London Growth Plan: four main ambitions

The plan includes the following overarching ambitions in order to maximise upon London’s role in unlocking national growth.

1. Productivity growth: to raise productivity growth to an average of 2% per annum over the next decade (2025-2035)
2. Inclusion: to raise the real household weekly income of the lowest earning 20% of Londoners by 20% by 2035
3. Green Growth: to accelerate progress towards achieving London’s net zero target for 2030
4. A Global Capital: to grow London’s services exports by an average of 6% per year.

A broad strategy and a wide geography

The plan provides a framework for growth clusters in London stretching from Battersea to the Olympic Park, recognising that London’s suburbs are not just dormitories for its city centre workers but, instead, represent important economic clusters across the city. To level up affordable housing and infrastructure, key priorities include major transport upgrades such as the Bakerloo line extension and the introduction of new rent-controlled homes for key workers.

Whilst the growth plan is an economic – not a spatial – initiative, it sets places for growth for certain sectors in prescribed locations combining a mix of self-awareness (recognising long-standing growth clusters) and aspiration (maximising the role of emerging industries). 

For example, the role of the city centre in financial, professional, business services and technology is recognised with the plan setting ambitions for this role to be retained and maximised to attract a global talent pool. With regards to the creative industries, the plan recognises the established nature of globally significant clusters and aims to nurture these. This includes supporting the Fashion District across East London for fashion innovation and small-scale manufacturing and the emerging design quarter at Battersea.

Delivering growth

The mayor seeks to allocate hundreds of millions of pounds in devolved funding in an attempt to return the annual productivity growth of the London economy to the levels seen before the 2008 financial crisis. The plan looks to utilise opportunities including artificial intelligence, emerging industries, international trade and procurement opportunities for smaller businesses to support inclusive growth, raise living standards and ensure Londoners feel the benefits in their pocket. 

Set against a backdrop of environmental consciousness – in direct response to the green growth ambition – and with an awareness of the dramatic income inequality in the capital, the mayor’s plan appears the direct opposite of chasing growth at all costs, seeking to stimulate inclusive economic growth.

The feedback on the plan is as broad and varied as its scale. The Federation of Small Businesses and Business-LDN welcomed the plans, which they say "rightly focuses on unlocking the city's full potential." And while critics of the scheme raised concerns over this level of growth being directed at the capital only, the plan recognises London’s role as a national growth engine and argues that the UK economy will not grow to its full potential without London firing on all cylinders.

Further information

Contact Annamaria Sgueglia or Ben Kershaw