Press release: London’s property industry urges the next Government to unlock economic growth and reset the relationship with London government

04 Jul 2024

The London Property Alliance, which represents the UK capital’s leading real estate developers and investors, has called on the next government to ensure reform of the planning system is used to unlock commercial development and drive economic growth in the capital, in addition to meeting ambitious national housebuilding targets.  

London’s Central Activities Zone is home to more than 40% of Greater London’s jobs, and generates more than 10% of the UK’s economic output and around £5.5bn in business rates, of which 80% was retained by the Treasury for distribution across the rest of the country. As a critical engine of the country’s economy, the next Government must ensure that policy support is in place to enable sustainable development and unlock investment in central London.   

In its Manifesto for Growth, published today, the London Property Alliance (LPA) calls on the next Government to:  

  • Ensure business rates reform leads to greater retention for London government on a permanent basis. It is essential councils and communities which support new development are rewarded for doing so.
  • Launch a programme of implementation of the recommendations made by the London Finance Commission on the reform of taxes to come under London government control so as to provide fair and greater incentives to drive economic growth and prosperity.
  • Agree a long-term fair funding settlement for Transport for London (TfL). It should also find a lasting solution for the delivery of HS2 at Euston, as well as progressing development proposals for the Bakerloo line extension and Crossrail 2. 
  • Reform the planning system to create certainty for developers and local authorities in relation retrofit and redevelopment policies to ensure a return to sustainable major project investment in all parts of the CAZ.

Reset national government’s relationship with London and support its status as a leading global city 

After years of strained relations, an incoming Government and London should move forward in partnership to allow the capital to thrive and maximise its contribution to growth, prosperity and competitiveness for the UK as a whole.   

Charles Begley, Chief Executive of the London Property Alliance (WPA & CPA) said: “After years of strained relationships, there is the exciting prospect that 2024 will mark a watershed moment in the relationship between central and London government.

“We ask that an incoming Prime Minister and Chancellor embrace our key asks and work in genuine partnership with London’s leaders to secure the lasting prosperity of the capital. Only then can business, and indeed London as a whole, fulfil its full potential to deliver growth and prosperity for all parts of the United Kingdom.” 

Read the report here