Sadiq Khan Unveils £500,000 Initiative to Transform London into an ‘Al Fresco City’ and Boost Hospitality Sector

City Hall has the potential to rejuvenate London’s struggling hospitality sector through a significant expansion of al fresco dining across the capital, according to the Deputy Mayor for Business, Sir Sadiq Khan. The hospitality industry, encompassing restaurants, pubs, and bars, has faced numerous challenges, including increased National Insurance rates, a rise in the minimum wage, and, most importantly, a decline in customer footfall and average spending compared to the pre-Covid era. In a bid to counteract these issues, the Mayor of London is advocating for an extension of last year’s Summer Streets programme, with the Deputy Mayor for Culture emphasising the importance of making outdoor dining the “norm, not the exception” moving forward.

Not every local authority, however, has succeeded in securing funding for their initiatives, leaving some financially constrained councils awaiting the opportunity to launch their own schemes. Thirteen boroughs across London have collectively received approximately £500,000 to assist businesses in establishing outdoor dining options, as well as hosting events and extending opening hours throughout the summer. This allocation marks a notable increase from last year’s pilot programme, which saw streets in Lambeth, Hackney, Waltham Forest, and Westminster trial the initiative.

Increased Demand for Outdoor Dining Initiatives

Howard Dawber, Deputy Mayor for Business, remarked that the interest from local authorities wishing to participate in the programme exceeded the funding available from City Hall. “This year is massively expanded – it has really caught the imagination,” he stated. “We’ve experienced some wonderful summers, and London is coming alive again. People are flocking to the streets to enjoy the company of fellow Londoners. It’s also an opportunity to shop locally and support independent retailers, which is crucial.” He expressed a desire for more funding, acknowledging that nearly every borough had submitted bids, indicating a strong interest in the initiative. “We could have done a few more; hopefully, we’ll secure additional funding for future years,” he added.

Dawber made these comments during a vibrant Summer Streets event outside the Cha Sha restaurant on Ealing Road in Wembley, Brent. With the support of the funding, the restaurant has organised outdoor dining, live music, and entertainment, collaborating with local businesses throughout August. “This is a fantastic example of how they have utilised the funding, engaging with numerous local enterprises,” he noted. “They’ve all committed to offering discounts, turning it into a true celebration of the street, which is precisely what we intended.” He highlighted the broader impact of the programme, describing it as a celebration of community and local culture.

Catalysing Local Initiatives

The funding not only facilitates outdoor dining but also assists local authorities in covering essential costs, such as barriers. Some councils that submitted strong proposals but were not granted funding have sought sponsorship independently to proceed with their plans. Dawber believes the programme acts as a catalyst, inspiring communities to think creatively about how to utilise their streets to create new outdoor spaces.

The success of the current scheme may encourage City Hall to provide additional funding next year to further support struggling high streets in the capital. However, Dawber clarified that no decisions regarding next year’s funding would be made until the conclusion of the current programme. “Those successful in receiving funding may be able to continue independently, without requiring further financial assistance,” he explained. “Many physical items, like barriers, can be reused annually once purchased.” He acknowledged the challenges facing smaller businesses in the capital, citing rising inflation, costs, and rents as significant hurdles. “While footfall has improved in many areas since the pandemic, spending levels have not fully recovered, resulting in high operating costs,” he observed.

Addressing Sector Challenges

Justine Simons, the Deputy Mayor for Culture, reiterated the aspiration for al fresco dining to become a standard feature of London life. “Summer Streets is about London expressing its identity. As the most international city in the world, this diversity is our greatest asset,” she stated. “The programme exemplifies this narrative. This year’s initiative is significantly larger than last year’s. We learned from last year’s success, where footfall increased by up to 85% in some areas, leading to many boroughs submitting exciting proposals. The competition for funding was fierce.” Simons noted that in Brent alone, there are 40 events planned under the Summer Streets banner, all of which have garnered enthusiastic support from Londoners, businesses, and communities alike.

Despite the positive feedback, the scheme has faced criticism. Alex Challoner, a prospective Conservative mayoral candidate for 2024, labelled the funding as “inadequate” and insufficiently generous. He pointed out that while the budget has increased to £500,000 from £300,000, it remains a modest sum in the context of City Hall’s overall budget. “This amount is barely enough to cover the salaries of three of the mayor’s deputies,” he commented. “Moreover, the impact of such funding is diluted by its distribution across numerous projects. Sadiq Khan has a poor track record when it comes to supporting the capital’s hospitality sector. A few picnic tables will not erase a decade of mismanagement.”

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