COMMENT London. In many ways, one of the world’s greatest cities. But unless it innovates, this incredible metropolis – for so long a pioneer – is suddenly in danger of falling behind many of its global competitors, which have an eye to the future and on how people actually want to live.
A recent report by the Centre for Cities highlighted that workers in London have been slower to return to the office than their counterparts in Paris, New York and Singapore, stating that this could damage London’s productivity growth and erode its competitiveness on the global stage.
These are bold claims indeed and warrant much closer scrutiny.
Once the pioneer of innovation and change, London’s position as a global commercial and cultural hub is teetering. This has little to do with a lagging return to the office and much more to do with technology shaping how and where people work, propelling society forward.
Reimagined lives
Over the past five years, we have seen hybrid working rapidly transform working lives globally, enabling people everywhere to reimagine and actively improve their lives. This is a way of life that London – with its long commutes, expensive public transport and eye-watering housing costs – cannot currently offer the vast majority of its citizens.
This isn’t the case in many cities across the world, where planners and politicians have, for many years, recognised the long-term value of investing in affordable public transport and housing. A prominent example is Copenhagen, where the concept of the 15-minute city is now entrenched in the fabric of everyday life, allowing citizens to live, work and play within their postcode. Its “Finger Plan” dates back to 1947 – with five designated “fingers” for all major rail and road routes, separated by open spaces, along which all growth was to be focused.
Serious spending
For London to retain its competitive edge, city, local and national government needs to look at the likes of Copenhagen and Paris to gain an in-depth understanding of where investment is needed. Only serious spending on affordable housing and transport infrastructure will deliver the return to productivity and growth that London needs, by facilitating genuine, widespread hybrid working in places where people want to live and work, from Battersea to Islington, Hammersmith to Stratford, and beyond.
It makes clear business sense – many leaders (and their employees) are now experiencing, and openly advocating, the commercial and cultural benefits that working flexibly between a central office, local workspace and home brings. Our recent research showed that three-quarters of chief executives have observed improvements in both productivity and employee retention since the introduction of hybrid working policies, and say that asking their teams to commute daily is not a priority for their business.
All of this means we are seeing an exponential shift in the geography of work. Research from Stanford University shows that around a third of white-collar workers are expected to continue working in a hybrid model in the long term, while 82% of British businesses have already reconfigured their office spaces because workers are simply not willing to endure long, expensive commutes when they can be just as productive closer to home.
Ever-growing demand
International Workplace Group is at the forefront of this shift. In the last year alone, we have added nearly 1,000 new sites to our global network, most of which are located in rural, suburban and commuter town locations to meet the ever-growing demand for hybrid working, as people prioritise staying in their localities over long commutes.
This local-first approach is also benefiting regional economies, as suburban and rural areas experience renewed economic vitality. Research from IWG and Arup predicts a 175% increase in the number of skilled office workers in UK commuter towns over the next 20 years.
So, London has a choice to make: become a city where people can live and work how they want to or face a sharp downward trajectory. It’s not simply about securing the UK’s economic future, it’s about enabling people to be at their best and happiest.
And almost nothing is more important than that.
Mark Dixon is founder and chief executive of International Workplace Group
Photo © IWG, courtesy of MHP Group
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