The London Assembly Plenary met on Thursday 5 March 2026 to discuss London's economy, jobs, and growth, and the Mayor's Growth Plan. The meeting featured a question and answer session with Howard Dawber OBE, Deputy Mayor for Business and Growth, and guests from UKHospitality and BusinessLDN. Key topics included the impact of taxation on businesses, support for the night-time economy, skills development, and the challenges facing London's high streets.

London's Economy, Jobs and Growth

Howard Dawber OBE, Deputy Mayor for Business and Growth, presented an overview of London's economic landscape, highlighting both its strengths and challenges. He noted that London has been named the greatest city in the world for the 12th consecutive year and is recognised as the most resilient and the startup capital outside the USA. London also boasts a strong intellectual base with numerous universities and a significant international student population. Economically, London is outperforming the rest of the UK, with projected growth of 1.9 per cent year-on-year, and is significantly more productive than other UK cities.

However, Dawber acknowledged significant challenges, including rising unemployment, which is now above the national average, and a growing number of economically inactive individuals. High costs and reduced consumer spending are particularly impacting businesses on high streets, especially in the hospitality sector, leading to an increase in boarded-up shops. The Deputy Mayor stressed the importance of inclusive growth, ensuring that all Londoners benefit from the city's economic success.

Taxation and Business Costs

A significant portion of the discussion focused on the impact of taxation on businesses. Allen Simpson, Chief Executive of UKHospitality, and Muniya Barua, Deputy Chief Executive of BusinessLDN, both expressed concerns about the detrimental effects of recent tax increases, particularly National Insurance Contributions (NICs). Simpson argued that the NIC increase disproportionately affected lower earners and employers, leading to job losses and making it more expensive to employ young people. Barua echoed these concerns, noting that the NIC rise had led some businesses to halt expansion plans.

Assembly Member Susan Hall AM highlighted the particular impact on small businesses and apprenticeships, stating that increased employer NICs disincentivised taking on young people with less experience. Howard Dawber acknowledged that businesses face increased costs and that there is a balance to be struck between taxation on individuals and businesses, but maintained that the Government had struck the right note, while expressing a desire for taxes to be reduced over time.

Night-time Economy and Hospitality

The report from the London Nightlife Taskforce was discussed, with a focus on supporting London's economy between 6pm and 6am. Allen Simpson emphasised the need to balance the concerns of residents with the strategic importance of nightlife as a key sector, advocating for areas like Soho to be recognised as economic zones for nightlife. Muniya Barua added the importance of extending the Night Tube to more lines and addressing the perception of London being unsafe, which she noted was affecting investment.

Howard Dawber confirmed that the Mayor would be establishing a permanent Nightlife Commission and working on a London-wide licensing policy to create a level playing field and share best practices. He also acknowledged the challenges faced by nightclubs, including rising rents and the potential for venues to be redeveloped for higher profits, and noted the Mayor's support for business rate reductions for pubs, with a call for this to be extended to other hospitality venues.

Skills and Employment

The issue of skills development and ensuring Londoners are equipped for a changing economy was raised by Assembly Member Unmesh Desai AM. Muniya Barua explained that BusinessLDN leads the Local Skills Improvement Plan (LSIP) for London, which aims to align business needs with education provision. She highlighted the need for clarity on government skills reforms, such as the Growth and Skills Levy, and stressed the importance of collaboration between government, business, and education providers.

Howard Dawber discussed the Mayor's Inclusive Talent Strategy, which aims to reorient the skills system to be more employer-focused. He outlined key performance indicators for the London Growth Plan (LGP), including creating 150,000 new jobs and increasing London's GDP by 20 per cent by 2035. He also mentioned the AI Taskforce, a £20 million initiative to examine the impact of artificial intelligence on the job market and to retrain and upskill Londoners.

High Streets and Local Economies

Concerns about the decline of high streets and the proliferation of betting shops and fast-food outlets were raised by Assembly Members Keith Prince AM and Andrew Boff AM. Howard Dawber acknowledged the difficulties faced by high streets, exacerbated by the shift to online shopping and increased operating costs. He expressed a desire to see more vibrant and diverse high streets, with a mix of chains and independent retailers. Dawber mentioned ongoing work to support local authorities in tackling empty shops and encouraging landlords to bring vacant spaces back into use, citing examples of successful regeneration projects in Sutton. He also indicated that the Mayor's budget includes £5 million for high streets and the hospitality sector, with further details to be announced.

Other Topics Discussed

• Tourism Levy: Allen Simpson of UKHospitality expressed strong opposition to a potential tourism levy, arguing that it would make London's accommodation uniquely expensive compared to other G7 cities and would be detrimental to the sector.
• Life Sciences Investment: Muniya Barua highlighted London's success in attracting life sciences investment, attributing it to a deep talent pool, a strong ecosystem of universities and businesses, and the benefits of agglomeration.
• Markets: Assembly Member Zoë Garbett AM raised concerns about private developers and landlords impacting the viability of street markets, citing the example of Ridley Road Market. Howard Dawber expressed a commitment to supporting markets and offered to investigate the situation at Ridley Road.
• Sport and the Experience Economy: Assembly Member James Small-Edwards AM discussed the economic benefits of international sports events in London, with Howard Dawber highlighting London's position as the sporting capital of the world and the potential for growth in the experience economy.
• Housing: Lord Bailey of Paddington AM questioned the Deputy Mayor on the failure to deliver sufficient homes, linking it to interest rates and the cost of materials. Howard Dawber acknowledged the challenges in the housing market but defended the Mayor's record on housing delivery.
• Professional Services: Lord Bailey also raised concerns about London's competitiveness in professional services against global rivals like Singapore and New York, questioning the Mayor's actions to retain growing businesses. Dawber pointed to the work of London & Partners (L&P) and the support for fast-growing businesses through the Grow London Global (GLG) programme.
• AI and Autonomous Vehicles: Assembly Member Elly Baker AM inquired about the impact of AI and autonomous vehicles on jobs, with Howard Dawber confirming that autonomous vehicles would be part of the AI Taskforce's scope.
• Transport Infrastructure: Assembly Members Joanne McCartney AM and Krupesh Hirani AM discussed the importance of transport infrastructure for economic growth, highlighting projects like the West London Orbital and the potential devolution of regional rail lines to Transport for London (TfL).
• Reappointment of Independent Persons: The Assembly was recommended to agree to extend the appointments of Suzanne McCarthy and Farhat Sadik as Independent Persons for a further period, with an annual allowance of £1250 each.