LB HOUNSLOW

    BUSINESS CASE FOR GROWTH

    A strategic business plan for inclusive growth

    Client:
    LB Hounslow
    Duration:
    Sept – Nov 2019

    8,000

    Unlock up to 8,000 more homes

    11,000

    Unlock up to 11,000 more jobs (plus 15,000 construction jobs)

    £50M

    Generate additional income for the Council of up to £50m one-off payments and £2m gross recurring annual income through Council Tax, Business Rate, Community Infrastructure Levy & New Homes Bonus

    £60M

    Generate an additional £60m of revenue from property investment

    Project Objective

    • To assist the Council to maximise economic and housing growth that benefits local communities

    • To identify evidence-based opportunities for Council intervention to accelerate growth and deliver the Local Plan aspirations

    • To develop a comprehensive delivery programme and secure the resources to deliver it

    Hounslow Inner Circle Consulting
    Hounslow Civic Centre. © Inner Circle Consulting.
    Hounslow Civic Centre. © Inner Circle Consulting.

    Summary/Overview

    Hounslow Council is an ambitious, pro-growth borough seeking to maximise the economic benefits of its strategic position between Heathrow Airport and central London. Their planning policy fully supports good growth, however, it is a limited toolkit to overcome property market failures, poor-quality development and a lack of community collaboration.

    Inner Circle Consulting (ICC) was invited to work with the Council to completely transform their approach to delivering their Local Plan: we created a strategic business plan addressing each ambition.

    Guided by the Treasury Green Book, the project demonstrates a robust strategic fit, economic impact (cost-benefit options analysis), value for money and deliverability (resource changes, structures, governance). The solution is comprehensive, simple, yet truly groundbreaking.

    This work is not just another strategy but a creative, transferable approach. An evidence-based, robust business plan for proactive Council intervention that will create and sustain good growth in Hounslow that benefits all communities in the borough.

    This project brings together a number of ICC’s unique tools; adapted to support Hounslow’s aspirations:

    • Treasury Green Book business case approach applied to organisational change. The missing link between local planning policy and implementation.
    • A detailed area diagnostic that interrogates the Local Plan evidence base to ask new questions: What growth opportunities is the market not delivering? Where is growth failing to benefit local communities and why?
    • Our Community Impact Model quantifies the potential benefits of good growth for local communities (eg. jobs, spending power, health, crime)
    • A financial model that calculates the financial benefits to the Council of investing in growth, from direct returns on property investment to Community Infrastructure Levy, New Homes Bonus and Business Rates.
    • An interventions toolbox to quickly map the Council’s existing approach against its growth objectives and understand visually options for new interventions.
    Hounslow Business Case for Growth Inner Circle Consulting
    Hounslow’s Business Case for Growth diagram. © Inner Circle Consulting.
    Hounslow High Street. © Inner Circle Consulting.
    Hounslow Civic Centre Inner Circle Consulting
    Hounslow Inner Circle Consulting. © Inner Circle Consulting.

    Project Impact

    The business plan makes the case that by intervening to encourage growth the Council could, over the next ten years:
    • Unlock up to 8,000 more homes;
    • Unlock up to 11,000 more jobs (plus 15,000 construction jobs);
    • Generate additional income for the Council of up to £50m one-off payments and £2m gross recurring annual income through Council Tax, Business Rate, Community Infrastructure Levy & New Homes Bonus;
    • Generate an additional £60m of revenue from property investment; and
    • Increase wider economic benefits for the community by up to £4bn.

    Hounslow’s Business Case for Growth was approved by Cabinet, and £900,000 seed funding agreed over the next two years. This will fund the preparation of the delivery planning stage: refinement of strategies; implementation of programmes; optimising the project portfolio; and intervention business cases.

    Hounslow High Street Inner Circle Consulting
    Hounslow High Street Inner Circle Consulting. © Inner Circle Consulting.

    “The Inner Circle team has brought rigorous analysis and new ways of thinking to the Council’s growth, placemaking and economic development agenda. The business case structure and tools used, have led to a wider understanding of what the Council can do to ensure local communities benefit fully from growth opportunities. The project has been a highly productive collaboration that has secured strong Cabinet endorsement and kick-started a new approach.”

    Peter Matthew, Executive Director of Housing, Planning & Communities, Hounslow

    “Hounslow is already one of the fastest growing economies in the capital, but this project has demonstrated the potential to accelerate growth further and capture the benefits for our residents. Inner Circle quickly established the trust of the Council’s senior leadership team and secured buy-in to a challenging agenda.”

    Niall Bolger, Chief Executive, Hounslow

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