The Economy, Culture and Skills Committee convened to discuss the economic future of Oxford Street and the implications of its planned pedestrianisation. Key concerns raised included the potential for traffic displacement, accessibility for disabled individuals, and the impact on businesses, particularly smaller enterprises. The committee also reviewed the Mayor's London Growth Plan, focusing on adult education, skills development, and strategies to foster high-growth small and medium-sized enterprises (SMEs).

The committee heard extensive discussion regarding the pedestrianisation of Oxford Street, with significant debate surrounding its potential benefits and drawbacks. Concerns were raised about traffic displacement, accessibility for disabled individuals, and the impact on businesses, particularly smaller enterprises. The committee also examined the Mayor's London Growth Plan, with a focus on adult education, skills development, and strategies to support high-growth SMEs. The effectiveness of current funding mechanisms for carer support services and the need for better identification of unpaid carers were also key topics.

The Economy of Oxford Street

The committee engaged in a detailed discussion about the planned pedestrianisation of Oxford Street, which is set to be implemented by the end of August 2026. While the pedestrianisation aims to enhance the street's appeal and economic vitality, significant concerns were raised by various stakeholders.

Traffic Displacement and Accessibility: A primary concern was the potential for traffic displacement, with Assembly Member Alex Wilson questioning how buses and taxis would navigate the city if Oxford Street were closed to them. Assembly Member Zack Polanski echoed these concerns, highlighting the potential impact on accessibility for disabled Londoners, particularly in light of the distance between Oxford Circus station and the Elizabeth Line. Tim Lord, representing the Westminster Amenity Societies Forum, expressed worries about the total confusion surrounding the project's aims, questioning whether it sought to create a plaza or an activated space, and highlighting the potential for increased congestion in surrounding areas.

Impact on Businesses and Economic Viability: Dee Corsi, Chief Executive Officer of New West End Company, acknowledged that while footfall and dwell time are increasing, Oxford Street is still underperforming economically, with spend still down year-on-year. She stressed the need for a diversified offer beyond retail, including hospitality and leisure, to keep people engaged for longer. Alan Simpson, Chief Executive Officer of UK Hospitality, questioned the £144 million budget allocated for the project, suggesting it was insufficient for a street of Oxford Street's length without significant private sector investment. He also raised concerns about the potential for Oxford Street to become a generic shopping mall, losing its unique character.

Licensing and Strategic Approach: The discussion touched upon the proposed strategic licensing pilot, with concerns raised about the potential for the Mayor to gain greater control over licensing decisions, potentially overriding local democratic processes. Tim Lord argued that alcohol licensing is inherently a local issue and expressed worry about the Mayor's proposed powers. Kay Buxton, Chief Executive of March Arch Business Improvement District, highlighted the need for clarity and consistency in licensing, particularly for hot food establishments and delivery services.

Accessibility and Co-production: A significant portion of the discussion focused on accessibility for disabled Londoners. Assembly Member Zack Polanski stressed the importance of co-production with disabled groups, rather than mere engagement, to ensure their needs are met. Marcus, representing a business improvement district, agreed, highlighting the current difficulties for wheelchair users and those with visual impairments on Oxford Street, especially during peak times. He advocated for better placemaking to ensure sufficient places to dwell and rest.

Funding and Investment: The £144 million budget for the Oxford Street redevelopment was a recurring point of discussion. Dee Corsi acknowledged that while private sector investment is crucial, she was not aware of any businesses that had yet committed substantial sums. Alan Simpson questioned the sufficiency of the budget and the reliance on private sector funding, suggesting that the GLA's record in delivering return on investment from public funds was not always strong.

International Comparisons and Lessons Learned: The committee examined international examples of pedestrianisation projects, with Katie Mulkowsky referencing Paris and Barcelona's wider urban strategies and New York's pedestrianisation of Times Square. While acknowledging the potential benefits, she cautioned that local relevance must be considered, as Times Square's pedestrianisation did not necessarily make it a more relevant public space for everyday New Yorkers. Tim Lord also pointed to the pedestrianisation of Old Compton Street in Soho in 2000, which had to be unpicked by Westminster City Council six months later due to unforeseen crime issues.

London Growth Plan and Skills Development

The committee also reviewed the Mayor's London Growth Plan (LGP), focusing on adult education, skills, and support for SMEs.

Adult Education and Skills: Howard Dawber OBE, Deputy Mayor for Business and Growth, explained that the LGP is a delivery vehicle for the Mayor's Mandates, aiming to provide more detailed plans for economic growth and skills development. He highlighted ongoing discussions with the Government regarding the devolution of adult education funding, with a desire for greater mayoral control over commissioning to better meet employer needs. Ann-Marie Soyinka, Assistant Director of Skills and Employment Policy at the GLA, detailed the establishment of sector talent boards to identify skills gaps and shape commissioning priorities. The committee discussed the importance of data sharing, particularly with the Department for Work and Pensions, to track the outcomes of skills programmes.

Support for SMEs and High-Growth Businesses: The committee heard about Funding London, a GLA-managed company that has invested over £90 million in SMEs, leveraging a further £1 billion in investments. Alex Conway, Assistant Director of Economic Development and Programmes at the GLA, highlighted Funding London's success in supporting over 800 SMEs, including two unicorns, and its track record in assisting diverse founders. However, concerns were raised by Assembly Member Neil Garratt about the diminishing availability of scale-up funding, with potential investors being drawn to the US. Howard Dawber OBE acknowledged this challenge, noting that while London remains a strong global hub for startups, attracting later-stage funding remains a key focus. The committee discussed the impact of national tax policies, such as changes to Venture Capital Trust (VCT) and Business Property Relief, on investment in London's high-growth businesses.

AI and Quantum Technology: The committee was briefed on the Mayor's new AI and Jobs Taskforce, which has been allocated £20 million to address the medium-term impacts of AI on the workforce and support transitions to new roles. Howard Dawber OBE stated that the taskforce will comprise experts from various sectors and will focus on identifying impacted sectors and providing training interventions. The committee also heard about the London Quantum Technology Cluster, a partnership between UCL, King's College London, and Imperial College London, which has received £500,000 in UK Shared Prosperity Funding. Alex Conway detailed the cluster's progress in supporting enterprises and entrepreneurs, and its bid for further funding from the UKRI London Innovation Partnerships Fund.

Unpaid Carers: The committee received a report on the challenges faced by unpaid carers in London. Key issues identified included financial hardship due to the cost of living and insufficient Carer's Allowance, difficulties in identifying carers, and inconsistencies in support provision across boroughs. Recommendations were made for the Mayor to assess transport concessions for carers, for the Government to reform Carer's Allowance, and for the GLA to establish a unified protocol for carer identification and encourage schools to join the Young Carers in Schools programme. The committee also recommended that the Government provide ring-fenced, multi-year funding for carer support services and that the GLA become a member of Employers for Carers to achieve Carer Confident accreditation. Finally, the Mayor was urged to consult on strengthening the Good Work Standard to include better provision for carers.

The meeting concluded with the committee noting the reports and delegating authority to the Chair to agree any outputs from the discussions. The work programme and the date of the next meeting were also confirmed.