dqwdw
www.islington.gov.uk
Islington Local Economic
Assessment
Working Towards a Fairer Islington
2011
SUMMARY VERSION
Contents
Page
Chapter 1 - Introduction
3
Chapter 2 – Economic Context
4
Chapter 3 - Business and Enterprise
6
Section 1 - Structure of the Local Economy
6
Section 2 - Business Needs
8
Section 3 – Land and Buildings
10
Chapter 4 – People, Communities and Labour Market
11
Section 1 – Population – ‘Two Islingtons’
11
Section 2 - Labour Market and Worklessness
13
Section 3 – Skills and Educational Attainment
15
Chapter 5 – Sustainable Economic Growth
16
Section 1 - Economy and Environment
16
Section 2 – Transport Provision and Other Infrastructure
17
Section 3 - Housing
19
Section 4 – Crime
21
Chapter 6 –Competitiveness & Future Prospects
22
Chapter 1 – Introduction
What is the Purpose of the Local Economic Assessment?
Islington’s dynamic and diverse economy provides a vital function within the borough,
and has far reaching connections within London and beyond. Understanding the
structure of the economy and recent trends helps to determine what measures can
be taken to support business and how a successful economy can benefit residents
and the borough as a whole. To date there has been relatively little of this kind of
analysis. The Islington Local Economic Assessment (LEA) seeks to fill that gap.
Despite rises in real incomes arising from economic growth, the UK has become a
more unequal society with a range of damaging consequences 1 . These have been
as apparent in Islington as much as anywhere. In understanding how best to promote
economic growth, it is also important to determine how this can lead to a more
prosperous and fairer borough. The local economy is however intertwined with
broader economic structural conditions, many of which are beyond the control of the
Council and its partners, although it may be possible to influence certain issues
through engagement on a London-wide and national level. Within this context the key
objectives for the LEA are to:
 Review the characteristics and factors affecting Islington’s economy.
 Identify the comparative strengths and weaknesses of the local economy and
the nature of local economic challenges and opportunities.
 Identify the prospects and risks to delivering sustainable economic growth
and a fairer Islington.
 Help to inform the actions necessary to achieve the objectives of the Council
and its partners.
The LEA will help to ensure that policy making is based around a shared
understanding of local economic challenges, which is particularly important at this
time of public sector funding cuts. The LEA supplements the work of the Islington
Fairness Commission and the conclusions set out in its Final Report. The LEA will
enable the Council to better understand the implications of new government
proposals such as Business Rate Retention and changes to national planning policy.
How has the LEA come about?
The Local Democracy, Economic Development and Construction Act 2009 sets out a
duty on Local Authorities to carry out a Local Economic Assessment. Central London
Forward (CLF) have produced an assessment of the Central London Economy which
will inform further versions of the London Plan and the Mayor of London’s strategies
for Economic Development and Transport. The Islington LEA builds on this providing
a more detailed assessment of the local economy.
How has the LEA been developed?
The LEA has been developed by an inter-disciplinary Working Group and has been
overseen by the Council’s Corporate Regeneration Board. It has also been informed
by discussions with a range of groups including the Islington Strategic Partnership
Social and Wellbeing Sub-Group and Islington Business Board and draws from the
results of the Islington Business Survey 2010. The LEA brings together and updates
existing economic evidence combined with analysis of new information and data,
much of which is available at: http://www.islington.gov.uk/Community/councilabout/
1
Wilkinson R and Pickett K, The Spirit Level, Why Equality is Better for Everyone, 2009
3
Chapter 2 – Economic Context
Introduction
 Islington is located in the heart of London the dominant driver in the UK economy
and a key centre of global economic activity. Central London is the largest and
most productive centre of employment in Britain. The borough is adjacent to the
City of London to the south, and has important connections with neighbouring
boroughs Camden to the west, Haringey to the north and Hackney to the east
where there are a number of significant development sites.
Key Findings
 The borough’s location and its good transport links has made it an attractive
location for businesses which have good access to suppliers, customers and a
large labour market to draw from.
 The south part of the borough forms part of London’s Central Activities Zone, the
city’s geographic, economic and administrative core. This area of Islington
includes the greatest concentration of employment uses, with some firms
providing a supporting role for the Central London economy.
 The borough’s arterial routes, notably the A1 (Upper Street/ Holloway Road) and
Pentonville Road/ City Road and Seven Sisters Road are also focal points for
economic activity.
 Islington’s town centres at Angel, Nags Head and Archway provide key shopping
areas for the borough, although parts of Islington also fall within catchment areas
of town centres in neighbouring boroughs.
 The borough will be affected by the redevelopment the Kings Cross Central site,
as well as a range of other proposals, including those at Bishopsgate Goods
Yard, the Olympic site/ Stratford City and Cricklewood/Brent Cross.
Conclusions
 Islington’s connections with the rest of London and beyond mean that its
fortunes are closely tied with the London economy and wider markets. Overall
prospects for Central London appear good as its specialisms range across the
growth sectors of the global economy.
 Islington is working with neighbouring authorities to support economic growth at
Finsbury Park and the Seven Sisters Corridor, Archway, Kings Cross,
Farringdon and Old Street, as well as developing stronger links with Dalston.
 The Council can play a role in working with other boroughs and developers to
maximise opportunities for businesses and residents from significant new
developments within and outside the borough, as well as taking steps to ensure
that Islington remains an attractive location for investment.
Further Information
 Mayor of London’s Economic Development Strategy and Evidence Base 2010
http://www.lda.gov.uk/publications-and-media/publications/eds.aspx
 London Plan Review Draft Consultation Plan (2009)
http://www.london.gov.uk/shaping-london/london-plan/
 Central London Economic Assessment 2010, Central London Forward
http://www.centrallondonforward.gov.uk/work-programme/economy/lea/
 North London Development and Investment Framework 2010
http://www.lda.gov.uk/projects/north-london/index.aspx
4
Economic Context Plan
Source: London Borough of Islington, Spatial Planning and Transport 2011
5
Chapter 3 – Business and Enterprise
Section 1 - Structure of Local Economy
Introduction
 Islington’s dynamic economy provides a vital function within and beyond the
borough. Businesses provide goods and services, employment and trade and
form an inherent part of the character of the area. It is important to understand
the structure of the economy, recent trends and how this compares with other
areas to determine what measures can be taken to support business and how a
successful economy can benefit the local area.
Key Findings
 Islington is home to over 10,000 businesses, most of which have fewer than 20
employees. The number of businesses in Islington has remained broadly similar
over the last 5 years but with slight fluctuations in the intervening period.
 The number of employee jobs located in businesses in Islington has continually
increased over the last 10 years. Data shows that there were 161,000 jobs in
Islington in April 2008 which has increased to 176,117 in April 2010. It is
estimated that approximately 30% of jobs are held by Islington residents.
 VAT data shows that Islington has a relatively stable number of businesses but
has a higher ‘churn rate’ than England and the UK.
 Islington has been gradually losing its share of businesses when compared to
other geographical areas over the last 10 years. Whilst Inner London and
London have been losing share as well over this period, Islington has been losing
share of businesses at a faster rate. The share of employees has however
increased, albeit marginally.
Islington has the highest proportion of employment in knowledge driven sectors
of Central London boroughs and has seen the greatest growth in this area
increasing from 41% of total employment in 1998 to 54% in 2008 2 .





The top five sectors in Islington (in terms of number of employee jobs) are:
-Real estate, renting and business activities
-Financial intermediation
-Health and social work
-Manufacturing (including publishing and printing)
-Wholesale and retail trade
Some sectors (construction, hotels and restaurants, community and social care)
make up a higher proportion of enterprises but a smaller number of employee
jobs. Other sectors (financial intermediation, real estate renting and business
activities, health and social work) make up a smaller proportion of enterprises but
provide a larger number of jobs.
Islington has a higher proportion of jobs in real estate, renting & business
activities and financial intermediation than England, London and Inner London.
Islington has a lower proportion of jobs in construction, other community & social
care and hotels & restaurants than England, London and Inner London.
The borough has a thriving creative sector which has grown by 47% since 1999.
2
Knowledge-based services (telecommunications, computing, research and development,
finance and business services, and recreational and cultural services) are particularly
significant in Islington. The knowledge based sector cuts across the Standard Industrial
Classifications used by government – see next bullet point.
6
Sectors in Islington and Share of Business and Jobs
Sector
Construction
Education
Financial intermediation
Health and social work
Hotels and restaurants
Manufacturing
Other community, social &
personal service activities
Public administration and
defence; compulsory social
security
Real estate, renting and
business activities
Transport, storage and
communication
Wholesale and retail trade;
repair of motor vehicles,
motorcycles and personal and
household goods
Other - agriculture, fishing,
electricity supply
% of
enterprises
4.82%
3.25%
2.54%
8.76%
10.25%
8.34%
% of
employees
1.36%
6.61%
12.13%
11.25%
5.69%
9.44%
enterprises
rank
7
9
10
4
3
5
employees
rank
11
6
2
3
8
4
12.87%
6.53%
2
7
0.55%
3.50%
12
10
28.01%
29.64%
1
1
4.48%
5.15%
8
9
14.95%
8.44%
6
5
1.17%
0.26%
11
12
Source: Beta Model April 2010


A number of major charities and voluntary organisations are located in Islington.
Employment in this sector has increased by 41% since 2003 to approximately
9000 people.
Islington is home to three designated town centres, Angel, Archway and Nag’s
Head. These make up the bulk of Islington’s shopping and retail offer and
represent 9.6% of Islington’s businesses and 9.1% of Islington’s employee jobs.
The number of businesses in town centres peaked in 2005, although the number
of employees has increased by 34% since 2003.
Conclusions
 Islington’s economy remains buoyant with continued employment growth, albeit
the number of businesses in Islington has been relatively stable in recent years.
 Islington has a particularly high proportion of jobs in knowledge based services
such as business and financial services, which largely, although not entirely,
require high levels of skills and qualifications.
 Health and social work, manufacturing (including publishing and printing) and
wholesale and retail also remain significant sources of employment, although with
the exception of retail, each of these sectors is predicted to decline within London
over the next twenty years.
 The Council and its partners can play an important role in supporting business
growth which will be particularly important in light of the government’s proposals
for Business Rate Retention.
 Growth is predicted in the services, hotel, restaurant and retail sectors across
London which should be considered as a focus for training and support.
Further Information
 Nomis Official Labour Market Statistics - Islington
https://www.nomisweb.co.uk/reports/lmp/la/2038431865/report.aspx
 Borough Statistics – Economy and Employment
http://www.islington.gov.uk/Council/councilabout/economyandemployment.asp
7
Chapter 3, Section 2 - Business Needs
Introduction
 This review of business needs in Islington is based on the results of the Islington
Business Survey 2010 which drew 563 responses from businesses across the
borough. This section also reviews business support services provided by the
Council.
Key Findings
 Three quarters (76%) of businesses were very or fairly satisfied with Islington as
a place to do business and only 7% were dissatisfied with the area.
 The top three positive qualities of the area for businesses were its central
location, access to transport routes and proximity to customers.
“Islington is a vibrant progressive area with some positive changes taking place
which hopefully with attract different types of businesses to make it a more
diverse area.”
Source: Comment from a small business - Islington Business Survey 2010





When asked to describe current challenges or problems that businesses may be
facing parking was the most frequently occurring response.
More affordable premises, less Council ‘red tape’ and more business support and
advice were mentioned as issues that would most improve business.
Most businesses (60%) did not identify any skills gap in their current workforce.
The most commonly mentioned skills gaps were advanced IT and software skills
(12%), customer service skills (12%), communication skills (11%) and strategic
management skills (11%) and foreign language skills (9%).
Approximately 60% of recruiting businesses identified skills gaps in applicants.
Candidates most commonly lacked communication and customer service skills.
A third of businesses said they would consider taking on an apprentice/trainee
(35%) or offer work experience to school students (34%).
A quarter of businesses are likely to increase staffing levels in the coming 12
months compared to only one in ten that say staffing levels are likely to reduce.
Hard to recruit occupations referred to by businesses who experienced
recruitment difficulties in the previous 12 Months
Managers and Senior
officials
40%
Professional and technical
Other
30%
occupations
20%
Process, plant and
machine operatives
10%
0%
Sales and customer
service positions
Administrative and
secretarial positions
Professional and technical
occupations
Personal service
occupations
Skilled trades occupations
Source: Islington Business Survey, 2010
8



Over the past 12 months almost three fifths (58%) of businesses had tried to
recruit staff. Even amongst the smallest sized businesses nearly two in five (38%)
had tried to recruit, rising to 100% of the largest businesses.
Of those businesses that reported difficulties in recruitment – 130 in total – the
occupation most commonly reported as hard to recruit was sales and customer
service positions, followed by professional and technical occupations, managers
and senior officials and administrative and secretarial positions.
Analysis of vacancies advertised through Job Centre Plus over the last year
shows that the occupational groups most in demand were elementary
occupations (20%), sales and customer services (19%), professional and
technical occupations (16%) and skilled trades (12%).
Conclusions
 The survey indicates that most local businesses find Islington a good place to do
business. The central location, access to transport and good local amenities were
the most commonly mentioned positive features of the locality. Small businesses
in particular mentioned parking as a local issue, and the high cost of premises
and business rates are a problem for some.
 Generally local businesses can find suitably skilled labour and do not experience
significant difficulties in recruiting staff. Communication skills and customer
service skills are the most commonly identified skills gap amongst existing staff
and applicants. The hardest occupation to recruit was sales and customer service
positions. With appropriate training, these sectors may present opportunities for
employment for local people.
 More than half the local businesses would consider trainee or apprenticeship,
work experience or other developmental opportunities for young people. This is
an opportunity that the council is following up.
 Islington currently provides a range of support for businesses including town
centre management and it operates the Islington Business Partnership to enable
business needs to be heard. More affordable premises and less ‘red tape’ were
seen as key interventions that could help businesses to be more successful.
An Apprentice and Contractor at work
Further Information
 Islington Business Needs Survey – Summary of Results October 2010
http://www.islington.gov.uk/Community/councilabout/economyandemployment.asp
9
Chapter 3, Section 3 – Land and Buildings
Introduction
 The availability and suitability of employment land and business premises is an
important factor determining the success of the local economy. Despite the
downturn caused by the recent recession, the number of people working in
Islington is expected to continue to increase over the next 20 years, creating a
need for sufficient employment land to accommodate this.
Key findings
 Additional employment is likely to be concentrated in service sectors, with modest
or negative growth in Islington’s more traditional industries.
 Despite strong demand, employment land has been lost to residential uses in
recent years, reflecting the high commercial value attached to residential
development and intensification of employment activity.
 Past trends have impacted on certain sectors, as well as smaller firms, by
reducing the supply of lower-cost, more affordable workspaces available locally.
 The availability of more affordable premises was the most commonly raised factor
(42% of businesses) by businesses within the Islington Business Survey 2010
that would make them more successful.
 The government are consulting on proposals to allow conversion of business
premises to residential uses without needing planning permission. This has
raised significant concerns for a range of reasons including the reduction in the
supply of affordable business premises that is likely to occur.
How to make business in Islington more successful - Opinion
“Build more business premises (and) affordable office premises. Encourage more
people to work from home without having to pay any business rates as cashflow
might be difficult.”
Source: Comment from a small business, Business Needs Survey 2010
Conclusions
 In order to address these issues, the council should support economic
development by ensuring that a range of types and sizes of employment spaces
are provided to meet future demand, allowing the redevelopment and expansion
of employment land.
 The Council will achieve this through its Core Strategy policies which will be used
to support the creation of a strong and diverse local economy which provides
range of employment opportunities for residents. The council could also
proactively address gaps in the market for particular types of workspace by
working with the third sector and existing providers of affordable workspace.
 The types of workspaces that the council could support the delivery of include:
- Industrial units
- Workspaces for small and micro enterprises
- Studios and workshops for light manufacturing and cultural sectors, and
- Incubator units for knowledge based firms in specialist clusters.
Further Information
 Islington Core Strategy 2011
http://www.islington.gov.uk/Environment/Planning/planningpol/local_dev_frame/p
ol_corestrat/default.asp
10
Chapter 4 – People, Communities and
Labour Market
Section 1 – Population – Two Islingtons
Introduction
The characteristics of Islington’s population influences a number of factors that are
considered within this LEA, such as local custom for businesses, the nature of its
workforce, the extent of worklessness, and pressures placed on infrastructure and
other resources. Islington’s population displays extreme economic and social
polarisation, to the extent that it is said that there are “two Islingtons”.
Demographics
 Islington has the second highest population density in the country with a
population of approximately 212,000 people in an area of under 15km2.
 The population is relatively youthful with an unusually large proportion of 20-35
year olds, many of whom have moved into the borough having found - or in
search of - employment in London.
 There are fewer children and older people in Islington than in London as a whole,
and significantly fewer than the national average. Over a quarter of residents
come from BME communities and a further fifth are white but non-British.
 Three-quarters of Islington’s population (73%) is of working age, which is greater
than the proportion in London (67%) and England (62%).
 Since 2001 the population of the borough has grown by 11%, and is predicted to
increase by a further 12% by 2026.
 A significant proportion of Islington residents are social housing tenants (44%)
while 32% of residents are owner occupiers and 24% are rent privately.
Form of Tenure in Islington Households (2007)
24%
44%
32%
Social tenant
Owner occupier
Private renting
Source: Housing Needs Assessment survey, 2007 (n=2,300)
Deprivation and poverty
 Islington is ranked as the 14th most deprived local authority area in England (out
of 354). It is the 5th most deprived borough in London. 53% of Islington’s
population lives in an area defined as deprived. Only ten other authorities have a
higher proportion of their population living in deprived local areas.
 There are nearly 28,000 people of working age claiming benefits, of whom a
quarter claim Job Seekers Allowance. A higher proportion of Islington residents
claim benefits (19%) than the London (15%) and national averages (15%).
11

42% of children are dependent on parents who claim out of work benefits – the
second highest level of child poverty in the country.
Earnings, Income and Debt
 Median household income in the borough at £32,000, is lower than the London
average but is higher than the national average. This equates to a gross annual
income of the local population of some £4 billion.
 Around one in six households have an annual gross income of over £60,000 but
a similar proportion has a gross income of under £15,000.
 Over 11,000 residents have debts of between £5-15,000 and a further 13,000
people have unsecured debts exceeding £15,000.
Experiences of poverty and inequality in Islington
“I would prefer not to have debt but it’s inevitable when you’ve got four kids. It pays
for clothes for them or a new cooker.” Interview of woman with children
“It is really noticeable living here what you don’t have, that makes it hard”. Interview
of woman with children.
“In Islington, you have very much the haves and have-nots. ... There are
communities with very obvious wealth - cars and large houses - and communities
in very obvious deprivation. This proximity between one extreme of wealth and one
extreme of poverty creates its own problems.” Stakeholder Interview
Source: Invisible Islington: Living in Poverty in Inner London, Cripplegate Foundation.
Conclusions
 Islington’s resident population is characterised by a relatively large, youthful,
mobile and skilled working population. This is largely fuelled by highly qualified
people in their twenties moving into the area.
 Those who are employed can expect to earn above average pay, though there is
a sizable minority of working residents on low incomes, and an equally large
minority who are who are unable to access the labour market.
 The population has a significant gross annual income which generates custom for
local businesses. However income and opportunity is not equally spread within
the borough with the range of pay for full time employees varying enormously.
 Poor health and housing issues affect people’s ability to work and levels of
poverty and deprivation within the borough.
 High population density has implications for the level of demand on infrastructure
and resources such as open spaces and influences crime levels (see next
Chapter).
Further Information
 Islington Fairness Commission Final Report (2011)
http://www.islington.gov.uk/council/councilfairness/
 Two Islingtons: Understanding the Problem. What is the picture for Islington?
Overview and Strategy Paper
http://www.islington.gov.uk/Council/councilfairness/fairnessmeet/01meeting2007.
asp
 Invisible Islington: Living in Poverty in Inner London
http://www.cripplegate.org/reports-publications/publications#invisible
 Closing the Gap – Tackling Health Inequalities in Islington 2010-2030.
http://www.islington.nhs.uk/islington-health-inequalities-strategy-complete.htm
12
Chapter 4, Section 2 - Labour Market and
Worklessness
Introduction
 The labour market is the demand for labour by employers and the potential
supply of people of working age. Islington-based businesses draw on labour from
within and beyond Islington, while many Islington residents work for employers
(and seek employment) outside of the borough. Many local people face barriers
in finding and retaining employment at a level that sustains economic
independence and family life. It is important to consider how public services
within Islington can assist local people to overcome those barriers.
Key Findings
 Two thirds of the working age population (100,200) are currently employed (or
self-employed). This is lower than the proportion in London and nationally.
 Most working Islington residents (70%) work in managerial, professional or
technical occupations – a significantly higher proportion than elsewhere in
London and nationally. Conversely, Islington residents are less likely to work in
unskilled or semi-skilled trades and occupations.
Occupation profile of employed Islington residents
25
Percentage
20
15
10
8Machine
operatives
London
7 Sales and
customer
service
5 Skilled
trades
Islington
6 Personal
service
occupations
4 Admin &
secretarial
3 Professional
& technical
2 Professional
occupations
1 Managers
and senior
officials
0
9 Unskilled
roles
5
Great Britian
Source: ONS Annual Population Survey (2009)




Approximately 30% of Islington residents work within the borough and 40% work
in Westminster, Camden or the City of London. The largest net inflows of workers
are from Hackney and Camden.
In 2009/10 74% of Islington’s working age population were counted as
economically active, whereas 26% were economically inactive – this is higher
than the London (25%) and the UK rate (24%).
Employment rates by gender reflect the regional picture – with more men than
women being employed.
Almost one fifth of residents (19%) aged 16-64 (nearly 28,000) are claiming out of
work benefits which is far higher that in London (15%) and Great Britain (15%).
13

Job Seekers Allowance is claimed by 7,675 people (5.2% of the working age
population).
Experiences of Worklessness in Islington
“I miss work. It’s frustrating doing nothing, it’s just a waste. I don’t want to be out of
work. I have always worked; I am used to working and being stimulated and involved
and I miss that.” Single man, aged 60
“I should be working, doing something to take me out of the home. School holidays
are the issue. Even to work part time would mean fundamental changes to the family
structure. There aren’t the kinds of jobs that suit my skills that suit children’s hours.”
Woman with children
“I would like to have my own business but I can’t because I cannot speak English.”
Man in his 30s/40s
Sam was born at the Royal Free in Islington and – just like her mother and
grandmother - has lived in the area all her life. She has a young son and lives with
her husband, who, following a serious accident, is on Incapacity Benefit. Sam was
recently diagnosed with type 1 diabetes and has struggled to get her insulin dosage
right, suffering at times several hypoglycaemic fits a day. This has forced her to leave
her part-time job on a market stall and rely on benefit income. It has also made her
life chaotic and left Sam feeling frightened about the impact of her condition on her
life and her future. Based on interviews with a mother with ill health
Source: Invisible Islington: Living in Poverty in Inner London, Cripplegate Foundation.
Conclusions
 While a significant proportion of working Islington residents are in highly skilled
occupations, a sizable minority of working residents are on low incomes.
 The extent of worklessness remains a key issue and this will be further affected
by a range of changing circumstances including the impacts of the recession,
public sector funding cuts and reforms to welfare provision.
 The Council and its partners undertake a range of measures to address
worklessness. The continuation of these is however affected by public sector
funding constraints and the move to a Single Work Programme.
 The Council and its partners need to continue to work with business to create the
conditions that will enable future employment growth. In return businesses have a
vital role to play creating more opportunities for out of work residents such as
apprenticeship schemes.
 A Single Employer Face is being established in the borough to coordinate and
facilitate the brokering of opportunities for employment, work experience,
training, apprenticeships, paid internships, volunteering and corporate social
activity.
 A key step that the Council can take is to demonstrate the benefits of employing
out of work residents, enabling businesses to take advantage of subsidies that
arise from tax credits.
Further Information
 Labour Market Profiles from NOMIS
https://www.nomisweb.co.uk/reports/lmp/la/2038431865/report.aspx
 Invisible Islington: Living in Poverty in Inner London
http://www.cripplegate.org/reports-publications/publications#invisible
14
Chapter 4, Section 3 - Skills, Qualifications and
Educational Attainment
Introduction
 The London and Islington economies have become increasingly knowledge
based with a high level of skills often needed to gain employment. Improving the
levels of skills, qualifications and educational attainment of the borough’s
residents is crucial if employment opportunities are to be accessed and to ensure
that worklessness is reduced.
Key Findings
 Islington is characterised by a high proportion of people with skills and
qualifications at or above NVQ level 4 – equivalent to a degree or higher
qualification. However nearly 1 in 5 working age residents has no qualifications or
is only qualified to NVQ level 1 (equivalent to GCSE grades D-G).
 Tellingly only one in six working age residents without a job is qualified to level 4
or higher, while 70% of those with no qualifications are not in employment. The
relationship between unemployment and qualifications is striking.
 The proportion of young people in Islington who gain qualifications is rapidly
improving. Only 10 years ago fewer than a quarter of Islington school pupils
gained five or more GCSEs at grades A*-C. In 2010, the figure reached 74% - a
three fold improvement and above the national average for the first time ever.
 More sixteen year olds progress to further education or training, though the drop
out rate is fairly high and overall Islington has more young people not in
employment, education or training (NEET) than comparable areas.
 Three in five local employers do not identify any skills gap in their existing
workforce. Those that do are most likely to identify IT, customer service, strategic
management and communication skills as the most common gaps.
 Around two fifths of those who have tried to recruit staff in the last year reported
difficulties finding suitably skilled staff.
Conclusions
 Islington residents’ skills base is divergent. Half have a Level 4 (degree level)
qualification or above, while one in eight have no qualifications. Both these
figures are above London and national averages.
 Educational attainment has improved significantly, but too many of Islington’s
young people still leave school with few qualifications and a sizeable proportion
are not attaining a sufficient level of education after statutory school age to
compete in London’s job market.
 Despite a highly qualified local workforce, local employers identify a range of
skills gaps, particularly in sales and customer service positions.
 There are significant numbers of working age people who are not working, and
those without qualifications (or with poor qualifications) are the most likely not to
be employed.
Further Information
 London Skills and Employment Board – the London Story
http://www.london.gov.uk/lseb/docs/thelondonstory.pdf
 Labour Market Profiles from NOMIS
https://www.nomisweb.co.uk/reports/lmp/la/2038431865/report.aspx
 Islington Children & Young People’s Plan 2006-11
http://www.islington.gov.uk/DownloadableDocuments/CommunityandLiving/Pdf/s
c_20090616_children_and_young_peoples_plan.pdf
15
Chapter 5 – Sustainable Economic
Development
Section 1 – The Economy and the Environment
Introduction
 Islington is one of the most built up areas in the country, largely due to its central
location adjacent to the City of London. This has left the area with low levels of
open space and a lack of large parks. Islington's growing economy continues to
present environmental challenges, which in turn have implications for its
competitiveness. Responding and adapting to climate change and minimising
resource use are particularly important issues for businesses in the borough.
Key Findings
 Islington’s open spaces enhance the amenity of the area and provide vital relief
from the urban environment. They support local businesses by enhancing the
attractiveness of the area and are well used by workers and visitors.
 The wider natural environment plays an important role through its cooling effect
and reduction in flood risk; factors that are likely to be increasingly important as a
result of climate change.
 The commercial and industrial sector generates around half of the borough’s CO 2
emissions, with the majority of emissions coming from offices.
 Future economic growth will have further impacts on the environment with an
increase in emissions and pressure on the borough’s environmental resources.
 As our climate continues to change, particular ecological processes, such as
cooling and flood prevention, are likely to become increasingly important.
Enhanced biodiversity and sustainable urban drainage will be vital to constrain
the impacts of this.
 Risks to Islington’s economy arising from a changing climate need to be
evaluated and measures put in place for future proofing.
Conclusions
 The value of open space and other green infrastructure in supporting the economy
is significant. As the economy grows it will be important to continue to provide new
and improved open space and biodiversity through means such as planning
obligations and a Community Infrastructure Levy. Damage to the natural and
historic environment as a result of economic activity should also be minimised as
a means of retaining the borough’s economic competitiveness. The Council
supports businesses to reduce CO 2 emissions and wider environmental impacts
and raises awareness of the potential impacts of a changing climate.
Further Information
 Islington Core Strategy Document February 2011
http://www.islington.gov.uk/Environment/Planning/planningpol/local_dev_frame/p
ol_corestrat/default.asp
 Islington Planning Obligations Supplementary Planning Document 2009
http://www.islington.gov.uk/Environment/Planning/planningpol/local_dev_frame/p
ol_supplement/adopted_spd/planningobligations.asp
 Islington Sustainability Strategy 2010-12
http://www.islington.gov.uk/environment/sustainability/sus_council/
16
Chapter 5, Section 2 – Transport Provision and Other
Infrastructure
Introduction
 Islington has a highly developed transport network and other physical
infrastructure. This has huge economic advantages for the borough and makes it
a highly desirable business location and place to live. However, population and
employment growth are putting the transport network and other infrastructure
under pressure.
Key Findings
 Transport demand within Islington is extremely high, particularly at peak
commuter times. More than 50% of Islington workers travel from within the
borough or from neighbouring boroughs. Nearly 70% of Islington residents make
relatively short trips to work, either within the borough or to Westminster, Camden
or the City.
Surface and underground rail in Islington has received significant investment in
the last decade with further projects such as Crossrail improving the network
over the next decade. However the road and underground rail networks
operate at full capacity during much of the day, and due to London’s
predicted economic and population growth, planned investment will only
maintain the status quo.
 Cycling journeys represent an increasing but small percentage of total journeys
made in Islington. The cycle network is insufficiently developed in Islington and
across London generally.
 Water and sewage infrastructure are being updated, and increased capacity is
planned to accommodate population growth and climate change.
 Other forms of physical infrastructure e.g. gas and electricity will keep pace with
projected growth.
 Investment is required in measures to reduce carbon emissions in the borough,
particularly through development of decentralised energy networks which will
supply low carbon heat to existing buildings and new development.
 Waste collection and recycling of commercial waste is a developing market and
offers opportunities for new business growth.
 Telecoms/internet broadband is a rapidly changing market with widespread
connectivity across the borough. The Council can play an important role in
enabling more people to have access to the internet.
Implications for Islington’s Economy
 The primary infrastructure issue for Islington’s economy is the road and rail
networks operating at full capacity with little prospect of increased capacity
relieving pressure due to population growth and budgetary constraints.
 Congestion creates an unpleasant environment and delays journey times, both of
which affect the competitiveness of the local economy.
 To maintain sustainable economic growth it is vital that there is a modal shift from
car based transport to the more sustainable modes of transport - walking, cycling
and public transport (where there is capacity).This is realistic because a large
proportion of journeys are made locally and are relatively short.
 An environment with less road based traffic and congestion and more walking
and cycling will be safer and more attractive with knock on benefits for the local
economy.
17
Underground and DLR crowding, 2031 (with committed improvements)
Source: Transport for London, Mayor’s Transport Strategy 2010
Conclusions
 While capacity improvements related to rail, bus and strategic highways are
beyond the Council’s control, the Council can play a significant role in promoting
sustainable transport by encouraging walking and cycling in the Borough, through
comparatively cost effective interventions.
 To this end the borough should continue to negotiate developer contributions
through Section 106 agreements and will be adopting a Community Infrastructure
Levy which will provide a more flexible source of infrastructure funding.
 To achieve this modal shift more investment is required to improve the quality of
the public realm as well as road safety and infrastructure for pedestrians and
cyclists. A key aspiration is to remove the gyratory at Archway which has a
detrimental impact on the success of the town centre.
 Developing attractive walking routes and comprehensive safe cycle network will
be essential to increasing walking and cycling.
Further Information
 Islington Sustainable Transport Strategy (Local Implementation Plan) 2006
http://www.islington.gov.uk/Transport/SustainableTransportStrategy/
 Mayor of London’s Transport Strategy 2010
http://www.london.gov.uk/publication/mayors-transport-strategy
 TfL Travel in London Report 2 2010
http://www.tfl.gov.uk/corporate/about-tfl/publications/1482.aspx
 The Islington Infrastructure Delivery Plan, 2009
http://www.islington.gov.uk/Environment/Planning/planningpol/local_dev_frame/p
ol_evidence/
18
Chapter 5, Section 3 – Housing
Introduction
 Islington’s buoyant housing market has increased the supply of homes and
brought investment into the borough, but has also had a profound impact on its
socio-economic profile and on the affordability of housing. Housing need, supply
and the provision of affordable homes are therefore key issues when addressing
inequality. Deprivation is largely concentrated within the borough’s housing
estates which will need continued attention as the Council seeks to create a
fairer Islington.
Key Findings
•
44% of the population live in social rented housing, while only a third (32%) of
residents are owner occupiers and 24% are private tenants.
•
Approximately 81% of households live in flats, which is significantly above the
national average of 17% and the average for Greater London of 45%.
•
Average house prices are 2.5 times higher than the UK average. High residential
values has meant that housing has often been the dominant use in
redevelopments, in part explaining the recent loss in employment floorspace.
•
Owner-occupiers with a mortgage have an average household income of nearly
£100,000; residents in private rented properties have an average income of over
£60,000; council and registered social landlord tenants have an average income
of around £15,000.
In 2009 there were over 8400 households on the Housing Register while it is
estimated that over 6,000 households in the borough are overcrowded.
•
Islington delivered more than twice the London Plan target for housing
completions over the previous three years which amounts to nearly a third of
Central London Borough completions. 6,546 more homes have planning
permission or are currently being built.
•
Between 2005/6 and 2008/9 over 2,000 affordable homes were completed.
There are 1895 additional net affordable homes in the pipeline, although
addressing the full extent of housing need within the borough is likely to remain a
significant challenge.
Average House Prices in Islington July 1995 – July 2010
500,000
450,000
400,000
Average Price (£)
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
1995
1996
1997
1998
1999
2000
2001
2002
2003
Year
Source: www.landreg.gov.uk (9/9/10)
Source: Land Registry 2010
19
2004
2005
2006
2007
2008
2009
2010
Conclusions
•
Islington’s housing market has helped to provide vital new housing including
affordable housing, and direct investment in the local economy, but housing
needs remain a key issue, in particular the need for family sized affordable units.
•
The impact of welfare reform is of significant concern as reductions in housing
benefit and other changes have the potential to increase homelessness, cause
disruption to communities as people move within or out of the borough and lead
to additional overcrowding. It is likely that the Council will need to procure
additional temporary accommodation.
•
Meeting and exceeding the borough target for housing provision is a key
objective of the borough as is the provision of affordable housing, which forms a
major element of the Core Strategy.
•
Reductions in the national affordable housing budget however mean that
delivery of new social housing is going to become more challenging, although
some additional funding is available through the New Homes Bonus.
•
The Council is opposed to the Government’s Affordable Rented Housing product
which enables Registered Providers to charge at up to 80% of market rents. The
Council will use its own resources and work directly with Registered Providers to
delivery housing that is genuinely affordable.
•
Strategies to tackle disadvantage will need to particularly focus on the most
deprived areas in borough, especially those where there has been limited recent
intervention.
Further Information
 Islington Core Strategy February 2011
http://www.islington.gov.uk/Environment/Planning/planningpol/local_dev_frame/p
ol_corestrat/default.asp
 Islington Core Strategy Topic Paper: Housing Land Supply June 2010
https://www.islington.gov.uk/Environment/Planning/planningpol/local_dev_frame/
pol_corestrat/CS_Submission/support_docs.asp
 Islington Core Strategy Topic Paper: Affordable Housing June 2010
https://www.islington.gov.uk/Environment/Planning/planningpol/local_dev_frame/
pol_corestrat/CS_Submission/support_docs.asp

Islington Borough Investment Plan 2011
 Islington Housing Needs Survey 2008
http://www.islington.gov.uk/DownloadableDocuments/Housing/Pdf/Housing_Nee
ds_Survey_2008.pdf
20
Chapter 5, Section 4 – Crime
Introduction
 Crime in Islington has a significant impact on individuals, businesses and the
local economy. Crime can affect a victim’s ability to work, and their potential to
support themselves and their family. It reduces the amount of legitimate
expenditure in the economy as individuals suffer loss of wealth and businesses
incur reduced profitability as a result of crime such as burglaries and damage to
property. Crime affects the image of areas and business investment decisions.
Key Findings
 Islington has one of the highest crime rates in the country, although this has been
reducing in recent years. Violence against the person was the most common
offence in the 12 months up to July 2010 (5815 offences), followed by motor
vehicle crime (3,191) and burglary (2,666).
 The rate of crime in Islington is affected by a number of factors including high
population density, a large transient population and high number of visitors, a
thriving night time economy, high levels of deprivation and social polarisation, and
concentration of transport hubs.
 It also causes substantial costs to public services, particularly health, police and
prison services. Crime in Islington in 2008/9 is estimated to have cost the
borough £92 million.
 The Safer Islington Partnership has commissioned a number of initiatives in
addition to mainstream activities delivered by partner agencies which are aimed
at supporting existing services in helping to improve community safety and
reduce crime within the borough.
Conclusions




Islington has a high crime rate which is affected by a number of factors including
high population density, a large transient population and high number of visitors,
a thriving night time economy, high levels of deprivation and social polarisation,
and a concentration of transport hubs.
Prioritising measures which prevent crime will help to reduce the high individual,
public sector and wider economic costs of dealing with the consequences of
crime at a later stage.
The Council and the Police should continue to work with businesses to identify
crimes that are prevalent in town centres and other crimes that affect businesses,
through for example links with Town Centre Boards.
Measures to tackle crime should be integrated alongside programmes to address
other causes and symptoms of multiple deprivation, particularly focusing on areas
of highest deprivation.
Further Information
 2008-2011 Safer Islington Partnership Plan, Community Safety Strategy for the
London Borough of Islington (2008) –
http://www.islington.gov.uk/Council/councilabout/crimeandsafety.asp

Met Police: Latest Crime Figures for Islington
http://www.met.police.uk/crimefigures/datatable.php?borough=ni&period=year
21
Chapter 6 –Economic Competitiveness and
Future Prospects
Islington’s economy has proven itself to be competitive, responsive to changes in the
wider economy, and resilient in wake of the recession. Islington is still an attractive
location for businesses. The number of employee jobs located in Islington has
continually increased over the last 10 years. This reflects a strong level of economic
growth by national standards, placing Islington in the top 20% of districts nationally.
Islington’s economy is increasingly a source of employment for local residents who
now occupy approximately 30% of Islington jobs. The borough has the highest
proportion of employment in high value knowledge driven sectors of Central London
boroughs and has seen the greatest growth in this area.
Islington has many positive attributes which have contributed to its economic
success. Its Central London location and good transport connections are key drivers,
with the greatest concentration of business and employment in the southern part of
the borough. Islington’s rich historic environment as well as its leisure and cultural
offer and night-time economy are important factors. The borough’s town centres and
street markets provide a range of retailing opportunities and contribute to the
borough’s character and the experience of the area. Islington also has a number of
important connections with neighbouring authorities and is working to support
economic growth at Finsbury Park and the Seven Sisters Corridor, Archway, Kings
Cross, Farringdon, Old Street and develop stronger links with Dalston.
Islington’s connections with the rest of London and beyond mean that its fortunes are
closely tied with the London economy and wider markets. It appears to be in a
comparatively strong position, with good prospects for private sector growth.
However, Islington still has areas of extreme deprivation. Like elsewhere, it will not
escape the impacts of significant public sector funding cuts which will affect many
organisations and households, and also constrain the ability of the Council and its
partners to respond to economic challenges.
The Council is however committed to doing what it can to moderate the impacts of
the cuts and addressing deprivation. The Islington Fairness Commission has set out
a range of recommendations with the aim increasing equality throughout the
borough.
A successful Islington and London economy has the potential to propel the borough
through difficult times. Government proposals to allow local authorities to retain a
proportion of the business rates that they collect will bring the relationship with the
local economy and the wider area even closer. The Local Economic Assessment
highlights the role that the Council can play in working with business to create the
conditions that will help businesses to thrive and enable future employment growth.
Key measures that can be taken include:
 Improving skills, particularly where there are skills gaps, to assist residents
into work and help businesses when recruiting difficult to fill positions;
 Providing employment support and securing commitments from business to
create employment and training opportunities for local people;
 Support growth in industries such as the creative sector to maximise new jobs
in the private sector.
 The provision of a range of types and sizes of employment spaces, including
flexible and affordable workspace and other business support measures;
22

Concentrating investment in the most deprived areas and/ or those more
reliant on the public sector such as Archway, Finsbury Park and Kings Cross;
 Enhancing infrastructure and connections, including improved walking and
cycling routes to help counteract road and public transport congestion.
Further issues, challenges and opportunities identified in the LEA which will affect the
success of the borough and its capacity for economic growth are summarised in the
final chapter of the LEA which should be read alongside the measures identified in
the final report published by the Islington Fairness Commission.
23
Islington Local Economic Assessment
Contacts
Spatial Planning & Transport - [email protected]
0207 527 2564
Business Support - [email protected]
0207 527 3255
Demographics and General Research - [email protected]
020 7527 3480/ 3405
Regeneration and Community Partnerships - [email protected]
0207 527 4250
Child Poverty - [email protected]
0207 527 8620
Strategy and Commissioning, Children’s Services
[email protected]
0207 527 5683
Environmental Sustainability – [email protected]
0207 527 2001
Housing - [email protected]
0207 527 4438
If you would like this document in another format such as large print, please
contact the Council on 020 7527 2000.
222 Upper Street, London, N1 1XR
E [email protected]
T 020 7527 2000
F 020 7527 5001
Minicom 020 7527 1900
W www.islington.gov.uk