Hackney Fashion Hub: A parallel universe of tourist wealth, launching in 2014

A tsunami-sized wall of cash is heading to Morning Lane, a shabby thoroughfare in Hackney - but who will benefit from it?

Two years after the riots, a tsunami-sized wall of cash is heading towards Morning Lane, a shabby thoroughfare in Hackney.

The local council secured £5m from the Greater London Authority’s regeneration fund for areas affected by the riots and it is being spent on a project costing tens of millions and called the “Hackney Fashion Hub”. Fashion outlets, a café and design studios will be housed in two new seven- and five-storey buildings and 12 railway arches located opposite and adjacent to the old Burberry factory, which has attracted busloads of Japanese tourists since it opened as an outlet store in the 1990s.

The developers are the Manhattan Loft Corporation, “the company who brought loft living to London” and whose recent projects include “67 of the most unique apartments in London, on the top floors of the Grade I-listed St Pancras Renaissance Hotel”. The architect is the trendy David Adjaye and work starts in 2014.

As well as big-brand fashion salesrooms, the development will include design studios “where locals can show their work”. The stress is on the word “local” and the council is keen to persuade us that this project is not just to attract tourists and investment from the Far East.

So we, the locals, should be over the moon about it, shouldn’t we? I spoke to Lia, who lives in Hackney and works at a vegan, volunteer-run café on Clarence Road, a focus of the London riots. She knew nothing about the development. But some local people do know and are into their designer brands – as the discerning young men who looted the Carhartt outlet near London Fields showed in 2011. Perhaps this is why David Adjaye’s shops on Morning Lane have massive, futuristic-looking riot shields on the front. I asked Adjaye Associates about them and got this reply: “No, those are simply shutters; all shops have shutters on them. They are shutters that cleverly also function as rain shields.”

Hackney Council claims that the new hub will be physically integrated with and encourage visitors to go to “other areas of Hackney” (such as the betting shops and pawnbrokers on the Narrow Way) and “new signage” will encourage them to do that. But in reality it is separated from Hackney Central by the bus station on Bohemia Place, while retailers on the Narrow Way in central Hackney, a site of rioting, are excluded from the party.

They are somewhat disgruntled. So the council has painted bright geometric shapes on the road outside their premises. “Next week we’re getting some pot plants,” said Ayub, who owns a local clothes shop. “They’re trying to kill us.”

So everyone has been catered for: the underclass in the ghetto of the Narrow Way and Clarence Road; the Chinese, South Korean and Japanese visitors in their parallel universe of tourist wealth on Morning Lane; and those who can afford the new flats on Chatham Place. If the shopkeepers still feel dissatisfied, they could participate in a scheme the council has set up called Hackney Is Friendly; it’s a “place to find a friendly face on the Narrow Way. Come in and say hello if you’re passing.”

 

It's all no change in Hackney: a simulated view of the new fashion hub. Photograph: Getty Images.

This article first appeared in the 12 August 2013 issue of the New Statesman, What if JFK had lived?

Photo: Getty
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Love him or loathe him, Britain needs more Alan Sugar

Big business is driving down wages, failing to invest, and funnelling rewards to the richest.  Entrepreneurs - and the state - need to fill the gap. 

The business baron who loves a bust-up has just been hired by Her Majesty’s Government to tour the country inspiring the next generation of apprentices. And he’s got his work cut out for him.  

Britain is loads more enterprising than it used to be - but the truth is, we’re miles behind our rivals. The good news is that Britain boasts nearly two million more firms than at the turn of the century. Over 40 per cent of Europe’s “unicorns” (new firms worth over $1 billion) are UK based. And by the next election, there will be more self-employed people than public service workers. 

But, here’s the bad news. Globally, we’re only 48th out of 60 in the global enterprise league table - and of the top 300 companies created in the last thirty years, only a handful are British. The only two British websites in the global 100 were actually founded in America - google.co.uk and amazon.co.uk. Worst of all, according to new House of Commons library figures which I commissioned this week, over a million people have left entrepreneurial activity in the last three years. 

Yet in my new history of British capitalism, Dragons, published today, I show how we’re a nation built by some of the greatest entrepreneurs on the planet. They were the buccaneers like Robert Rich, who built the trading companies and colonies of north America. The traders like Thomas Diamond Pitt who built old multi-nationals like the East India Company. They were industrial revolutionaries like Matthew Boulton who perfected the steam engines, and capitalists like Nathan Rothschild who built the bond market. Down the ages, there were of course great rogues and fraudsters, slavers, opium dealers and imperialists, like George Hudson, William Jardine and Cecil Rhodes. And through the centuries, women were in particular, were frozen out of the power structures of the market. 

But, throughout our past, great visionaries like George Cadbury, William Lever and John Spedan Lewis not only created new wealth but invented new ways to share it, from Port Sunlight to Bournville, to the board rooms of the John Lewis Partnership. 

Theirs is the entrepreneurial spirit we are going to need to rebuild Britain. Why? Because we can no longer leave the task to big business. Big business is driving down wages, failing to invest, and funnelling rewards to the richest. Today, UK firms are sitting on an extraordinary £522 billion in cash. And that’s after they lavished out £100 billion in share buy-backs in 2014. According to Larry Fink, the head of Black Rock which is the world’s biggest investment manager, the gargantuans of the global economy are simply failing to invest in the new jobs and industries of the future. 

So we’re depending on our entrepreneurs to turn new ideas into new industries and new industries into new jobs - whether it is in big data, cyber-security, driverless cars, the internet of things, or genetic medicine. It’s not just good for progress. It’s good for jobs. In fact, if our young people today were as entrepreneurial as their counterparts in Germany or America, its estimated they would create an extra 100,000 jobs. 

The big lesson from 600 years of the history of capitalism is simple: entrepreneurs make history - by inventing the future. So we need the government to start doing an awful lot more for the enterprise economy; spreading enterprise education, investing more in science, shifting government contracts to small high growth firms, and sorting out the banking system. But if we want a better future for Britain, we need an awful lot more entrepreneurs to do well. And so we need AlanSugar to succeed.  

Dragons: Ten Entrepreneurs Who Built Britain is published by Head of Zeus today

Liam Byrne is Labour MP for Birmingham Hodge Hill, cofounder of the UK-China Young Leaders Roundtable and author of Turning to Face the East: How Britain Prospers in the Asian Century.