Khan unveils a bold plan to boost London’s economy, aiming to add over £100 billion within the next decade. The mayor outlined the London Growth Plan, which allocates hundreds of millions in devolved funding to revive productivity growth. His strategy focuses on restoring London’s economic performance to pre-2008 levels.
Targeting key sectors, the plan invests in housing, transport, training, business support, and high streets. Khan believes these measures will “turbo-charge” the UK’s most powerful economic hub. His administration aims to create over 150,000 jobs by directing £300 million in government skills funding to local employment programs.
Khan unveils a bold plan to boost London’s economy with major transport improvements. Proposed projects include extending the Docklands Light Railway to Thamesmead, pushing the Bakerloo Line to Lewisham, and launching a West London Orbital service. These upgrades will enhance connectivity and support economic growth.
A key goal of the plan is increasing London’s productivity growth to an average of 2% per year from 2025 to 2035. This ambitious target follows years of sluggish growth. Between 1998 and 2007, London’s productivity rose by 3.16% annually, but after the 2008 crisis, growth slowed to just 0.12% per year.
If successful, the plan could boost London’s economy by £107 billion and increase wages by an average of £11,000 per resident. Additionally, it could generate an extra £27.5 billion in tax revenue by 2035. However, achieving these results requires a complete break from recent economic trends.
Despite being the UK’s most productive region, London has faced significant challenges. Between 2008 and 2021, productivity grew only 1.5% in real terms, while the national average increased by 6.9%. In 2022, London saw the steepest decline in productivity, dropping by 0.9%.
Khan unveils a bold plan to boost London’s economy, emphasizing that growth must benefit all residents. He wants economic success to translate into higher living standards and improved public services. His vision focuses on building a fairer and more prosperous city for everyone.
Stay tuned for further developments on this issue.
