MyCity: LONDON

WHERE DOES LONDON SIT IN THE CONTEXT OF THE UK TO PLACE LONDON IN A UK CONTEXT, WE HAVE BENCHMARKED ITS PERFORMANCE USING A NUMBER OF DATA SOURCES.

THE WORKING AGE POPULATION FOR LONDON WAS 9.03 MILLION IN 2020, HAVING INCREASED BY 24% FROM 2000. WHILE THIS FIGURE HAS OUTPACED THE UK AVERAGE GROWTH OF 14%, THE OUTLOOK FOR LONDON IN THE COMING 20 YEARS TO 2040 IS SOMEWHAT WEAKER, AT 10% GROWTH ACROSS THE PERIOD, BELOW THE 12% FORECAST FOR THE UK. Average weekly earnings in the capital were perhaps unsurprisingly the highest of the 10 cities studied, supported by the strong GVA per capita of £49.5k – 63% above the UK average and accounting for 22% of the country’s GVA. This figure is also expected to grow marginally faster than the UK average, forecasted to increase by 30% by 2040. GDP per worker in London is relatively in line with Berlin and Paris, however it is substantially outweighed by New York which reports 74% more output per worker. While earnings are higher, values are also inflated with house prices in London being the least affordable of the 10 cities that were studied at 14.5 times the average wage. This is set against lower levels of housing deliveries in London, with completions in five of the past six years being below the 10-year average. Additionally, while inner London has the highest density amongst the UK cities studied at 11,437 people per km² (p/km²), this is substantially below other European centres such as Paris (20,025 p/km²) or Barcelona (15,980 p/km²). Despite the strong levels of public transport, multiple local centres and active transport infrastructure, CO2 emissions per capita are the highest of the cities within our study. The Mayor of London has consequentially introduced further tightening on the use of polluting vehicles through the expansion of the Ultra-Low Emissions Zone (ULEZ) from August 2023. Looking ahead to 2040, the top five sectors by growth are expected to include professional & scientific services, admin & support services, construction, real estate, and water supply & waste management. There is also forecasted to be a contraction in the financial & insurance sector in the capital, along with retail and manufacturing – all of which at a faster rate of decline than the UK average. City-wide support from government through policies and grants will be needed to avoid the erosion of these sectors and the employment they offer. London’s institutions continue to drive innovation and development, however high prices can restrict research endeavours, with the capital only coming fourth in terms of the number of patents filed annually across the cities within our study.

LONDON VALUES AND UK AVERAGE BY KPI

VALUE

AVERAGE EARNINGS

UK AVERAGE

TOTAL JOBS

CO2 PER CAPITA

PATENT APPLICATIONS

HOUSE PRICE

INTERNET CONNECTIVITY

HOUSING AFFORDABILITY

SOURCE: CENTRE FOR CITIES; ONS

EMPLOYMENT RATE

DAYS OF POOR AIR QUALITY

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23 MYCITY / LONDON |