10 Features
London’ s growth plan
LCCI has set out a ten-point plan for London’ s growth. The plan outlines the priorities for Prime Minister Andy Burnham that will strengthen business confidence amid concern from business that London will be deprioritised under a new administration.
1. A commitment not to increase the cost of doing business: businesses cannot afford to absorb any further tax rises, regulatory burdens or employment costs.
2. Reverse the Employer NICs increase: the 2024 rise directly increased costs for businesses and consumers, made it harder to deliver growth, and removed thousands of entry-level jobs from the economy.
3. Deliver wholesale business rates reform, not another consultation: lower the multiplier to at least 45p, support the retail and hospitality sectors, and recognise that the higher rate threshold does not fairly reflect London property prices.
4. A pragmatic new deal with the EU: a new relationship, which respects the UK ' s decision to leave, should reduce barriers, improve mobility for skilled workers and make it easier for businesses to operate across borders, with significant potential for growth.
5. Tackle business crime effectively: backed by a fairer funding settlement, the Met should prioritise hotspot policing and integrating AI tools. Businesses and consumers alike face higher costs from a growing need to supplement policing with private security.
6. Act swiftly on the Milburn Review: reduce the cost of hiring young people and those who are NEET, reform the Growth & Skills Levy to create more flexible apprenticeships and provide long-term certainty on funding for Local Skills Improvement Plans
7. Make London globally competitive: abolish the tax on tourism by restoring VAT-free shopping, and reverse changes to the non-dom system, making London the first choice for international visitors, spending and talent.
8. Get London building: further reduce the burden of the planning system to increase housebuilding, reduce investment costs and support commercial developments.
9. Back London infrastructure: support largescale London infrastructure projects, including airport expansion at Gatwick, Luton and Heathrow Airports, and the Bakerloo Line and DLR extensions. Delivered affordably, these projects have the highest national return on investment, powering job creation and growth across the country.
Technology warning
LCCI welcomed the appointment of Jonathan Reynolds to lead the newly-expanded Department for Business, Innovation, Science and Trade. LCCI chief executive Karim Fatehi OBE said that he looked forward to working with him on behalf of the Chamber’ s 12,000 strong business network.
Concerning
He added that elevating the AI minister to a cabinet level position was a positive step that recognises this technology ' s importance. Fatehi warned however that abolishing the
Department for Science, Innovation and Technology was a concerning development for London firms and the capital ' s growing strength in tech and AI.“ Spreading these responsibilities across multiple departments risks deprioritising the sector as a whole and stalling its momentum at a crucial time.
Significant assets
“ London accounts for almost 60 per cent of the UK ' s tech sector by value, with over 90 per cent of AI investment coming into the capital. The King ' s Cross area and the Elizabeth Line tech corridor are significant assets to the national economy.
10. Designate King ' s Cross as an AI investment zone: creating the right regulatory and market conditions to make the existing Elizabeth Line tech corridor the most attractive area in Europe for next-generation AI investment, creating thousands of highskill jobs.
LCCI chief executive Karim Fatehi OBE commented that the Prime Minister was right to say that Britain needed growth in every postcode.“ London is the world ' s greatest capital city, and we know that when London ' s economy grows, the whole country benefits.
“ London contributes more to the national exchequer than any other region in the UK, generating over a quarter of all tax receipts and supporting funding for public services across the country.”
“ With science and technology becoming increasingly central to the UK ' s economy, the new government must demonstrate quickly that this machinery change can support the sector effectively. London is already a world leader in this area, with cutting edge firms drawn to our research facilities, innovation hubs and deep talent pool. London ' s position as the tech and AI capital of Europe cannot be taken for granted, however, requiring government to enable the right conditions for investment and job creation."
By Alecsandra Dragoi / No 10 Downing Street- https:// flickr. com / photos / dbtdigital / albums / 72177720334869915 /, OGL 3