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?

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Stability is essential to solve the pension problem

The new chancellor must ensure we have a period of stability for pension policymaking in order for everyone to acclimatise to a new era of personal responsibility in retirement, says 

There was a time when retirement seemed to take care of itself. It was normal to work, retire and then receive the state pension plus a company final salary pension, often a fairly generous figure, which also paid out to a spouse or partner on death.

That normality simply doesn’t exist for most people in 2016. There is much less certainty on what retirement looks like. The genesis of these experiences also starts much earlier. As final salary schemes fall out of favour, the UK is reaching a tipping point where savings in ‘defined contribution’ pension schemes become the most prevalent form of traditional retirement saving.

Saving for a ‘pension’ can mean a multitude of different things and the way your savings are organised can make a big difference to whether or not you are able to do what you planned in your later life – and also how your money is treated once you die.

George Osborne established a place for himself in the canon of personal savings policy through the introduction of ‘freedom and choice’ in pensions in 2015. This changed the rules dramatically, and gave pension income a level of public interest it had never seen before. Effectively the policymakers changed the rules, left the ring and took the ropes with them as we entered a new era of personal responsibility in retirement.

But what difference has that made? Have people changed their plans as a result, and what does 'normal' for retirement income look like now?

Old Mutual Wealth has just released. with YouGov, its third detailed survey of how people in the UK are planning their income needs in retirement. What is becoming clear is that 'normal' looks nothing like it did before. People have adjusted and are operating according to a new normal.

In the new normal, people are reliant on multiple sources of income in retirement, including actively using their home, as more people anticipate downsizing to provide some income. 24 per cent of future retirees have said they would consider releasing value from their home in one way or another.

In the new normal, working beyond your state pension age is no longer seen as drudgery. With increasing longevity, the appeal of keeping busy with work has grown. Almost one-third of future retirees are expecting work to provide some of their income in retirement, with just under half suggesting one of the reasons for doing so would be to maintain social interaction.

The new normal means less binary decision-making. Each choice an individual makes along the way becomes critical, and the answers themselves are less obvious. How do you best invest your savings? Where is the best place for a rainy day fund? How do you want to take income in the future and what happens to your assets when you die?

 An abundance of choices to provide answers to the above questions is good, but too much choice can paralyse decision-making. The new normal requires a plan earlier in life.

All the while, policymakers have continued to give people plenty of things to think about. In the past 12 months alone, the previous chancellor deliberated over whether – and how – to cut pension tax relief for higher earners. The ‘pensions-ISA’ system was mooted as the culmination of a project to hand savers complete control over their retirement savings, while also providing a welcome boost to Treasury coffers in the short term.

During her time as pensions minister, Baroness Altmann voiced her support for the current system of taxing pension income, rather than contributions, indicating a split between the DWP and HM Treasury on the matter. Baroness Altmann’s replacement at the DWP is Richard Harrington. It remains to be seen how much influence he will have and on what side of the camp he sits regarding taxing pensions.

Meanwhile, Philip Hammond has entered the Treasury while our new Prime Minister calls for greater unity. Following a tumultuous time for pensions, a change in tone towards greater unity and cross-department collaboration would be very welcome.

In order for everyone to acclimatise properly to the new normal, the new chancellor should commit to a return to a longer-term, strategic approach to pensions policymaking, enabling all parties, from regulators and providers to customers, to make decisions with confidence that the landscape will not continue to shift as fundamentally as it has in recent times.

Steven Levin is CEO of investment platforms at Old Mutual Wealth.

To view all of Old Mutual Wealth’s retirement reports, visit: www.oldmutualwealth.co.uk/ products-and-investments/ pensions/pensions2015/