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

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?