Like Nowhere Else

'Like Nowhere Else' - London's West End saw strong growth in 2009 and 2010. Is it set for further growth? Or could growth stall and reduce in 2011 and beyond?

Richard Dickinson gave us an erudite overview of the economic and political environment and prospects for the West End. He set out the positives behind significant strong performance in the midst of recession. At the same time questioned, with the era of austerity upon us, how can the West End continue to invest to keep it as a World Class destination?

Some of the answers lie in the continued success and support of the private sector to the Business Improvement District. Property owners could provide matched funding to the expected BID renewal at the end of 2011. The private sector is however already facing the 2% Business Rate supplement to help fund Cross Rail. This overall £16bn investment should add 30% capacity to tube travel. Westminster is examining ways to retain and reallocate rateable values. It has already been innovative in agreeing S106 credit offsets for investment in the public realm. Tax incremental finance is a medium term possibility for 2013 onwards.

The positives for the West End in 2010 are an 8% pa increase in sales, record rental levels, plus significant investment in flagship stores. These positives being supported by low interest rates, relatively strong economy (65% consumer driven) and growing tourism visits (25% are overseas visitors with a further 20% of visitors from the rest of the UK) helped by the level of the £. Also with a strong bias towards fashion the retail offer is more resilient to the impact of on line spending. The issue is the extent to which these factors continue to underpin growth or whether the VAT and NI increases in 2011 will slow or even reverse these trends.

In a lively Q&A the wide ranging discussion covered the impact of the 2012 Olympics, other suburban and out of town retailing, and whether the West End is and will struggle to maintain its identity. With rents escalating where is space for the street trader and independent retailer? Can the New West End Company ensure the West End keeps its true London identity and heritage, whilst being a destination for the worlds' and UK's leading branded Retailers?

Michael Mallinson
Scribe