Fortnightly politics column
Sara Kelly is your eyes, ears and voice in Brussels and Westminster. Every fortnight she brings you the latest insights on policy changes, legislation and lobbying.
I strongly believe brunch to be the best meal of the day.
A perfect weekend isn’t complete without a visit to a good eatery on a Saturday or Sunday morning. Living and working in East London, with its wide availability of coffee shops and cafes means I’ve tried a fair few varieties of poached eggs since moving here.
Creative cafe culture
Many of these successful coffee shops cater for the freelancer, the remote worker, business meetings, meet up groups, and do a roaring trade by day.
They then become restaurants and bars by night, frequented by diners discussing business projects, networking over drinks or relaxing with their team having finished a long day at their offices nearby.
The area and local businesses benefit by being able to open during weekdays and evenings, as well as at the weekend.
There’s almost a constant level of activity that creates a sustainable community in the areas where people live and work in close proximity.
I worked out recently that in East London I’m a 15 minute walk from a 24-hour latte any time – I find that comforting.
Tech City under threat
New proposals from the Department for Communities and Local Government, called the National Planning Policy Framework, could threaten what has grown up in Shoreditch in recent years.
The aims of the policy are laudable. The idea is to reduce the number of empty high street shops and increase the amount of affordable homes by making it easier to convert commercial properties to residential properties.
Under the new rules property developers will be allowed a free pass to change the use of properties without having to go through the application process currently in place.
Residential properties are worth significantly more than commercial properties
Investors find it difficult to accurately value commercial properties, and the resale of commercial properties is a more burdensome process.
So, presented with an even easier process to convert commercial properties to lucrative residential properties, developers and investors are likely to be drawn to developing luxury apartments rather than properties suitable for small businesses.
Being located in the trendy areas around Brick Lane and Old Street, these properties are unlikely to be in the price range for first-time buyers. This will be frustrating given that it was the tech and creative companies who contributed to the development of the area’s trendy reputation.
With fewer commercial properties this will inevitably drive up business rents in the area. Which will particularly impact startups who are just reaching the pivotal stage in their development where they’re looking to create more jobs.
This will drive businesses to look further afield for affordable offices.
I don’t need to go into the benefit of hubs for tech here – that’s already covered by the plethora of articles out there detailing the serendipitous meetings, learning opportunities, networking and free classes that are generated when a density of businesses come together in an area.
Ultimately the policy favours large property developers and investors over other businesses, including small and medium sized businesses who employ 14 million people in the UK and are the key to the UK’s economic recovery.
There is a provision that will allow areas of economic interest to apply for an exemption, but Local Authorities were only given a short period to apply.
The good news
Despite the short notice period, Tech City News readers will be glad to hear that all of the Shoreditch boroughs have submitted for an exemption. This was supported by co-working spaces such as Tech Hub, The Trampery, Central Working, Shoreditch Works, and other organisations in the area.
They have united in support of an exemption to the new rules for the Shoreditch area, signing a letter along with local digital and creative startups in support of local authority bids for an exemption.
United in opposition
Given the level of support for the exceptions in the area, the Government will hopefully give serious thought to the application.
We want the area to remain a hub for tech startups, and for all businesses including excellent coffee shops and brunch spots in the area to benefit from business and residents insatiable desire for caffeine and poached eggs.