands area and the financial businesses on its western fringe.
Standard Deviation of Sub-Regional GDP per Capita for UK Regions
£476
£550£578
£678£721
£512 £497
£564£589
£0
£100
£200
£300
£400
£500
£600
£700
£800
Gre
at
Brita
in
Buckin
gham
shire
Surr
ey
Centr
al London
East
London
Nort
h L
ondon
South
London
West
London
Tham
es V
alley
Gross Weekly Pay (Workplace Based) 2003
Source: New Earnings Survey
1% 1%
13%
5%
25%
6%
20%
25%
5%
0% 0%
8%
4%
26%
14%
21%
18%
7%
0%
5%
10%
15%
20%
25%
30%A
gri
culture
and
fis
hin
g
Ene
rgy a
nd w
ate
r
Ma
nufa
ctu
ring
Co
nstr
uctio
n
Dis
trib
ution
, h
ote
ls a
nd
resta
ura
nts
Tra
nspo
rt a
nd
com
munic
atio
ns
Ban
kin
g,
fina
nce a
nd
insu
ran
ce
, etc
Pub
licad
min
istr
ation,e
ducatio
n&
he
alth
Oth
er
serv
ice
s
Great BritainWest London
Employment by Sector (as a proportion of total employment)
Source: Annual Business Inquiry
Employment by Sector (as a proportion of total employment)
0% 0%
6%
3%
23%
8%
32%
21%
7%
0% 0%
8%
4%
26%
14%
21%
18%
7%
0%
5%
10%
15%
20%
25%
30%
35%
Agricu
lture
and fis
hin
g
Energ
y and w
ate
r
Manufa
cturing
Const
ruct
ion
Dis
trib
utio
n, hote
ls a
nd
rest
aura
nts
Tra
nsp
ort
and
com
munic
atio
ns
Banki
ng, fin
ance
and
insu
rance
, etc
Public
adm
inis
tratio
n,e
duca
tion
& h
ealth
Oth
er
serv
ices
LondonWest London
Employment Growth (Compound Annual Growth Rate) 1998-2002
West London
Air transport 6.0%
Hotels and restaurants 5.2%
Real estate activities 5.1%
Recreational, cultural and sporting 4.7%
Other service activities 3.7%
Manufacture of other transport equipment 3.6%
Education 3.4%
Source: Annual Business Inquiry
2.1%
3.9%
2.0%
0.3%
0.5%
1.1%
1.1%
1.5%
2.6%
0% 1% 2% 3% 4% 5%
Great Britain
Buckinghamshire
Surrey
London Central
London East
London North
London South
London West
Thames Valley
Proportion of Total Employment in High-Tech Manufacturing
Source: Annual Business Inquiry
15.2%
18.4%
22.6%
26.4%
38.5%
14.5%
19.9%
18.5%
26.6%
0% 10% 20% 30% 40% 50%
Great Britain
Buckinghamshire
Surrey
London Central
London East
London North
London South
London West
Thames Valley
Proportion of Total Employment in High-Tech Services
Source: Annual Business Inquiry
Employment (as a proportion of total employment) in selected service sectors
AreaBusiness/management
consultancyDigital Media
IT and Communication
Buckinghamshire 2.6% 5.5% 5.3%
Surrey 1.6% 6.0% 5.9%
London Central 2.4% 6.0% 4.0%
London East 1.3% 4.0% 4.1%
London North 0.8% 3.3% 3.0%
London South 1.7% 4.5% 4.3%
London West 1.2% 7.6% 4.4%
Thames Valley 1.4% 11.8% 12.5%
Source: Annual Business Inquiry
Epsom and EwellEpsom and EwellEpsom and EwellEpsom and EwellEpsom and EwellEpsom and EwellEpsom and EwellEpsom and EwellEpsom and Ewell
Mole ValleyMole ValleyMole ValleyMole ValleyMole ValleyMole ValleyMole ValleyMole ValleyMole Valley
Reigate and BansteadReigate and BansteadReigate and BansteadReigate and BansteadReigate and BansteadReigate and BansteadReigate and BansteadReigate and BansteadReigate and Banstead
South BucksSouth BucksSouth BucksSouth BucksSouth BucksSouth BucksSouth BucksSouth BucksSouth Bucks
Windsor and MaidenheadWindsor and MaidenheadWindsor and MaidenheadWindsor and MaidenheadWindsor and MaidenheadWindsor and MaidenheadWindsor and MaidenheadWindsor and MaidenheadWindsor and Maidenhead
ElmbridgeElmbridgeElmbridgeElmbridgeElmbridgeElmbridgeElmbridgeElmbridgeElmbridge
GuildfordGuildfordGuildfordGuildfordGuildfordGuildfordGuildfordGuildfordGuildfordRushmoorRushmoorRushmoorRushmoorRushmoorRushmoorRushmoorRushmoorRushmoor
HartHartHartHartHartHartHartHartHartBasingstoke and DeaneBasingstoke and DeaneBasingstoke and DeaneBasingstoke and DeaneBasingstoke and DeaneBasingstoke and DeaneBasingstoke and DeaneBasingstoke and DeaneBasingstoke and Deane
NewburyNewburyNewburyNewburyNewburyNewburyNewburyNewburyNewbury
BarnetBarnetBarnetBarnetBarnetBarnetBarnetBarnetBarnet
DacorumDacorumDacorumDacorumDacorumDacorumDacorumDacorumDacorum St.AlbansSt.AlbansSt.AlbansSt.AlbansSt.AlbansSt.AlbansSt.AlbansSt.AlbansSt.Albans
Three RiversThree RiversThree RiversThree RiversThree RiversThree RiversThree RiversThree RiversThree RiversWatfordWatfordWatfordWatfordWatfordWatfordWatfordWatfordWatfordHertsmereHertsmereHertsmereHertsmereHertsmereHertsmereHertsmereHertsmereHertsmere
ChilternChilternChilternChilternChilternChilternChilternChilternChilternWycombeWycombeWycombeWycombeWycombeWycombeWycombeWycombeWycombe
WokinghamWokinghamWokinghamWokinghamWokinghamWokinghamWokinghamWokinghamWokingham
WokingWokingWokingWokingWokingWokingWokingWokingWoking
Bracknell ForestBracknell ForestBracknell ForestBracknell ForestBracknell ForestBracknell ForestBracknell ForestBracknell ForestBracknell Forest
South OxfordshireSouth OxfordshireSouth OxfordshireSouth OxfordshireSouth OxfordshireSouth OxfordshireSouth OxfordshireSouth OxfordshireSouth Oxfordshire
SpelthorneSpelthorneSpelthorneSpelthorneSpelthorneSpelthorneSpelthorneSpelthorneSpelthorne
HarrowHarrowHarrowHarrowHarrowHarrowHarrowHarrowHarrow
BrentBrentBrentBrentBrentBrentBrentBrentBrent
HounslowHounslowHounslowHounslowHounslowHounslowHounslowHounslowHounslow
HillingdonHillingdonHillingdonHillingdonHillingdonHillingdonHillingdonHillingdonHillingdon
EalingEalingEalingEalingEalingEalingEalingEalingEaling
Hammersmith and FulhamHammersmith and FulhamHammersmith and FulhamHammersmith and FulhamHammersmith and FulhamHammersmith and FulhamHammersmith and FulhamHammersmith and FulhamHammersmith and Fulham
27 .1 to 77 .7 21 .9 to 27 .1 15 .4 to 21 .9 5 .5 to 15 .4
% employment within knowledge-based businesses
Employment within Knowledge-Based Businesses
Source: SEEDA
West London – Economic Structure
West London is largely differentiated from other neighbouring sub-regional
economies due to its high level of employment in transport and
communications, and the distribution, hotels & restaurants sector.
West London employs a small proportion of its workforce (in comparison
with neighbouring sub-regions) within banking, finance and insurance.
It also has a relatively small proportion of employment in public sector
activities, compared with surrounding areas.
West London possesses a real strength in the digital media sector.
However, comparing west London with the Thames Valley we find that there
is a considerable differential in IT and communications sector (which
includes software development) employment.
West London is under-represented in comparison with a number of its
neighbours in the business and management consultancy sector. Only north
London has a lower proportion of its employment within this sector.
Growth Constraints
Perhaps a key constraint to business growth in west London is the apparent lack of economic connectivity with neighbouring areas such as Central London and the Thames Valley.
It has an obvious strength in the transport and communications sectors, but lacks a critical mass of other tradable specialisms in the knowledge-based sectors (with the exception of the creative industries).
Business start-up rates in west London lag the regional average, and are not occurring in those sectors that have a high growth potential.
There is little evidence that current business support mechanisms are creating the level of business growth required in west London, particularly for high value-added businesses, where market failures are often more difficult to address.
Concluding Remarks In order to develop the west London economy, the sub-region
should also seek to integrate itself more with its surrounding sub-regional economies.
Whilst the Thames Valley, Surrey, Buckinghamshire and Central
London have a large density of knowledge-based employment, the same cannot be said of west London – which is wedged between these sub-regions.
The proximity of central London, as well as its proximity to the
Thames Valley and other high-performing South East England sub-regions, means that West London is within the centre of the UK’s most competitive regions.
Given its location and transport links, west London has an
opportunity to capitalise upon the opportunities on offer as a result of its location by increasing interaction and acting as a ‘bridge’ between central London and the Thames Valley.
