A report suggests that increasing national infrastructure spending would add hundreds of thousands of new jobs and billions onto the economy each year.
Commissioned by the Mayor of London and prepared by Greenwood Strategic Advisors, the report investigates how London responds to public investments, as well as the long term socioeconomic cost of not making these investments.
It analyses the extension of the Elizabeth line to Kent; Crossrail 2 which will transform journey times and connectivity from the Solent to the Wash; extending the Croydon tram network towards Sutton; extending the Bakerloo line; and continued investment in the Royal Docks.
A computer model was used to reach conclusions in the report, which analysed how London responds to investments and other policy options.
Its results suggest that an increase in national infrastructure spending would be hugely beneficial to the wider economy.
In total, investment in these schemes is predicted to generate an extra £33.8 billion extra for the economy each year by 2050, and the extra annual £9.8 billion it expects to generate in tax receipts would pay for all these projects.
The research suggests an extra 365,000 new homes could be built, enabling a population growth of 640,000, and 379,000 new jobs would be created as a result of this increase in national infrastructure spending.
It is why Sadiq Khan believes all parts of the UK should receive increased infrastructure spending, especially in light of Brexit.
He said: “This report highlights how the government should invest infrastructure around the country in order to stimulate new jobs, new homes and prosperity. It also proves that increasing infrastructure investment in the short term will reap enormous benefits in the long term.
“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 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.”