Sadiq Khan Unveils £100bn Plan to Boost London’s Economy by 2035

New Growth Strategy Targets Jobs, Transport, and Productivity

London Mayor Sadiq Khan has announced a bold initiative to add over £100 billion to the capital’s economy within the next decade. The London Growth Plan aims to revive the city’s productivity, which has stagnated since the 2008 financial crisis, by investing heavily in housing, transport, skills training, and business support.

Khan said the plan would “turbo-charge” London’s economic potential, ensuring growth translates into better wages and improved public services for residents.

Key Investments: Jobs, Transport, and Infrastructure

• Jobs & Skills: Over £300 million in central government funding will be allocated to local training programs, creating more than 150,000 new jobs focused on fair pay and job security.
• Public Transport Expansion: The plan includes major upgrades such as:
  • Docklands Light Railway (DLR) extension to Thamesmead.
  • Bakerloo Line extension south to Lewisham.
  • West London Orbital overground service, using existing rail lines.

Reviving Productivity Growth

Khan’s goal is to push London’s annual productivity growth to 2% by 2035, compared to the current average of just 0.12% since 2008. If successful, this would:

• Inject £107 billion into London’s economy.
• Increase the average Londoner’s income by £11,000.
• Generate an additional £27.5 billion in tax revenue for the UK government by 2035.

Challenges Ahead

Despite being the UK’s most productive region—25% above the national average—London has experienced sluggish economic growth over the past 15 years. Between 2008 and 2021, its productivity increased by only 1.5%, compared to 6.9% for the UK as a whole.

With national productivity levels in decline and forecasts predicting a modest 1.25% growth rate by 2029, Khan faces an uphill battle to achieve his ambitious targets.

Khan’s Vision for a Stronger London

Emphasizing the importance of inclusive growth, Khan stated:

“Ultimately, growth means little if people cannot feel the benefits or see the positive change it brings to their area. Our goal is to deliver economic growth in every corner of our city—raising living standards, putting more money in people’s pockets, and investing in our public services.”

As London grapples with economic uncertainty, Khan’s plan seeks to position the capital as a key driver of national prosperity—one that benefits all Londoners while contributing to the UK’s broader financial health.