Written evidence from London Borough of Newham (SRC 019)

The London Borough of Newham welcomes the opportunity to submit evidence to the Committee on the strategic nature of additional river crossing in east London.

This submission outlines the strategic case for a fixed river crossing at Gallions Reach to facilitate the economic resurgence of the area. Currently an economic opportunity to encourage further urban regeneration, housing growth and job creation is being delayed to the detriment of east London residents.

This submission includes available evidence of the potential economical impact of a fixed crossing. The level of support for such a link in east London is overwhelming. It is clear that political inaction on this issue is holding back economic growth in Newham, the surrounding boroughs, and the entire Thames gateway.

Introduction to the London Borough of Newham

Situated in London’s historic East End, Newham is home to some 317,000 people and was the main host borough for the 2012 Olympics and Paralympic games. Newham has fantastic transport links including London’s only city airport and 10 rail links at Stratford once Crossrail opens in 2018.

As a result of campaigning for smart investment and infrastructure, Newham is now a strategic development priority. The London Plan is clear that for the next 25 years the regeneration priority is the East End of London. The level of confidence expressed by local, continental and other global investors is a demonstration of the current level of interest in east London. Queen Elizabeth Olympic Park is dwarfed by the scale of opportunity in the rest of the borough, from the International Business Quarter in Stratford, to Canning Town and Custom House regeneration scheme, to the Enterprise Zone in to the Royal Docks -  Newham is a world class business destination within the knowledge and high-technological economy.

The patterns of growth in the east London sub-region in terms of job numbers, population growth and visitor numbers are indicative of the economic resurgence in the area. This current trend is likely to continue at an exponential rate over the next 20 years based on current investment patterns, public sector investment and the continued importance of London as a global hub and destination. It is perfectly reasonable to project forward to an east London in 2026 that is of equal economic significance as central and west London.

However the physical and economic chasm between surrounding boroughs due to the river Thames is preventing and stalling further growth.

Executive summary

• There is insufficient capacity on existing crossings in east London to meet demand for cross-river movements, which is holding back economic growth across the sub-region. There are 22 crossings west of Tower Bridge and just two to the east. Regeneration, job creation and housing growth are at risk if this situation is not addressed meaning it will be a significant barrier to achieving convergence with the economic performance of west London; an agenda to which national and local government and the GLA have committed. The objective of convergence is to close the socio-economic gap between east London and the rest of the Capital within 20 years.
• An additional fixed link road crossing between Beckton and Greenwich would accelerate economic regeneration of key sites on both sides of the Thames, including London’s largest opportunity area for economic growth, the Royal Docks enterprise zone. The alternative proposal, posited by Transport for London, for an extension to the Woolwich ferry would provide only one-sixth of the capacity of a bridge and would not lead to the significant economic productivity gains and employment levels that a fixed crossing would offer east London residents and businesses.
• A fixed Gallions crossing will provide the necessary infrastructure to alleviate congestion through providing additional connectivity and unlock economic growth for the benefit of residents and the capital as a whole. It therefore should be a top priority for transport infrastructure in London and the London Enterprise Partnership investment.
• Without a fixed link, there is no integrated regeneration and transport offer in east London. Delivery of the Silvertown Crossing will add necessary resilience to Blackwall Tunnel, but will do little for the regeneration of key sites such as those in the Eastern Royals, Beckton, Woolwich and Thamesmead. A river crossing at Gallions will complement the Silvertown link, facilitating development within the Royal Docks enterprise zone – London’s top priority for achieving growth on a national and global scale.

The case for a fixed link at Gallions

1)      Over the past few years, Newham Council has been collating evidence of the economic benefits and high level of public support for a fixed Beckton river crossing, communicating this information to industry players and local partners.

2)      Newham commissioned PBA to undertake an economic study into the benefits of a fixed link crossing at Gallions in 2013 to form part of our response to the initial TfL consultation. It was the first study to directly compare the economic impact of a bridge with a ferry and to show the substantially greater economic benefits of a fixed road link.

3)      TfL over the past few months has undertaken further work to determine the traffic, environmental and regeneration impacts and benefits of possible new river crossings, building on the initial assessments. The initial TfL findings align closely with those of the PBA study, which demonstrate that a Gallions bridge would significantly improve access and opportunities for businesses and residents in east London. By reducing travel time to centres of employment and business across the river, it could bring more than 100,000 businesses and 800,000 more jobs within an average 37 minute commute from Thamesmead.

4)      Crucially a fixed link at Gallions would help deliver other objectives of central Government including housing growth, business growth, economic connectivity and urban regeneration.

PBA study

5)      The central conclusion of the PBA study is that the Gallions crossing is essential to deliver the London Plan growth objectives. Other key findings include:

6)      It would be a well-used link: A bridge at Gallions Reach would be well-used. It provides a link between areas north and south of the Thames that have a high level of existing activity and a high potential for new development. These flows are significantly higher than for the ferry and the capacity is six times greater. The bridge would be available 24 hours a day, seven days a week while the ferry is likely to have limited operating hours and reliability issues.

7)      The Thames Gateway has the conditions to create growth. This part of the Thames Gateway has the right conditions in place to capture the economic and regeneration benefits of a new fixed link crossing. The Gallions Reach locality is a densely populated area which is growing at a faster pace than the rest of London in terms of both population and employment. Yet despite this rapid growth, the Gallions Reach locality remains an area with high levels of deprivation in need of economic regeneration.

8)      Crossing is needed to deliver London Plan Growth objectives. The Gallions Reach crossing is needed to deliver the London Plan objectives. It joins up two growth areas highlighted in the London Plan as of national importance: the Thames Gateway and London-Stansted-Cambridge Corridor. There are ten designated Opportunity and Intensification Areas within the immediate zone of influence of the Gallions Reach crossing which are responsible for delivering more than 200,000 jobs and 112,000 dwellings over the Plan period. Facilitating this growth through a fixed link at Gallions Reach is essential to deliver the London Plan’s growth objectives.

9)      Providing jobs for the growing workforce. The Gallions crossing can be a tool to deliver employment growth in east and south east London which is critical to avoid a growing imbalance between workforce and jobs.

10)  Serving London’s key industrial markets. The Gallions crossing would directly serve two of London’s five industrial property market areas - the Thames Gateway and the Lea Valley - and diminish the market separation north and south of the river that currently exists in the Thames Gateway industrial property market.

11)  Accessibility enhancements needed to generate private sector investment. Accessibility issues are reported to be a constraint on development from the Isle of Dogs through to Dagenham and the lack of effective river crossings is a significant factor. Developers and businesses active in the area have stressed that accessibility is an important part of the decision for private sector investment in a development scheme.

12)  Bringing forward employment sites for development. Sites currently identified for employment development in the five boroughs have the potential to accommodate 218,000 jobs. Modest assumptions about the impact of a fixed link crossing at Gallions Reach on these developments produce an estimate of between 9,000 and 18,000 additional jobs for east and south east London.

13)  Stimulating housing market. A crossing will also stimulate the housing market. In total the five boroughs account for 35 per cent of the reservoir of large housing sites for London needed to accommodate London’s growing population.

14)  Raising productivity in local businesses. There are an estimated 24,500 businesses currently in the Gallions Reach locality. The Gallions Reach scheme will address accessibility and connectivity issues by providing more efficient access to customers, suppliers and clients, reducing businesses’ production costs and increasing productivity gains. These are estimated at £55.7m in annual GVA for a fixed link, ten times higher than comparable estimates from a ferry.

15)  Increasing labour market and job search catchment areas. The fixed link at Gallions Reach will significantly reduce commuting times across the river, extending the local labour catchment area for firms and the job search area for workers. Tthere are currently 400,000 economically active resident workers within a 30 minute drive time from Gallions Reach, with the fixed link in place this would increase to 1,680,000 workers, an increase of 1.28 million.

Support

16)  Newham also commissioned an independent telephone survey of residents in the five ‘impact boroughs’ and found widespread and universal support for a new fixed link crossing at Gallions, including in those boroughs where the  political leadership has stated opposition to the fixed link crossing. 75 per cent of all respondents across the five impact boroughs supported a bridge compared to just 16 per cent support for a ferry.  There was a substantial majority in favour of a bridge in all five east and south east London boroughs where the river crossings would impact, including in Bexley where the support stood at 69 per cent.

17)  TfL’s second round of consultation on river crossings in the first quarter of 2013 found that 71 per cent of respondents supported the idea of a fixed bridge at Gallions Reach, to be built by 2021, compared to 52 per cent who backed a ferry. This was supplemented in their report to the Mayor of London by Newham’s opinion survey on river crossings because  they accepted that  Newham’s research was undertaken to more rigorous market research standards by ORS and was not a “self-selecting sample”.

18)  Newham supported the recent launch of the London Chamber of Commerce and Industry campaign for a fixed link at Gallions. Nearly 100 businesses have now signed up to the campaign including the Canary Wharf Group, London ExCeL and the 02.

Delivery

19)  The key test for any proposed package of river crossings in east and south-east London is the extent to which it underpins economic drivers and connects the key development sites on the south and north of the Thames, particularly those in the Stratford, Lea Valley and the Royal Docks areas.

20)  Newham’s position is that a fixed link road crossing at Gallions is the most viable option to deliver economic regeneration, improved connectivity and increased capacity. It is therefore astounding that given the clear evidence demonstrating the potential economic impact of fixed link at Beckton and a seemingly conclusive answer from the previous consultation, that we have a further TfL consultation with a list of options still including a ferry and a further last-minute Belvedere option.

21)  A ferry would have a lower initial capital cost than a bridge at Gallions Reach but the bridge would be better able to attract funding and finance including private sector investment as it is a fixed asset. It would also create greater benefits to the economy, raises more revenue from business rates and the community infrastructure levy, and can achieve considerably higher toll revenue due to the far higher number of users. Delivering a ferry risks diverting essential resources and focus from the crucial end objective of a fixed link crossing at Gallions. The level of public investment being discussed for a ferry (c. £180m) suggests there would be a considerable economic payback period before any subsequent bridge or tunnel at Gallions would be considered. This level of funding towards a ‘stop-gap’ ferry represents approximately one third of the cost of a fixed link at this location. Newham strongly believe that this money would be better spent delivering a bridge or tunnel in the shorter term.

22)  Newham recognises that tolling may play a role in London’s future road transport infrastructure for financial and environmental reasons such as managing traffic flow. However, we are also clear that local residents must be eligible for significant discounts on charges for use of any river crossings, especially given west London residents enjoy free access to river crossings.

23)  It is also important to note that the Royal Docks enterprise zone is providing business rates to the London Enterprise Panel. Strategic infrastructure is key to ensuring that the business rate uplift is achieved for the benefit of east London and the wider capital. For the Royal Docks to be a success it is vital that the appropriate infrastructure is secured in a timely manner to support development and maximise the economic impact of Crossrail’s arrival. This is especially important given the development of the Royal Docks could create between nearly 5,000 and 10,000 new jobs by 2037 – 50 per cent of which are likely to be net additions to the UK economy.

24)  Newham has argued that a fixed road crossing should be built by 2021. The deferral of the scheme to 2025 is a proposal Newham is absolutely unwilling to accept. The proposal that is taken forward should be comprehensive and fit for purpose enabling the huge economic potential of the area to be fully realised. Given the delay over the issue to date, the timetable for delivery should be accelerated.

25)  If the Mayor of London fails to announce a fixed link proposal, Newham and other partners will need to consider taking the lead in promoting a Gallions crossing, seeking other development partners with the experience of constructing and operating fixed link crossings so that the endless wait for a crossing can finally come to an end. Unlike central bodies, local authorities have a good track record in delivering and managing infrastructure and the boroughs are not prepared to settle for any further delay.

Conclusion

26)  For many years Newham has campaigned for investment in transport infrastructure, believing, as we do, that with the right links, and developable land, we can attract business and hence jobs for residents. One of the obvious results of this campaigning can be seen in the superb transport links at Stratford where there will be a total of 10 lines once Crossrail is complete. It is these transport links, and the availability of developable land, which contributed massively to Britain winning the Olympic and Paralympic Games and to the creation of thousands of new jobs.

27)  However not all London politicians have recognised the value of ensuring that transport connections are delivered to create real economic opportunities for local people in east London. The long-term infrastructure imbalance from west to east London is not only preventing the creation of thousands of jobs in north east and south east London, but is holding back the economic growth of the capital as a whole.

28)  We need politicians to take courageous decisions to help transform the life chances of the communities they serve. Transport links are not about attracting shiny new developments, but increasing life chances and providing people with the economic opportunity, skills and relationships they need to achieve their potential. Access to real employment opportunities is absolutely at the heart of that.