Southwark Council is set to boost affordable workspace for local businesses, social enterprises, and creative industries, following a Cabinet meeting on Monday, 7 July 2025. The initiative aims to address the rising cost of renting workspaces in central London, including Southwark, which has made it increasingly difficult for these organisations to secure affordable spaces.
The Cabinet approved the adoption of the Affordable Workspace Strategy, which aims to increase the availability of affordable workspaces in the borough. This initiative includes establishing Affordable Workspace Hubs and creating an Affordable Workspace Fund, pooling financial contributions from developers who are unable to provide affordable workspace on-site.
The Affordable Workspace Fund will pool financial contributions from developers in lieu of on-site affordable workspace provision and will be managed transparently, with regular reporting. At the start of 2025, there was approximately £1 million in Section 106 (S106) Planning Infrastructure Levy (PIL) to fund affordable workspace, with a further £12.5 million in the development pipeline.
Councillor John Batteson, Cabinet Member for Climate Emergency, Jobs and Business, emphasised the strategy's goal of supporting local businesses by providing access to suitable and affordable spaces.
The Affordable Workspace Strategy sets out the council's approach to address the challenges of workspace affordability across Southwark. It includes actions led by the council to support this approach, such as the establishment of Affordable Workspace Hubs. The council is looking to locate these hubs in areas of the borough that could provide a more affordable alternative, with demand likely to be strongest in the north of the borough. The types of facilities and services offered will vary by sub-area: central locations require office and lab-based spaces, while southern and eastern areas would further benefit from more creative studios, maker spaces, and micro-retail.
The strategy also renews the council's commitment to a merit-based approach for proposed affordable workspaces, aligning with local needs and delivered in the right locations. The Southwark Plan 2022 requires new employment floorspace over 500m2 to provide 10% affordable workspace for 30 years at a discounted cost. The Affordable Workspace Strategy also mentions that the council will work with hub providers to understand any future subsidy requirements relevant for each Hub to enable a provider to offer space at a further reduction where appropriate, and for a defined period.
The cabinet delegated approval of any minor, non-substantive amendments to the strategy to the Director of Planning and Growth, in consultation with the Cabinet Member for Climate Emergency, Jobs and Business.
The Affordable Workspace Strategy is part of a long-term framework for shaping the borough over the coming years, as outlined in the Southwark 2030 strategy.