Economic Powerhouses: Policy proposals to drive economic growth in London and Edinburgh
Monday 23 June 2025
Overview
The London Chamber of Commerce and Industry (LCCI) and the Edinburgh Chamber of Commerce (ECC) are jointly presenting a set of five strategic asks to the UK government aimed at boosting business growth and economic development in London and Edinburgh, the economic powerhouses of the United Kingdom.
Key Points
- Improving Trade Deals: Trade with the European Union (EU) alone accounts for 42%15 of all UK exports underscoring its significance. However, following regulatory changes after Brexit, there has been additional friction to the flow of trade, resulting in increased costs for firms trading with the EU.
- Supporting the Creative Industries: The creative industries are critical to the economies of Edinburgh and London, with events like the Edinburgh Festivals attracting 3.2 million visitors to the UK, and the arts in London generating £7.3 billion from cultural tourism.
- Financial Access for SMEs: At the start of 2023, the UK had 5.6 million small businesses, making up 99.2% of the total business population. SMEs significantly contribute to the economy, accounting for three-fifths of employment and around half of the private sector turnover.
- VAT-free shopping for overseas visitors: The abolition of the VAT Retail Export Scheme in 2020 has been shown to be discouraging international visitors from viewing the UK as a shopping destination, which in turn has negatively hit tourism, travel, and hospitality businesses.
- Investing in Edinburgh-London connectivity: Currently, services on the East Coast Main Line are hindered by capacity and punctuality issues, preventing them from reaching their full potential. According to the 2019 timetable, the economic impact of this unreliability is estimated to cost the East Coast route’s economy £62.8 million annually, totalling approximately £0.6 billion by 2033.
About this report
The London Chamber of Commerce and Industry (LCCI) and the Edinburgh Chamber of Commerce (ECC) have come together to call on the UK government to take action in five key areas that will support business and drive growth in our two capital cities. As two of the economic powerhouses of the country, London and Edinburgh face unique challenges and opportunities that must be adequately addressed if the UK is to prosper. While businesses across the country will no doubt also benefit from these actions, with the right policy environment, our two cities stand ready to lead the way in economic recovery in England and Scotland, driving forward innovation and growth in the private sector.
