London made a £34 billion net contribution to UK public finances in 2013/14, supporting jobs and growth throughout the UK, a new report reveals.
London’s Finances and Revenues report – produced by the Centre for Economics and Business Research (Cebr) and published by the City of London Corporation – finds that the capital delivers strong returns on investment for the UK economy.
While public expenditure on major infrastructure projects like Crossrail reached £93 billion during the period, London generated £127 billion in tax revenues.
Westminster and the City of London are the two locations contributing the greatest revenue, reflecting their status as the areas with the highest employment levels in Central London.
An estimated 695,100 people are employed in Westminster, while 393,600 work in the City where demand for office space has reached its highest level since 2000.
Discussing the report’s findings, Director of Cebr Charles Davis said: “While it is true that London is benefitting from major infrastructure investment, this research clearly illustrates that the capital makes a major contribution to government finances, supporting wider investment and expenditure across the rest of the UK.”
City of London policy chairman Mark Boleat believes that clustering businesses in a central location creates the conditions for economic growth. But he stresses that this relies on the ‘symbiotic relationship’ between all the London boroughs.
“London works as a whole to complement the strengths of other UK regions, and this report shows that it will continue to do so for years to come, supporting the UK’s wider economy and driving the recovery forward,” he said.
Meanwhile, Mayor of London, Boris Johnson, will today lead the first meeting of the new London Infrastructure Delivery Board at City Hall. Mr Johnson has established the body to deliver a 50 year investment programme designed to meet the challenges of London’s growing population.
