London — London enters the final days of 2020 with its position as the UK’s economic growth engine being whittled away by Brexit and the struggle to contain the coronavirus.
The challenges have fuelled questions over how London can adapt after more than three decades of spectacular growth driven by the influx of global capital into banks, property and the countless businesses that sprang up to cater to the needs of a financial hub. While reduced consumer spending means higher savings to be tapped once the economy reopens, London may not fully benefit from that because of changes in work habits.
This creates “huge problems for people in terms of stock, as some restaurants and pubs are geared up for their busiest week of the year, and for staff who were relying on these busy two weeks’ earnings”, said Will Beckett, founder of the Hawksmoor steakhouses. “It will be hugely expensive and will tip yet more hospitality venues into permanent closure.”
For some, however, the model that prioritised services over manufacturing and London over the rest of the country, was ripe for a change. But the success of the finance sector remains important for the UK. It accounts for 7% of the economy as well as more than a million jobs.