The 'Mind the Gap: Funding and Financing City Investments in the 21st Century' report, prepared by Greenwood Strategic Advisors, suggests investment in some of the biggest schemes in the capital would lead to the creation of nearly 400,000 new jobs and a similar number of new homes.
Schemes that the report looked at are;
• The extension of the Elizabeth Line to Ebbsfleet in Kent
• Crossrail 2 – the new south west – north east connection that will transform journey times and connectivity from the Solent to the Wash.
• An extension of the Croydon tram network towards Sutton
• Extending the Bakerloo line to Lewisham via the Old Kent Road and New Cross Gate
• Continued investment in the Royal Docks as a distinctive location for business and culture
To reach conclusions in the report, both Greenwood and the Mayor's Office have devised a state-of-the-art computer model titled the 'Greater London Simulator' that analyses how London responds to investments and other policy options. The model reveals that Government investment in these schemes would lead to;
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• 365,000 new homes, enabling additional population growth of 640,000
• 379,000 new jobs
• 913,000 m2 of new London business space
• £33.8 billion added to the economy per year
• £9.8 billion additional Treasury tax take per year
Calling for additional Government investment, Mayor Sadiq Khan said the report proves how increasing infrastructure investment in the short term "will reap enormous benefits in the long term".
"This report highlights how the Government should invest ininfrastructure around the country in order to stimulate new jobs, new homes and prosperity," he said.
"As a country, we need to move from a system of underinvestment, low growth, reduced tax take and constrained public funding toward a new philosophy of sensible investment in high-growth schemes that deliver economic prosperity, more homes and higher tax revenues.
"Good quality, modern infrastructure, including new roads and railways is crucial if this country is to remain a global economic powerhouse – so it is vital that we see increased investment across the country and not just here in London."
Craig Stephens, Deputy Chief Executive, GreenwoodStrategic Advisors, said: "Public infrastructure investments are stuck in a 'vicious cycle'. Funding constraints delay or prevent such investments and the public benefits and tax revenues they bring. This perpetuates the funding constraints that are limiting investment.
"Breaking free from this pattern requires dynamic analysis that enables private financing for public investments. Greenwood developed the Greater London Simulator to meet this need. Pension funds and other investors are seeking such investments. Engaging with them can relieve public budgets and energise a 'virtuous circle' in which new infrastructure brings socioeconomic benefits and increased tax revenues for local authorities and the nation."
To view the 'Mind the Gap: Funding and Financing City Investments in the 21st Century' report, visit here.
(LM/MH)
