The leader’s statement fo full council 15 June 2009

1. Introduction

1.1 It is tremendously exciting to be presenting the last annual statement of the Liberal Democrat - Conservative partnership administration. We have achieved an enormous amount over the past three years, and we are already well into implementing a recovery programme for the coming year that will provide the additional help that residents, communities and businesses need during the difficult times in which we now find ourselves. Our ambitious plans as a council stretch well into the new decade with a vision for Camden that will ensure future generations can continue to enjoy the fantastic opportunities this borough has to offer.

1.2 At the time of my third annual statement to this council one year ago, none of us could have predicted the scale of the economic crisis that was looming. There is common agreement that the meltdown in the global financial markets has been unprecedented and even now we cannot tell with any certainty the length or depth of the recession. But this council and its partners were equipped to respond immediately as credit crunch became economic recession and people started losing their jobs and finding it harder to make ends meet, ensuring people got the help they needed through the benefits system or by providing local skills training and job brokerage. We were there for people when they needed it. We were able to look properly at the impact of the recession in Camden and at what else might be needed for the future to ensure recovery. We were able to freeze the council tax when people said that was something they wanted us to do and we are committed to freezing it for next year.

1.3 The consequences of the recession for the public purse will be felt long after the economy recovers as Robert Chote from the Institute of Fiscal Studies made clear when he talked to a group of us a few weeks ago. Robert is coming back to the Council later in the summer to discuss the situation with a wider group of councillors and I would urge everyone who is able to attend.

1.4 Credible commentators are talking of a decade of austerity or ten lean years, in stark contrast to the unprecedented expansion in the public finances we have witnessed over the last decade. We as councillors from all political parties need to plan for that future with officers to ensure we can continue to serve our residents, communities and businesses to the high standard they rightly expect.

1.5 What we learned from the detailed work around the recession is that Camden’s strategic priorities as set out in the sustainable community strategy are the right ones. The recession does not make a strong and inclusive economy any less of a worthwhile goal, it just makes it a greater challenge to which all of us in the borough must rise. Similarly our high ambitions remain to make this a sustainable borough whilst meeting the housing challenge, to help our citizens enjoy active and healthy lives wherever they live in Camden, to maintain the high levels of social cohesion in the area and ensure this vibrant part of our world city remains a safe one for all.

1.6 Inevitably a lot of this statement deals with the work around the recession in Camden and particularly the new initiatives that are being rolled out through the recovery fund. It is also important to remind ourselves that this administration’s commitment to build a new social infrastructure for Camden through provision of better homes, schools and leisure facilities remains intact. Alongside this, of course, as a council, we continue to provide high-quality services for those who live, work and visit this vibrant borough. I cannot review every achievement here, however, my colleagues on the Executive have highlighted many of these in their portfolio statements over the year.

2. Recession in Camden

2.1 Engagement with the Local Strategic Partnership (LSP) on what was then the credit crunch began early last autumn to ensure all public agencies were working together. By the time we were finalising the budget report to the Full Council in March this year we had responded effectively to immediate need, engaged with councillors through scrutiny and with experts via the LSP. After consultation, we set out a very detailed analysis of how the recession was impacting on people and businesses in the borough.

2.2 At that time, we recognised that not all the impacts were yet showing through. For that reason, with our partners, we are closely tracking the effects of the recession in the borough using a dashboard of real time data and intelligence and have created a substantial reserve through the recovery fund. Councillors receive an update on this each month through their new tailored web portal.

2.3 Councillors will know that claimant count unemployment in the borough continues to rise from its 25-year low in April last year. In contrast, earlier this year the borough saw the largest monthly increase of claimants in Camden for 25 years. The likelihood is that it will continue to increase for some time to come. In September last year the number of people claiming housing benefit rose sharply and has continued to increase steadily ever since. Those providing advice to people on benefit entitlement and managing debt told us about the many clients who were finding overtime and basic working hours cut back. Fortunately this borough has extensive provision to help people who are finding it harder to get work or experiencing unemployment for the first time with all the difficulties that brings. The recovery fund is enhancing that offer over the next two years when people need it most.

2.4 Our in-depth analysis and on-going monitoring have proven their worth. Not least as we are closely sighted on the indicators where change might have been expected but have not yet worsened. There has not, for instance, been an increase in council tax or business rate arrears. Serious acquisitive crime is still 26% down year-on-year, a massive reduction over the last twelve months. It may be that the crime picture in Camden will change as the recession wears on, and we with the police will continue to keep a close eye on this and deploy resources accordingly. Eligibility for free school meals is exactly where it was at this time last year (37.8%) and there has been no increase in applications to our secondary schools in 2009. The lesson for us is do not trust intuition alone and remember that what you hear in the media about the national picture may or may not apply to Camden.

3. Responding to the recession

3.1 Our approach to responding to the recession in Camden has proved to be the right one. It was clear Camden had substantial existing provision that would provide immediate help. We said we had to act based on the evidence of impact and what people needed, and that we would respond to the recession in collaboration with our partners. I know there were some councillors who drew unfavourable comparisons between Camden and other councils that quickly issued ten-point plans. Some managed 20-point plans and the Greater London Authority even managed a 57-point plan. However, we resisted the pressure to grab early headlines and quietly got on with the job. I am really pleased with the results of our extensive work with partners and engaging experts through the LSP, and our insightful consultation with local people and businesses. It has given us a sound evidence base to target support in the areas that will address real need and make the biggest difference.

3.2 The Council’s budget for 2009/11 also announced a substantial £6 million recession recovery fund. Some £4 million of that was allocated to maintaining the vital employment, business and enterprise support services following the withdrawal of London Development Agency funding. The remaining £2 million of the recovery fund is being used to implement on a time-limited basis new provision for advice services to residents, communications and other measures to support the vitality of our town centres during these difficult times, additional investment in Camden’s visitor economy and to provide a reserve for further measures as the full impact of the recession becomes more apparent. Significant progress has been made in a short time on implementing the recovery fund measures with visible results across the borough and I say more about these below.

3.3 But alongside these new measures for the next two year, we made sure the momentum has been maintained on the large number of council services that were already helping people and businesses affected by the downturn. Services such as our housing options advice to help people find a home, and the benefits service that connects residents with the financial assistance to which they are entitled. The list of services is extensive and provided much-needed immediate help to our residents and businesses.

3.4 We also looked to other opportunities, beyond our existing services and the additional measures supported by the recovery fund, where as a council we could help. For example, we moved early to participate in the Government’s mortgage rescue scheme and revised payment terms for our leaseholders to be as flexible as possible. By delivering services through the lens of the recession, we have been fleet of foot in spotting ways that we could lessen the immediate harsh impacts on hard pressed residents and businesses.

3.5 Our response to the recession was underpinned by our ongoing commitment to invest £1 billion in social and physical infrastructure for the borough. This is part of the longer term picture of ensuring that Camden is well-placed when the economy recovers. Developments such as Kentish Town Sports Centre, the new secondary school in partnership with University College London, much-needed improvements to Camden homes and public realm maintenance work will stay on track through the recession. Again, I will come back to some of these later to outline how progress is being made on each of these major commitments to invest in the borough for this and future generations.

4. Implementing the recovery fund

4.1 We have put the recovery fund to immediate good use to replace and renew the employment, business and enterprise support programmes previously funded by the London Development Agency. The allocation of £4 million over the next two years ensures that these vital services are continuing. But we are also taking the opportunity to ensure the offer is well communicated and relevant to current economic conditions.

4.2 Camden Working has been reviewed in light of changes to welfare benefits and the increase in claimants, which included people who are experiencing worklessness for the first time. Across the Council and with our partners, especially Job Centre Plus, we are joining up services better and making sure they effectively complement each other. The secured funding will enable us to build on the success of Camden’s employment programme (Camden Working and King’s Cross Construction Skills Centre) which last year helped nearly 1000 people into jobs, 700 to secure qualifications and around 2000 with advice, guidance, CV and interview skills support.

4.3 One of the biggest highlights for Councillor Marshall and me this year was opening the new King’s Cross Construction Centre in March with Lord Young, the Minister for Skills, and the Deputy Mayor for London, Richard Barnes. This new centre was the culmination of our partnership’s joint efforts within Camden and with Islington and Job Centre Plus to connect many of our disadvantaged local communities into work. By making links with local contractors, we will also be able to provide an important source of employment for younger people with lower skill levels, which is a group that may find it even harder to get work in the current economic climate.

4.4 The opening of the King’s Cross Construction Centre gives us a capacity to offer new short courses targeting priority groups and sessions to advise on self-employment in the construction sector. We are also developing a series of briefings aiming to engage local construction employers and Registered Social Landlords.

4.5 We will be able to go even further with the additional £1m European funding that has been secured by Camden and Islington to support construction training and expand local procurement opportunities for the benefit of local small businesses.

4.6 In April, we officially opened the new Camden Credit Union Plus branch, a milestone in the life of this body which provides a valuable service for local people. During a recession, many people may find it harder to pay for the things they need. Credit Unions can help people who might need a small loan to cover the cost of something going wrong, like a washing machine breaking, and who might otherwise be forced to use a loan shark.

4.7 As a council, one of the key steps we said we would do to support local businesses was to pay our bills quicker - within 10 days instead of the 30 days that had become standard practice across the public sector. We implemented this change in April and by May had achieved 79% of bills paid within 10 days. I know we can do even better and we are working hard to improve on that figure over the coming months.

4.8 This month we launched through Your Camden a new single advice number for residents seeking help in dealing with the economic downturn. From today, residents who telephone our customer service centre contact number will be signposted directly to the help they need within the statutory or voluntary sectors. Alongside this, we have agreed an advice package of around £140k with the Citizens Advice Bureau (CAB) and the Mary Ward Legal Centre. With this, the CAB will be providing outreach in new locations such as supermarkets. Mary Ward is already increasing its capacity to deal with the more complex personal debt and benefit cases that are arising.

4.9 Recessions bring challenges and difficulties, but they can create opportunities as well. We were determined through the recovery fund to respond to the difficulties, but also to create the capacity to help people and businesses in Camden make the best of opportunities as they arise. Hence we are putting significant support into four strategic areas: high street support, new communications around offer to business, unlocking business space for new entrepreneurs and improving Camden’s visitor offer. And in the next two years, we will use the recovery fund to strengthen and ensure the sustainability of Camden’s creative industries into the future.

4.10 As a first step, over the last few days we have been launching our 'love your local high street' campaign to highlight what a unique and varied mix of shops, cafés and arts venues we have on our high streets. You may well have started to see lamp post banners and bus stop posters appearing across the borough. Businesses have told us that they would like more support with marketing, so I was pleased to see how generally supportive traders have been as we have moved around the borough launching the campaign to the press. We even had some celebrity support in the form of Alexei Sayle, who dropped in to lend his support and get a quick hair cut on Marchmont Street last Friday. So far we have had a positive reception from the press, with ITV London Tonight suggesting that the campaign could be a model for the rest of London.

4.11 ‘Love your local high street’ is the start of a sustained campaign to help local businesses lead us out of the recession and later in the year we will be developing the campaign further by producing a Love Camden guide which will highlight what a lot the borough has to offer. The guide will be distributed to every home in the borough as well as to tourist destinations across London. Camden has so many unique and vibrant shops, restaurants and places to visit; this campaign shines a spotlight and encourages residents, their friends, families and visitors to shop and spend their leisure time in our borough.

4.12 If you have not already, I would encourage you to visit one of the new ‘pop-up’ shops that the Council is supporting, an idea that was first raised at the LSP recession seminar in January. By opening up 'pop up shops' we are improving the shopping environment on our high streets and combating the negative impression created by boarded up shops. We are also opening up new space for entrepreneurs. In June, a pilot site has already opened in Chalk Farm Road and another will open this week at a property owned by the Council at 46 Camden Road. Some £10k has already been provided to Camden Town Unlimited (CTU) as a joint undertaking with the Council to establish these pilots alongside CTU’s own resources. The next rollout is planned for Camden’s other major commercial centre in Kilburn High Road. We have had very positive discussions with local businesses and artists in the area.. Kentish Town is next in our sights.

4.13 The Council has joined forces with some other central London boroughs as part of Visit London’s ‘Only in London’ marketing campaign, which will stress the unique and quirky aspects of Camden. I joined Mayor Boris Johnson in March to launch the campaign, to which we are contributing £100k. The campaign is now running in the USA, Europe and the UK and, although few councillors will have had time to watch television recently, you may have caught some of the fruits of this investment on television broadcast from the USA in recent weeks.

4.14 Over the coming months, we will deliver the first phase of the new town centre offer that will bring together work on empty shop space, promotion of the potential of the visitor economy and a targeted approach to town centre management. A new team has been established within the Council to enable us to roll out the co-ordinated offer to the borough’s six designated centres.

4.15 In a few short months we have already made significant progress in putting the recovery fund resources to effective use – new public campaigns that small businesses in Camden told us they needed, advice services that residents and the voluntary and community sector have told us is vital at this time and we have mobilised practical support to keep our high streets as a vibrant part of London as a world city.

4.16 There is however a longer term job that the recovery fund is there to do. We have set aside this investment over a two year period to ensure that we could maintain our targeted approach during the lifespan of the recession and, if economic predictions are correct, as the economy begins to recover. The element of the recovery fund kept in reserve is thus a vital component that will enable us to respond to additional impacts as they become apparent. With our partners, we will continue to keep track of these impacts and manage the allocation of the fund to meet those emerging needs and opportunities.

5. Preparing for recovery

5.1 As the economy of the country recovers, we have put in place programmes to enable Camden to emerge with an even stronger social and environmental infrastructure. We are continuing to invest in improvements for the borough through the economic downturn.

5.2 The scale of work now taking place to bring Camden’s council homes up to a decent homes standard is truly staggering. Through the Investing in Camden’s homes strategy some £413m is being invested over five years in major capital repairs and improvements. Already by April, we had completed works to 300 homes and we are now working in over 350 homes every day. In total, by March 2011, we will have made real improvements to 8,000 homes that translates into real improvements in the quality of life for Camden families.

5.3 Our Building Schools for the Future programme, which will provide a much needed new secondary school for the borough, is gathering pace. The Executive approved the outline business case late last year, and the judicial ruling in our favour means that work can now begin on implementing the programme. Alongside this, our primary schools will be upgraded and refurbished over the next two years, following the unconditional approval of Camden’s Primary Strategy for Change by the Department for Children Schools and Families. We are now working closely with individual schools to identify the improvements required.

5.4 Few spectators of the on-going refurbishment of the Kentish Town Sports Centre could fail to be impressed by the breathtaking rebirth of this iconic building and what will be a new modern sports facility Due for completion in autumn 2010, this development has consistently been on time and is providing fantastic value for taxpayers’ money. When the full transformation is complete, we will have a first-class leisure facility with lasting benefits for generations to come.

5.5 Of course, this is not the only transformation taking place in the borough. In March the future of the huge King’s Cross regeneration project was secured after the developers committed £150m to complete the first phase of the development and a £100m contract was signed to build the new University of the Arts campus. King’s Cross Central will bring thousands of job opportunities for Camden residents as companies like Sainsbury’s move in. Thanks to the deal struck by the Council with developers, there will be other benefits for local people including nearly 300 affordable homes and an innovative combined heat and power plant for the site and nearby housing estates. This, and developments such as the new high speed rail connection to Kent, expected to open later this year, will place the borough at the gateway to the Olympic Games 2012.

5.6 There are some who would argue that the first and biggest victim of the credit crunch was the environment. But I believe that we can take the green road out of recession. This partnership administration is investing in long-lasting environmental improvements to the borough. Last autumn, with the LSP’s active involvement, we launched the Camden Climate Change Alliance, supporting organisations in Camden to achieve our ambitious target of 10% reduction in borough-wide CO2 emissions by 2012. It is now approaching 40 members, including some of the biggest employers in the borough. I recently opened a debate hosted by the Climate Change Alliance on whether the economic situation was dampening corporate enthusiasm for environmental investment. It was heartening to see that the commitment to sustainability is unabated, and if anything is gaining momentum as the economic case becomes widely recognised.

5.7 On this agenda, the partnership administration has ensured that we lead by example. We have continued our successful revolving energy fund, which reinvests savings from energy efficiency steps. Likewise, our significant investment in cavity wall insulation for Camden’s social and private houses is simultaneously helping the environment and combating fuel poverty.

5.8 Despite the recession, our residents will see tangible improvements in the public realm across the borough. Camden secured nearly £2.7m of new funding as a play pathfinder to create 28 new play areas and a new adventure playground for eight to 13 year olds in deprived areas. These new play facilities are improving public space for all, but particularly Camden’s children and young people with better opportunities to have fun, get healthy, learn and develop. And when they are not on the new climbing frames or swings, our young people and their families can take advantage of the extended opening hours at all Camden libraries

5.9 Whether it is responding to the recession or addressing challenges such as transport and housing, I am very conscious that Camden must also work collaboratively with regional partners. Since London’s Mayor took office last year, I have met personally with him and his senior advisers on numerous occasions. We are already seeing results from our positive approach, with promises of additional regional investment into the regeneration of our estates. Working with a new Mayor, Camden is leading the way in developing a new cycle hire scheme for London. By next year, we should see this implemented across Zone 1.

5.10 The work of the Interim Committee for the Establishment of a Camden Central Mosque and Communities' Centre concluded in March of this year. A new permanent management committee is currently being established. The committee will be working to set up the mosque and community centre as a charitable organisation as well as raising funds for the project and looking for a suitable site within the borough. Ultimate success will depend as much on the Muslim communities in Camden continuing to work closely together, as on the openness the new organisation demonstrates towards all groups in our borough. The Council is continuing to work with the new committee on this community-led project and looks forward to engaging further on the search for suitable land, and to seeing substantial progress on fundraising over the coming 12 months.

5.11 No doubt many councillors will have read the recent national coverage by The Independent newspaper of the alleged harassment of six young British Muslim men of Somali origin. Last month, I chaired a special meeting of Camden’s Social Cohesion Forum to discuss our serious concerns that the Security Service is using coercive techniques in an attempt to elicit information from young men in Camden and that this has a detrimental impact on cohesion in the borough. We have expressed these concerns in a letter to the Home Secretary. While the SCF recognises the difficulty in balancing effective security work and efforts to maintain resilient communities, we believe the two must go together. Strong communities with high levels of mutual trust offer the best chance of longer term safety.

5.12 As part of the recent review of area forums we asked ward members and our residents what improvements they wanted to see in the future. As a result we will now begin to see some important changes. We are changing the way we communicate with residents about the forums, moving towards more informal, accessible leaflets and doing away with detailed meeting notes and action plans. This will also help to ensure that the meetings are more streamlined and less bureaucratic. We also want to give residents a more direct influence over the decisions we make. As well as ensuring that the forums are given opportunities to feed into local consultations, each ward will be allocated £10K so that residents can help us decide on some public realm improvements they would like to see made in their local area. I am particularly grateful to the Executive Member for Environment for his enthusiasm and support for this new initiative.

5.13 Later tonight, councillors will be considering proposals for new governance arrangements in the borough, and in particular the executive arrangements to be in place following next May’s local elections. I want to warmly thank the cross-party members of the working group that shaped these recommendations, Cllr Martin Davies, Cllr Theo Blackwell and Cllr Maya de Souza. There was a strong consensus across the group, supported by consultation with residents and stakeholders, about the best ways to facilitate local decision-making in the borough.

5.14 Several weeks ago, we held a high-level meeting with senior post office officials at Camden Town post office to discuss our concerns about the standard of customer service at that branch and to press for a flexible compromise on the proposed closure of the Albany Street post office. I am pleased to be able to confirm that following those discussions, the post office has undertaken negotiations to find a long term solution to enable postal services to be delivered in the area for local residents and businesses. In addition, following our pressure, Post Office Ltd will be introducing this month new measures to improve customer services in Camden Town.

5.15 At the beginning of this statement, I reminded council just how ambitious this partnership administration has been, both in terms of vision and delivery. There is probably no better illustration of this than the complex and forward-thinking property strategy programme we are pursuing which will ensure we have a property portfolio fit for the 21st century whist generating significant savings. A cornerstone of this strategy is the sale of the Town Hall Annexe, currently facing a repair bill of some £15m. This building is reaching the end of its useful life and it gives us an exciting opportunity to look imaginatively for better options for the site.

6. Conclusion

6.1 Councillors of all parties will be able to raise questions at full council tonight on the points made in this statement. And continuing the practice began two years ago, the Joint Chairs of Scrutiny Committee will meet with Cllr Marshall and me on 7 July when we can have a political discussion about the issues raised in this annual statement. We look forward to this further constructive discussion.

6.2 We began this annual statement by reaffirming the vision and ambitions this partnership administration holds for making Camden an even greater borough of opportunity for all. Much has been achieved; but there is more to do, reflected in our longer term plans for strengthening the social infrastructure that the borough enjoys. The current recession and the likely constraints on the public purse do not lessen our ambitions for the people who live, work and visit our borough. The challenge becomes greater, as does the need to ensure we remain firmly fixed on our strategic priorities.

Councillor Keith Moffitt
Leader of the Council

Councillor Andrew Marshall
Deputy Leader of the Council