London’s Economy

I congratulate my hon. Friend the Member for Hendon (Mr. Dismore) on securing the debate and I appreciate the wide range of points that have been made. A common theme has run through most speeches, perhaps with the exception of that by the hon. Member for Twickenham (Dr. Cable), from whom qualifications seemed to come across more strongly than support for the importance of the London economy—though I may just have misheard him. As has been said, London is vital to the UK economy as well as to the lives of people who live and work in it. It is right and proper that the Members of Parliament for London continue to make the case for it, but it is also right that the rest of the country appreciates its vital role both in job creation and investment and in its contribution to public finances, which I acknowledge. It will be impossible in the limited time available to respond fully to all the points that have been made. I shall start with the comments made by my hon. Friend the Member for North-West Leicestershire (David Taylor), who gave some important context. We are indeed concerned with the national interest and with the jobs and prosperity of people across the country. In my view, the stability of the economy during the past 10 years has been an important contributor to the turning round of the employment situation throughout the United Kingdom. The narrowing of regional income differentials between London and the rest of the economy during the past year, as shown in the latest figures, is a strength for the economy and for society. The northern regions are catching up. However, an important part of the reason for that is London’s strength as a motor for growth and job creation, which benefits the rest of the country. As a constituency MP in Yorkshire and as a former member of the steering group, ““The Northern Way””, I acknowledge and support 100 per cent. the role of the London economy in the prosperity of the UK as a whole. As the Economic Secretary, I fully understand the important role of London and of the City in delivering jobs, investment and tax revenues. Like many MPs from different parts of the country, I have lived in London for more than 15 years, and I see myself in part as a Londoner. I fully appreciate the diversity and dynamism that is London today. My children go to a primary school that has fewer than 200 children but at which more than 28 languages are spoken—a small fact that testifies to London’s huge variety. We have a capital that delivers £180 billion of economic activity—more than the economies of Sweden and Russia. Median weekly earnings are £540 a head—a fifth higher than for the UK in general—and the higher level of earnings is reflected in the job creation of the past decade, with 300,000 more Londoners in work, the biggest proportional rise in employment for any UK region. It is seen also in the growth of the City and in higher education in London. At the same time, as my hon. Friend the Member for Hendon pointed out, there is substantial disadvantage in London. It has the highest worklessness rate of any region.