The Mayor of London, Sadiq Khan, will today use a keynote speech to outline plans for a new industrial strategy for London with the aim of maximising growth and protecting the capital’s economy post-Brexit.
Speaking at the prestigious annual London Government Dinner tonight at Mansion House, Sadiq Khan will ask the capital’s political and business leaders to work with him to develop a new industrial strategy for London.
This will be designed to improve the city""s competitiveness, and will call on the government to give London more control over the economic levers required to secure future growth.
The Mayor will also warn that that the government are increasingly heading for a ‘muddled Brexit’, saying ‘the only thing that would be as damaging as a hard Brexit is a muddled Brexit’.
He will urge business leaders to continue campaigning to put access to the single market and access to skilled workers at the heart of the government’s EU negotiating position.
Sadiq Khan will announce that London will write its own industrial strategy, to feed into the government’s UK-wide industrial strategy white paper, which is expected to be published later this year.
He will warn that ‘any industrial strategy that doesn’t work for London will by definition not work for Britain’.
The Mayor will declare that securing economic growth for the capital will require London government being given more control over economic levers in the city, adding “a key part of making London more competitive over the years ahead will be ensuring our city government has the levers we need to stimulate our economy’.
He will call for London government to be given more powers to improve skills provision in the city, to speed up the delivery of new infrastructure and to fix the housing crisis.
Sadiq Khan has already set the groundwork to roll out major new infrastructure projects, including Crossrail 2, the Bakerloo Line extension and the construction of new bridges and river crossings in east London.
He has also set out plans to deliver 90,000 genuinely affordable homes to make London more competitive after securing a record £3.15bn deal from Government. However, the Mayor will say that he believes London will need to move further and faster in the aftermath of the EU referendum.
On a new industrial strategy for London, Sadiq Khan is expected to say:
“We can’t just stand idly by when there are things that we can be doing right now to reassure investors and help to stimulate economic growth.
“A key part of making London more competitive will be ensuring our city has the power and levers it needs to stimulate our economy.
“More control for London was important before the referendum, but in the light of Brexit and the economic uncertainty we now face – it’s become absolutely crucial.
“So I want to work with every London council and business to ensure we have the tools we need to implement a new industrial strategy for the capital.
“Because we need more control of the right levers to improve competitiveness, stimulate growth and invest in our long-term future.
“And the bottom line is this – if we want an industrial strategy that works for London and therefore for Britain – we must have more control.”
On Brexit, Sadiq Khan is expected to say:
“It’s deeply concerning that we still appear to have “muddled thinking” at the heart of government so soon before the negotiations are set to start.
"For months now, I’ve been arguing against a hard Brexit.
"But the only thing that would be as damaging as a hard Brexit is a muddled Brexit.
"And - unfortunately - it looks like that is where we are heading without urgent action.
"So I urge you to join me in continuing to put pressure on ministers to fight for the right deal for London – and therefore the right deal for the whole country.
"This means fighting to retain privileged access to the single market - the foundation of British jobs, wealth and prosperity.
"This means fighting to retain our ability to employ the best and the brightest talent from Europe and around the world.
"And it means fighting to avoid a reckless hard-headed, hard Brexit approach without any transitional plans in place.
"It’s not too late for the Government to take note and set a new tone.”
John Dickie, Director of Strategy and Policy at business group, London First, said: "If we make the right decisions now, staying open to skilled and talented people and investing in the homes, transport and digital infrastructure we need, London will continue to grow.
“With the government, the Mayor and business working together, we can create a more productive London - increasing growth by just one per cent generates an extra £150 billion by 2036* - meaning more jobs, greater prosperity and stronger public services for the UK as a whole.”
The City of London Corporation’s Policy Chairman Mark Boleat said: “With the Brexit negotiations approaching, the world’s attention is focussing on London.
“For the 450,000 employees and nearly 18,000 firms based in the City alone, as well as the 750,000 financial and professional service employees in London, there’s a lot at stake.
“Other major European cities are vying to lure businesses and talent away from our city, and are doing so with a well-structured approach.
“What we must realise, though is that the UK’s financial services sector is deeply entrenched within Europe. London is a financial centre for the whole of Europe and institutions based in the City have entrenched links with corporates in the EU27.
“In order to leave the European Union with the least amount of disruption to financial services businesses and more importantly their customers, it is vital that there should be a transition period.
“Devolution will also play an important role in supporting the wider economy as Britain faces its most significant challenge in recent years and so we support the London Mayor’s strategy for power to be devolved from central Government to London.
“Whatever the outcome, I have no doubt that the London and the City will remain the world’s leading financial centre.”
Cllr Claire Kober, Chair of London Councils, said: “The capital’s businesses both large and small are fundamental to success of our boroughs. But companies are facing huge pressures caused by the fallout of the vote to leave the EU, and almost a quarter of vacancies in London are now due to a lack of applicants with the right skills. If we are to protect our economy post-Brexit it is essential that Whitehall devolves power to London government, so we can implement a strategy that works for all Londoners – equipping businesses with the tools they need and workers with the skills to succeed in the jobs market.”