London’s 24 hour economy could be worth nearly £30bn annually by 2030August 11, 2016
London’s 24 hour economy could be worth nearly £30bn to the capital each year by the start of 2030, a new report launched by London First and EY reveals.
It is currently worth up to £26.3bn annually, around 8% of London’s gross domestic product, and directly supports one in eight jobs – a figure of 723,000 workers. The report suggests this could rise to 790,000 in less than 15 years.
New analysis sheds fresh light on the importance of the 24-hour economy, and its potential for growth.
The research, undertaken with professional services firm EY, provides economic impact analysis to quantify the value of the night-time economy to London and its opportunity for growth, across a range of industry sectors.
London’s Night Tube service will be launched on Friday 19 August and City Hall established a Night Time Commission in March to assess the night-time economy in more detail.
These two factors, plus the anticipated appointment of a ‘Night Czar’ by Mayor Sadiq Khan, have brought the economic value of London’s 24 hour economy to the fore.
Click to download the report
Sadiq Khan, Mayor of London, said:
“The Night Tube opening is a fantastic and exciting opportunity for London. It will unlock the full potential of London’s night time economy, and will be a huge driver in creating jobs and supporting hundreds of businesses in our city.
“London’s culture and nightlife, from our theatres to our music venues, is iconic around the world. With the night tube more people will be able to experience London’s unique cultural scene, making a substantial and vital contribution to our city’s future economic prosperity, and sending out a signal that London is truly open”
John Dickie, Director of Strategy & Policy at London First, said:
“The night-time economy is already worth nearly 10% of London’s total. Shifting London to a 24 hour city has the potential to increase that share significantly, creating new opportunities, more jobs and greater prosperity.
“The opportunity for policy makers is to move beyond traditional sectors, such as bars and restaurants, into creating a truly 24 hour city.”
Caroline Artis, Senior London Partner at EY, said:
“This new research predicts that by 2030, London’s 24 hour economy could directly support 790,000 jobs across a variety of industries and contribute nearly £30bn to the capital each year. A 24 hour economy will also help to further increase London’s attractiveness to many overseas businesses who already regard London as the most attractive city for foreign direct investment across Europe, according to EY’s UK Attractiveness Survey.
“The opportunities to capitalise on London’s 24 hour economy highlight a demand for the city to develop a strategy around how best to involve businesses and engage key stakeholder groups to communicate the benefits and the impact a Night Tube will have on London’s economy.”
- In recent years there has been an up-trend in the number of night time workers, more pronounced in London than the rest of the UK. This is across all sectors, not just those traditionally associated with the NTE.
- In addition to those sectors traditionally associated with the NTE – including theatres, venues and other cultural activities (22.5%), transport and logistics (37%) and hotels and restaurants (25.5%) – the majority of the London NTE is concentrated in public services (including health and social care and policing) (19.5%), the tech sector, film and broadcasting (13%) and in buildings and facilities management (11%).
- It is expected that the introduction of the Night Tube will give an immediate boost to bars, pubs, hotels, restaurants and leisure facilities.
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