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    GLA Economics Annual Report 2003 Annual Report 2003

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    Contents GLA Economics Annual Report 2003 Contents Foreword Ken Livingstone, Mayor of London Bridget Rosewell, GLA Economics 2 2 3 Introduction 4 GLA Economics 4 Unit objectives 5 Mission statement 5 Establishing GLA Economics 6 Staffing and organisational issues 6 Work streams 8 The economy 8 Sector studies 10 Environmental economics 12 Transport economics 14 Development economics 15 Labour market economics 15 Marketing 16 Copyright Published by Design Knowledge management 18 Greater London Authority Greater London Authority Bonfire Design May 2003 City Hall Publications 20 The Queen’s Walk Photography London SE1 2AA Liane Harris Financial report 2003 22 Adam Hinton Financial summary 22 Tel: 020 7983 4100 TfL Visual Image Service Fax: 020 7983 4417 Financial statement 23 Minicom: 020 7983 4458 Print Avalon Print www.london.gov.uk Paper ISBN 1 85261 487 0 Printed on Evolution Satin, a 75 per cent recycled stock and 25 per cent from sustainable forest management.

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    Foreword Foreword Foreword Making successful policy for London cannot be done without good, careful and accurate analysis. GLA Economics is Although it has only been in existence for slightly less than a year, GLA Economics has made a considerable impact in that time. Its monthly with Transport for London (TfL). Indeed, both these bodies are jointly responsible for the unit alongside the Greater London Authority (GLA) and I am pleased to present this, the first Annual Report from GLA Economics. I hope you will agree that the unit has got off to a successful start. This time a year ago, the unit consisted of a secondee, two temporary staff and myself. In spite of the limited resources, we publication London’s Economy Today this report outlines the contribution therefore a crucial part of the has quickly become required reading they have made to its success. have made a considerable impact on matters such as the London Plan, policy-making and service for anybody interested in the London the case for Crossrail and the Thames Gateway Bridge as well as economy and what is happening to it. The unit is only now reaching its full delivery processes for the GLA strength and I look forward to more producing reports on creative industries and starting our regular group, enabling us to work on On top of this, the unit has produced high quality analysis from it over the monthly publication – London’s Economy Today. the basis of a consistent analysis a range of publications which have coming year. The forthcoming study and set of information. To act helped to develop and encourage on the evening and weekend economy We started our monthly publication We have also started further work debate about the structure and will help guide policy development in a period of great uncertainty about on new sectors, including the effectively demands a shared development priorities in the capital. in the important leisure and tourism the economy and the risks of recession. evening and weekend economy understanding of issues, and the The report on the Creative Industries – sectors for both the GLA and other It now looks as if recession has been and an extensive programme on ability to present them to key Creativity, London’s Core Business – bodies. The research into the avoided and the recovery which started environmental economics. Our plans decision-makers and the wider clearly established the important of economics of the environment will around the turn of the year and stalled include developing a better handle this sector. Local economies within be of great importance in looking at during the war has begun to get going on the state of the London economy policy community. London were examined in Spreading the costs and benefits of policies in again. As a result, it is concerns about and its prospects, as well as further Success – How London is Changing this crucial but highly complex area. infrastructure and capacity constraints work on sectors starting with the and documented the way in which the which are most likely to be worrying role of the higher education sector. service sector economy is now central I look forward to another successful us over the coming year. The transport and economic strategies to all parts of London. Both of these year in the life of GLA Economics. are also taking up much of our time. were well received and proved Of course, recruiting more staff indispensable for informed discussion has helped to expand our activities. Economics is a very useful discipline about London’s future during the We are not quite up to full strength in making linkages between different public examination of my draft London yet, although this will happen over areas of policy and different issues. Plan and more widely. the next couple of months. In the We hope that we have been successful meantime, we have strengthened in doing this and look forward to The unit has also made a significant Ken Livingstone our analysis of the London economy, continuing this. contribution in other areas. It has Mayor of London produced our first set of planning helped significantly in developing the projections and expanded our analysis case for Crossrail and the Thames River of London’s sub-regions with the crossings. Going forward, it continues publication entitled Spreading Success to work in these areas and to make a – How London is Changing. contribution to the development of Ken Livingstone the Economic Development Strategy Bridget Rosewell Bridget Rosewell with the London Development Agency Consultant Chief Economist Mayor of London (LDA) and the Transport Strategy GLA Economics GLA Economics 2 3

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    Introduction Introduction Introduction The Mayor of London established GLA Economics in May 2002 to provide high quality analysis and information about the economic issues facing London. Such input is crucial to policy-making and investment decisions facing not only the Mayor but also the other Unit objectives To collate and validate economic and related data. GLA Economics is committed to ensuring that, as far as possible, there will be public access to the unit’s work, analysis and data. Constraints on Mission statement To provide economic organisations in the GLA group, especially the London Development Agency and enabling public access are mainly due Transport for London. to copyright and intellectual property To analyse key variables and portray rights legislation that may restrict access analysis and a firm trends, drivers and the composition to certain products. GLA Economics GLA Economics This is the first annual report of the The establishment and of London’s economy. has procured legal assistance to ensure statistical, factual unit, covering its first ten and a half funding of the unit that data, analysis and reports are The policy areas for which an economic months. The report was commissioned A report was commissioned in 2001 to To provide a short and medium disseminated as widely as possible and forecasting basis to fulfil a requirement of the service look at the need for economic analysis term forecast for London’s economy without infringing such legislation. input is required vary widely. They are not confined to the obvious need for level agreement between the funding in the newly established Greater London and a review of independent for policy decision- bodies. In it we give a review of the Authority (GLA). This was undertaken London forecasts. an understanding of London’s economic structure and prospects, although these process by which the unit is funded and by Rosemary Scanlon1, formerly Chief making by the GLA has been established, and a summary Economist at the New York Port To target relevant audiences for the are important. In addition, economists in the unit are looking at environmental of the projects we have undertaken. Authority. She highlighted the lack unit’s work and disseminate the and the GLA group. of consistent and regularly available information as widely as appropriate. policy, the costs and benefits of In addition, we also briefly describe research that provides comprehensive transport investments, the economics of our plans for the coming year. To establish working relationships analysis and forecasts of London’s housing, labour market and commuting within the GLA and the GLA group, economy. In her report, Ms Scanlon patterns to name but a few. If you would like to know more about with academic partners, recommended establishing an official our work or any individual project, economic research and analysis group governmental organisations and The Mayor and the GLA group please contact: other appropriate partners that have for London that could collect, analyse, organisations are responsible for a special research and business focus forecast and report on the economy large-scale delivery of services, GLA Economics on aspects of the London economy. of London for the GLA group. major investment decisions and City Hall a series of key strategies for London. The Queen’s Walk To provide analysis to inform policy In the wake of this report, the unit was Such decisions involve expenditures London SE1 2AA development in the functional bodies. established with co-funding from the of billions of pounds and impact on GLA group organisations. These bodies properties, businesses and jobs with Tel: 0207 983 4922 themselves also need economic analysis a value of tens of billions of pounds. Fax: 0207 983 4417 and observation on the economy. The unit provides the analysis which Email: GLAEconomics@london.gov.uk helps to ensure the optimal use of GLA Economics is funded by Transport taxpayers’ money. Table 1 Funding for GLA Economics (£) for London, the London Development Agency and the GLA, and is formalised Agency 2002/03 2003/04 through a service level agreement Transport for London 300,000 500,000 1 between the funding bodies. London Development Agency 300,000 500,000 A Proposal and Plan to Establish a New Economics Unit within the Greater London Authority, submitted by Rosemary Scanlon, Consultant in Urban and Regional Economics, 23 August 2001. Funding is shown in Table 1. Greater London Authority 300,000 300,000 4 5

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    Establishing Establishing GLA Economics Establishing GLA Economics GLA Economics Staffing and organisational issues The staff structure of GLA Economics comprises Bridget Rosewell from Volterra Consulting was appointed Consultant Chief Economist in May 2002. During the following 12 months, intensive A research advisory board has been established that will advise on the priorities for research into London’s economic and social issues. The board In the coming year The senior economists are due to begin working with GLA Economics from the middle of May 2003 onwards. the following: recruiting campaigns were mounted will also assist in identifying potential A permanent administrative officer and by April 2003, all of the economist researchers and effective research and a permanent marketing and roles were filled, a Knowledge Manager methods on particular topics. The final publications manager will be recruited Chief Economist recruited and the three Senior purpose of the board is to help review with anticipated starting dates during Economists appointed. The roles and monitor the economic, sectoral the summer of 2003. of the Administrative Officer and the and labour market situation. The board Knowledge Manager 3 Senior Economists Marketing and Publications Manager does not have any responsibility for It is intended to advertise the have been filled by temporary staff. specification management, monitoring presentation topics for the working Marketing and 5 Economists or the results of any particular piece of group meetings further in advance Publications Manager GLA Economics is accommodated research. The research board comprises so individuals from LDA and TfL who within the GLA’s home of City Hall a mix of academics, representatives may be interested in a specific topic Administrative Officer Trainee Economist and is part of the Corporate from the private sector and other are given the opportunity to attend Services directorate. government agencies. The research relevant sessions on an ad-hoc basis. board has so far held two meetings. The steering group for GLA Economics It is intended for the board to meet The next research board meeting has been established and monthly three times a year. is scheduled for July 2003 where meetings are held to determine the a presentation on the theme of best way forward for the unit and A bi-weekly forum has been established environmental economics will be given. to discuss prioritisation of different for discussing the latest release of workstreams. The steering group indicators about the London economy. has representatives from the LDA, At these working group meetings, TfL and the GLA. GLA Economics and invited speakers also give brief presentations about the latest findings of their analyses. The attendees for the internal working group meetings vary depending upon topics of interests but typically have representatives from the GLA, TfL and LDA. GLA Economics team meetings also take place bi-weekly and give the opportunity for work streams to be allocated to the economists and for a general catch up session. 6 7

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    Work streams Work streams Work streams The work of GLA Economics is diverse. The GLA Economics steering group prioritises areas of work. This section will outline the major work streams of GLA Economics during 2002/03. Retail There is no current indicator that measures the spending habits of Londoners on a regular (monthly) In the coming year GLA Economics intends to continue closely monitoring the state of London’s economy and to extend this GLA Economics will be working with partners to develop an indicator that measures the spending of Londoners. We intend to commission regular basis. To enable monitoring of the analysis to include comparison with surveys as well as working on the Consensus forecasting state of London’s economy, a more international cities and other regions interpretation of official data. The economy Headlines from London’s One of the primary roles of GLA frequently collected indicator is in the UK where the data is available Economy Today: Economics is to supply forecasting required. GLA Economics is currently to enable this. We will also continue In May 2003, GLA Economics is Monitoring the state information to policy makers. investigating how to measure the to purchase forecasting information hosting a seminar in conjunction of London’s economy An end to uncertainty GLA Economics purchases a range spending of Londoners. from the private sector to supply with the Corporation of London GLA Economics produces a monthly of independent forecasts of London’s twice-yearly reviews. titled ‘Measuring London’s Output’. newsletter London’s Economy Today Response to claims that output and employment and analyses London’s output Representatives from Office of National featuring the most up-to-date congestion charging is these to produce a twice-yearly review. At present, there are no authoritative GLA Economics will be working Statistics, LDA, academics and suppliers information on the state of statistics that give a timely measure with partners to develop studies of independent forecasts have been holding back London’s GLA Economics also provides a six- of London’s output. GLA Economics on inter-regional commuting flows. invited to discuss ways to improve London’s economy. monthly report, Medium-term economic recovery Economic Planning Projections. has been investigating ways to establish An economist from GLA Economics the quality and timeliness of official Each issue provides an interpretation of An annual review of London’s a methodology that will measure will also be presenting at the Local statistics for London’s output. the latest economic developments and Why are Londoners economy will be produced entitled output in London. A tender process Government Information unit how this may affect policy for London. spending more than London’s Economy Tomorrow. was undertaken in the latter part of conference entitled ‘One City – Two It features a wide range of London 2002 to outsource this research. World Regions: A Shared Agenda’ that and UK economic indicators. It always the average Briton? Unfortunately the costs of the quotes will look into ways that agencies in Economic geography includes the latest tube usage data, London’s economy cannot be considered were not considered to be economically the GLA can work more closely with which provides an extremely sensitive The risk of recession advantageous so the tender was not agencies from the surrounding regions. in isolation. This work stream has been measure of economic, and in particular, in London developing approaches to understand awarded. GLA Economics in conjunction employment activity in the City. the linkages between different parts of with the Corporation of London has Turn off the panic button London and the rest of the southeast. launched a programme designed to Other economic indicators covered GLA Economics has assessed commuting secure a co-ordinated approach to regularly include employment and Recent development patterns and investigated spill-over improving the quality and timeliness unemployment, GDP and productivity, in UK and London’s effects and approaches to modelling of official statistics of London’s output. investment and profitability, house the spatial economy. Volterra Consulting prices and retail sales, consumer prices business investment Ltd was retained to provide an analysis and consumer confidence. of the economic and social structure A future Gulf War – of London, the south east and the the potential economic eastern regions, using the technique impact on London of fuzzy clustering. 8 9

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    Work streams Work streams Sector studies GLA Economics promotes a consistent Extracts from Creativity, Tourism In the coming year Continuing and developing and compatible approach to the Fifty per cent of overseas visitors to the The major sector studies for GLA existing work streams measurement of activity in the London’s Core Business: UK spend at least one night in London. Economics in the coming 12 months One of the roles of GLA Economics is GLA Economics will carry on working creative and cultural industries across GLA Economics has been investigating will concentrate on the evening and with partner agencies to develop the to look into specific sectors within the the GLA group and with stakeholders. Roughly one in every the availability of indicators and data weekend economy and the role of London economy and assess changes knowledge base surrounding the It is involved in an advisory role to five new jobs in London sources from which to assess the state higher education in London’s economy. creative industries and ensure that over time and space. Sector specific the LDA in developing a data and studies are key to keeping abreast is created in the Creative of the tourism sector. These indicators economic perspectives on policy intelligence framework for London’s will be used to inform policy-making Evening and weekend economy implications are fully evaluated prior of the changes in London’s economy creative industries. It collaborates with Industries sector. decisions and Mayoral responses to The evening and weekend economy to adoption. and planning how to provide for the Department of Media, Culture and changes within this industry. work stream will focus on trends in these changes. Sport (DCMS), the Government Office Creative industries add restaurants, pubs and bars, theatres The advent of war during 2003 for London and the Regional Cultural £21 billion each year Housing and cinemas and demand for other has impacted upon London’s tourist Creative and cultural Centres to define and apply employment The market for housing is highly industries to London’s output. leisure services. Initially establishing industry. During the spring of 2003 and other measures of creative and complex and subject to market failure. relevant datasets, the work aims to the Mayor of London initiated the London is one of the world’s centres cultural industries activity. GLA This is higher than all GLA Economics commissioned a report define the importance of economic ‘Totally London’ campaign to boost for creative industries and in recent Economics participates in the DCMS the production industries to provide an overview of the London activity in the evenings, at night and the London tourist industry. GLA years this sector has been a driving steering committee which oversees housing market from an economic force for London’s economy, growing combined and second at weekends. It will assess what is Economics has commissioned research implementation of the Regional perspective. Processes that drive driving demand and the services to support this Mayoral initiative to faster than any other sector in the Cultural Data Collection Framework. only to Business Services the supply and demand for housing, meeting this demand. The work encourage visitors to central London last five years. GLA Economics has at £32 billion. types of market failure and government will also analyse the geographic and to oversee research into visitor been extending research in the creative intervention are all discussed within distribution and concentration of trends and spending. industries and published a report Creative industries in this report. The report has been the evening and weekend economy. discussing its findings entitled finalised and will be published in Creativity, London’s Core Business. London are relatively Represented on the steering group GLA Economics will continue to monitor early summer 2003. for this work stream are GLA tourism through indicators such as retail A GLA Economics economist presented strongly clustered with Economics, Mayoral policy advisors, figures and London Underground gate GLA findings to the Mayor of Lewisham Westminster the location TfL and the LDA. level data for tourism stations. GLA and assembly of Lewisham council and to a meeting convened in Tower the largest and fastest Economics will also continue working Higher Education with the LDA and London Tourist Board Hamlets by the Creative Industry growing cluster. Following GLA Economics’ input to assess the economic impacts of the Development Association. into the Mayoral response to the Gulf war and other international crises London is a creative factory. consultation period for the White when they arise. GLA Economics shall Paper The Future of Higher Education, continue to develop and improve the GLA Economics will progress the quality of tourist information statistics understanding of higher education available to London. establishments as a core sector within the London economy. The LDA and London Higher Education Commission will also be involved in this area of analysis. 10 11

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    Work streams Work streams Environmental Extracts from Valuing Greenness: Environmental impact In the coming year of Mayoral policies The research findings from the economics There are two types of homebuyers: one biased towards GLA Economics has commissioned valuing greenness work and London’s research into the development of environmental footprint will be close proximity to central London with its higher density Valuing greenness a model that will enable the likely published in early summer 2003. This work stream looks at the value of housing and higher house prices and the other towards economic–environmental impacts The methodology for evaluating of green spaces in London and the open spaces of the Green Belt. of Mayoral policies and strategies the value of green spaces to house whether this is reflected in house to be forecast. This will enable more pricing will be further developed prices. A hedonic pricing approach House prices are determined by a wide set of indicators informed policy-making decisions. in the coming year. based on average house values within with greenness being the fifth most important following a ward has been used to reflect spatial London’s environmental The Reward Project variation in greenness of different level of income support, travel time to central London, footprint GLA Economics will be participating wards in London. Neighbourhood average air quality and dwelling density. GLA Economics has commissioned in the Regional and Welsh Appraisal of variables and accessibility to central research to evaluate the different Resource Productivity and Development London have also been used to help A one per cent increase in green space in a typical ward types of resource flow analysis and (REWARD) project. This is a partnership, explain variations in house prices. led by the Environment Agency, linking can be associated to an 0.3 to 0.6 per cent increase in environmental indicators currently economic and environmental strategy used in the UK. The research also average house price. looked into the principles of in the English regions and Wales. footprinting, highlighting the The REWARD project is developing Wards with higher amounts of green space have better strengths and weaknesses of this a Regional Economy Environment educational performance. approach. The significance of Input–Output model and a research the findings of a recent footprinting programme and database on the Air quality is better in wards with more green space. study of London were presented resource productivity of the regions to GLA Economics. and implications for policy and business. This will be pulled together through an intelligence-sharing strategy. 12 13

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    Work streams Work streams Transport economics Other transport work In the coming year Development economics Labour market In the coming year GLA Economics is advising and GLA Economics will continue to work We will continue to develop analysis supporting the LDA and TfL over other with TfL and LDA to ensure economic economics in general of the labour market under Crossrail large-scale transport projects such as appraisals of large-scale transport The new Framework for Regional a number of heads, including economic GLA Economics has supported TfL the Thames Gateway Bridge and West and Skills Action (FRESA) is becoming initiatives and for the consultation Statistics and indicators development and monitoring the to ensure the successful delivery London Tram initiative. established in London, where issues processes for the business cases which GLA Economics has commissioned London economy. However, we also of the business case for the Crossrail of analysing labour markets are will begin in April 2003. GLA Economics research to improve the quality of hope to develop an analysis of proposal. We have been assisting the In particular, we have commissioned particularly complex in the light of provides input into the TfL business plan London’s labour market statistics. changing working patterns over the development of the business case in innovative work examining the commuting patterns. GLA Economics and will assist with the development of GLA Economics purchases, maintains coming year, including the role of the crucial area of the project’s effect relationship between accessibility will be helping to develop indicators the Transport Strategy. and disseminates a consistent and working from home and the issue of on employment in central London of local areas and their employment to measure the health of labour markets authoritative set of data on workforce part time employment opportunities. and the benefits to the UK that stem and population densities. This has that are needed to inform the LDA’s employment based on 1992 Standard Both of these are potentially relevant from this. used statistical analysis to assess the measurement of progress towards Industrial Classification (SIC) 2-digit to supporting labour market inclusion. potential employment associated with FRESA’s targets. codes, by borough, gender and type This work has involved looking different levels of accessibility within of work (part-time or full-time), at the wider benefits of Crossrail London in order to go beyond the more The LDA is also in the process of from 1971 to 2002. in two important areas: usual analysis based on site capacities. revising and renewing its Economic Development Strategy. GLA Economics As part of a programme to raise the 1. How facilitating the continued GLA Economics has also fed into various will be providing inputs and assistance quality of this data, GLA Economics growth of the capital’s central government consultations regarding in the development of the new has commissioned research into the area employment cluster transport project appraisal methods. economic strategy and the management discrepancies in estimated workforce improves net productivity of this process within the GLA. jobs arising from the two primary which is not captured elsewhere sources of data on employment: in standard transport appraisals. the London Labour Force Survey (LFS) and Annual Business Inquiry (ABI). 2. The role of the scheme in The report of this research will be facilitating the regeneration published in June 2003. Employment of the Thames Gateway area. figures are a principal input in their own right in the analysis of London’s economy and the starting point in estimates of London’s output. 14 15

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    Marketing Marketing Marketing It is vital for the work of GLA Economics to reach appropriate audiences and The principal audience for the work of GLA Economics is those involved in decision-making within the GLA, TfL and LDA. However, the work of the unit The marketing objectives are: to establish GLA Economics as the first source of data and information GLA Economics events GLA Economics has been trying to ensure that the capabilities of the unit Forthcoming events GLA Economics will be presenting at Transport for London to give an overview of the work of the unit. for the unit’s work to be is diverse and most individuals within for key audience groups The Chief Economist has been invited London will have a degree of interest in are widely used and that the relevant presented in a way that is audiences are benefiting from the data to speak at the International the unit’s analysis. For example, those to establish GLA Economics as a Benchmarking Club Forum 2003 in accessible for the intended intending to purchase homes would be high quality and innovative source and analysis that the unit hold and June 2003. A Senior Economist will audience. By its nature, interested in the current state of the of analysis of the London economy develop. In order to do this GLA be presenting to the Association much of the work of GLA housing market and how this has Economics has presented at the for London Government also in changed over time. to establish core expertise in following events: Economics involves complex June 2003. In July 2003, a Senior policy-related analysis of relevant Economist will be presenting at the analysis and one of the The Marketing and Publications issues for London. Lunchtime seminar for GLA staff ‘One City – Two World Regions’ challenges for the unit Manager has been developing a contact conference. An international is to make its analysis list for individuals and organisations that to establish that GLA Economics Lunchtime seminar for LDA staff conference entitled ‘The Value of accessible for those who would benefit from having access to the has the best and most up to date Cities’ is being organised for autumn unit’s analysis. These contacts include data available Capitalwoman conference. do not have a background 2003 with invited speakers from New the private sector, the London boroughs, York and Berlin (cities that have a in economics. academics, Members of Parliament, to establish GLA Economics as In the coming year close working relationship with the government agencies, statistical a recognisable brand name and GLA Economics will continue to build GLA). The conference will be an agencies, GLA and GLA group, develop a distinguishable identity the contact list for the unit and divide opportunity to showcase the work journalists, investors and estate agents. this list into key groups so that of GLA Economics. to promote GLA Economics internally publications can be specifically within the GLA and the GLA group. targeted. The brand of GLA Economics will continue to be developed to Working closely with the central ensure that it is a recognisable entity. GLA Marketing team, novel ways of disseminating GLA Economics analysis and reports have been applied over the last 12 months, including establishing an e-zine and sending out fliers to help build the contact list for GLA Economics. 16 17

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    Knowledge Knowledge management Knowledge management management When establishing any new unit, it is fundamental to ensure that appropriate GLA Economics has adopted the use of project management to manage its work streams and allocation of tasks to staff. This also enables the unit to In the coming year GLA Economics will be developing the data management systems and move away from a spreadsheet back office systems are monitor progress and alerts the unit environment to a centralised database. developed. GLA Economics when projects are running behind The technology group within the GLA the anticipated deadline. is intending to implement a content has introduced document management system; this will give control, data management, To enable spatial analysis of greater control to GLA Economics metadata, a working library economic trends and data Geographic to update its web presence on and the extranet to ensure Information Systems (GIS) software the extranet, intranet and internet. has been implemented. Advanced Software and hardware will be easy access to our data statistical analysis software has also reviewed on a continual basis to ensure resources. These systems been purchased to increase the that the unit has access to appropriate ensure that the unit is capacity of the unit to undertake tools to enable their analyses. GLA able to respond in a timely advanced forms of statistical analysis. Economics will continue to encourage manner to requests made the development of appropriate staff The skill base within the unit has been skills. Staff will undertake an effective of it. enhanced through training in GIS and writing skills course to ensure that project management. messages are delivered concisely, The extranet is a secure environment with clarity and impact. where the raw data sources used within The procurement process for GLA Economics analysis is made establishing a GLA Economics It is anticipated that the procurement available to selected partners. framework agreement commenced process for establishing a framework in February 2003. A framework agreement for GLA Economics will agreement will improve the speed be in place by the end of June 2003. and efficiency of the procuring data This will speed up the procurement and services from external companies. processes for the unit and enable a more responsive service. 18 19

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    Publications Publications Publications GLA Economics is producing a series of reports that outline key industry sectors and their current and future growth potential for London’s economy. It also reports Our recent publications include: Monthly newsletter London's Economy Today – a monthly update of London's key indicators. Forthcoming publications GLA Economics intends to produce the following publications over the coming months: regularly on London’s prospects and conducts innovative Reports Working papers research into the structure and performance of business, London’s Economy Tomorrow – Working Paper 1: Labour Market Working Paper 3: Is there London’s prospects in the light Balances and Employment in the a Segmented Preference for the environment and the transport system. Recently Wider South East – This working of the GLA’s short-term Housing Attributes in London? released GLA Economics reports are available on the planning projections. paper looks at the employment and GLA website at: population projections in the draft London’s Environmental Footprint Medium-term Economic Planning London Plan and their implications Projections – principal projections for commuting patterns between Medium-term Economic Planning http://www.london.gov.uk/mayor/economic_unit London and the regions. The analysis are for employment, output, Projections (updated every six months) and household demand. of implications for London and the southeastern and eastern regions Market Failure and the London Sensitivity tests on forecasts for uses employment projections Housing Market employment in London – outlines prepared on a similar basis to different scenarios, in order to assess those in the draft London Plan. Valuing Greenness: how robust the projections for Green Space, House Prices employment in London are. Working Paper 2: The Economic and and Londoners’ Priorities Social Structure of London and the Play it right: Asian Creative South East – This report examines the London’s Economy Today Industries in London – a report on relationship between London and the (updated monthly) the contribution of Asian Londoners surrounding geographic regions of the to the creative industries. south east of England, both in terms London’s Evening and of employment and demographic Weekend Economy Spreading Success: How London structure. The analysis uses a is Changing – looks at the trends technique known as fuzzy clustering. The GLA’s workforce in job creation across the different employment figures. parts of London. Current issues Current Issues 1: Factors Explaining Planning for London’s Growth – the Business Investment in London – statistical basis for the London plan. This note explores whether statistical techniques can explain the recent Creativity: London’s Core Business – path of business investment. key figures on the sector where 525,000 Londoners work. 20 21

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    Financial Financial statement 2002/03 Expenditure Employee pay – permanent Actual 74,110 Adjustments Total 74,110 Budget 163,930 Variance (89,820) Financial report 2003 Financial report 2003 National insurance – permanent 6,409 6,409 13,940 (7,531) Superannuation – permanent 6,475 6,475 22,130 (15,655) Allowances – permanent 1,160 1,160 0 1,160 report Employee pay – fixed contract 14,778 14,778 0 14,778 National insurance – fixed contract 1,115 1,115 0 1,115 Employee costs – secondees 11,772 11,772 0 11,772 National insurance – secondees 1,066 1,066 0 1,066 Superannuation – secondees 1,581 1,581 0 1,581 Employee costs – agency temps 75,616 600 76,216 0 76,216 Sessional staff – pay 4,000 4,000 0 4,000 National Insurance – sessional staff 381 381 0 381 Staff costs pay 198,464 600 199,064 200,000 (936) Travel costs reimbursed 188 188 2,000 (1,812) Financial summary 2002/03 Hotels & lodgings 98 98 0 98 Training course expenses 3,493 3,493 2,000 1,493 The provisional gross expenditure figure for 2002/03 is: £893,165 Staff costs non-pay 3,780 0 3,780 4,000 (220) Catering charges 1,564 1,564 2,000 (436) During the year TfL and LDA have been invoiced based on a final estimated Publications printing 14,504 14,504 40,000 (25,497) spend of £900,000. This is against the original expenditure budget of £1,000,000. Other printing 23,987 23,987 0 23,987 Photocopying charges 8 8 0 8 The split of these contributions are shown below : Publications artwork 12,000 12,000 37,000 (25,000) Stationery & consumables 1,367 1,367 2,000 (633) TfL contribute 50% £450,000 Books, publications & information 10,731 10,731 5,000 5,731 LDA contribute 30% £270,000 Newspapers, serials & periodicals 100 100 0 100 GLA contribute 20% £180,000 Consultancy fees 270,278 42,848 313,126 220,000 93,126 £900,000 Other external services 28,341 (8,356) 19,985 56,500 (36,515) Data purchase 52,808 (25,882) 26,926 30,000 (3,074) In addition £20,000 from TfL was rolled forward from 2001/02 to part fund Couriers 245 245 1,000 (755) recruitment costs. These recruitment costs are currently included in the £893,165. Telephones 430 430 0 430 This figure, therefore, needs to be adjusted by £20,000 to give a revised IT hardware – purchase 9,936 9,936 0 9,936 provisional expenditure total of £873,165. IT software – licences 23,733 (11,047) 12,686 115,000 (102,314) IT software – maintenance 1,035 1,035 5,000 (3,965) Based on the provisional final expenditure figure of £873,165, the adjusted Conferences & seminars 5,113 5,113 7,000 (1,887) Advertising 8,081 8,081 0 8,081 contributions are as follows: Marketing 6,178 1,437 7,615 25,000 (17,385) Research & inquiry costs 6,250 4,900 11,150 30,500 (19,350) 2002/03 Estimate Actual Difference Subscriptions to organisations 8,100 1,634 9,734 20,000 (10,266) TfL £450,000 £436,582 £13,417 Supplies & services 484,788 5,534 490,322 596,000 (105,678) LDA £270,000 £261,949 £8,051 GLA £180,000 £174,633 £5,367 Operational buildings charge 200,000 0 200,000 200,000 0 Total £900,000 £873,165 £26,834 Transfer payments 200,000 0 200,000 200,000 0 Overpayments made by TfL and LDA are therefore as follows: Total expenditure 887,031 6,134 893,165 1,000,000 (106,835) TfL £13,417 Income LDA £8,051 Fees & charges 0 0 (800,000) 800,000 Total £21,468 Other funding (720,000) 21,468 (698,532) 0 (698,532) Miscellaneous income (20,000) (20,000) 0 (20,000) It has been agreed that the monies owed would be carried over for use in Total income (740,000) 21,468 (718,532) (800,000) 81,468 financial year 2003/04. Net cost of service 147,031 27,602 174,633 200,000 (25,367) Note: These figures are provisional and are subject to change as the accounts will not be finalised until 31 May 2003. 22 23

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    Other formats and languages For a large print, Braille, disc, sign language video or audio-tape version of this document, please contact us at the address below: Public Liaison Unit Telephone 020 7983 4100 Greater London Authority Minicom 020 7983 4458 City Hall www.london.gov.uk The Queen’s Walk London SE1 2AA You will need to supply your name, your postal address and state the format and title of the publication you require. If you would like a summary of this document in your language, please phone the number or contact us at the address above. Chinese Hindi Vietnamese Bengali Greek Urdu Turkish Arabic Punjabi Gujarati 24

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    GLA Economics Annual Report 2003 Greater London Authority City Hall The Queen’s Walk London SE1 2AA Tel: 020 7983 4100 Fax: 020 7983 4417 Minicom: 020 7983 4458 Email: GLAEconomics@london.gov.uk www.london.gov.uk

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