The London Growth Plan outlines a comprehensive blueprint to reignite the capital’s productivity, which has stagnated since the 2008 global financial crisis
The Mayor of London Sadiq Khan and London Councils joined forces with local leaders from business, education, and the voluntary sector to unveil a bold new plan aimed at turbocharging economic growth and increasing prosperity across the capital.
Developed in collaboration with London & Partners, businesses, trade unions, and London’s communities, the London Growth Plan outlines a comprehensive blueprint to reignite the capital’s productivity, which has stagnated since the 2008 global financial crisis.
The plan sets an ambitious target of restoring productivity growth to an average of two per cent per year over the next decade. This would result in London’s economy being £107bn larger by 2035, adding an average of £11,000 to the pockets of the city’s near-nine million residents. Additionally, the capital would contribute an extra £27.5bn in taxes to the Treasury in 2035, providing vital revenues for investment in public services.
Between 1998 and 2007, London’s productivity grew by an average of 3.16 per cent each year. However, from 2008 to 2022, average productivity growth plummeted to just 0.12 per cent per year. The new plan focuses on inclusive economic growth to ensure that more Londoners can contribute to and benefit from the capital’s success. Key goals include helping more Londoners into work, reducing housing costs, and improving public transport to drive growth and reduce poverty.
The London Growth Plan identifies significant opportunities for sectors such as AI, life sciences, robotics, clean tech, quantum computing, and the creative industries. It outlines several key drivers to achieve its growth ambitions, including nurturing world-class talent, supporting business innovation with new investment and technology, taking a bolder approach to housing and infrastructure, and revitalising local high streets.
A long-term strategic relationship between London and the UK Government will be crucial to the plan’s success. London is the engine of the UK economy, and with national support, the plan aims to harness its economic power for the benefit of all Londoners and the entire country.
Key priorities in the London Growth Plan include backing business innovation corridors, creating a new London Tech and Inclusive Growth Fund, implementing an Inclusive Talent Strategy, extending and upgrading London’s public transport network, and supporting town centre regeneration.
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 is a blueprint for creating good jobs, building affordable homes, and delivering major transport upgrades while skilling up Londoners for the well-paid jobs of tomorrow.”
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. Boroughs are committed to working with business, the Mayor of London, and national government to turbocharge growth in every corner of our city.”
Laura Citron, chief executive of London & Partners, concluded, “This is a huge moment for our city: a shared vision, a clear plan, and now the momentum to make it happen. As the capital’s growth agency, we’ll be working closely with investors, entrepreneurs, and partners across the city to drive growth for London and Londoners.”
The plan has been welcomed by leading voices from London’s business community, with Karim Fatehi OBE, Chief Executive of the London Chamber of Commerce and Industry, praising the focus on skills and inclusive growth. John Dickie, Chief Executive of Business LDN, highlighted the need for long-term, flexible funding to unlock vital infrastructure and affordable housing.
The London Growth Plan represents a collaborative effort to revitalise the capital’s economy, improve living standards, and create a fairer and more prosperous London for all.
