London remains the UK’s most productive economic region, with its share of national economic output rising to nearly a quarter compared to just over a sixth a decade ago. It creates just under a fifth of all national workforce jobs and offers the highest nominal wages in the country.
London’s economic excellence extends beyond national comparisons: it attracts more foreign direct investment than many other global metropolises while being internationally competitive in sectors that hold the key to future progress and prosperity – including quantum computing, artificial intelligence, green tech and a wide range of professional services. London continues to be ranked first or second in major global city indices of competitiveness.
London also shines in other measures of social progress: it has the most skilled and educated workforce in the country, residents who are more likely to be socially engaged and volunteer in support of their local community. It contributes less environmental pollution per capita and offers higher life expectancy for males and females.
Recent improvements have been seen in consumer confidence, reflected in robust demand on many of London’s high streets. More Londoners have steadily been attaining higher level qualifications and children are more likely to start school with a good level of development. Air quality has improved significantly, London’s housing stock is becoming more energy efficient, and the number of criminal offences fell last year.
All of this should give reason to celebrate the progress that London and Londoners have achieved.
However, the State of London report reveals that more needs to be done for the capital to realise its potential. The data continues to show that productivity growth has been relatively weak in recent years compared to two decades ago, while income inequality and levels of poverty (after housing costs) are markedly higher than those in other UK regions.
Londoners with protected characteristics continue to experience adverse outcomes across many indicators: they are less likely to be in well-paid jobs, to feel engaged in society, or to experience health and educational outcomes in line with the London average. Moreover, many social and economic outcomes vary by geography: where a person lives within London can meaningfully shape their life chances, given the scale of differences across the capital.
Concerning among the most recent data also include: the increase in involuntary worklessness; the proportion of Londoners in arrears paying their bills; the continued rise in households in temporary accommodation; high rates of homelessness; and a fall in the level of satisfaction amongst victims reporting crime incidents to the police.
Finally, throughout, the report links the reader to other sources of information, data, research and analysis on specific topics to enable a richer understanding of the capital.