Transcript Is London Broke and does it need fixing?

Is London Broke and does it need
fixing
18 January 2010
Bridget Rosewell
Chief Economic Adviser
Is London broke?
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High poverty levels
Crowded, expensive, dirty
Diverse
High productivity
Growing
Successful
Child poverty higher in London and
resistant to change
Higher poverty among adults too
Men less likely to work
Women even less likely to work
And the unskilled find it hard to get
jobs
Housing is expensive
On rail too...
And road speeds still falling
Specialisation in productive sectors
Ability to transform itself
A highly productive economy
Huge accessibility
A high end centre
And well spread facilities
Positive trends even after recession
London civilian workforce jobs
Source: Office for National Statistics
Tax levels may become a problem
Because deficits are significant
Large imbalances in public sector spending, which predate
current recession
42
Public sector current receipts (% of GDP)
41
Total managed Government expenditure (% of GDP)
40
39
38
37
36
35
34
33
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
Debt still not historically high but rapid
rises are a real problem
Nor out of line internationally
The challenge
 To maintain investment
 Maintain pressure on long standing and
embedded problems
 Support the successful