21 October 2009
London shares 'mutually beneficial' relationship with other UK
regions
Despite the financial crisis, London shares a mutually
beneficial relationship with other regions that will continue to
play a crucial role in driving the UK economy through recovery and
beyond, according to new research published by the City of London
Corporation today (Wednesday 21 October).
London's Place in the UK Economy, 2009-10, produced by
the London School of Economics, highlights the capital's continuing
importance for wealth and tax generation at a time when the
government is attempting to bring national debt down from record
levels.
Londoners generated 18% of revenues in the UK in the financial
year 2007-8. Although London received 14% of revenues, the highest
sum both in overall and per capita terms during this period, once
the scale of the capital's economy is taken into account
expenditure as a proportion of Gross Value Added (GVA)* is 24%
below the national average. In these terms, the capital made a net
contribution of £16.5 billion** to the national economy.
Stuart Fraser, Chairman of the Policy and Resources Committee of
the City of London Corporation, said:
"In the face of the worst financial crisis since the Great
Depression, London has shown resilience and in 2007-8 continued to
make a massive contribution to the national economy. As we begin to
see signs of a global recovery, London and its financial services
industry will play a crucial role in spreading capital and
controlled innovation throughout other regions.
"London's relationship with other regions is pivotal to the
health of the broader UK economy. The government must ensure that
the capital remains a world leading commercial hub by supporting
infrastructure improvements such as Crossrail, which will create
jobs and help us to compete with mature and developing financial
centres overseas."
*GVA records the contribution to the economy of each individual
producer, industry or sector in the UK. This measurement, unlike
GDP, does not include taxation or subsidies on products.
**The figure of £16.5bn for London's net contribution to the UK
public finances in 2007-8 is the mid-point in a range from £14bn to
£19bn.
Ends
Notes to editors
- Download a copy of London's Place in the UK Economy 2009-10
from
www.cityoflondon.gov.uk/researchpublications
- About the City of London:
The City of London supports and promotes the Square Mile as a world
leading international financial and business centre and provides
local government and police services for workers, residents and
visitors. It also provides valued services to London and the nation
as a whole including management of Guildhall Art Gallery, the
Barbican Centre, the Central Criminal Court at Old Bailey, 4,240
hectares of open space, three wholesale food markets and acts as
London’s Port Health Authority.
- About the London School of Economics:
This report was prepared by members of LSE London, a research
centre at the London School of Economics specialising in studies of
economic, planning and governance issues in the London and other
comparable city-regions. The centre draws on expertise from across
the social sciences at the LSE – which is the world’s leading
university specialising in these disciplines – to undertake
research on key issues relating to economic, population, housing
and social change in London. Recent studies have been published on
immigration and regularisation issues, housing access and local
authorities’ role in the downturn. Further information:
www.lse.ac.uk/collections/LSELondon/
- About Stuart Fraser:
Stuart Fraser is Chairman of the Policy and Resources Committee of
the City of London Corporation. View his biography
or
download a photo.
Press contacts
James Abbott
Tel 020 7332 1754
Mob 07831 543188
Email
james.abbott@cityoflondon.gov.uk
Sanjay Odedra
Tel 020 7332 1835
Mo 07954 327370
Email
sanjay.odedra@cityoflondon.gov.uk