London’s Economic Recovery: Covid-19

Part of the debate – in the House of Commons at 2:41 pm on 23 October 2020.

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Photo of Paul Scully Paul Scully Parliamentary Under-Secretary (Department for Business, Energy and Industrial Strategy), Minister of State (London) 2:41, 23 October 2020

I congratulate my hon. Friend Felicity Buchan on securing this Adjournment debate and on raising some really pertinent issues about the economic recovery that we so desperately need for our great capital city.

We are both privileged to represent constituencies in the capital city. They are very different, and it is really important that we actually remember that London is not one homogeneous mass. Therefore, the economic recovery and the plan for it need to reflect that. There are 600-odd high streets around the suburbs of London. What we saw, as we gradually starting to open up, was people shopping locally, as they were working from home and in their neighbourhoods, and that worked out okay. In fact, footfall was still down, but spend per head was up as people had the confidence—my hon. Friend talked about confidence—to go out in their local area to spend and to buy something in particular, not to browse or to shop as they might have done some months ago.

What clearly did not happen, however, was people returning to the central activity zones—the likes of Kensington, as well as the west end, Soho, the south bank, the City, Canary Wharf and all those areas. As my hon. Friend said, people did not feel the confidence to use public transport and return to their workplace, despite the enormous amount of work that Transport for London has done, and the investment put in and the work done by so many employers around the central London area in particular in making their workplaces covid-19 secure, as well as in making the pubs, restaurants and shops in all these areas secure.

It is so important that we remember what a massive contribution London makes to the UK economy. A fact that does not get outed enough is that the west end itself—all the culture, the restaurants, the hospitality, as well as the corporate business in that area—has 3% of the UK’s entire gross value added sitting within it. We must remember that when employers are saying they are not going to bring their employees back to their workplace any time soon—until maybe next year, the health figures notwithstanding—they should not expect that London will naturally be the same London they left. It does not have a God-given right to exist preserved in aspic, and it is incumbent on all of us to work together to make sure that we have a plan for recovery.

Such a plan works in three different ways—short term, medium term and long term. We must have a 90-day plan. As and when the health figures allow us to move back to tier 1, as my hon. Friend says, we need to be ready to go. We have already had one go, but it did not work as speedily as we would have liked. We need to be absolutely ready so that, when we get the incidence rate down across the boroughs, we can move to tier 1 and ensure that people have the confidence to travel and to return to their workplaces, albeit in a more flexible way than was previously the case. We are not trying to get back to how things were in January or February, because there is certainly a sense of permanent change, but we need to be able to shape that change.