London’s productivity has fallen by 1% over the last decade, compared to an increase of 1.5% across the UK as a whole.
This is according to the June 2018 report by Trust for London on London’s economic and living standards performance.
The report finds that London’s economic growth has been driven by rising employment and working hours rather than productivity improvements.
Despite rising employment rates and higher incomes in the capital, Londoners face pressures of rising housing costs, wealth inequality and the diminished impact of the National Living Wage.
Looking forward, the report states that government policy is set to do more to support better-off Londoners than those on lower-incomes. It also says that if migration falls, this could put significant pressure on the capital’s economy.
The report concludes that London is not as strong as conventional wisdom would suggest and the ‘London-model’ will become less attractive to other areas of the UK which are following a similar path.