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New Report Reveals Economic Disparities Across London

Wednesday 15 May 2024

The London Chamber of Commerce and Industry (LCCI), in collaboration with Centre for London, has today published a comprehensive spatial analysis report which offers a deep dive into the economic landscape of each of the 32 boroughs across the capital, shedding light on their successes and challenges.

The report reviews ten dimensions of London’s economy to tell the story of London’s economic successes and inequalities, uncovering crucial insights on what it means for a region to be successful. While London stands as a beacon of economic prowess, boasting unparalleled productivity and hosting world-leading industries, the report highlights significant disparities across different parts of the city and underscores the need for bespoke solutions enabled by strong devolved governance, especially in the face of evolving economic challenges.

Key findings include:

  • Deprivation in Barking and Dagenham: The report highlights Barking and Dagenham as having the highest levels of deprivation among all London boroughs, pointing to localized challenges that require targeted interventions.
  • Contribution of Inner London Boroughs: Inner London boroughs emerged as powerhouses, generating 66% of London's Gross Value Added (GVA) in 2021. Westminster, Tower Hamlets, and Camden stand out as the largest contributors to this economic output.
  • Productivity Concentration: While London remains the most productive region in the UK, the report reveals that productivity is concentrated in only four boroughs – Tower Hamlets, Hounslow, Westminster, and Camden. Alarmingly, productivity in most boroughs falls below the London average, signaling a need for concerted efforts to bolster economic output across the city.
  • Real Estate Sector Dominance: Excluding the City of London, the real estate sector emerged as a significant contributor, generating 17% of London's GVA in 2021. This underscores the sector's pivotal role in driving economic activity within the capital.

Karim Fatehi MBE, CEO of the London Chamber of Commerce and Industry (LCCI) said: "LCCI is dedicated to championing London and its business community, and as part of this we recognise the imperative of understanding and addressing the economic disparities that exist within our city. This report provides a roadmap for informed decision-making and collaborative action to ensure London's prosperity is inclusive and sustainable. We look forward to working with businesses and local and national government to develop solutions to foster equitable growth across the capital."

Antonia Jennings, Chief Executive, Centre for London, said: “London's success is underscored by its economic prowess and global significance and yet, the city's true prosperity hinges on ensuring a high quality of life for all its residents. Despite its achievements, this paper highlights that disparities persist in areas such as child poverty, air pollution, and wealth inequality. Regional success is complex and this paper sheds light on need for tailored solutions and collaborative efforts. We are delighted to have worked on this piece in partnership with the Chamber and look forward to future-proofing London’s success together.”

Mayor Jason Perry, London Councils’ Executive Member for Business, Economy and Culture, said: “The capital is so economically diverse that London-wide data and analysis sometimes hide more than they show.

“We therefore welcome this report and its recognition not only of the variations between boroughs, but also the variations within individual boroughs that can be just as stark. This is further evidence of why we need more local decision-making and empowerment of boroughs to tackle the challenges in their communities, which will help us grow all of London’s local economies.”


ENDS

Note to Editors:

For media inquiries, please contact:      

LCCI Press Office

E: press@londonchamber.co.uk
T: +44 (0)20 7203 1897
M: +44 (0) 7767 110632