London First has warned the government that the capital needs £100bn to maintain its status as a world city
The business lobby group said that, in order to compete with Tokyo and New York, London needs £100 billion of investment from the public and the private sectors to improve the capital’s transport, housing, health, and education services over the next 15 years
The study was carried out by Brook Lyndhurst on behalf of London First in the run up to the Chancellor’s comprehensive spending review, which will decide the level of public sector investment for the next three years.
Jo Valentine, chief operating officer at London First said: “London currently contributes of the order of £20bn a year net revenue to the rest of the UK. If the UK were a company, London would be its brand leader. You must continually re-invest in your leading brand, not treat it as a cash cow to be milked until it is worthless.”
The £100bn price tag includes £22.5bn to provide housing for London’s growing population, 50% of which will have to be affordable housing, according to London Mayor Ken Livingstone’s draft Spatial Development Strategy.
Valentine added: “This vision may seem remote – but the challenge is not insurmountable. A figure of £100bn – or £7bn a year – is achievable. Annually it represents only 6% of London’s GDP. Nevertheless, historic and current investment is nowhere near that figure. The private sector investment could contribute over half this amount if the right environment is created by Government.”
EGi News 12/04/02
