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New research shows benefits of EU’s Single Market to London

Staying in the European Union would add £13.9 billion to London’s economy and bring 75,000 jobs to the capital, according to a new independent study.

The report, Jobs and Growth for London, commissioned by London First from the Centre for Economics and Business Research, concludes that:

  • Our membership of the EU’s Single Market could add £13.9bn a year to the London economy by 2030 from further economic reforms – equivalent to a 3.4 per cent increase in London’s GDP by the time these reforms are implemented.
  • The boost to GDP could deliver 31,000 new jobs by 2020, rising to 75,000 by 2030.
  • The tech sector in London will get a shot in the arm from the Digital Single Market, with an increase of £1.7bn to London’s GDP and an additional 6,500 new jobs by 2030.
  • The capital’s financial services sector will benefit from plans to make pan-EU trade in these services easier, giving a boost to sector of £1.5bn in GDP by 2030.
  • Completing the “single market for consumers and citizens” – which includes helping trade in services across borders and removing remaining barriers to trade in goods – would increase London’s GDP by £1.5 billion or 0.3 per cent of London’s GDP by 2030.
  • The Transatlantic Trade and Investment Partnership (TTIP), between the USA and the EU, will deliver a permanent boost to London’s GDP of £1.1 billion by 2030 (in 2015 prices).

The findings were featured on BBC1’s London News in its three main programmes, on the front page of The Daily Telegraph’s Business section, and on several radio stations including eight bulletins on BBC Radio London. It also made City AM, alongside an opinion piece by our tech director Tim Scott: Farewell Tech City: Why the capital’s thriving technology sector is so fearful of Brexit.

Baroness Jo Valentine, chief executive of London First, responded to the findings, saying:

“London is the business capital of Europe and today’s research shows we need to move on from this endless political melodrama about whether we’re In or Out.

“We need a bold agenda to complete the Single Market because London could be richer to the tune of £14 billion.

“Britain led the creation of the Single Market in the 1980s and it should carry on the good work of liberalising markets throughout Europe.

“London First research has shown that the creative, digital technology and tourism sectors have been three of the biggest drivers of growth for the capital since 2010 – with the benefits of their growth spilling over into the rest of the country. These are also sectors which are particularly reliant on Europe and would benefit from the completion of the Single Market.”

Contact: Naomi Smith, nsmith@londonfirst.co.uk

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