Newsletter
The Mayor of London Sadiq Khan speaks at the Fabian Society New Year Conference in central London
Image: The Mayor of London Sadiq Khan speaks at the Fabian Society New Year Conference in central London. REUTERS/Simon Dawson

Sadiq Khan to Give UK Economy £33B Per Year Boost Through Infrastructure

by -
Image: The Mayor of London Sadiq Khan speaks at the Fabian Society New Year Conference in central London. REUTERS/Simon Dawson

London Mayor Sadiq Khan wants to raise investments in infrastructure to pump money into the economy.

His figures show that the infrastructure investment could help the U.K. economy by £33 billion per year.

New Jobs and New Homes

Sadiq Khan wants to boost infrastructure investing to help pump more money back into the U.K. economy. His reports project that this could help the United Kingdom by £33 billion per year. This type of project in London would also create 400,000 new jobs, in addition to a “similar number” of new homes.

This move, says Khan, will help to solve many challenges across the nation as well as in the capital, said a report commissioned by the London Mayor. It would help to complete a range of infrastructure projects that are needed, it will help to support the economy in a meaningful way, and it will help to ease the strain from the current housing crisis.

Types of Infrastructure Project

The mayor’s research and report were conducted and created by Greenwood Strategic Advisors. It illustrates the way in which the new jobs and homes would be created through these projects.

It looked into several forms of infrastructure schemes in the capital city. This included Crossrail 2, the Croydon tram network extension. It also involved the Bakerloo line extension. It stated that every year, these projects would add £33 billion to the economy. It would also involve £9.8 billion more in annual tax take.

Greenwood deputy chief exec, Craig Stephens, said that the current situation in terms of infrastructure is one of vicious cycle.

The Vicious Cycle

“Funding constraints delay or prevent such investments and the public benefits and tax revenues they bring. This perpetuates the funding constraints that are limiting investment,” said Stephens.

According to London First chief executive Jasmine Whitbread, a portion of the solution to this issue is to draw on London’s available resources.

“Money is tight for the chancellor but London can help bridge the gap, as we’ll do for Crossrail 2 by matching central government investment pound for pound,” said Whitbread. “The problem isn’t that government has over-invested in London, it’s underinvested across the UK.”

Note: The opinions expressed in this article are the author's own and do not necessarily reflect the view of Alvexo on the matter.