A year has passed since Sir Sadiq Khan and London Councils launched their London Growth Plan for boosting the capital’s economy and helping of thousands of Londoners into work. How has that been going? Pretty well, according to Deputy Mayor for Business, Howard Dawber.
The indefatigable Dawber – he was banging the drum for the city this week in Cannes at the annual global property trade get-together, MIPIM – was under the spotlight twice last week at the London Assembly, taking questions about progress towards the plan’s ambitious 10-year targets, including creating 150,000 jobs and increasing both productivity and the incomes of the capital’s lowest earners by 20 per cent by 2035.
There was no shortage of optimism from him. London was the university capital of the world, with “intellectual property coming out of our ears”, the theatre and sporting capital, the “start-up” capital outside the USA, “number one” for foreign direct investment in Europe, and still “massively more productive” than any other UK city. The gap is closing, but London is still looking at 1.9 per cent growth year on year, he said.
Dawber (pictured) didn’t duck the challenges, admitting that the growth figure was “not where I would want it to be”, that many families and high street businesses were struggling, that financing business growth remained difficult, that economic inactivity and unemployment were higher than the national average, and that the housing market remained sluggish.
But 12 months in, and amid new international turmoil, the growth plan was holding up, he said, with a focus on not just “maintaining our global competitiveness, supporting the things we need to improve in terms of growth”, but also on making sure that “where there is growth, it extends to all the people of London”.
He told London Assembly members (AMs) that the first year had already seen £22 million allocated by City Hall to improve London’s high streets, procurement by the city’s anchor institutions network of major public employers boosting small and medium businesses, the launch of a pioneering AI taskforce with £20 million to equip Londoners for the challenge of technological change, and new plans to support the capital’s £139 billion night time economy.
Borough growth plans were also coming forward, and the proposed overnight visitor levy could raise some £350 million a year for the city, he added. And following the go-ahead for the Docklands Light Railway extension to Thamesmead, a comprehensive “London infrastructure framework” setting out the capital’s priority shopping list of further major schemes would be launched shortly. Discussions were “ongoing” with Whitehall over further devolution, to “allow London to raise money to deliver these things itself”, he said.
Dawber described the centrepiece of the plan as its Inclusive Talent Strategy, launched last October, with £142 million of City Hall funding, as a new approach to training and supporting Londoners into work – a wholesale “retooling” of existing skills programmes. This is the “crucial piece of glue between the people who need jobs and the jobs that need people,” Dawber said. And with its offer now coming onstream, backed by business and the boroughs, he was confident that the Mayor’s 150,000 new jobs target would be met.
Was this too optimistic given continuing pressures, including current unemployment levels, exacerbated perhaps by government policies such as the hike in the employers’ national insurance levy? That was the charge from Conservative AMs, including Alessandro Georgiou, who said those policies had “destroyed London’s economy” and driven away wealthy potential investors.
Not true, said Dawber. “I’d certainly like to see taxes on business reduced over time, when the opportunity arises to do so,” he said. “But the Chancellor inherited a dysfunctional economy. The public finances were not in a good state and the Chancellor has had to take difficult decisions.” Meanwhile, he added, the Mayor continued to lobby for more government support for business, including a wider reform of Business Rates.
Dawber also asserted that talk of an “exodus” of high wealth individuals was “overblown”. This prompted Green AM and national party leader Zack Polanski to make his own challenge, questioning what he characterised as the Mayor’s defence of “billionaires”.
Again, there was a nuanced answer from Dawber. “We want to be a place where people with a lot of money who want to start a business or invest want to come,” he said. There’s a balance between fair taxation and the people with the broadest shoulders bearing the highest burden, which is right, and getting into a position where you are putting people off. I think we’ve got that balance about right.”
Follow Charles Wright on Bluesky. Watch the Assembly plenary in full here.
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