The London economy, at present, is stagnant and workers do not want to work from offices anymore. How Sadiq plans to make this shift across the workforce, mitigate the effects of Brexit, bear the brunt of political and trade alienation from Europe, is yet to be seen … writes Kanwal Toor
Mayor Sir Sadiq Khan’s ambitious London Growth Plan is a 10-year strategy aiming to revitalise the capital’s economy, addressing social inequalities, and promote sustainable development. It has a clear strategic vision, and a lot of work has gone into planning it. It is somewhat aligned with public needs. It will get some strong institutional backing.
We, Londoners hope to see incremental wins, like new homes and better public transport. It is well intended however, mammoth – and it faces several significant challenges that could hinder its success.
For instance, boosting productivity, the huge plan targets a 2% annual productivity growth, aiming to expand London’s economy by a staggering £107 billion by 2035. The problem with this agenda is that it relies on assumptions of strong growth in sectors like finance, tech, and life sciences.
Hybrid working trends, Brexit, high corporation taxes, looming non-dom status changes and declining demand for office space has reduced central London’s economic momentum. And this trend will continue in the foreseeable future.
The London economy, at present, is stagnant and workers do not want to work from offices anymore. How Sadiq plans to make this shift across the workforce, mitigate the effects of Brexit, bear the brunt of political and trade alienation from Europe, is yet to be seen.
Plans to advance green growth and his commitment to achieving net-zero carbon emissions by 2030, necessitating significant investments in green infrastructure and technology are all great but highly controversial too. The mayor proposes selective development of London’s green belt to build more homes, aiming to boost annual housing construction from 52,000 to 88,000. This has triggered strong opposition from environmental campaigners. Some local councils, Political figures, including Conservatives, argue it undermines sustainable planning. This does come across as a bit of surprise seeing Sir Sadiq has actively propagated pedestrianisation of high streets and encouraged cycle usage throughout the city.
The mayor is determined to enhance the global standing of London. He is hoping for an average annual growth of 6% in London’s services exports. However, the productivity ambitions may be over-optimistic. His growth plan aims for 2% annual productivity growth, which is double the post-2008 average. Achieving this would require unprecedented investment.
