London Growth Plan to benefit Londoners by £11,000 each year

The mayor of London and London Councils have announced their London Growth plan which aims to turbocharge economic growth and boost productivity and prosperity across the capital. Developed with London & Partners and in collaboration with businesses, trade unions, and London’s communities, the London Growth Plan sets out a blueprint for the future of London.

The Plan aims to restore productive growth back up to two per cent per year, making London’s economy £107 billion larger by 2035. This is important as between 2008 and 2022 London’s productivity was growth was up 0.12 per cent a year, but it was 3.16 per cent each year between 1998 and 2007. Growing productivity levels is key to higher wages, better living standard, and increase investment into public services across the capital.

Boosting productivity would put an extra £11,000 on average in the pockets of almost nine million Londoners and would boost tax revenue by £27.5 billion, which would be able to be reinvested in public services.

The London Growth Plan aims for a 20 per cent rise in household weekly income (after housing costs) for the lowest 20 per cent of earners in Londoners. This would mean that more than a million households across the city would have an extra £50 to spend each week, on average, after paying for housing costs. 

Key priorities in the London Growth Plan include backing businesses, with a new proposed London Tech and Inclusive Growth Fund potentially providing up to £100 million loan and quite funding for high-growth small and midsize businesses.

An Inclusive Talent Strategy will help create at least 150,000 high quality jobs, as well as supporting more people into training or into the workforce. £21 million will also be provided to support town centre regeneration.

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.”