Production Activity within the London Economy

Abstract

As Britain's largest city with the most extensive range of service functions, London has led most other cities within the country in its loss of production activity. Within the overall net loss, there is however some new industrial development. This development is investigated to throw light on areas of possible industrial regeneration relevant to large urban areas throughout the UK. The paper first estimates recent change in production employment in London and then investigates a sample of industrial developments in the city identified through the Land Use Change Statistics. Though a significant 244 hectares was developed for industrial use, few new production jobs are likely to have been generated. The results point to growth dominated by the small firm sector, but with an even spatial spread over all parts of the city. The implication for policy is a reinforcement of its dependence on the small firm sector to offset major structural changes in economic activity.