While an important step in the right direction, should it go further to ensure London remains a global economic centre of excellence for innovation?

London continues to score highly in a global context. It was recently ranked third in the Savills Tech Cities Index  and Savills Resilient Cities Index and first in the Savills Talent Cities Index, benefitting from a world-leading education sector that attracts and retains talent, and established innovation ecosystems which foster a culture of innovation and opportunity.

However, London’s current role in the global context is not in a fixed state: it requires continued support and a strategic framework which supports decision-makers to deliver resilient and flexible buildings, places and infrastructure that will ensure London’s continued growth and success on a global stage.

The importance of a strategic framework to support growth

The Draft London Plan provides a strategic framework which identifies a range of innovation ecosystems of varying spatial scales, including international centres of innovation, regional economic corridors and established and emerging local innovation clusters. These are identified through the following designations set out within the Draft London Plan:

• Strategic Economic Corridors
• International Centres
• Transformational Gateways
• Brownfield First Opportunity Areas
• Strategic Economic Clusters
• Industrial Property Market Areas
• Green Belt Industrial
• Green Belt Future Candidate Industrial

The need for flexibility

The Draft London Plan acknowledges that a range of business space and infrastructure is required to create the conditions necessary to meet the ambitions identified in the London Growth Plan published in February 2025, requiring growth, adaptation, innovation and improvement. Draft Policy GLE1 (sufficient and appropriate employment space) aims to provide for the land use and floorspace needs of all sectors of the economy.

Importantly, the Plan places emphasis on Class E development being designed flexibly, to accommodate a range of commercial, business and service uses and occupier sizes.

In respect to the life sciences sector, the policy recognises that developments for laboratory space should incorporate necessary design features and ensure access to utilities, with particular requirements for high-capacity power, water, ventilation, load-bearing floors, higher floor-to-ceiling heights, vibration absorption and high-speed digital connectivity.

Recognition of the requirements of specific sectors and for flexibility in the provision of employment floorspace is welcomed.

Corridors and clusters

Draft Policy PV4 (strategic economic corridors and clusters) requires local plans to designate, define the boundaries and develop policies for strategic economic clusters and support the growth of wider economic corridors, including support for the provision of necessary infrastructure, land uses, property and associated public space. This will require local planning authorities (LPAs) to incorporate strategic spatial frameworks at a local level to ensure innovation ecosystems are identified, defined and supported.

It is right to identify specialist clusters of economic activity. Urban agglomeration makes places, companies and people more productive, creating attractive environments to live, work and play. It is also right to place emphasis on supporting the infrastructure required to support innovation ecosystems. The success of the Elizabeth line, which connects several established and emerging innovation districts in London, demonstrates that infrastructure remains as essential as ever to support and unlock economic growth.

The Draft London Plan’s approach of identifying a range of innovation districts is welcomed and represents a marked improvement in providing planning policy support for key growth sectors.

Next steps?

In addition to the positive direction of travel, the Draft London Plan could go even further and require local authorities to:

• Use the full range of planning tools available, such as Local Development Orders (LDO), to support innovation districts by simplifying planning and providing flexibility in land uses and the adaptation of buildings.
• Support the provision of different types of housing to meet the needs of economic clusters, particularly as the cost of housing continues to form one of the main barriers for both talent and companies to access London’s innovation ecosystems.
• Adopt a more strategic approach to inclusive employment and affordable workspace policy, rather than requiring LPAs to identify standardised requirements for affordable workspace resulting in each application needing to develop its own solution.
• More clearly identify the infrastructure required to support London’s clusters and innovation districts.

Ultimately the aim is clear: to give London the best opportunity to thrive and maintain its position as an innovator on the global stage.

Further information

Contact Emma Andrews or Ben Tattersall