Tuesday 30 June 2026

Responding to Andy Burnham's first major policy speech in Manchester since he became the presumed next Prime Minister, the London Chamber of Commerce and Industry (LCCI) has set out a ten-point plan for London’s growth. The plan outlines the priorities for the next Prime Minister that will strengthen business confidence amid concern from business that London will be deprioritised under a new administration.

As Burnham sets out his vision to drive growth across every postcode in the UK through a commitment to greater devolution, London's business community is adamant that ambition will only succeed if government also backs the country's largest economic engine. London generates 22% of the UK's economic output, and policies that undermine the capital's global competitiveness will ultimately reduce investment, jobs and tax revenues that benefit communities across Britain.

Representing a business network of over 12,000 firms across the capital, from SMEs to major corporates, LCCI is calling on the next Prime Minister to pursue a national growth strategy that strengthens London’s competitiveness alongside greater prosperity in every region. The recommendations focus on competitiveness, skills, infrastructure and investment at a time of political change, heightened global uncertainty and ongoing economic challenges.

Karim Fatehi OBE, CEO of LCCI, commented: 

"Andy Burnham is right that Britain needs growth in every postcode. London is the world's greatest capital city, and we know that when London's economy grows, the whole country benefits.

London contributes more to the national exchequer than any other region in the UK, generating over a quarter of all tax receipts and supporting funding for public services across the country.

It is vital the new Prime Minister does not make policy and funding decisions for political reasons that harm the capital. Cutting investment in London would be counter-productive. The capital should continue to receive government investment which delivers economic returns that benefit the whole of the UK.

Firms across London have been left bruised from recent tax increases and an unsustainable increase in the cost of doing business. They need certainty, stability, and a clear plan for growth. The priorities for the next Prime Minister we have set out today would not only get London growing, they would help deliver growth and prosperity for the whole country."

The priorities for the next administration are:

1.  A commitment not to increase the cost of doing business: businesses cannot afford to absorb any further tax rises, regulatory burdens or employment costs.
2. Reverse the Employer NICs increase: the October 2024 rise directly increased costs for businesses and consumers, made it harder to deliver growth, and removed thousands of entry-level jobs from the economy.
3. Deliver wholesale business rates reform, not another consultation: lower the multiplier to at least 45p, support the retail and hospitality sectors, and recognise that the higher rate threshold does not fairly reflect London property prices.
4. A pragmatic new deal with the EU: a new relationship, which respects the UK's decision to leave, should reduce barriers, improve mobility for skilled workers and make it easier for businesses to operate across borders, with significant potential for growth.
5. Tackle business crime effectively: backed by a fairer funding settlement, the Met should prioritise hotspot policing and integrating AI tools. Businesses and consumers alike face higher costs from a growing need to supplement policing with private security.
6. Act swiftly on the Milburn Review: reduce the cost of hiring young people and those who are NEET, reform the Growth & Skills Levy to create more flexible apprenticeships and provide long-term certainty on funding for Local Skills Improvement Plans (LSIPs).
7. Make London globally competitive: abolish the tax on tourism by restoring VAT-free shopping, and reverse changes to the non-dom system, making London the first choice for international visitors, spending and talent.
8. Get London building: further reduce the burden of the planning system to increase housebuilding, reduce investment costs and support commercial developments.
9. Back London infrastructure: support large-scale London infrastructure projects, including airport expansion at Gatwick, Luton and Heathrow Airports, and the Bakerloo Line and DLR extensions. Delivered affordably, these projects have the highest national return on investment, powering job creation and growth across the country.
10. Designate King's Cross as an AI Investment Zone: creating the right regulatory and market conditions to make the existing Elizabeth Line tech corridor the most attractive area in Europe for next-generation AI investment, creating thousands of high-skill jobs.

ENDS

Notes for Editors

About the London Chamber of Commerce and Industry (LCCI):

LCCI is London’s hub for the business community with a network of over 12,000 businesses from SMEs and microbusinesses to major corporations and cultural and educational institutions. 

Founded in 1881 to represent London businesses and promote international trade, we support our members to drive growth and prosperity across the UK and internationally. 

We promote ‘Global London’ as the best city in the world to do business.

For media inquiries, please contact:

LCCI Press Office
E: [email protected]
T: +44 (0)20 7203 1897