Industrial Strategy

Meeting: 
MQT on 2017-12-14
Session date: 
December 14, 2017
Reference: 
2017/5226
Question By: 
Fiona Twycross
Organisation: 
Labour Group
Asked Of: 
The Mayor

Question

Does the Government's Industrial Strategy satisfactorily address the challenges that London's economy is currently facing?

Answer

Answer for Industrial Strategy

Answer for Industrial Strategy

Answered By: 
The Mayor

Sadiq Khan (Mayor of London):  Thank you for the question.  I support the UK Government’s overall approach to the Industrial Strategy and look forward to producing London’s own Industrial Strategy and to working with cities across the UK to support key growth sectors and maximise economic opportunity across the country.  London, however, faces longstanding changes around inequality that are not fully addressed in the Industrial Strategy White Paper, in addition to huge challenges post‑Brexit.  Further devolution of powers and funding are a requisite if London is to continue its significant contribution to UK growth.  London has specific infrastructure challenges that will need addressing, such as ensuring access to charging points for electric vehicles, which we have just talked about. 

 

As London grows, so does the rest of the country.  Diverting resources for vital infrastructure from the capital will undermine London’s international competitiveness.  My fear is that investors will look to other global cities.  The loss of this investment will damage the national economy.  There can be no doubt about that.  The anti‑London stance from the Government is reflected in the budget, which clearly fails to deliver the funds the capital desperately needs to fix the housing crisis, keep Londoners safe, tackle toxic air pollution and invest in infrastructure. 

 

My approach to the Industrial Strategy is set out in my draft Economic Development Strategy, which was published yesterday.  London needs further devolution in order to support innovation and business growth across London’s key growth sectors and help Londoners to access those opportunities. 

 

Fiona Twycross AM:  Thank you.  Do you think the Government is entirely ignoring Brexit or have they taken it into account while they have been developing the Strategy?

 

Sadiq Khan (Mayor of London):  The behaviour of David Davis MP [Secretary of State for Exiting the European Union] over the last few weeks is the best answer to your question.  On the one hand, you would expect a Government to carry out, or have carried out for them, impact assessments of the various scenarios in relation to the outcomes of discussions with the EU.  Are we going to leave the EU but be in the single market?  Are we going to leave the EU but be in the single market and customs union?  Are we going to leave the EU and be in neither?  David Davis MP gave the impression the Government had undertaken various impact assessments in the various sectors that are responsible for jobs and growth in our country.  It now transpires that no assessments were carried out by the Government. 

 

What I have done as a consequence is to ask independent experts, Cambridge Econometrics, to carry out impact assessments in the nine different sectors that create the most jobs in London, including finance, construction, hospitality and care.  I have asked them to let me know the impact of the various possibilities with negotiations with the EU.  They hope to respond in January, and do you know what I am going to do?  I am going to publish them. 

 

Fiona Twycross AM:  Fabulous.  Thank you.