The creative and media industries are set to usurp bankers as the major driving force of London business, according to a new study, which shows the agencies that shun Soho for the charms of the East End are leading the charge.
According to the Centre for Economics and Business Research, the one-time home of the Kray brothers is now the hot-bed of creative business growth, as the City of London continues to suffer from weak conditions.
The key areas driving the London economy in the years to 2017 are expected to be the media, Internet and creative (MIC) sectors of London’s ‘flat white’ economy.
London has key advantages in these sectors, claims the research, with more than a fifth of all the computer-related and telecommunication-based jobs in Great Britain being based in the capital.
This change in the economic focus of London is causing a shift in the centre of gravity of London to the East. Reflecting this, the Greater London Authority (GLA) forecasts strong job creation in the East of London over the next two decades. Employment is projected to rise by 31% by 2031 in Inner London East. This compares to employment growth of a relatively slow 9% over the same period in Inner London West.
These economic changes are changing the shape of London. Increasingly, employees in key growth sectors can’t afford (or choose not) to live in the West London and prefer to inhabit burgeoning eastern boroughs.
Cebr head of macroeconomics Charles Davis commented: “London is evolving and adapting to life post-financial crisis. While in the short term there has been no shortage of pain with job losses across the City and economic output broadly flat in 2012, we think there are positive signs that the capital is adjusting and new sectors are taking prominence in different parts of London away from the City and West End. This economic shift is also driving social change as population in East London booms. While this change was already taking place, the impetus provided by the Olympics has helped to secure infrastructure investment which should contribute to further growth in both employment and population in East London.”
