London's 24-Hour Economy
20 Aug 2016
As London welcomes the launch of its new Night Tube, the city’s 24-hour economy is booming. New analysis for London First in association with EY shows the dramatic transformation occurring as London works later, longer and smarter.
The analysis shows businesses across London and across industries working through the night and bringing jobs and prosperity to the city and country.
The findings are striking:
- London’s night-time economy contributed £17.7bn to £26.3bn in Gross Value Added (GVA) to the UK economy in 2014
- Its economic activity directly supports 723,000 jobs – one in eight in London
- Big employers include not just hotels and restaurants (97,125 jobs) and arts and entertainment (46,592) but a whole range of industries: transport and storage (107,136); health and social work (101,282); admin and support services (62,150); professional, scientific and technical (59,803); wholesale, retail and repair (59,248); and information and communication (54,558)
- When indirect impacts are included, the night-time economy is responsible for 1.26 million jobs overall and £40.1bn GVA
- That figure is likely to grow by a further £1.63 billion a year by 2026, and by £2 billion a year by the end of that decade as another 66,000 jobs are added
- The analysis also takes a look at the impact the Night Tube will have on London’s economy
- The services could add up to 2,200 new jobs, with over 500 jobs directly employed in operating the service
- And by 2029 it could add £77 million to London’s economy each year
At a time of economic uncertainty – particularly following the Brexit vote – this is a welcome boost to London’s economy, but it should be seen in the context of the £40 billion economic benefits already delivered by the general move we have seen to a 24-hour economy in London.
To support that move – and the additional £2 billion or more a year it will bring in future – the analysis suggests that London needs a holistic strategy that works for all its industries. London should therefore welcome its new Night Tube. Equally, though, we must ensure it’s not the final stop in the journey to support the city’s 24-hour businesses.
London First/ EY; Publ. Aug 2016
Subscribe to the MusicTank newsletter by entering your details below:
Thank you for signing up to the MusicTank newsletter!