The capital’s wealth divide was laid bare today as figures revealed that central and west London residents each generated nearly £100,000 a year more for the local economy than people living east of the City.
Residents of Inner London West — which covers the City, Westminster, Hammersmith and Fulham, Kensington & Chelsea, Wandsworth and Camden — each contributed an average of £111,519 a year to the region’s economy in 2011, nearly eight times the £14,027 made by residents of Outer London East and North East, which includes the boroughs of Barking and Dagenham, Bexley, Enfield, Greenwich, Havering, Redbridge and Waltham Forest.
Despite the economic boost from the Olympics Games, the extraordinary engine of continuing growth from the Square Mile and nearby boroughs is underlined in the analysis by the Office for National Statistics of GVA — gross value added, or the difference between the value of goods and services produced and the cost of wages and raw materials.
Londoners each contributed an average of £35,638 to the regional economy — the highest in the country — while residents of Wales contributed the least, at £15,696. Outside London, the next highest contributions were Edinburgh on £34,178, Belfast on £33,190 and Berkshire with £32,798.
Ministers are determined to stop Britain relying so heavily on the Square Mile and plan to revive manufacturing industries in the regions with a view to increasing exports of goods.
However, Mark Field, Conservative MP for the Cities of London and Westminster, warned against neglecting the huge contribution the City made to the nation’s economy.
He said: “It’s a stark reminder that financial services are one of the only globally competitive businesses that the UK has.”
