London’s Diverse Economy and the Mayor’s Economic Development Strategy

Mark Kleinman Assistant Director, Economic and Business Policy,Greater London Authority

London’s Economy

London’s economy – fundamental strengths

• Vast, global city economy• Job growth of 800,000 between 1996 and

2008; possibly another 750,000 by 2031 – 5.45 million in total.

• International centre of trade and innovation

• Resilient, diverse economy

• Strong globally competitive position

London’s economy – potential threats

•Threats to competitiveness• Worklessness and skills • Responding to climate change• Quality of Life

Cities and Growth

• Marshall, Krugman, etc. – agglomeration economies

• Jane Jacobs – economic diversity• Ed Glaeser - proximity• The world is spiky or flat? Or both?

The London (city region: Advanced Producer Services (APS) information flows connect towns & cities at a global ‘mega-city-region’ scale.

1991 Commuting Networks overlaid on 3D map of in-commuting

The proportion of working-age adults receiving out-of-work benefits by ward

                                                                                                                                                                             

                               

Source: London’s poverty profile

The Mayor’s Role

The Mayor and Economic Development• The Mayor has a general power to promote economic development and wealth creation in Greater London (GLA Act 1999)

• Localism Bill requires the Mayor to prepare and publish an economic development strategy for London.

• Also provides for additional housing and regeneration powers, including creating Mayoral Development Corporations.

• The Mayor’s vision: London should be “the best big city in the world”

• Revised Economic Development Strategy published May 2010

• Developed alongside the revised London Plan and Transport Strategy

EDS: Key Themes

•London: World Capital of Business•Improving London’s Competitiveness•Transforming to a low-carbon economy•Extending economic opportunity•Investing in London’s future

•EDS is a long-term high-level strategy

How are we going to deliver? • EDS identifies actions, what the

Mayor will do and what the Mayor will influence

• GLA Group working with Partners• Mayor has key strategic and

influencing role• LDA folding in to GLA• Aligning resources of partners

towards the Mayor’s priorities

Implementation Plan • Draft IP has been developed• Structured around the actions

stated in the EDS • Identifies sub-actions and either

direct delivery or influencing roles for the GLA Group

• Identifies who we will work with • To be published later in the year

Some key issues• Maintaining economic diversity: finance and

business services; media/culture/creative; digital/tech; many others

• Maintaining competitiveness: tax, regulation, immigration,

• Economic opportunity: LLW, apprenticeships, tackling worklessness, up-skilling

• Changing national framework: demand-led skills system, Single Work Programme, LEPs etc

Thank You

Any Questions?