London’s 24 hour economy could be worth nearly £30bn annually by 2030, new research reveals
11 August 2016
- London’s night-time economy directly contributes up to £26.3bn to London’s annual GDP, which represents up to 40% of UK’s total night-time economy
- 24 hour economy represents around 8% of capital’s economy and supports 1 in 8 jobs
- Will receive a further boost from London’s Night Tube being launched on Friday 19 August
London’s 24 hour economy could be worth nearly £30bn to the capital each year by the start of 2030, reveals a new report launched today by London First in association with EY.
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.
The research, undertaken by London First – the membership group for London business leaders – in association 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 at the end of next week (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.
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”
Caroline Artis, Senior London Partner at EY, commented: “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.”
John Dickie, Director of Strategy & Policy at London First, concluded: “At a time when the capital’s growth is clouded by economic uncertainty, we need to use the 24 hour economy to create more opportunities, more jobs, and ultimately more revenue, so that London can benefit from an additional £2bn boost to its economy over the next fifteen years.”