o Key updates from Partners
Minutes:
Steve Lipscombe – Ronin Marketing advised that he ran a design and marketing company, and they were cautiously optimistic. Before Christmas there had been an element of fatigue – his company had spent some time focussing on its own design and marketing, which was starting to bring results.
Christopher Evans – Community Links Bromley (CLB) informed members that a partnership recruitment fair had recently been held. It had been attended by a range of health providers and visited by between 250-300 people. A further event was taking place at LSEC on 10th February 2023, which would focus on apprenticeships and volunteering. CLB had also been supporting the night-time economy bid and, as part of the Mottingham Big Local, the refurbished local church would be reopened the following day.
The Vice-Chairman – London Biggin Hill Airport (LBHA) informed members of the Partnership that Bombardier were now operating in their new facility. This had left a gap in the tenants, and this space had been filled by a new company and had created a new handling facility on the airport. A new development for an existing tenant, Castle Air, who serviced and chartered helicopters, was underway as their business had grown, and Oriens Aviation had built a new facility of more than 20,000 sq. ft which was now operational. The Airport had been working on its spatial plan and looking at their growth strategy over the next decade. LBHA had recently opened its training facility and would be hosting a Future Week, commencing on 13th February, and a Careers Day on 16th February. The practical completion of the 56-bed hotel facility and restaurant was expected to be reached on 13th February.
A visiting Member advised members of the Partnership that the LBHA CEO chaired a Leaders Group which provided an opportunity to identify needs and give feedback. Futures Week had been a successful programme, which would continue to be held twice a year, and had provided three new apprenticeships at Bombardier. There had also been demand for work experience at the Airport, and 15 young people would spend a week experiencing the different trades at the airport. It was noted that the LOCATE business brunch would also be returning.
Gary Hillman – N. Hillman & Sons said that the recent planning application for the Royal Bell Hotel had been refused. They were looking to add another two rooms, from 56 to 58, in the existing footprint and conversations were continuing with the Technical Support Officer.
Bruce Walker – Lansdown Asset Management advised that they had two schemes that were ongoing in the borough. One of these schemes was for 85 units in Orpington, which was mostly social housing and shared ownership units. In response to questions from the Chairman, Mr Walker said that sale prices were holding up and there was a great deal of demand, but issues related to planning were highlighted. Building costs had jumped significantly but were now levelling off and had reduced in some areas – however it was highlighted that it was difficult to get trades in from outside the London boroughs.
Lee Thomas – Fairlight Group said he agreed with the comments made by Mr Walker, and building the right quality would always create a sale. They had not experienced any issues in finding tenants, however the existing stock run on a daily basis was old. Buyers and investors would only consider exemplars of that type of asset. It was considered that Bromley’s assets were very poor and a proper masterplan of Bromley town centre, and across borough, was needed. In terms of planning applications it was noted that yields and interest rates could change whilst delays were experienced. Mr Thomas said that overall he was positive about things – Bromley had a lot to offer, and the borough needed to be properly marketed.
Jason Stanton – Mytime Active said that trading had been stable. Income remained strong, but there were challenges associated with cost base. Supplier costs, all through the chain, had increased and it was difficult not to pass these on to customers. Mytime Active were looking to redevelop Orpington Golf Centre, however there were some challenges relating to planning and supply costs which were slowing down the project. Another challenge faced related to recruitment and Mytime Active had supported the recent recruitment fairs. These had been successful, with 15-20 appointments made, however it was noted that there were approximately 60 vacancies across the Bromley portfolio. In response to a question from the Chairman, Mr Stanton said that the weather before Christmas had impacted the use of the Golf Centre, however leisure was generally good. In terms of membership, people had made the decision to stay as members, but were sacrificing secondary spend.
Mike Humphries – Handelsbanken said that it was really good to hear members’ positivity. Cost of living challenges, rising inflation and a spate of increases in Bank of England Base rate through 2022 had clearly impacted the economy and all of us, both personally and in our businesses. 2023 would undoubtedly be challenging, but as ever in challenging times there came opportunities. Economists were now suggesting whilst interest rates would be increased again this week, they were now close to the "pivot" level for base rate, which was anticipated would now be 4.25-4.5%. With pressures on energy prices also diminishing it was perceived that this would also have a positive effect on inflationary pressures – with inflation economists anticipating (naturally based on life as it was today), currently likely to end the year at around 6%. So despite the economic headwinds everyone was being faced with, and were continuing to face, they were cautiously viewing the future with optimism. Yes, it would be a lengthy path to full recovery, and yes, it was likely the country would be in recession for all of 2023, but this was now not perceived to be as deep a recession as feared last year and the prospects for 2024/2025 were looking promising. So not all doom and gloom. Whilst they understood a number of banks were reducing their banking offerings in terms of opening accounts/providing loans, Handelsbanken remained fully open, and their "Local Relationship Banking" model was proving increasingly popular. In response to a question from the Chairman, Mr Humphries advised that more had been lent during the first few months of the year than they had over the last three years, even at the current interest rates.
Frances Forrest – Your Bromley BID Company advised that an event celebrating what people loved about Bromley would take place on 11th and 12th February. In response to questions, Ms Forrest said that things in the town centre were looking up, with footfall being better than towns of a similar size. It was noted that there were still too many vacancies, which tended to be large units, but there were plenty of businesses interested in coming into the town centre. In relation to the King’s Coronation, Your Bromley BID Company had applied for a £5k grant for installing bunting in the town centre. The LBB Head of Economic Development said that they would be happy to liaise with Your Bromley BID Company regarding the grant and best dressed shop competition.
Chandra Sharma, representing the Federation of Small Businesses (FSB) advised that 48 people had signed up for the apprenticeship event at LSEC. Sarah King (FSB) noted that the FSB had formally responded to the ULEZ expansion consultation, and they were having conversations with the Mayor’s Office and TfL to share concerns. The FSB were keen to see action taken to support small businesses with the impact of the ULEZ expansion in August 2023. Members of the partnership were advised that key highlights from the FSB Small Business Index report included:
- confidence amongst businesses in the London region had risen since the last report.
- 67% of small businesses had increased the average salary over the last year.
- 18% of small businesses had lost staff during the previous quarter.
- 41% of small businesses saw revenue increase.
With regards to green skills, there were some great resources available for small businesses and further information was available via the Zero Carbon Business website: https://zerocarbonbusiness.uk/
Andrew Cox – LSEC informed members of the Partnership that they had recently developed a 5-year curriculum strategy – an employer consultation event had been held the previous week and further stakeholder consultations would take place in the coming months. It was noted that lots of events would be taking place across the borough for National Apprenticeship Week.
RESOLVED that the updates be noted.