Network Rail is selling off Britain’s railways arches. Small businesses could pay the price

Brixton. Image: Getty.

In an attempt to tackle its debts, Network Rail intends to sell off its 4,455 railway arches – worth more than £1bn – to a single private developer. Potential buyers include Goldman Sachs and the Wellcome Trust, Blackstone and Terra Firma. A group of arch tenants – The Guardians of the Arches – has teamed up with the New Economics Foundation and the East End Trades Guild to present a petition to the UK government, asking for the sale to be called off.

Under the custodianship of Network Rail, small businesses have long found refuge under the arches. Research in London has revealed how cheaper than market rates have allowed traditional firms, such as mechanics and metal workers, to remain in urban areas beset by rising prices. Meanwhile, the spare spaces provided by the arches have allowed new creative makers - breweries, bakeries, cheesemakers and the like – to flourish.

Railway arch rents have, in fact, already been rising at alarming rates in some parts of London, as Network Rail tries to bring them in line with neighbouring commercial values. But now there are fears that a new private owner might be unscrupulous in setting rents, and force out smaller, lower-value businesses.

A lucky anomaly

This would be a shame. Railway arches have long been a lucky anomaly in the UK – a remnant of publicly owned commercial space within a property market dominated by fierce private sector competition. Selling the arches will mean losing a (perhaps accidentally acquired) public policy lever – the ability to protect and encourage small business in cities, as commercial rents rise.

Corporate takeover? Image: tj.blackwell/Flickr/creative commons.

As well as being relatively affordable, railway arches have traditionally offered a number of other spatial advantages to their tenants. Their adaptable interiors and open structure invites architectural experimentation; for instance, adding partitions and mezzanines. As they grow, businesses can also expand into adjacent arches.

This adaptability may be one reason why some arch tenants remain in the same place for a long time. One set of arches used by taxi repair firms in Bethnal Green, London, for example, has hosted this same industry for over 20 years. The arches are often beset by problems – including noise (from trains thundering above) and damp – leading arch tenants to argue that they should not be leased at the same commercial rates as neighbouring buildings.

But the open and messy spaces of the arches are often perfect for so-called “dirty creatives”, who find it difficult to find a place to work alongside offices or flats, due to the noise or dust they create. Arches often have continuous facades, which means they can function like industrial high streets – they are accessible to the passing public, allowing arch tenants to both produce and sell directly to customers.

Coffee makers and car mechanics. Image: Ania Mendrek/Flickr/creative commons.

Unlike segregated industrial estates, arches are often found within residential areas, bringing commercial life into the neighbourhoods. The large doorways and open fronts of railway arches encourage communication between businesses, which may in turn help small businesses to innovate and grow.

Help small businesses stay

The plight of the railway arches highlights a broader lack of affordable commercial space for manufacturers and repairers in British cities. An ongoing research project called Cities of Making – involving universities from London, Brussels and Rotterdam – found that manufacturing firms are having to leave inner city London, due to a lack of affordable space and rising business rates.


Even maker spaces – the small studios or workshops heralded for offering exciting new opportunities for people to start up small-scale production lines through sharing new technologies – are being priced out or forced to contract in east London.

While negotiations on the Network Rail sale still have a long way to go, one option that the government might consider is inserting a clause to stipulate that a percentage of the railway arches (wherever they are located) are let with affordable rents. Another possibility – even if the sale goes ahead – might be for local authorities to be given the option to sublet sets of arches in their boroughs to safeguard space for small businesses and help existing firms to remain.

The ConversationIn an era of rising inequalities, such actions may be essential to creating inclusive growth, and preserving a local economy that provides a diversity of jobs and services.

Francesca Froy, PhD Candidate, UCL.

This article was originally published on The Conversation. Read the original article.

 
 
 
 

Home-working and uncertainty: How will coronavirus affect jobs around the country?

A quiet commute: the M8 motorway in Scotland. Image: Getty.

This week’s unprecedented announcement by the Prime Minister on how we need to live our lives over the coming weeks and months will have profound impacts up and down the country. The geography of this will vary depending on the structure of different local economies. This blog looks at three areas where this will play out – self-employment, the ability to work from home, and the rise of remote working.

Self-employed people in the North and Midlands are more likely to be in insecure, lower-paid roles at high risk from economic shocks

The economic impact of Coronavirus on self-employed people has received a lot of attention in recent weeks. And while the Chancellor stepped in to extend Statutory Sick Pay (SSP) to this group and people working on zero-hour contracts, they still stand to lose almost two-thirds of their current earnings.

Britain’s self-employed population is disproportionately located in London; of the almost 5 million self-employed people across the country, almost a million live in the capital. London accounts for just over 15 per cent of all workers in the UK, but for approximately 20 per cent of all self-employed people. Along with Worthing and Brighton, almost one in five people in work are self-employed in the capital. 

In contrast, self-employment is way less popular in other parts of the country: in Gloucester and Hull, for example, less than 7 per cent of people are self-employed.

But while cities in the North and Midlands might have lower rates of self-employment, those who are self-employed in these places are more likely to be in precarious situations. Of all the self-employed people in Burnley and Blackburn, only two in ten also have access to additional income as employees.

By contrast, four in ten do in Cambridge. In addition to that, they are also more likely to be in lower-skilled, lower-paid occupations, such as in the hospitality, personal care and transport sectors, meaning they are more vulnerable to economic shocks.

Share of self employed people that are self employed only. Image: Centre for Cities.

Cities in the Greater South East are more likely to be able to shift to working from home

The Prime Minister asked those who can work from home to do so. But how likely is this across the country?

The jobs that could be more easily done from home – such as consultants or finance – are concentrated in cities in the Greater South East (see the figure below). Assuming some sectors could completely shift to home working if necessary, up to one in two workers in London could shift to working from home. Meanwhile in Reading, Aldershot and Edinburgh over 40 per cent of workers could too.

On the other hand, less than 20 per cent of all workers in Barnsley, Burnley and Stoke could work from home, suggesting the economies of many northern cities are likely to be hardest hit by a complete lockdown. Manchester, Leeds, Warrington and Newcastle are the exceptions as they have a higher share of jobs that could shift to home-working, reflecting the slightly different structure of their economies compared to other northern cities.

Estimate of workers that could work from home 2018. Image: Centre for Cities.

Once Coronavirus has peaked, face-to-face interaction will continue to be more important than ever

The arrival of Coronavirus has sparked debate in the comment sections of newspapers about the benefits of home working.


This is nothing new. In the late nineties the death of distance was declared by many because of internet-driven improvements in communications. And yet, despite their further advancement since, jobs (particularly high-skilled ones) have continued to cluster in cities.

This is because of the benefits that cities offer – such as face-to-face interaction. While this might seem intangible, no doubt many readers who have been grappling with trying to communicate with colleagues working from home in recent days will now be all too aware of the benefits of being in the same room as their team. So, while technology no doubt makes this strange period a little easier than it would otherwise have been, by the end of it we are likely to be reminded of the value of face-to-face meetings to help us get things done.

Elena Magrini is a senior analyst at the Centre for Cities, on whose website this article originally appeared.

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