Comprising nine London boroughs, Local London contributes £60bn to the economy annually, yet remains overlooked, writes Local London chair Cllr Anthony Okereke
London’s economy has been stagnating for over a decade. Meanwhile, we’ve seen the prosperity gap widen – leaving many Londoners facing the stark reality of living in poverty.
In these conditions, we need to find areas that are ripe for growth that’s both equitable and inclusive. London’s largest sub-regional partnership of local authorities, Local London, has these key ingredients. It’s home to a vibrant population of 2.7m people, boasts half of London’s developable space and has a business base which has grown by 44 per cent over the last decade.
In our new vision, developed by the Centre for London, we set out how we can capitalise on our strong economic foundations and diverse communities to create growth which allows everyone to live well, succeed and thrive.
Comprising nine London boroughs – Barking & Dagenham, Bexley, Bromley, Greenwich, Havering, Newham, Enfield, Redbridge and Waltham Forest – Local London stretches across the North East and South Eastern curve of the capital.
Together, we contribute £60bn to the economy annually, have collected more than £725m in business rates in 2023-24 alone and generated five per cent of the Treasury’s VAT receipt.
The first ingredient for growth is a dynamic population. With a young, diverse and skilled population set to grow to 3m people by 2050, London’s fastest-growing sub-region is larger than Birmingham, Manchester and Liverpool combined. Home to a network of higher education institutions, our population also boasts the largest cohort of residents gaining a degree or apprenticeship degree in London.
The next is space. To grow, London requires room in which businesses can start up, scale up and expand. From offices to industrial sites, to homes and new transport routes – all require land, which is becoming increasingly scarce across the capital. As such, our sub-region holds unique opportunities for both residential and industrial development in the capital.
The third, is our growing business opportunities at both local and international levels. Local London has an expanding business base, growing 10 per cent faster than the London average, and is a place where entrepreneurs and enterprises can flourish.
Economic disparity in London’s economy
At the intersection of international and domestic trade routes, we are also home to a significant workforce linked to exporting businesses. A third of our sub-region’s workforce has a role in supporting the UK’s international trade and export industries. Taken together, the population, skills attainments and growing businesses provide the key foundations for inclusive growth.
Local London’s economic strengths are clear, but there exist challenges which cannot be ignored.
Our sub-region has the lowest gross weekly wage in the capital – meaning growth so far is not being seen in residents’ pay packets. As such, we have some of the most deprived communities in the capital.
Meanwhile, productivity lags behind the UK average. This has the potential to further drag down the city and country’s productivity, restricting growth potential and impacting living standards. Take decisive action here, and the effects across the capital and wider UK could be seismic. Fail to act, and the same will be true.
In this context, we must maximise the unrealised potential of the sub-region. As a major contributor to the UK economy and to the Treasury, turning the tide on the economic disparities and productivity lag seen in the Local London area could reap benefits not only for residents but also across the country.
As a partnership, we recognise the scale of the opportunity and the need for action. Centre for London has worked alongside Local London and our boroughs, dynamic business and public service partners to co-create a vision for the sub-region. The vision showcases Local London’s international connections, strategic land opportunities and a young, diverse population – to highlight how investors, businesses and government can help unlock the full potential of Local London.
To build on this opportunity, we are creating a Local London Investment Portfolio, showcasing high-potential projects across key sectors. This will link closely with The London Growth Plan, working in close alignment with London & Partners and Opportunity London. The work will dovetail with an Investment and Development Forum – a regular event launching new investment opportunities.
At a national level, infrastructure and skills development need to be at the heart of the agenda. To link the sub-region’s strong population base with job opportunities, interconnectivity between boroughs is critical. We have committed to a ‘Campaign for Growth’ creating business cases to unlock investment in transport and digital connectivity.
Now is the moment to act. With the Autumn Budget round the corner, all eyes are on the economy. To achieve the government’s ‘good’ growth agenda, and build an economic system which improves living standards, we cannot ignore our local communities.
Local London has unmatched land for development, a young, diverse workforce, and alignment with the government’s Modern Industrial Strategy and the Mayor of London’s Growth Plan. With these foundational assets, we can become a critical part of the engine of inclusive growth for the capital and the country.
Cllr Anthony Okereke is the leader of Greenwich Council and chair of Local London