Leader of Hounslow Council has written to the Chancellor of the Exchequer, Rachel Reeves MP, outlining the new business case for growth in the borough, Opportunity Hounslow.
Published: Tuesday, 20th August 2024
Dear Chancellor,
Congratulations on your historic appointment as the Chancellor of the Exchequer.
Hounslow has the second highest GVA per hour worked in London and, being well-connected with a vibrant economy of 15,000 businesses, stands ready to play a lead role in the national renewal mission, knowing we can be a local blueprint for collaboration between central and local government to achieve targeted, equitable growth and development.
We are a powerhouse by traditional measures. Our track record of growth is among the highest-performing London boroughs and generates nearly £15 billion in GVA a year, surpassing major cities like Belfast, Liverpool and Sheffield.
However, the current system leaves opportunity unfulfilled, with benefits of economic output not felt evenly across our communities. Wealth and life outcomes do not align with success in conventional economic indicators. Creating a more equal borough is at the heart of what we do.
Our new Business Case for Growth is a comprehensive plan to ensure Hounslow's growth is carefully curated and beneficial for all, with a transformative vision centred on strategic, targeted development. This approach will maximise our strengths, underscore our role as steward of place, and ensure regional economic growth opportunities are fully realised.
Our new Local Plan - at an advanced stage and in line with your ambition to see universal coverage of Local Plans, with authorities reviewing green belt to enable growth - aims to deliver over 28,800 new homes by 2041, with 7,500 new homes in the Great West Corridor Opportunity Area and at least 6,500 new homes in Heathrow Opportunity Area.
With our available sites and ambitious planning policies, we can actively drive development in our borough, where key economic drivers include the creative industries (Hounslow accounts for 64% of London’s media and digital jobs) and transport and logistics, supported by proximity to Heathrow. Strategic investment in our local economy can unlock untapped potential and create a ripple effect far beyond our borough.
Our investment prospectus, 'Opportunity Hounslow: Gateway to London and the World' ,outlines our Borough-wide regeneration priorities and development sites within Hounslow's strategic position as a hub for green innovation, smart logistics, media production and dynamic urban development. It’s a roadmap for sustainable development and prosperity, delivering more than 4,600 new homes and 2,500 job opportunities.
Our Vision 2050 programme, being co-created with residents, businesses and other stakeholders, will shape a 25-year policy agenda. Supported by data and expert analysis, it will guide strategic decisions and help us smash barriers to opportunity.
We are delighted to invite you to our ‘Vision 2050’ launch at the Hounslow Assembly - a chance for people and organisations to come together in recognition that we achieve more by working together than in isolation. Sessions will be led by us, local partners and those beyond borough boundaries who bring fresh perspectives.
Hounslow Assembly will take place at the Gtech Community Stadium on 16th October 2024. Your participation would demonstrate our joint commitment to working with communities on their priorities.
Finally, to support our shared ambitions and unlock the myriad opportunities across the borough, we need your support to deliver a more secure financial outlook. In particular:
Stable funding: A commitment to a long-term funding settlement and fewer ringfenced pots that allows authorities to better plan and prioritise their finances.
Fairer funding: An update to the "fair funding review" to better reflect local needs and population. Hounslow’s Core Spending Power is 28% below 2010 levels in real terms, with cuts larger than the national average. Current funding formulas are based on outdated population estimates, while Hounslow's population has grown by 9% since 2011, particularly among children, working-age adults, and over-65s. Updating the funding to reflect actual population levels could increase Hounslow’s allocation by approximately £8.0 million.
Sufficient adult social care funding: Implementation of the new DHSC formula for social care funding to ensure fair treatment and effective use of resources. Hounslow’s share of the Adult Relative Needs Formula would increase from 0.416% to 0.476%. Without a radical overhaul of the system, we cannot adequately support our growing and diverse population.
Extension of Household Support Grant for a further year: Household finances remain precarious. An extension of this lifeline while HMT works up a more sustainable funding model is vital.
Devolution: Giving London the power to unlock and retain resources that drive to the heart of your growth agenda would solve some of the capital's demand-led costs. For example, retention of business rates to support London's inward investment agenda and ability to introduce a tourist levy (like in Manchester) are just two examples.
We look forward to discussing with you in person the work we can do together in the service of growth and national renewal and wish you every success in your new role.
Yours sincerely,
Councillor Shantanu Rajawat
Leader of the London Borough of Hounslow
Cc: Hounslow Cabinet Members
Niall Bolger, Chief Executive of Hounslow Council
