Clegg claims London-centric UK costs £41bn a year

The deputy prime minister will tell City figures today that if other cities could meet their 'potential', the UK would be in for another £41bn per year.

by Michael Northcott
Last Updated: 19 Aug 2013

In the absence of peer-reviewed, academically verifiable data, you can always rely on Nick Clegg to come out with a few ‘facts’ about the economy. This time, he’s claiming that the UK economy could be generating £41bn more per year, but for the London-centric business model that operates in the UK. 

He says that London-focused business has allowed other large cities to ‘wither’, and that if they could somehow be regenerated, GDP could rise by another £41bn per year. 

In a speech to City workers at the Mansion House later, Clegg will say: ‘It is in everyone’s interests – not least London’s itself – if that potential [of other cities] is now tapped. There can and must be more than one jewel in our crown. 

‘The challenge for us is to rebuild our economy so that it runs on all cylinders.’ He will also claim that the focus on London is the result of decades of deliberate political choices.

He will add: ‘From the big bang, right until what was a monumental crash, the Labour and Conservative governments of the day were so bewitched by London’s financial services that they squandered other industries and allowed other communities to wither.’

But the deputy PM should remember that it's better to have one London-shaped jewel in the national crown than none at all...

Find this article useful?

Get more great articles like this in your inbox every lunchtime

The questions to ask when everything is unknown

Systemic intelligence is an indispensable skill for business leaders.

How to stop your culture going back to normal after COVID

In this video, Capita's Melanie Christopher and Greene King non-exec board director Lynne Weedall discuss...

This isn't just a health crisis, it's an equality crisis

Inspiring Women in Business winners: In the “new normal”, we must make sure that female...

How to build an anti-racist business

You don't need a long history of championing equality to make a difference.

What are Simon Roberts’ big 3 challenges at Sainsbury’s?

The grocer's new CEO has taken the reins at a critical time.

Should CEOs get political?

The protests that have erupted over George Floyd’s murder have prompted a corporate chorus of...