London leaders unveil Growth Plan to turbocharge London’s economy

Developed together with London & Partners - in collaboration with businesses, trade unions and London’s communities - the London Growth Plan sets out a blueprint to kickstart the capital’s productivity, which has flatlined since the 2008 global financial crisis.

The plan aims to restore productivity growth to an average of two per cent a year in the next decade, which would make London’s economy £107bn* larger by 2035 and put an extra £11,000 on average in the pockets of the near-nine million Londoners. This would also mean the capital contributing an extra £27.5bn in taxes to the Treasury in 2035, providing vital revenues for investment in public services.

The new plan focuses on inclusive economic growth to make sure that more Londoners can contribute to and benefit from the capital’s success. Helping more Londoners into work, bringing down housing costs and improving public transport are all vital to reducing poverty in London, improving living standards and driving growth. The plan aims to achieve a 20 per cent rise in the household weekly income (after housing costs) of the lowest earning 20 per cent of Londoners – which would mean more than a million London households would have an extra £50 to spend each week, on average, after paying for housing costs. 

A long-term strategic relationship between London and the UK Government will be a crucial part of delivering the plan. London is the engine of the UK economy and, with national support, this plan can harness its economic power and potential for the benefit of all Londoners and the whole country, helping to fund investment in public services across Britain.

Priorities in the London Growth Plan include:  

• Backing business: London government will help to power ‘industrial innovation corridors’ around the capital - supporting new space, facilities and infrastructure to ensure innovation can thrive. A new proposed London Tech and Inclusive Growth Fund could provide up to £100m loan and equity funding for high-growth small and midsize enterprises.  
• Talent and skills: An Inclusive Talent Strategy will build the capital’s skilled workforce to unleash the potential of Londoners and - in turn - London’s economy. This will help create at least 150,000 high quality jobs, with a focus on fair pay and good work, to deliver Mayoral manifesto commitments. As well as supporting more people into work and ensuring all Londoners can get the skills or training needed to progress their careers, the strategy will help attract world-class talent to study and work in the capital. New rent-controlled Key Worker Homes will also help London to attract and retain its essential workforce. 
• Housing and infrastructure: Local leaders will work with UK Government to extend and upgrade London’s public transport network, prioritising transformational projects to unlock new affordable homes and growth - including the Docklands Light Railway extension to Thamesmead, the Bakerloo line extension and the West London Orbital. 
• Inward investment and promotion: London will take the lead in implementing national reforms to the Local Government Pension Scheme, and will also support London’s goal to be a net-zero city by 2030, attracting significant institutional capital for green infrastructure. There will be support to set up a new quantum tech incubator, London Life Sciences Week will be backed to become a key global event for the sector, and London leaders will explore a new business visitor centre.
• High streets and local economies: £21m additional funding this year will support boroughs with town centre regeneration, including potentially creating a publicly owned High Street Estate Agency to bring empty properties back into use. The plan also reiterates the Mayor’s commitment to revitalising neighbourhood policing so that the capital’s high streets always feel welcoming and safe.  

Delivering the London Growth Plan will be a genuine partnership between the Mayor, local government leaders and central government, working in coalition with universities, incubators, accelerators, venture capitalists, innovation districts, corporate innovators, capital markets and international investors.  

London’s leaders want central government to help unleash the capital’s economic potential by giving the Mayor and boroughs more freedoms to fund their own growth priorities, and the flexibility to spend money in the best way to drive good growth. This is on top of continuing to lobby the Government to secure agreements with our biggest international trading partners that ensure London’s key sectors can continue to grow and thrive.  

Mayor of London, Sadiq Khan, said: “This growth plan provides a golden opportunity to turbocharge growth and unlock London's full potential - for the benefit of all Londoners and the whole country.  

“It's a blueprint for how we can help to create 150,000 good jobs, build more affordable homes, deliver major new transport upgrades and skill up Londoners for the well-paid jobs of tomorrow. From AI, life sciences and climate tech to our financial and creative industries, London is home to many of the best businesses in the world, which we want to back to grow and thrive over the next decade. 

“Ultimately, growth means little if people cannot feel the benefits or see the positive change it brings to their area. So our goal is to deliver economic growth in every corner of our city that helps to raise living standards, puts more money in people's pockets and enables us to invest in our public services, as we continue to build a fairer and more prosperous London for all.” 

Cllr Claire Holland, leader of London Councils, added: “The London Growth Plan is a blueprint to drive inclusive economic growth in the capital and across the UK, boosting productivity and ensuring more Londoners can feel the benefits of growth.

“It sets out our ambitions to unleash growth in the industries of the future, deliver new housing and infrastructure to support the London economy, and develop a new Inclusive Talent Strategy, helping more people to get into work and get the skills they need to progress.

“Boroughs are resolutely pro-growth and are committed to working with business, the Mayor of London and national government to turbocharge growth in every corner of our city.” 

Karim Fatehi OBE, Chief Executive of the London Chamber of Commerce and Industry, said: “LCCI welcomes the Mayor’s London Growth Plan to maximise London's economic potential and maintain its position as the best city in the world to do business. Businesses of all sizes are the lifeblood of the London economy, and measures such as the London Tech and Inclusive Growth fund will help them grow and attract investment.

“We especially welcome the Growth Plan's focus on skills – giving Londoners access to industry-relevant training, employment and careers support. This inclusive strategy will ensure London's economic success means prosperity for all Londoners.”

John Dickie, Chief Executive of Business LDN, said: “The bold ambitions set out in the London Growth Plan rightly focus on unlocking the city’s full potential so that businesses can succeed and Londoners thrive. Delivering on this agenda will require the city to double down on existing efforts to tackle barriers to inclusive growth such as housing and skills where we have the agency to act.

“The Government needs to ensure London has the tools it needs to turbocharge growth and help the UK get out of the economic slow lane. This means stepping up by providing long-term, flexible funding to unlock vital infrastructure and affordable housing so that the city remains an attractive place to live, work, visit and do business.”

Read more at www.growthplan.london.