London performs well on new businesses per head, income and skills, but faces challenges on transport, house price to earnings and owner occupation.
London ranks 14th out of 42 cities across the UK in the Good Growth for Cities Index.
London scores particularly well in three key areas:
- New businesses per head, where London achieves a score of 5.6, compared to the national average of 1.0.
- Income, where London achieves a score of 4.9 on our index, considerably above the next highest scorer, Oxford, which scores 3.4 on our index.
- Skills, where it scores considerably above average for both 16-24s and those aged over 25.
However, it is clear from the rest of its scores that London pays a ‘price’ for this success with particularly low scores for:
- House price to earnings, where it scores considerably below the UK average.
- Owner occupation, which is strongly correlated to the house price to earnings,
- Transport, where London achieves a score of -3.6 for the Travel to Work Area and -3.9 for the borough specifically.
Assessing the potential economic impact of COVID-19
- The average annual economic growth rate for London is -11.4% in 2020, lower than the UK average of -11.0% in 2020.
- Looking ahead London is estimated to grow by 4.5%, slightly lower than the estimated average annual economic growth rate of 4.8% for UK cities.
- As of 31 October 2020, London has 9.7% of its workers placed on the UK furlough scheme, higher than the UK average rate of 8.1%.