City A.M. reveals today that London has never been more important to the UK's economy. Our economics reporter Ben Southwood:
London’s 21.9 per cent share of output [in 2011] was even bigger than the 21.5 per cent it produced in 1911 when the capital was at the zenith of its heyday as the world’s most important and globalised city, said University of Warwick economic history professor Nick Crafts.
The rise is part of a steady gain from London’s weakest period in the 1950s, when decades of crashing international trade hit the global city heavily.
“It is no surprise that London is increasingly vital to UK success,” London mayor Boris Johnson told City A.M. “What is good for London is good for the whole UK.”
Allister Heath writes on what this revelation should signal to politicians:
The government should play to the UK’s strength and help London prosper by allowing it grow, build homes and extend transport links – and help the City emerge stronger and better managed from the crisis. It would be idiotic to try and rebalance the UK by crippling London and those industries at which we excel. Instead, we need a dramatic supply-side revolution and tax cuts to help the rest of the UK compete once again with the world. London and the rest of Britain can both grow – but the government must make it worthwhile to start creating wealth across the country, or else the divide between North and South will continue to grow, and eventually reach breaking point.