The Mayor of London, Sadiq Khan, will outline a bold vision today with the launch of the London Growth Plan, designed to stimulate the capital’s economy by creating 150,000 new high-quality
jobs by 2030. The plan sets a goal of restoring London’s growth rate to levels seen before the global financial crash, potentially boosting Treasury revenues by £103 billion and increasing average earnings for Londoners by £20,000 over the next decade compared to current projections.
In a keynote address at the annual Local Government Dinner held at Mansion House in the City of London, Khan will highlight key areas of focus for the plan. Developed in close collaboration with London Councils, businesses, and trade unions, the plan emphasizes: equipping Londoners with essential skills to meet business demands, expanding critical housing and transport infrastructure, and fostering the development and commercialization of cutting-edge technologies, such as artificial intelligence, life sciences, robotics, clean tech, and quantum computing. These efforts aim to position London as a hub for future mega-companies.
Khan will portray London as an ideal partner for economic growth and call on the Government to back the plan, which will be officially published next month. He will advocate for increased investment in housing and transport infrastructure, emphasizing that these measures are crucial to advancing the national growth agenda.
In his address, Khan will urge political leaders across London to unite in overcoming resistance to development and accelerate the construction of affordable homes. He will underscore the need for decisive action, delivering a clear message to the Government: “Provide us with the necessary resources and housing investment, and we’ll make the tough choices required to build new homes on an unprecedented scale.”
The Mayor will also caution against the rise of ‘deeply reactionary populism’ and argue that fostering inclusive economic growth, which improves living standards, is a powerful tool to counteract such negative forces.
On the new targets set out in the London Growth Plan, Sadiq will say:
“We’ve crafted a new, ambitious, London Growth Plan to support the Government’s vital growth mission. New figures produced by City Hall economists show that if we succeed in our aim – of getting London growing at the same speed it was prior to the financial crisis – then over the next decade our economy can be at least 172 billion pounds bigger and our city will be able to generate 103 billion pounds more in tax receipts for the Treasury. That’s money that can be spent on health, education, defence, policing and infrastructure anywhere in the UK.
“At the same time, if we’re successful in achieving these growth rates, each Londoner will have, on average, approximately £20,000 more in their pockets by 2034. And this is in addition to the 150,000 new, high-quality jobs we forecast the London Growth Plan can help create over the same 10-year period.”
On what the London Growth Plan will do to support innovation, skills and businesses, Sadiq will say:
“London has become the fintech capital of Europe and the number one destination globally for green finance. Already, we boast almost 1,300 AI companies – more than New York, and double the number in Paris and Berlin combined... But we must ensure more individuals and enterprises are being given the helping hand they need to realise their full potential so that London can continue moving forwards, making sure that we remain at the forefront of these new and emerging industries, and that we continue to produce – and protect – the pioneering companies that have always been a feature of our city’s success.
“The London Growth Plan sets out how we’ll back businesses working across tech, AI and life sciences to start-up, scale, and solicit the investment they need to become the mega-companies of the future. Our aim is not only to ensure that the defining technologies of the 21st century are being developed here in our city, but that intellectual property and successful companies are retained – and rooted – here in London so that it’s our country, capital and communities who benefit.
“Growing the size of London’s skilled workforce is also critical to growing the size of our economy. That’s why we’ll continue to invest heavily in skills and training… equipping Londoners with the skills they need to excel in every sector and profession - from construction to coding – so they can share in the growth and prosperity of our economy.”
Calling on local government leaders in London to join him in taking on the NIMBYs and making the difficult decisions to deliver affordable housing, Sadiq will say:
“While our planning system isn’t the biggest obstacle to new development, it’s more important than ever that we take on the NIMBYs who stand in the way of delivering the homes and jobs we need. At City Hall, we’ve recently approved a series of new developments in the face of some opposition, showing that we’re willing to put the needs of our city – and country – above the vocal minority.
“Our collective message to the government must be this: Give us the resources and housing investment we need, and we’ll take the difficult decisions to deliver new housing on a scale not seen for a generation. London is the perfect partner for growth - ready to do what’s needed to help the Government succeed in its economic mission.”
On the rise of reactionary populism, Sadiq will say:
“Across the Western world – we see a deeply reactionary populism stirring - a dangerous creed – fuelled by lies and misinformation on social media – that seeks to exploit people’s concerns, rather than address them, and prey on people’s fears, rather than provide solutions to them.
“Yet inclusive, sustainable growth – growth that raises the living standards of everyone – can help subdue these ugly forces, and London has a central part to play.
“We can help to power a new era of national growth and renewal – enhancing our country’s attractiveness and competitiveness, supporting jobs and supply chains across the country, and putting more money back in people’s pockets.”
Also giving a speech at the London Government Dinner is Chair of London Councils, Cllr Claire Holland, who will announce that a new Inclusive Talent Strategy will form part of the London Growth Plan, as she will say:
“It’s clear that London cannot achieve its full potential, until all Londoners achieve their potential. That’s why a new inclusive talent strategy will be at the heart of the London Growth Plan, focused on growing the skilled workforce of the future and supporting Londoners who are excluded from the labour market.
"We’ll do this by increasing investment in skills and training, with a focus on key growth sectors; bringing together health and employment services to help more Londoners into work; and ensuring we have the housing and transport infrastructure necessary to connect people to jobs.”
City of London Corporation Policy Chairman, Chris Hayward, said: “Growth is the only game in town, and a priority we share with the Government.
“London has a vital role to play in powering the economy to help raise people’s living standards right across the UK.
“The City Corporation fully supports the London Growth Plan, and we’ll continue to make a significant contribution by promoting our world-leading financial and professional services.”
Lord Mayor, Alderman Alastair King DL, said: “The theme of my mayoralty is Growth Unleashed - mobilising the Square Mile to drive growth for the whole United Kingdom through an enhanced appetite for risk, bolder technological innovation and amplifying our many communities to draw on everyone’s talent and skills.”
“The nation is crying out for economic growth, and we know growth is to be found here in London. Only through unleashing growth we can tackle other challenges – economic, social, environmental – facing our communities in London and across the country.” Photo by U.S. Embassy London, Wikimedia commons.