Infrastructure spending could boost UK economy by £33bn
Mayor of London Sadiq Khan is urging the government to increase spending in national infrastructure after research commissioned by City Hall found that investment in infrastructure schemes could help to boost the UK economy by £33bn.
The report, which was carried out by consultancy firm Greenwood Strategic Advisors and entitled Mind the Gap: Funding and Financing City Investments in the 21st Century, analysed a number of schemes, exploring how London responds to public investments.
Among the schemes that were analysed in the report were several extension projects of train and tram networks. These included the extension of the Elizabeth Line to Ebbsfleet in Kent, the Croydon tram network towards Sutton, and the Bakerloo line to Lewisham via the Old Kent Road and New Cross Gate.
The report also looked at the continued investment into London’s Royal Docks and the Crossrail 2 scheme, a new rail route that aims to cut journey times.
Greenwood Strategic Advisors and City Hall conducted the research using the Greater London Simulator, a state-of-the-art computer model that helped to identify how investing in these schemes would benefit London and the UK.
It found that increasing investment could help to boost London’s growth, with the city’s population increasing by 640,000 and 379,000 new jobs being created. The UK economy would also receive an annual boost of £33.8bn, while 913,000 m2 of new business space could be created London.
Khan said that high-quality, modern infrastructure such as new railways and roads will be crucial if the UK is going to remain a global economic powerhouse – so it is vital that there is increased investment across the country and not just in the capital.