Sadiq Khan: New London Growth Plan to return London to pre-global financial crash rates of growth

• The Mayor will use a speech at Mansion House to announce that the London Growth Plan will focus on supporting AI and technological innovation, skills, housing and transport infrastructure
• The Mayor will use a speech at Mansion House to announce that the London Growth Plan will focus on supporting AI and technological innovation, skills, housing and transport infrastructure
• The target of the London Growth Plan will be to return the capital to pre-global financial crisis rates of growth to increase London’s economy to at least £172 billion, generate an extra £103 billion for the Treasury, put £20,000 more in Londoners’ pockets and help to create 150,000 new high-quality jobs
• Sadiq will say London is uniquely placed to help deliver on the Government’s national growth agenda quickly and call for major new national investment in housing and transport
• He will also urge London’s political leaders to join him in taking on the NIMBYs and making the difficult decisions to deliver the level of affordable housing required in the capital
• The Mayor will use the speech to warn about the rise in a ‘deeply reactionary populism’ – amplified by social media - and argue that economic growth that raises living standards can counter these ugly forces

 

The Mayor of London, Sadiq Khan, will announce today in a major speech that the London Growth Plan will help to create 150,000 new high-quality jobs by 2030 and have a target of returning London to pre-financial crisis rates of growth. This would generate an extra £103 billion for the Treasury and put £20,000 more in Londoners’ pockets over the next decade compared to current trends.

Delivering a keynote speech at the annual Local Government Dinner at Mansion House in the City of London, Sadiq will announce that the upcoming London Growth Plan - developed in close partnership with London Councils as well as London’s businesses and trade unions - will focus on: ensuring Londoners have the skills businesses need; delivering vital housing and transport infrastructure for London; and ensuring the key technologies of the 21st century – like AI, life-sciences, robotics, clean-tech and quantum computing - are being developed and commercialised in London to spur growth and create the mega-companies of tomorrow.

The Mayor will hail London as the “perfect partner for growth” and call on the Government to support the new plan - set to be published next month - by investing more in housing and transport infrastructure in the capital to help deliver on the national growth agenda quickly. 

He will use the speech to urge all of London’s political leaders to join him in taking on the NIMBYs to help build the number of new affordable homes needed in London. He’ll say a powerful collective message from London to the Government is: “Give us the resources and housing investment we need, and we’ll take the difficult decisions to deliver new housing on a scale not seen for a generation.” 

Sadiq will also use the speech to warn about the rise in a ‘deeply reactionary populism’ and argue that inclusive economic growth that raises living standards can counter these ugly forces. 

On the new targets set out in the London Growth Plan, Sadiq will say:  

 “We’ve crafted a new, ambitious, London Growth Plan to support the Government’s vital growth mission. New figures produced by City Hall economists show that if we succeed in our aim – of getting London growing at the same speed it was prior to the financial crisis – then over the next decade our economy can be at least 172 billion pounds bigger and our city will be able to generate 103 billion pounds more in tax receipts for the Treasury. That’s money that can be spent on health, education, defence, policing and infrastructure anywhere in the UK.    

“At the same time, if we’re successful in achieving these growth rates, each Londoner will have, on average, approximately £20,000 more in their pockets by 2034.  And this is in addition to the 150,000 new, high-quality jobs we forecast the London Growth Plan can help create over the same 10-year period.” 

On what the London Growth Plan will do to support innovation, skills and businesses, Sadiq will say:  

“London has become the fintech capital of Europe and the number one destination globally for green finance. Already, we boast almost 1,300 AI companies – more than New York, and double the number in Paris and Berlin combined... But we must ensure more individuals and enterprises are being given the helping hand they need to realise their full potential so that London can continue moving forwards, making sure that we remain at the forefront of these new and emerging industries, and that we continue to produce – and protect – the pioneering companies that have always been a feature of our city’s success.    

“The London Growth Plan sets out how we’ll back businesses working across tech, AI and life sciences to start-up, scale, and solicit the investment they need to become the mega-companies of the future. Our aim is not only to ensure that the defining technologies of the 21st century are being developed here in our city, but that intellectual property and successful companies are retained – and rooted – here in London so that it’s our country, capital and communities who benefit.  

“Growing the size of London’s skilled workforce is also critical to growing the size of our economy. That’s why we’ll continue to invest heavily in skills and training… equipping Londoners with the skills they need to excel in every sector and profession - from construction to coding – so they can share in the growth and prosperity of our economy.”   

Calling on local government leaders in London to join him in taking on the NIMBYs and making the difficult decisions to deliver affordable housing, Sadiq will say:

“While our planning system isn’t the biggest obstacle to new development, it’s more important than ever that we take on the NIMBYs who stand in the way of delivering the homes and jobs we need.  At City Hall, we’ve recently approved a series of new developments in the face of some opposition, showing that we’re willing to put the needs of our city – and country – above the vocal minority.

“Our collective message to the government must be this: Give us the resources and housing investment we need, and we’ll take the difficult decisions to deliver new housing on a scale not seen for a generation.  London is the perfect partner for growth - ready to do what’s needed to help the Government succeed in its economic mission.” 

On the rise of reactionary populism, Sadiq will say: 

“Across the Western world – we see a deeply reactionary populism stirring - a dangerous creed – fuelled by lies and misinformation on social media – that seeks to exploit people’s concerns, rather than address them, and prey on people’s fears, rather than provide solutions to them. 

“Yet inclusive, sustainable growth – growth that raises the living standards of everyone – can help subdue these ugly forces, and London has a central part to play.

“We can help to power a new era of national growth and renewal – enhancing our country’s attractiveness and competitiveness, supporting jobs and supply chains across the country, and putting more money back in people’s pockets.” 

Also giving a speech at the London Government Dinner is Chair of London Councils, Cllr Claire Holland,  who will announce that a new Inclusive Talent Strategy will form part of the London Growth Plan, as she will say:

 “It’s clear that London cannot achieve its full potential, until all Londoners achieve their potential. That’s why a new inclusive talent strategy will be at the heart of the London Growth Plan, focused on growing the skilled workforce of the future and supporting Londoners who are excluded from the labour market.

"We’ll do this by increasing investment in skills and training, with a focus on key growth sectors; bringing together health and employment services to help more Londoners into work; and ensuring we have the housing and transport infrastructure necessary to connect people to jobs.”

City of London Corporation Policy Chairman, Chris Hayward, said: “Growth is the only game in town, and a priority we share with the Government.

“London has a vital role to play in powering the economy to help raise people’s living standards right across the UK.

“The City Corporation fully supports the London Growth Plan, and we’ll continue to make a significant contribution by promoting our world-leading financial and professional services.”

Lord Mayor, Alderman Alastair King DL, said: “The theme of my mayoralty is Growth Unleashed - mobilising the Square Mile to drive growth for the whole United Kingdom through an enhanced appetite for risk, bolder technological innovation and amplifying our many communities to draw on everyone’s talent and skills.”

“The nation is crying out for economic growth, and we know growth is to be found here in London. Only through unleashing growth we can tackle other challenges – economic, social, environmental – facing our communities in London and across the country.”