Hatch Regeneris Report on the London Borough of Haringey

Hatch Regeneris was recently commissioned by Haringey Council to undertake a comprehensive and in-depth Economic Evidence Study (EES). The EES consolidates existing and new evidence, drawing on a mix of primary and secondary research to identify opportunities and challenges facing the local economy. Primary research undertaken to inform this assessment includes surveys conducted with business and residents around high streets, employment sites and industrial areas. The secondary research draws from a range of governmental datasets. The EES aims to identify priorities for the Council and recommend potential interventions to capitalise on Haringey’s economic assets.

As a social enterprise based in the borough of Haringey Fashion-Enter Ltd is eager to engage with the local community across several sectors including employment, education, business support and general wellbeing. Haringey is located in a prime position that is ripe for investment and growth. Situated to the north of London, but in relatively close proximity to key employment areas within the City (being less than 5 miles from the City of London). The borough covers an area of more than 11 square miles and is situated within the Inner London group of boroughs.

The report states that in line with growth experienced across the rest of London, Haringey has grown in recent years. The growing gap between demand and supply for residential and commercial space across London is also impacting on the borough, with rising rents and land values for space.

While Haringey’s employment growth over the 2010-18 period has been relatively low, ranking 21st out of London’s 32 boroughs and the number of jobs in the borough has declined over the longer term (1971-2015), the number of businesses in Haringey grew over the 2010-18 period by 51%, ranking it 11th out of the 32 London boroughs. Noticeably the report reveals stark divide across the borough with high levels of deprivation in the east of the borough compared to typically less deprived areas to the west.

Although the wider economic environment is set to be more uncertain in coming years, the outlook for the London economy remains generally positive. The GLA’s Economic Outlook expects to see increases in the number of workforce jobs with household income and spending also expected to rise.

There are a number of trends taking place across London relevant to the Haringey economy:

+ Rising pressure on Industrial Land is seeing strong growth in rental prices, as the supply of space diminishes and demand remains strong.

+ There is high demand for housing, with house prices close to record highs, despite recent declines over the last year (-1.4% between August 2018 and 2019).

+ Rising rents for residential and commercial space is leading to the displacement of resident and business communities, particularly from Central London.

+ Transport infrastructure investment, including the near-completion of the Elizabeth Line and potential for Crossrail 2, will reshape labour market areas in London and improve connectivity.

Haringey currently has a relatively strong labour market, with low levels of unemployment, and an economic activity rate comparable to the rest of London. Currently 78% of Haringey’s working-age population are currently economically active, a similar level to London (78%). Haringey compares well against comparator areas, only being outperformed by Waltham Forest and Islington. The employment rate of Haringey’s working-age population is also strong, with three-quarters of the population currently in work. The unemployment rate is 3.8%, which is the second lowest among our comparator areas and sits below the London rate of 4.8%.

Data from the Annual Population Survey, finds that a quarter of those in employment are self-employed in Haringey. This is the highest level amongst comparator boroughs, and seven percentage points above the London level. High levels of self-employment suggests there are a high number of freelancers located in the borough or that the entrepreneurial level is high in the borough. At about 19 percentage points (pp), Haringey exhibits the largest differential between the proportion of male and female people in work that are self employed. This is approximately 9 pp higher than the variation across London. Large gaps in self-employment are also observed in Barnet, Enfield, Islington and Waltham Forest – whereas the proportions are broadly in line in Hackney.

Haringey’s workforce is employed across a wide range of occupations. The most common occupations for Haringey’s workforce includes professional, associate professional & technical, and directors & senior officials. Combined these occupations account for more than half of Haringey’s workforce. Haringey’s occupational profile is broadly in line with the London average, with a combined 58% of workers working in the three occupations cited above. Although similar to the London average, it lies below Islington (71%) and Camden (75%), reflecting a higher concentration of high value activities in these areas. Haringey’s strength in the manufacturing sector is reflected in its occupation profile, with Haringey having a higher proportion of workers in skilled trades occupations compared to London, accounting for 11% of employment in Haringey compared to 7% across London.

The report continues to examine the skills and qualifications, along with the apprenticeship opportunities within the borough. While Haringey has a highly skilled economy relative to national standards, with 64% of the economically active population in Haringey having an NVQ Level 4 qualification (degree level) or higher, in 2016-17, there were only 1,430 apprenticeship starts in Haringey, of which 650 were of intermediate level. The take-up at advanced and higher levels is 600 and 180 respectively.

In summery the in-depth report states…

Strengths:

+ Haringey has a hugely diverse population, being home to people from a variety of backgrounds.

+ There is a relatively strong labour market, with high levels of economic participation and low levels of unemployment

+ Haringey has a well-skilled labour force, with 64% of working-age residents qualified to degree-level or above.

+ Businesses established in Haringey have strong survival rates, with 90% of businesses started in 2017 surviving their first year of trading.

+ Haringey has a diverse range of industrial sites, which provides a mix of employment space for traditional and emerging sectors.

Weaknesses:

+ The area has a high net-outflow of workers (43,321 workers each day).

+ There are high levels of deprivation and low levels of social mobility, particularly to the East of the borough.

+ Haringey is the sixth slowest growing London borough in terms of employment growth over the last five years.

+There is a disparity between the earnings achieved by residents and workers, with Haringey’s residents earning £5,200 more than its workers.

+ Haringey has lost a significant amount of industrial land in recent years. There is a need to secure employment floorspace long-term to support the local economy.

Opportunities:

+ Haringey has ambitious targets to deliver 19,580 homes and 20,000 new jobs over the next ten years. This provides an opportunity to embed good practices into new developments and support the economic growth of the borough.

+ Growth amongst the creative, digital and professional service sectors has the potential to deliver new jobs and opportunities to Haringey’s residents.

+ The Lee Valley Rail Programme provides an opportunity to improve transport connections in the east of the borough.

+ The recent opening of the new Tottenham Hotspur Stadium provides new opportunities in relation to tourism and community participation.

+ Regeneration taking place across the borough, particularly around Tottenham and Wood Green, presents an opportunity to engage local communities.

Threats:

+ There is uncertainty surrounding the effects of Brexit on the local economy and how it will affect business and the labour market.

+ Growing pressure for commercial and residential space is pushing up rents / land values across the borough, making it more unaffordable for some businesses / communities, and potentially pushing them out of the area.

+ High streets and the retail sector are struggling to remain competitive with the emergence of online shopping. There is a need to ensure that town centres are able to diversify their offer, to become vibrant places where communities can come together.

+ Low qualification levels to the East of the borough, means that some communities are unable to participate in the economic opportunities being generated across the borough.

+ Businesses are concerned about the impact of crime on their performance, and the perception this has on the local area as a place to visit, spend time and money.

The Hatch Regeneris Haringey report has provided the council and those within the borough a comprehensive insight into its strengths and weaknesses. As an employer that has established roots in the area for well over a decade the team are dedicated to providing employment opportunities, training and support for all within the community. From initiatives such as N17 Creative Callings to support business start-ups, to hands-on, fashion production apprenticeships and training, we are optimistic that the borough is equipped with the right knowledge to ensure it will grow and thrive.

With thanks to Hatch Regeneris and Haringey Council for sharing this report.