London Mayor Sadiq Khan has announced an ambitious plan to add more than £100 million to the capital economy within a decade.
Announcing what he is calling London's growth plan, Khan said he has allocated hundreds of millions of pounds of delegated funds to return the London economy's annual productivity growth to the level seen before the 2008 financial crisis.
He said target areas such as housing, transportation, training, high street and business support would “turbo-charge” the efficiency of the country's most powerful economic hub.
The proposal will include allocating more than £300 million in funds to the skills of the central government to local schemes, which will help create more than 150,000 jobs. It focuses on fair wages and good work, and on the campaign pledges that were re-elected for the historic third term last May.
Also upgrades to London's public transport network: an extension of the Dockland Light Railway to Thamesmead in the southeast, pushing Bakerloo further southward into Lewisham, and using existing tracks to create West London Orbital Overground Services.
The heart of Khan's ambition to add £107 billion to the size of the London economy by 2035 will reboot productivity growth after brooding performance in the UK and other developed economies since the 2008 financial crisis.
Productivity growth – a key economic statistics that measure output per hour by allowing employers to pay higher wages – are considered essential to raise living standards. London productivity rose on average about 3.16% per year between 1998 and 2007, but plunged to an average rate of 0.12% for the year through 2022.
Meeting Khan's goals includes London's productivity growth, which averages 2% per year between 2025 and 2035. Achieving the £100 billion target will add an average of £11,000 to London's pocket of nearly 9 million people, generating taxes of £27.5 billion in the future in 2035.
However, this includes recent history and total breakdown.
London remains the most productive region in the UK; 25% above National Average – City Hall's own analysis shows that the capital is suffering Much deeper slowdown Growth rate over the past 15 years.
Emphasizing the mayor's challenge, London's productivity grew only in real terms, at a total of 1.5% between 2008 and 2021, compared to the country's overall 6.9% growth.
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There is a national productivity level drop down Recently, the Budget Responsibility Bureau has predicted trend growth to reach 1.25% by 2029, but recent figures for the number of sub-countries show that London's productivity declined by 0.9% in 2022, the largest in all regions.
Khan said his plan “provides a great opportunity to unlock turbo charging growth and London's greatest potential for profits of all Londoners and the nation.”
“In the end, growth makes little sense if people can't feel profitable or see the positive changes that it brings to their area, so our goal is to raise the standard of living, put more money into people's pockets and invest in public services in every corner of our city.
