Sir Sadiq’s new strategy aims to ‘create 150,000 good jobs, build more affordable homes, and deliver major new transport upgrades’
Sir Sadiq Khan has unveiled an ambitious London Growth Plan aimed at revitalising the capital’s economy, pledging to boost productivity, job creation, and infrastructure investment. The strategy, announced on Thursday morning, sets out a bold vision to increase London’s economy by £107 billion by 2035, potentially putting an additional £11,000 in each Londoner’s pocket before tax.
The plan’s key pillars include investment in housing, transport, and business innovation, with a focus on reversing the sluggish economic growth that has plagued the capital since the 2008 financial crisis.
Economic recovery and productivity boost
City Hall data reveals that London’s productivity grew at an annual average of 3.16 per cent between 1998 and 2007. However, in the wake of the financial crash, this rate nosedived to just 0.12 per cent per year from 2008 to 2022. The Growth Plan aims to restore this momentum, setting a target of two per cent annual productivity growth over the next decade.
If this target is met, London’s enhanced economic performance would contribute an extra £27.5 billion in tax revenue to the Treasury by 2035, supporting vital public services and national investment.
Transport upgrades and infrastructure investment
A major component of the Growth Plan is the expansion of London’s transport network, including proposed extensions to the Bakerloo line, DLR, and Overground services. In addition, the strategy calls for the devolution of suburban rail services to Transport for London (TfL), a long-standing demand that proponents argue would improve efficiency and service reliability.
The investment in transport infrastructure aligns with broader efforts to enhance connectivity across the capital, supporting both businesses and commuters.
Job creation and innovation hubs
A core aim of the strategy is to create 150,000 new jobs by fostering innovation and industrial growth in strategic locations across London. The plan identifies several key innovation corridors, including:
- WestTech Corridor (White City to Old Oak and Park Royal)
- UK Innovation Corridor (stretching from King’s Cross ‘Knowledge Quarter’ to Cambridge)
- Thames Estuary (from Queen Elizabeth Olympic Park towards Essex and Kent)
These areas will be supported through investment in technology, life sciences, and creative industries, with the goal of cementing London’s status as a global business hub.
Support for small businesses and high streets
The London Growth Plan also pledges £21 million from the UK Shared Prosperity Fund to support town centre regeneration. This includes potential plans for a publicly owned High Street Estate Agency, aimed at bringing vacant properties back into use and revitalising struggling retail areas.
Additionally, the proposed London Tech and Inclusive Growth Fund would provide up to £100 million in loan and equity funding for high-growth small and medium-sized enterprises (SMEs).
Mayor Khan: “A golden opportunity” for London’s future
Speaking at the launch, Sir Sadiq Khan described the Growth Plan as a blueprint for economic transformation, stating:
“This plan provides a golden opportunity to turbocharge growth and unlock London’s full potential – for the benefit of all Londoners and the whole country.”
“It’s a blueprint for how we can help to create 150,000 good jobs, build more affordable homes, deliver major new transport upgrades, and skill up Londoners for the well-paid jobs of tomorrow.”
The Mayor emphasised London’s leading role in industries such as AI, life sciences, climate technology, finance, and the creative sector, stressing the importance of supporting businesses to thrive over the next decade.
“Growth means little if people cannot feel the benefits or see the positive change it brings to their area. Our goal is to deliver economic growth in every corner of our city – raising living standards, putting more money in people’s pockets, and investing in our public services to build a fairer and more prosperous London for all.”
Calls for greater financial powers
Despite the ambitious nature of the plan, some experts argue that its success will hinge on London receiving greater financial autonomy.
Antonia Jennings, CEO of the Centre for London think tank, warned that London’s ability to generate its own revenue is limited compared to other global cities such as Paris, New York, Tokyo, and Hong Kong.
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“To effectively implement the growth plan, London government needs greater power over its own finances,” she stated. “This will enable the capital to make tangible steps towards equitable economic growth.”
Collaboration with London boroughs
The Growth Plan has been developed in collaboration with London Councils, the capital’s local government association.
Claire Holland, leader of London Councils, welcomed the strategy, highlighting the key role of local authorities in delivering economic growth.
“Boroughs are resolutely pro-growth and are committed to working with businesses, the Mayor of London, and national government to turbocharge growth in every corner of our city.”
A bold vision for London’s future
With its focus on investment, job creation, and infrastructure, the London Growth Plan represents one of the most significant economic strategies for the capital in recent years. However, its success will depend on securing necessary funding and financial devolution, as well as effective coordination between City Hall, boroughs, businesses, and central government.
If implemented successfully, Sir Sadiq’s vision could redefine London’s economic landscape – ensuring growth that benefits all residents while reinforcing the city’s status as a global economic powerhouse.
