Business West End

Quality street: the future of the West End

Sir Simon Milton to London Retail Summit, 10th October 2006

Westminster’s role

The West End is both the commercial heart of London and a shop window for what Britain has to offer in retail, leisure and entertainment.

It remains London’s pre-eminent visitor attraction because the range of experiences – theatre, food, film as well as retail – represent an unrivalled offer to visitors. And we must be clear that maintaining a reputation for being quality street, not the bargain basement is essential to keeping the West End ahead of the chasing pack – from White City to Bluewater.

As the responsible authority for the West End, Westminster Council uniquely placed as the catalyst to lead a renewal of London’s West End based on our record of delivery, experience and commitment.

The critical issues

And as the catalyst for change, we are rising to that challenge. The council is already leading seven major initiatives to improve the quality of experience of the West End for visitors.

These cover the major retail streets Oxford, Regent and Bond, Soho, Theatreland, Chinatown, Covent Garden, Leicester Square and Edgware Road. They are delivering more attractive and safer streets; creating a showcase for Britain. And together they represent a renewal of the West End.

Three challenges to future prosperity

So we have a delivery plan for improving the quality of life in the West End. But I also see three major challenges on the horizon that will require a mix of determined leadership, hard working partnerships and significant resources to meet.

First the transport challenge. We need better public services and practical improvements.

I welcome the Mayor’s proposals for an Oxford Street tram scheme and other ideas for a monorail. Westminster proposed a tram scheme twenty years ago, but were beaten by the costs and the logistics; there was nowhere else for the traffic to go. The position hasn’t changed today. It has got worse. So my welcome is cautious. But if the Mayor is serious, we will work with him to bring forward a detailed, costed and above all practical implementation plan.

Simply wishing the existing bus traffic away or assuming it can be absorbed into neighbouring residential streets is neither practical nor desirable. And we can’t afford to wait for a tram that may never happen. So we need to make progress to address today’s problems. The corridor of buses that currently clogs Oxford Street must be reduced. Transport for London should undertake through more efficient route management to match supply and demand with the aim of reducing the buses along Oxford street by 10% each year for the next three years. A tough target but essential if we are to improve the visitor experience. But the Mayor is the Chairman of TfL – so all the solutions are within his own hands.

Transport is also vital to the Eastern End of Oxford Street. This is being starved of badly needed investment due to uncertainty over Crossrail. We urgently need a decision which would allow us to unlock the development and transport potential of the Tottenham Court road junction. Prolonged blight will only lead to further decline.

So, the challenge for the government is to take a decision in next year’s Spending Review over this project or risk damaging the future of Britain’s high street and the London and UK economies. Of course, allowing central London to retain a much larger proportion of the business rates that we generate would go a long way to tackling the challenge.

Second, the planning challenge.

We think that we are delivering significant improvements in the streetscape. In the last few years we have led partnerships to deliver major new infrastructure projects in the Strand, Paddington and at Hungerford Bridge that have enhanced London. Our planning policies have benefited Regent Street, Marylebone High Street, Carnaby Street and Savile Row, enabling their respective landlords to revitalise some of London’s most distinctive shopping areas whilst retaining their distinctive characters.

In Oxford Street we have granted permission for a major new retail development at Sedley Place – now Boots’ flagship UK store – and only last week for a mixed scheme comprising more than 11,000 square metres at Park House opposite Selfridges. So our planning policies strongly support retail development.

We believe that by comparison, the Eastern end of Oxford Street has suffered from a lack of private as well as public investment in recent years in improving the quality of the retail offer. We want to encourage a stunning new retail development with excellent ancillary public spaces for dining and rest; and so we will review the opportunity to use our CPO powers, with the Mayor and private sector partners and funders to bring forward sites that require development to meet these goals. I hope this will deliver new life, particularly to the Eastern End of Oxford Street, using the vehicle of a development partnership.

By creating such a partnership, we could help deliver both streetscape improvements, better physical access and new modern retail units suitable for delivering the kind of compelling retail experience that today’s customers are looking for.

But the planning system may soon face significant problems that will slow development and increase bureaucracy. The Mayor of London has persuaded the government that he should be given new planning powers.

Only 27% of Londoners support these proposals, while, 75% of Londoners named their local council as the most appropriate body to deal with planning. So it’s an unpopular policy.

But it also has significant risks for business. You will have to continue to negotiate with local authorities, but the Mayor may decide to intervene and take over the application. You may agree a S106 community payment with the local authority, but the Mayor can change that. You might reach agreement with the council, but the Mayor can unravel that agreement. In short planning will take longer and cost more.

This is surely not want London needs. Developers need common sense, speed of decision making and certainty concerning their obligations.

Third, the quality challenge.

We can create the conditions for business to succeed but business has to get the product right. I have seen extensive research from the Heart of London and the New West End Company BIDS about what people like and want from the West End.

To me, one powerful message comes through. They expect a quality experience. They expect, when they come to Oxford Street, Leicester Square, Soho or Shaftesbury Avenue to experience something other than the offer available in their own high street.

As the West End we are stronger than the sum of our streets. That is the power of the West End brand. So we need to attract the most creative retailers, the best brands, innovative restaurants and the greatest shows to the West End. Implicit in this is a recognition that retail can’t survive without great entertainment and good refreshment.

New partnership to deliver

I can announce today that we will spend £230,000 over the next year through the West End Marketing Alliance, to build this brand.

And if we accept that we should build a united brand for the West End we need united leadership.

So today I have written to a number of organisations including the Mayor, Camden Council, Heart of London and Central London Partnership asking them to join our existing West End Steering Group.

Over the past few months this has successfully planned for improving the West End through the City Council, TfL and the New West End Company working together.

Now we will resource the group and widen membership to reflect the whole range of West End interests; build on the success of the West End Marketing Alliance, to maximise private and public sector investment and focus on delivery.

Conclusion

If we aspire for the West End to be seen as the nation’s high street we need to be seen as Quality Street, not cheap street. More bistro, less binge drinking. More female-and family friendly. Exciting stores like the revamped Selfridges, the Crown Estate’s ambitious makeover of Regent Street and the unrivalled class of Bond Street. Higher quality does not mean lower profit. And to go with it we want great restaurants, memorable West End shows and star-studded film premieres in Leicester Square.

If your idea of a great night out is a Big Mac, four pints of lager and ending the evening in a dingy club, you can now find that on most high streets in Britain. The West End is there to offer something more.