Sir Sadiq Khan has warned that the increasing trend of remote working could have a lasting and damaging effect on London, urging businesses to think carefully before reducing office space. Speaking at an event hosted by consultancy firm Project Leaders on Wednesday night, the mayor expressed concerns that the shift away from office-based work, which accelerated during the pandemic, risks leaving central London “hollowed out.”
Addressing an audience of business leaders, he stressed that London “cannot afford” to lose the vibrancy and economic activity that office workers bring to the city’s centre. While acknowledging the appeal of flexible working, he urged employers to encourage staff to return to offices, not just for economic reasons but also to ensure younger employees benefit from workplace interactions. However, he suggested that businesses also have a responsibility to make office environments more appealing, ensuring that workers see value in returning.
The decline in commuter footfall has had a significant impact on London’s economy, particularly in sectors reliant on office workers, such as hospitality, retail, and transport. Transport for London (TfL) has seen a sharp drop in fare revenue, as fewer people travel into the city for work. As of March 2024, Tube ridership during Monday morning peak hours stood at only 70 per cent of its pre-pandemic levels in March 2019, while on Fridays, this figure dropped to 62 per cent. Midweek commuting remains stronger, with Tuesday to Thursday ridership reaching 79 per cent of pre-pandemic levels.
In an effort to tackle the decline in Friday ridership, the mayor introduced a three-month trial scrapping peak fares on Fridays in 2023, at a cost of £24 million. However, a recent report found that the scheme made “no noticeable difference” in the number of peak-time journeys. This raises questions about the feasibility of further incentives to boost commuting, particularly in an era where hybrid working has become deeply embedded in many businesses’ structures.
Khan also highlighted the potential long-term consequences of reduced office attendance for younger workers. He warned that recent graduates and early-career professionals risk missing out on key workplace experiences, including networking opportunities and skills development, which could be vital for their professional growth. He urged businesses to consider the impact of reducing office space, suggesting that the long-term effects on their workforce may not become clear for years.
London’s struggle to return to pre-pandemic commuting levels is not unique. The mayor noted that many cities worldwide are grappling with similar challenges, with the exception of some in East Asia, where office attendance has largely rebounded. One guest at the event raised concerns that high commuting costs were deterring workers from returning to offices, particularly those travelling in from the Home Counties, where rail fares have become increasingly expensive.
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Khan pointed the finger at private train operators, criticising their repeated above-inflation fare increases, which he argued have made commuting prohibitively expensive for many workers. He said that, where possible, he has worked to freeze Tube and bus fares, but emphasised that his powers over the wider rail network are limited. His team at City Hall, he added, is actively lobbying the Department for Transport to explore “innovative” ways to make rail travel more affordable and attractive for commuters.
Beyond the issue of commuting, Khan also touched upon his frustration with the government’s handling of High Speed 2 (HS2). He admitted he was still “annoyed” by the decision to scrap the northern leg of the project, which was originally intended to connect Birmingham with Manchester. The cancellation was announced by Rishi Sunak in 2023, and since taking power last year, the Labour Government has refused to commit to resurrecting the route. However, it has confirmed that HS2 trains will reach Euston station, rather than terminating at Old Oak Common, a move that had previously sparked controversy.
Khan’s remarks reflect growing concerns among policymakers and business leaders about the future of London’s economic landscape. While hybrid working offers clear benefits for employees, including improved work-life balance, it also presents challenges for businesses and city infrastructure that have long depended on a steady flow of office workers. As the capital continues to navigate the post-pandemic era, the debate over the future of office working—and the role of government in shaping commuting policies—remains far from settled.
