For London to thrive and drive the UK’s return to growth, we need a robust economic plan to accelerate the recovery, backed by the Government and the Mayor. Getting London motoring quickly will fast track UK growth and help maintain its status as a global player. Pre-pandemic, London generated a £39bn tax surplus for the UK: re-establishing this position quickly is vital for the country’s recovery.
To accelerate the UK’s return to growth, London needs:
A campaign to bring people back
Encouraging people back into London is critical, initially domestically and then internationally. This requires a coordinated and well-funded approach.
A properly funded transport system
Re-establishing London as a domestic and global transport hub, securing a long-term sustainable funding settlement for TfL and championing the international connections needed for Global Britain.
A comprehensive re-skilling plan
Unemployment is rising disproportionately in the capital. Urgent interventions are needed to support Londoners whose jobs have changed or disappeared and businesses whose hiring needs have shifted.
The Government should appoint a senior Recovery Minister, echoing the successful vaccination approach, to coordinate the return to growth across the UK.
Promoting London’s recovery alongside that of other cities and regions could generate a fiscal surplus to support government investment in levelling up vulnerable communities across the UK, given that in normal times:
London represents around 13% of UK population...
but it accounts for c. 23% of GDP, suggesting its recovery is critical to UK as a whole
London’s net fiscal surplus
is UK’s highest at £4.3K per person, followed by South East & East of England (£2.4K, £0.7K respectively)
all other countries and regions in the UK are generating a deficit, resulting in an overall deficit of £0.6K per person in the UK.
"Rebuilding the UK economy needs a vibrant growing capital. We’re calling for a major promotional push to attract people back to the capital, funding to keep our transport network operating at full strength and a reskilling programme to get Londoners into work. The Government need to apply the same laser-like focus to economic recovery as it so successfully placed on the vaccine roll out"
For the capital to play the fullest possible role in the UK’s recovery, a rapid uplift in footfall in the city centre is critical. We will be using Avison Young’s Cities Recovery Index to track progress.
Using a range of indicators across sectors, the Index shines a light on the inter-relationship between Covid mitigation policies, the city’s response to them and the pace of recovery. You can select sectors to view using the options bar below:
The London Index displayed here includes data points for: Commercial activity: Industry, business sentiment and employment; Hotels and leisure: Restaurant, pub, bar and other leisure activities; Mobility: Journeys by foot, air, train, bus and car; Residential: Residential property market activity; Retail: Footfall, shop visits and consumer confidence; and Return to the Office: Commuting patterns and levels of office occupancy.