Croydon is no longer ‘London’s back office’

Date: 07/03/2011

In a report published today, urban research institute Centre for Cities recommends that retaining and growing Croydon’s existing private sector employers is necessary to maintain the borough’s economic health through a period of national shrinkage in the public sector.  To do this, the council should further develop Purley Way and respond to the needs of employers in the town centre.

Centre for Cities was asked by Croydon Council to examine Croydon’s changing economic role in the South East.  The independent report, Linked In: Realising Croydon’s potential now, shows that Croydon is no longer just ‘London’s back office’.  It is both a well-connected residential location for London employees and an important business centre within the wider South East.  The report advises Croydon to:

•    Strengthen its’ private sector economy by reducing barriers to growth in the two main employment centres (Purley Way and the town centre);
•    Deliver a number of short term and low cost improvements to enhance the public realm, safety and quality of office stock to make Croydon a more attractive place to do business and live.

Since the 1960s, Croydon has been home to many large private sector employers which relocated from inner London for more competitive rents and employment.  However, between 1998 and 2008, Croydon lost 10,500 private sector jobs while the number of public sector jobs increased by 14,000.  In common with elsewhere in the UK, the impact of public sector job cuts is due to take effect soon (Croydon is expected to lose up to 2,000 public sector jobs). Today’s report suggests ways for the council to work with its local business community to retain jobs and support jobs growth.  

Alexandra Jones, Chief Executive of Centre for Cities said, “Our report shows how important it will be for Croydon to nurture and support its current private sector businesses.  Ninety per cent of Croydon’s businesses are small to medium sized organisations employing 50 people or less – these businesses are important for Croydon’s future.  With public sector job cuts due to begin this year, Croydon should support its existing private sector businesses to enable them to grow.

“Working with organisations like Develop Croydon, South London Business and the local Chamber of Commerce will ensure that the council is responding to the needs of the local business community.”

The report also shows how the surge of private and public sector relocations in the 1960s and 1970s means that the borough has a large stock of office space, much of which is now dated and vacant.    The recession and the forthcoming public sector job losses mean that filling vacant office space is an unrealistic aim, especially as nearly half (45%) of Croydon’s stock was constructed between 1940 and 1970 and is in need of renovation.  

Centre for Cities believes that the council should introduce immediate, short term measures to make Croydon a nicer place to live and work, as part of the wider economic strategy for business retention.  

Alexandra Jones continued: “Croydon Council can work with limited funds to make the area more attractive for its private sector employers and its residents.  Making sure workers feel safe by having good lighting and adequate parking for female employees is one way to improve business confidence in the area.  Investing in other short term measures, such as painting buildings, would also make the area more attractive for those working and shopping in the town.”

In the medium term Croydon Council should focus on removing barriers to further employment growth at Purley Way, particularly for bulky goods, megastores and DIY stores. This will help to ensure that Croydon Town Centre and Purley Way are complementing rather than competing with each other.

Councillor Simon Hoar, Croydon Council’s cabinet member for regeneration and economic development, said: “Croydon is absolutely committed to economic growth, both by stimulating enterprise inside the borough and attracting investment from elsewhere.

“With public sector job cuts inevitable over the next three years we need to pursue a dual strategy of private sector growth and public sector relocation. This report from Centre for Cities makes sense and provides a platform on which we can build.”

Centre for Cities Report, Linked In: Realising Croydon’s potential now, is available online at www.centreforcities.org/croydon

Ends

For further information please contact:
Rachel Tooby at Centre for Cities, 020 7803 4316, r.tooby@centreforcities.org
Danny J Brierly at Croydon Council, 020 8760 5644, danny.j.brierly@croydon.gov.uk

Notes to editors

The Centre for Cities is an independent, non-partisan research and policy institute. Committed to helping Britain's cities improve their economic performance, the Centre produces practical research and policy advice for city leaders, Whitehall and employers.

Croydon is a Partner City in the Centre for Cities research programme.  The programme works closely with a small group of cities, including Sheffield, Derby and Preston.  The Centre for Cities works with these cities to inform their economic development strategies and improve economic performance.

The following table shows the estimated public sector job losses in Croydon:

Source: Own calculations with data from ONS 2010, Civil Service Employment, Q1 2010 data; NOMIS 2010, Annual Business Inquiry, employee analysis, 2008 data; LGA 2010, Quarterly Public Sector Employment Survey, Q1 2010 data; HM Treasury 2010, Comprehensive Spending Review.
Note: This table excludes cuts to civil service employers with less than 100 employees.
* Overall job losses are estimated at 2,000, due to small increases in employment at Jobcentre Plus and in the education sector.