Sadiq Khan: London needs post-war plan for Covid recovery
A post-war-style programme is needed to breathe life back into London following the Covid-19 pandemic, mayor Sadiq Khan said today.
The mayor said the government had to accept that London was the “country’s biggest asset”, adding that “ministers can’t take for granted that once restrictions are lifted things will simply return to normal”.
He called for an extension of the business rates holiday beyond March and the furlough scheme beyond April, as well as a huge advertising campaign to draw tourists back to the capital.
It came after a new report laid bare the damage to central London caused by a pandemic-induced collapse in tourism and the closure of hospitality businesses.
Consumer spending by overseas tourists was £7.4bn lower in 2020, while domestic tourists spent £3.5bn less and commuter income fell by £1.9bn, according to City Hall analysis of Visit Britain figures.
Culture shock
The research, carried out by Arup with Gerald Eve and the London School of Economics, also highlighted the particular threat to West End arts and culture, with more than 26,000 jobs on the line.
In an interview with the Evening Standard, Khan evoked the “foresight and vision” of Clement Attlee and William Beveridge, who planned an economic recovery for Britain while the Second World War was still ongoing.
“One of my concerns is there is no planning from the government for our recovery,” he said.”We have got to do it for ourselves.”
The report set out expectations that people returning to central London will give the retail, hospitality and culture sectors a much-needed boost, but warned that many venues may have closed permanently before then.
It argued that there would not be a large reduction in central London offices, but that businesses would seek to improve the quality of their office space to encourage more workers and clients to use it.
In addition, the research found that businesses in London’s night-time economy, including shops and museums, may need to extend their opening hours to respond to changing work habits.
“The pandemic has, so far, wiped out a year of trading for our businesses in London’s West End, and while we push to work toward a sustainable recovery, we are not blind to policies that will hold our businesses back,” said Jace Tyrrell, chief executive at New West End Company.
“We fully support the Mayor in his calls to urge government to continue the business rates freeze beyond April 2021, with the hope that this will lead to eventual reform of this antiquated tax system that is causing viable businesses across central London to suffer.”