As new figures released today show London contributed between £14 billion and £19 billion to the UK economy in 2007/8, the Mayor of London, Boris Johnson, is calling for no letup on investment into the capital, if it is to remain such a key contributor to the Exchequer.
"London's Place in the UK Economy", published by the City of London, shows that even as the financial crisis began to set in, London paid much more in taxes than it received in Government spending during the same period. With government net borrowing more than doubling in 2008-9 to £88 billion and forecast to reach over £170 billion in 2009-10, the report stresses the need to maintain levels of capital expenditure in the city to ensure it is able to continue supporting the wider economy.
The Mayor said:
"Yet again there is irrefutable evidence of just how important London is to UK plc. If it is to continue making such a huge and generous contribution to the country investment must be sustained, taking account of the dramatic rise in the population and the workforce, expected in the coming years. This means continuing to press ahead with improving its infrastructure with projects like Crossrail, so that it can compete with the rest of the world."
Speaking at the Federation of Small Businesses annual dinner last night the Mayor told members:
"It goes without saying that it is small businesses that are the backbone of London's economy and therefore very important to the rest of the country. So as well as maintaining levels of capital investment in the city, we must look at every way we can to support small businesses during the downturn and prepare them to take maximum advantage of the recovery."
