Unveiled on Thursday morning, the mayor’s London Growth Plan aims to restore productivity growth to an average of two per cent a year in the next decade, which, according to City Hall, would make London’s economy £107bn larger by 2035.
City Hall data reveals that while London’s productivity grew by an average of 3.16 per cent each year between 1998 and 2007, this rate of growth was hugely damaged by the financial crash - so that between 2008 and 2022, the rate had dropped to just 0.12 per cent a year.
If London achieves the plan’s target and increases its economy by £107bn, that in turn would see the capital contribute an extra £27.5bn in taxes to the Treasury in 2035 - “providing vital revenues for investment in public services”, the mayor’s team said.
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.”.
Antonia Jennings, CEO of the Centre for London think tank, cautioned that the plan’s success will be dependent on London receiving a new financial settlement.
