Heated discussion at Hatton Garden BID open forum

A heated discussion took place last night (27 October) as members of the jewellery industry attended an open forum to discuss the future of Hatton Garden.

The forum was organised by the Hatton Garden Business Improvement District (BID) to discuss its investment plan and address concerns over the future of London’s jewellery district.

Many in the industry have expressed anxiety over the impact of the new Crossrail station at nearby Farringdon, which is likely to drive up rates and attract commercial property developers to the area.

A number of jewellery workshop owners at the discussion claimed they would be pushed out of Hatton Garden due to rising rents – rises of up to 600% were claimed in some cases – and business rates, which are due to be increased next year.

Michael Rawlinson, chief executive at the National Association of Jewellers (NAJ), compared the industry to Savile Row’s thriving tailoring sector, claiming jewellery workshops will need to move upscale and push prices up.

However, a number of workshops, along with Victoria McKay, chief operation officer at the London Diamond Bourse (LDB), said there are only so many jobs that a workshop can undertake, and so much they can charge, before clients look for cheaper alternatives.

During the discussion, Gary Williams, chairman of the BID, said there was nothing that can be done about rising rents and that solutions would “not be created immediately”. The only answer is to use the BID to promote businesses, increase foreign tourism and drive footfall into the area so that jewellery firms are better equipped to meet the increasing costs, he said.

A survey – sent out to 600 jewellery firms in the locale, but only answered by 60 – was also highlighted at the forum, which showed support for Hatton Garden. Some 60% of respondents said it was “crucial” for their business to be based there.

Williams said: “We all know that the jewellery industry in the area is under threat. It is a situation seen across central London. We know rents are rising, we see the shortage of suitable and affordable workspace, how margins are being squeezed, business rates are going up and competition elsewhere is growing.

“We have to be realistic about the things we can influence. We cannot change market forces, but we can work together to understand what is most valuable to us here in Hatton Garden and work to protect that.”

He added there has never been a more important time for the jewellery sector to work together, and that, despite the challenges, there are opportunities the BID can work on to “ensure the area and all its businesses can benefit”.