Sadiq Khan launches £6m campaign to get people back to central London
Sadiq Khan has begun a £6m campaign to get workers and tourists back into central London, after a new report found the capital’s economy could be £36bn smaller in 2031 than pre-Covid projections.
The new initiative will see City Hall encourage domestic and international tourists come back to the capital by putting on events that “that showcase central London’s public spaces and cultural riches”.
The new fund will also be used to help businesses set up alfresco dining and to encourage office workers to once again flood central London.
A new London School of Economics (LSE) report, commissioned by the mayor, found that central London footfall will be dented for years to come even in best case scenarios.
The report’s best case scenario said office visits in central London will not be back to 2019 levels until 2031 and that tourism would not be back to 2019 levels until 2026.
Under this scenario London’s economy would be £1bn smaller in 2031 than it would have been if no pandemic had happened.
The report presented a worst case scenario where office working only ever returns to two-fifths of pre-pandemic levels and tourism does not recover to its 2019 levels until 2031.
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This situation would put 86,000 jobs at risk, mostly from the retail and hospitality sectors, and would leave London’s economy £36bn smaller in 2031 than it would have been if no pandemic had happened.
“This report published today shows that we can’t be complacent in assuming everything will return to normal,” Khan said.
“The excitement and buzz of central London will endure, but we will have to be bold and innovative over the coming months to ensure people return to central London in large numbers – whether as tourists, office workers, shoppers or for a night out.”
The capital has been disproportionately economically affected by the pandemic, with Office for National Statistics figures showing London’s unemployment is at 6.9 per cent compared to the UK rate of 5.1 per cent.
The Centre for London think tank also found there was a 170 per cent increase in people claiming benefits in London between March and October 2020, compared with a 120 per cent rise UK-wide.
Some have predicted that central London will face long-term ruin if working from home becomes a more permanent trend in the capital.
John Dickie, policy director at the London First lobby group, backed the mayor’s plan to get people back into central London.
“The first step over the coming months is to remind Londoners why we love our city, encouraging people back to the office and back to the pubs, restaurants, shops and entertainment that make life in this city exciting,” he said.
Richard Brown, interim director at the Centre for London think tank, added: “We welcome the mayor’s proposals to bring the buzz back to London’s playground and commercial heart, by showcasing the West End’s cultural and hospitality offer, and welcoming the next generation of meanwhile uses and start-ups.
“And as our Core Values report argued, the mayor should be working with boroughs, businesses and residents to build a vision for central London as the UK’s global city centre, which can recover to be greener, more fun and more diverse. Both the capital and the rest of the country are relying on it.”