Strategy Unit Homepage

Main navigation

Strategy Unit publishes London report (19/7/2004)

The final report about London is published today by the Prime Minister's Strategy Unit. The report reviews the strategic issues facing London, its role as the UK's capital and as a world city, and the delivery of long-term central government priorities in the region.

This report is published as a report to government and makes recommendations for further work to be carried out by government. It is not a statement of government policy. 

In accepting the final report, the Sponsor Minister and Minister for London, Keith Hill said:

'This very interesting report will help inform long-term policy-making to make London even more vibrant and attractive to its citizens.

'Our priority is to deliver high quality public services, improve people's quality of life and create sustainable communities where people want to live.'

The SU London Report looks at all aspects of living in London. It finds that London is a highly successful world city with a highly productive economy. London has a strong economic relationship with other parts of the country, from which all regions benefit. London has been successful in attracting the high skilled labour it needs to sustain its dynamic, modern economy. In addition to a strong economy, London has some of the best performing public services in the country - some of the best schools, hospitals and best performing local authorities. The population of London is different from that of the rest of the UK, both in composition and outlook. It is younger, more diverse and more transient. People in London are generally more liberal in outlook than those in other parts of the UK.

The SU London Report recommends that further work be undertaken to develop understanding of the factors continuing to attract people visiting, working and living in London.

London's public services face many unique challenges. For example, some of London's schools have a very high turnover of students each year, as well as high turnover of teaching staff. Compared to elsewhere in the country, London residents are less likely to use a GP and more likely to use accident and emergency services. 

The SU London Report recommends that further work be undertaken to consider whether public services should be delivered in different ways in London, and how services can learn from each other about measures to recruit, retain and motivate staff.

On transport, one of the main issues for London is that its layout was largely determined before the motor car was invented. As a result there are few strategic roads designed to carry heavy volumes of traffic. The London rail and underground network is one of the most extensive in the world and moves a remarkable number of people around the city every day.  Rail and underground services did experience low levels of investment, though these are now being addressed.

The SU London Report recommends that further work be undertaken to further clarify the division of responsibilities for transport in London between government and the Mayor (as demonstrated by work which has already been taken forward since the writing of this report), and to strengthen the financing regime.

The development of the London economy has also put pressures on the London housing market. Higher earners are more able to secure the housing of their choice, which for younger people is more likely to be in Inner London. As London has developed these people have continued to find housing in the inner boroughs. As pressures on space in traditionally desirable locations have escalated, some of the previously overlooked boroughs in Inner London have become destinations of choice. Alongside this demand, almost 40% of the housing in Inner London is in the social sector. The people least able to secure housing of their choice in London are increasingly those in middle income groups, including many key workers.

The SU London Report recommends that further work be undertaken to ensure that London's significant social housing stock is used to secure the greatest possible welfare return. This includes work looking at investigating options and feasibility for reforming social housing in London. It will also look at the potential to release equity tied into the London housing stock in order to fund local regeneration and more balanced and sustainable communities.

Higher costs of housing, council tax, childcare and transport costs mean that the tax and benefit system has a different impact on work incentives in London than elsewhere in the UK.

The SU London Report recommends further work on understanding the impact of the tax and benefit system on work incentives in London.

Many of those who are out of work in London have different characteristics and needs from unemployed people in other parts of the UK. Some face language barriers, others particular issues such as drug dependency or poor mental health.

The SU London Report recommends that further work be undertaken to develop understanding of the characteristics of London's unemployed population, so that services can be tailored to their particular requirements.

The SU report also recommends that further work be undertaken to better
coordinate training in English for speakers of other languages (ESOL).

The Strategy Unit has been working on this project with the Office of the Deputy Prime Minister (ODPM) and other government departments, the Government Office for London (GOL), the Greater London Assembly (GLA), the London boroughs and many other key organisations.

Notes to editors

1. The London Project Report was published today at 10.30am by the Prime Minister's Strategy Unit. Copies can be obtained via the Strategy Unit web site at: http://www.strategy.gov.uk/ (hard copies can be obtained by phoning 020 7276 1881).

2. The Strategy Unit was commissioned by the Prime Minister and Deputy Prime Minister to review the strategic issues facing London, its role as the UK's capital and as a world city, and the delivery of long-term central government priorities in the region.

3. The project was announced on 7 February 2003. The Deputy Prime Minister led the work and Keith Hill, the Minister for London, took day-to-day responsibility.

4. The London Analytical Report was published by the Strategy Unit in July 2003 and can be found via the Strategy Unit web site at: http://www.strategy.gov.uk/

 Cabinet Office Press Office 70 Whitehall LONDON SW1A 2AS
Tel: 020 7276 0311 - Fax: 020 7276 0618

Cabinet Office news releases are available at: http://www.gnn.gov.uk/