Economy Of London
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The economy of London is dominated by
service industries Service industries are those not directly concerned with the production of physical goods (such as agriculture and manufacturing). Some service industries, including transportation, wholesale trade and retail trade are part of the supply chain de ...
, particularly
financial services Financial services are the Service (economics), economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit-card companies, insurance companies, acco ...
and associated
professional services Professional services are occupations in the service sector requiring special training in the arts or sciences. Some professional services, such as architects, accountants, engineers, doctors, and lawyers require the practitioner to hold professi ...
, which have strong links with the economy in other parts of the
United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and North ...
(UK) and internationally. In addition to being the capital city of the United Kingdom,
London London is the capital and largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary down to the North Sea, and has been a majo ...
is one of the world's leading financial centres for
international business International business refers to the trade of goods, services, technology, capital and/or knowledge across national borders and at a global or transnational scale. It involves cross-border transactions of goods and services between two or more ...
and commerce and is one of the "command centres" for the
global economy The world economy or global economy is the economy of all humans of the world, referring to the global economic system, which includes all economic activities which are conducted both within and between nations, including production, consumption, ...
. London is the most populous region, urban zone and
metropolitan area A metropolitan area or metro is a region that consists of a densely populated urban agglomeration and its surrounding territories sharing industries, commercial areas, transport network, infrastructures and housing. A metro area usually com ...
in the United Kingdom. London had the fifth largest
metropolitan economy A metropolitan economy refers to the cohesive, naturally evolving concentration of industries, commerce, markets, firms, housing, human capital, infrastructure and other economic elements that are comprised in a particular metropolitan area. Rat ...
in the world in 2011 according to the
Brookings Institution The Brookings Institution, often stylized as simply Brookings, is an American research group founded in 1916. Located on Think Tank Row in Washington, D.C., the organization conducts research and education in the social sciences, primarily in ec ...
. Some of its neighbourhoods have estimated per capita GVA as high as £116,800 ($162,200). The
London fiscal surplus London, the capital of England and the United Kingdom, has a fiscal surplus since the tax collected is above the amount spent on local services. Of all the United Kingdom's statistical regions, London runs the highest surplus both in absolute ter ...
, £32.5 billion in 2016–17, mostly goes towards funding services in other parts of the UK. London generates approximately 22 per cent of the UK's GDP. 841,000 private sector businesses were based in London at the start of 2013, more than in any other region or country in the UK. 18 per cent are in the professional, scientific and technical activities sector while 15 per cent are in the construction sector. Many of these are small and medium-sized enterprises.


GDP

Greater London produced £503 billion while the economy of the
London metropolitan area The London metropolitan area is the metropolitan area of London, England. It has several definitions, including the London Travel to Work Area, and usually consists of the London urban area, settlements that share London's infrastructure, and ...
— the largest in Europe with
Paris Paris () is the capital and most populous city of France, with an estimated population of 2,165,423 residents in 2019 in an area of more than 105 km² (41 sq mi), making it the 30th most densely populated city in the world in 2020. S ...
generates around 1/3 of the UK's GDP or around $1.0 trillion(in PPP).


Service industries

London shifted to a mostly service-based economy earlier than other European cities, particularly following the
Second World War World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...
. A number of factors contribute to London's success as a
service industry The tertiary sector of the economy, generally known as the service sector, is the third of the three economic sectors in the three-sector model (also known as the economic cycle). The others are the primary sector (raw materials) and the second ...
and business centre: * English being the native language and the dominant international language of business; * its past role as the capital of the former
British Empire The British Empire was composed of the dominions, colonies, protectorates, mandates, and other territories ruled or administered by the United Kingdom and its predecessor states. It began with the overseas possessions and trading posts esta ...
; * its position in Europe, since Europe has a population larger than that of the US, and a central time zone that allows London to act as a bridge between US and Asian markets; * the
Special Relationship The Special Relationship is a term that is often used to describe the politics, political, social, diplomacy, diplomatic, culture, cultural, economics, economic, law, legal, Biophysical environment, environmental, religion, religious, military ...
between the United Kingdom and United States, and the United Kingdom's close relationships with many countries in Asia, Africa and the Middle East, particularly those in the
Commonwealth of Nations The Commonwealth of Nations, simply referred to as the Commonwealth, is a political association of 56 member states, the vast majority of which are former territories of the British Empire. The chief institutions of the organisation are the Co ...
; *
English contract law English contract law is the body of law that regulates legally binding agreements in England and Wales. With its roots in the lex mercatoria and the activism of the judiciary during the industrial revolution, it shares a heritage with countries ...
being the most important and most used contract law in
international business International business refers to the trade of goods, services, technology, capital and/or knowledge across national borders and at a global or transnational scale. It involves cross-border transactions of goods and services between two or more ...
; * a business friendly environment (e.g. relatively low taxes for corporations and non-domiciled foreign individuals; in the
City of London The City of London is a city, ceremonial county and local government district that contains the historic centre and constitutes, alongside Canary Wharf, the primary central business district (CBD) of London. It constituted most of London fr ...
the local government is not elected by the resident population but instead by resident businesses – the City of London is a business democracy); * good transport infrastructure particularly its aviation industry; * a high
quality of life Quality of life (QOL) is defined by the World Health Organization as "an individual's perception of their position in life in the context of the culture and value systems in which they live and in relation to their goals, expectations, standards ...
. Currently, over 85% (3.2 million) of the employed population of greater London works in the service industries. Another half a million employees resident in Greater London work in manufacturing and construction, almost equally divided between both.


Business districts

London has five major business districts: the City,
Westminster Westminster is an area of Central London, part of the wider City of Westminster. The area, which extends from the River Thames to Oxford Street, has many visitor attractions and historic landmarks, including the Palace of Westminster, Bu ...
,
Canary Wharf Canary Wharf is an area of London, England, located near the Isle of Dogs in the London Borough of Tower Hamlets. Canary Wharf is defined by the Greater London Authority as being part of London's central business district, alongside Central Lo ...
, Camden &
Islington Islington () is a district in the north of Greater London, England, and part of the London Borough of Islington. It is a mainly residential district of Inner London, extending from Islington's High Street to Highbury Fields, encompassing the ar ...
and
Lambeth Lambeth () is a district in South London, England, in the London Borough of Lambeth, historically in the County of Surrey. It is situated south of Charing Cross. The population of the London Borough of Lambeth was 303,086 in 2011. The area expe ...
&
Southwark Southwark ( ) is a district of Central London situated on the south bank of the River Thames, forming the north-western part of the wider modern London Borough of Southwark. The district, which is the oldest part of South London, developed ...
. One way to get an idea of their relative importance is to look at relative amounts of office space: Greater London had 26,721,000 m2 of office space in 2001. A useful guide to the distribution of wealth across London is the cost of renting office space.
Mayfair Mayfair is an affluent area in the West End of London towards the eastern edge of Hyde Park, in the City of Westminster, between Oxford Street, Regent Street, Piccadilly and Park Lane. It is one of the most expensive districts in the world. ...
and St. James's are historically and currently the most expensive areas – approximately £146 per sq ft per annum. The least expensive commercial districts are Waterloo &
Southwark Southwark ( ) is a district of Central London situated on the south bank of the River Thames, forming the north-western part of the wider modern London Borough of Southwark. The district, which is the oldest part of South London, developed ...
and
East London Tech City East London Tech City (also known as Tech City and Silicon Roundabout) is a technology cluster of high-tech companies located in East London, United Kingdom. Its main area lies broadly between St Luke's and Hackney Road, with an accelerator spa ...
, a new, but growing hub of start up technology companies, also known as
Silicon Roundabout East London Tech City (also known as Tech City and Silicon Roundabout) is a technology cluster of high-tech companies located in East London, United Kingdom. Its main area lies broadly between St Luke's and Hackney Road, with an accelerator spac ...
– approximately £65 per sq ft per annum.


Domestic and international corporate headquarters

The
London Stock Exchange London Stock Exchange (LSE) is a stock exchange in the City of London, England, United Kingdom. , the total market value of all companies trading on LSE was £3.9 trillion. Its current premises are situated in Paternoster Square close to St Pau ...
is the most international stock exchange and the largest in Europe. More than half of the London Stock Exchange top 100 listed companies (the
FTSE 100 The Financial Times Stock Exchange 100 Index, also called the FTSE 100 Index, FTSE 100, FTSE, or, informally, the "Footsie" , is a share index of the 100 companies listed on the London Stock Exchange with (in principle) the highest market ...
) and over 100 of Europe's 500 largest companies are headquartered in central London. Over 70% of the FTSE 100 are located within London's metropolitan area, and 75% of
Fortune 500 The ''Fortune'' 500 is an annual list compiled and published by ''Fortune'' magazine that ranks 500 of the largest United States corporations by total revenue for their respective fiscal years. The list includes publicly held companies, along ...
companies have offices in London. According to research by Deloitte, "London has the most internationally diverse executive community in the world, attracting business leaders from 95 nationalities and with alumni working in 134 countries".


Financial services

London's largest industry remains finance, it is the largest
financial export Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit-card companies, insurance companies, accountancy companies ...
er in the world which makes a significant contribution to the UK's
balance of payments In international economics, the balance of payments (also known as balance of international payments and abbreviated BOP or BoP) of a country is the difference between all money flowing into the country in a particular period of time (e.g., a ...
. In the 2017
Global Financial Centres Index The Global Financial Centres Index (GFCI) is a ranking of the competitiveness of financial centres based on over 29,000 financial centre assessments from an online questionnaire together with over 100 indices from organisations such as the World ...
, London was ranked as having the most competitive financial center in the world. However, in the 2018 ranking, London has lost that title to
New York City New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...
. In the 2020 Global Financial Centers Index,
London London is the capital and largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary down to the North Sea, and has been a majo ...
was ranked as having the second most competitive financial center in the world after
New York City New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...
(alongside cities such as
Shanghai Shanghai (; , , Standard Mandarin pronunciation: ) is one of the four direct-administered municipalities of the People's Republic of China (PRC). The city is located on the southern estuary of the Yangtze River, with the Huangpu River flow ...
,
Tokyo Tokyo (; ja, 東京, , ), officially the Tokyo Metropolis ( ja, 東京都, label=none, ), is the capital and largest city of Japan. Formerly known as Edo, its metropolitan area () is the most populous in the world, with an estimated 37.468 ...
,
Hong Kong Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China ( abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delt ...
,
Singapore Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, borde ...
,
Beijing } Beijing ( ; ; ), alternatively romanized as Peking ( ), is the capital of the People's Republic of China. It is the center of power and development of the country. Beijing is the world's most populous national capital city, with over 21 ...
,
San Francisco San Francisco (; Spanish language, Spanish for "Francis of Assisi, Saint Francis"), officially the City and County of San Francisco, is the commercial, financial, and cultural center of Northern California. The city proper is the List of Ca ...
,
Shenzhen Shenzhen (; ; ; ), also historically known as Sham Chun, is a major sub-provincial city and one of the special economic zones of China. The city is located on the east bank of the Pearl River estuary on the central coast of southern province ...
and Zurich in the top 10). The
City of London The City of London is a city, ceremonial county and local government district that contains the historic centre and constitutes, alongside Canary Wharf, the primary central business district (CBD) of London. It constituted most of London fr ...
is home to exchanges, banks, brokers,
investment managers Investment management is the professional asset management of various securities, including shareholdings, bonds, and other assets, such as real estate, to meet specified investment goals for the benefit of investors. Investors may be institut ...
,
pension fund A pension fund, also known as a superannuation fund in some countries, is any plan, fund, or scheme which provides retirement income. Pension funds typically have large amounts of money to invest and are the major investors in listed and priva ...
s,
hedge fund A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction, and risk management techniques in an attempt to improve performance, such as sho ...
s,
private equity firms A private equity firm is an investment management company that provides financial backing and makes investments in the private equity of startup or operating companies through a variety of loosely affiliated investment strategies including leve ...
,
insurance companies Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...
and reinsurance markets. London is notable as a centre of
international finance International finance (also referred to as international monetary economics or international macroeconomics) is the branch of financial economics broadly concerned with monetary and macroeconomic interrelations between two or more countries. Inter ...
where foreign participants in financial markets come to deal with one another. It is also home to the
Bank of England The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694 to act as the English Government's banker, and still one of the bankers for the Government of ...
, the second oldest central bank in the world, and the
European Banking Authority The European Banking Authority (EBA) is a regulatory agency of the European Union headquartered in Paris. Its activities include conducting stress tests on European banks to increase transparency in the European financial system and identifying ...
, although the latter is moving to Paris in March 2019 following the
Brexit Brexit (; a portmanteau of "British exit") was the withdrawal of the United Kingdom (UK) from the European Union (EU) at 23:00 GMT on 31 January 2020 (00:00 1 February 2020 CET).The UK also left the European Atomic Energy Community (EAEC or ...
referendum of 2016. Other key institutions are
Lloyd's of London Lloyd's of London, generally known simply as Lloyd's, is an insurance and reinsurance market located in London, England. Unlike most of its competitors in the industry, it is not an insurance company; rather, Lloyd's is a corporate body gov ...
for insurance, the
Baltic Exchange The Baltic Exchange (incorporated as The Baltic Exchange Limited) is a membership organisation for the maritime industry, and freight market information provider for the trading and settlement of physical and derivative contracts. It was locate ...
for shipping. A second financial district has developed at
Canary Wharf Canary Wharf is an area of London, England, located near the Isle of Dogs in the London Borough of Tower Hamlets. Canary Wharf is defined by the Greater London Authority as being part of London's central business district, alongside Central Lo ...
to the east of the City, which includes the global headquarters of two of the world's largest banks,
HSBC HSBC Holdings plc is a British multinational universal bank and financial services holding company. It is the largest bank in Europe by total assets ahead of BNP Paribas, with US$2.953 trillion as of December 2021. In 2021, HSBC had $10.8 tri ...
and
Barclays Barclays () is a British multinational universal bank, headquartered in London, England. Barclays operates as two divisions, Barclays UK and Barclays International, supported by a service company, Barclays Execution Services. Barclays traces ...
, the rest-of-the-world headquarters of
Citigroup Citigroup Inc. or Citi (Style (visual arts), stylized as citi) is an American multinational investment banking, investment bank and financial services corporation headquartered in New York City. The company was formed by the merger of banking ...
and the headquarters of the global news service
Reuters Reuters ( ) is a news agency owned by Thomson Reuters Corporation. It employs around 2,500 journalists and 600 photojournalists in about 200 locations worldwide. Reuters is one of the largest news agencies in the world. The agency was estab ...
. London handled 36.7% of global currency transactions – an average daily turnover of
US$ The United States dollar (symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the official ...
1.85 trillion – with more US dollars traded in London than New York, and more
Euros The euro (symbol: €; code: EUR) is the official currency of 19 out of the member states of the European Union (EU). This group of states is known as the eurozone or, officially, the euro area, and includes about 340 million citizens . T ...
traded than in every other city in Europe combined. London is the leading centre for international
bank lending In finance, a loan is the lending of money by one or more individuals, organizations, or other entities to other individuals, organizations, etc. The recipient (i.e., the borrower) incurs a debt and is usually liable to pay interest on that d ...
,
derivatives market The derivatives market is the financial market for derivatives, financial instruments like futures contracts or options, which are derived from other forms of assets. The market can be divided into two, that for exchange-traded derivatives an ...
s,
money market The money market is a component of the economy that provides short-term funds. The money market deals in short-term loans, generally for a period of a year or less. As short-term securities became a commodity, the money market became a compon ...
s, international insurance, trading in gold, silver and base metals through the
London bullion market The London bullion market is a wholesale over-the-counter market for the trading of gold and silver. Trading is conducted amongst members of the London Bullion Market Association (LBMA), loosely overseen by the Bank of England. Most of the member ...
and
London Metal Exchange The London Metal Exchange (LME) is a futures and forwards exchange with the world's largest market in standarised forward contracts, futures contracts and options on base metals. The exchange also offers contracts on ferrous metals and precious ...
, and issuance of international
debt securities A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any for ...
. Financial services in London benefited from the UK's membership of the
European Union The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been des ...
, although this may end following the decision of the United Kingdom to leave the European Union. The combination of lax regulation and London's financial institutions providing sophisticated methods to launder proceeds from criminal activity around the world, including those from drug trade, makes the City a global hub for illicit finance and London a safe haven for the world's malfeasants, according to research papers and reports published in the mid-2010s.


Professional services

London is a leading global centre for
professional services Professional services are occupations in the service sector requiring special training in the arts or sciences. Some professional services, such as architects, accountants, engineers, doctors, and lawyers require the practitioner to hold professi ...
. Many different types of professional service providers are located in the city including the big four
accountants An accountant is a practitioner of accounting or accountancy. Accountants who have demonstrated competency through their professional associations' certification exams are certified to use titles such as Chartered Accountant, Chartered Certif ...
and major
management consulting firms Management (or managing) is the administration of an organization, whether it is a business, a nonprofit organization, or a government body. It is the art and science of managing resources of the business. Management includes the activities o ...
. London is the headquarters for four of the world's six largest
law firms A law firm is a business entity formed by one or more lawyers to engage in the practice of law. The primary service rendered by a law firm is to advise consumer, clients (individuals or corporations) about their legal rights and Obligation, respon ...
and is a leading international centre for legal services.


Media

Media companies are concentrated in London and the media distribution industry is London's second most competitive sector. The
BBC #REDIRECT BBC #REDIRECT BBC Here i going to introduce about the best teacher of my life b BALAJI sir. He is the precious gift that I got befor 2yrs . How has helped and thought all the concept and made my success in the 10th board exam. ...
...
is a key employer, other broadcasters also have headquarters around the city. Many national newspapers are edited in London, having traditionally been associated with
Fleet Street Fleet Street is a major street mostly in the City of London. It runs west to east from Temple Bar at the boundary with the City of Westminster to Ludgate Circus at the site of the London Wall and the River Fleet from which the street was na ...
in the City, they are now dispersed across the capital.
Soho Soho is an area of the City of Westminster, part of the West End of London. Originally a fashionable district for the aristocracy, it has been one of the main entertainment districts in the capital since the 19th century. The area was develop ...
is the centre of London's
post-production Post-production is part of the process of filmmaking, video production, audio production, and photography. Post-production includes all stages of production occurring after principal photography or recording individual program segments. The ...
industry. Hollywood's links with the United Kingdom are centred on London, which contributes billions to the economy.


Tourism

Tourism is one of London's prime industries. London is the most visited city in the world by international tourists with 18.8 million international visitors forecast in 2015, ahead of Bangkok (18.2 million) and Paris (16.1 million). Within the UK, London is home to the ten most-visited tourist attractions. Tourism employed the equivalent of 350,000 full-time workers in London in 2003, whilst annual expenditure by tourists is around £15bn.


Technology

A growing number of technology companies are based in London, notably in
East London Tech City East London Tech City (also known as Tech City and Silicon Roundabout) is a technology cluster of high-tech companies located in East London, United Kingdom. Its main area lies broadly between St Luke's and Hackney Road, with an accelerator spa ...
also known as Silicon Roundabout. Investment in London's technology sector was $2.28 billion in 2015, 69 per cent higher than the $1.3 billion raised in 2014. Since 2010, London-based technology companies have collectively raised $5.2 billion of venture capital funding. A report by EY highlighted the importance of London to the UK's
FinTech Fintech, a portmanteau of "financial technology", refers to firms using new technology to compete with traditional financial methods in the delivery of financial services. Artificial intelligence, blockchain, cloud computing, and big data are r ...
industry in terms of availability of expertise and demand for services.


Retail

London is a major retail centre, and in 2010 had the highest non-food retail sales of any city in the world, with a total spend of around £64.2 billion. The UK's fashion industry, centred on London, contributes tens of billions to the economy.


Manufacturing and construction

For the 19th and much of the 20th centuries London was a major manufacturing centre (see Manufacturing in London), with over 1.5 million industrial workers in 1960. Manufacturing suffered dramatic decline from the 1960s on. Entire industries have been lost including shipbuilding (which ended in 1912 after hundreds of years with the closure of the
Thames Ironworks and Shipbuilding Company The Thames Ironworks and Shipbuilding Company, Limited was a shipyard and iron works straddling the mouth of Bow Creek at its confluence with the River Thames, at Leamouth Wharf (often referred to as Blackwall) on the west side and at Cannin ...
), consumer electronics, aircraft manufacture and most of the vehicle construction industry. This trend continues, with the loss of the pharmaceutical manufacturing sites of Aesica (formerly
Merck Sharp and Dohme Merck & Co., Inc. is an American multinational pharmaceutical company headquartered in Rahway, New Jersey, and is named for Merck Group, founded in Germany in 1668, of whom it was once the American arm. The company does business as Merck Sharp ...
) at Ponders End in 2011, and
Sanofi-Aventis Sanofi S.A. is a French multinational pharmaceutical and healthcare company headquartered in Paris, France. Originally, the corporation was established in 1973 and merged with Synthélabo in 1999 to form Sanofi-Synthélabo. In 2004, Sanofi-Syn ...
(originally
May & Baker May & Baker was a British chemical company founded by John May and William Gerrard Baker in Wandsworth, London in 1839. They initially specialized in the manufacture of chemicals derived from mercury and bismuth. Over the years they diversified ...
) at Dagenham by 2013. Pharmaceutical and biotechnology companies in the United Kingdom still have a presence in London, including the world headquarters of
GlaxoSmithKline GSK plc, formerly GlaxoSmithKline plc, is a British multinational pharmaceutical and biotechnology company with global headquarters in London, England. Established in 2000 by a merger of Glaxo Wellcome and SmithKline Beecham. GSK is the ten ...
.


Manufacturing

A substantial industrial plant remaining in operation is
Ford Dagenham Ford Dagenham is a major automotive factory located in Dagenham, London, operated by the Ford of Britain subsidiary of Ford Motor Company. The plant opened in 1931 and has produced 10,980,368 cars and more than 39,000,000 engines in its histo ...
, the largest diesel engine manufacturing site in the world. Food and drink manufacture remain in places, for example baking at
Warburtons Warburtons is a British baking firm founded by Thomas Warburton in 1876 and based in Bolton, a town formerly in Lancashire, England, and now in Greater Manchester. For much of its history Warburtons only had bakeries in Lancashire and it remai ...
in
Brimsdown Brimsdown is a neighbourhood of eastern Enfield in the London Borough of Enfield, north London, on the west side of the mid-to-lower Lea Valley. Geography The east of Brimsdown, that is, east of the eastern Lea Valley line is one of the borough ...
, biscuits at
United Biscuits United Biscuits (UB) is a British multinational food manufacturer, makers of McVitie's biscuits, Jacob's Cream Crackers, and Twiglets. The company was listed on the London Stock Exchange and was once a constituent of the FTSE 100 Index. In Nove ...
in
Harlesden Harlesden is a district in the London Borough of Brent, North West London. Located north of the Grand Union Canal and Wormwood Scrubs, the Harrow Road flows through the centre of the area which goes eastwards to Central London and west towards ...
, brewing at
Fuller's Brewery Fuller's Brewery in Chiswick in the west of London was a family-run business from its foundation in 1845 until 2019. In that year, the brewing division of Fuller, Smith & Turner PLC was sold to the Japanese international beverage giant Asahi. J ...
in
Chiswick Chiswick ( ) is a district of west London, England. It contains Hogarth's House, the former residence of the 18th-century English artist William Hogarth; Chiswick House, a neo-Palladian villa regarded as one of the finest in England; and Full ...
, manufacture of coffee and chocolate by
Nestlé Nestlé S.A. (; ; ) is a Switzerland, Swiss multinational food and drink processing conglomerate corporation headquartered in Vevey, Vaud, Switzerland. It is the largest publicly held food company in the world, measured by revenue and other me ...
in Hayes in West London, and refining of sugar and syrup by
Tate & Lyle Tate & Lyle PLC is a British-headquartered, global supplier of food and beverage ingredients to industrial markets. It was originally a sugar refining business, but from the 1970s it began to diversify, eventually divesting its sugar business i ...
in
Silvertown Silvertown is a district in the London Borough of Newham, in east London, England. It lies on the north bank of the River Thames, Thames and was historically part of the parishes of West Ham and East Ham, Becontree Hundred, hundred of Becontr ...
. At 2.8%, London was the region containing the lowest proportion of employees engaged in UK manufacturing.


Construction

London was named the city with the best real estate investment opportunities for foreign investors in 2014. Office development was at a four-year high in 2013 with 9.7 million sq ft across 71 schemes under construction. A multibillion-pound 10-year construction programme has begun in
Nine Elms Nine Elms is an area of south-west London, England, within the London Borough of Wandsworth. It lies on the River Thames, with Battersea to the west, South Lambeth to the south and Vauxhall to the east. The area was formerly mainly industrial bu ...
on the
South Bank The South Bank is an entertainment and commercial district in central London, next to the River Thames opposite the City of Westminster. It forms a narrow strip of riverside land within the London Borough of Lambeth (where it adjoins Alber ...
of the river Thames in central London. This will develop the area from a semi-derelict, light industrial zone into a modern residential and business district. The programme includes regeneration of
Battersea Power Station Battersea Power Station is a decommissioned Grade II* listed coal-fired power station, located on the south bank of the River Thames, in Nine Elms, Battersea, in the London Borough of Wandsworth. It was built by the London Power Company (LPC) ...
, construction of new embassies for the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...
and the Netherlands, and regeneration of
New Covent Garden Market New Covent Garden Market in Nine Elms, London, is the largest wholesale fruit, vegetable and flower market in the United Kingdom. It covers a site of and is home to about 200 fruit, vegetable and flower companies. The market serves 40% of the ...
which is the largest fresh produce market in the UK. Transport improvement plans include two new Northern line tube stations, riverbus piers, new bus services and a network of cycle lanes and footpaths. A new bridge across the river Thames will link Nine Elms to Pimlico on the opposite bank. Around 25,000 permanent jobs will be created once the new buildings are occupied and around 16,000 new homes. Other large construction projects include
Kings Cross Central King's Cross Central (''KXC'') is a multi-billion pound mixed-use development in the north-east of central London. The site is owned and controlled by thKing's Cross Central Limited Partnership It consists of approximately of former railway la ...
and
Paddington Waterside Paddington Waterside is a developed area around Paddington Station in London. The Paddington Special Policy Area covers a region almost the size of Soho, creating about of space between 1998 and 2018. Coordinated by the Paddington Waterside P ...
. In 2014, the government identified 20 new housing zones across London, and in February 2015 the development of the first nine zones was approved, which will create 28,000 new homes by 2025 from £260m of investment.


Transport

Transportation contributes to both the service and construction sectors of the London economy.


Public transport

London has an integrated public transport system operated by Transport for London under a single electronic ticketing system, the
Oyster card The Oyster card is a payment method for public transport in London (and certain areas around it) in England, United Kingdom. A standard Oyster card is a blue credit-card-sized stored-value contactless smart card. It is promoted by Transport ...
. The city's network successfully provided transport for the
2012 Summer Olympics The 2012 Summer Olympics (officially the Games of the XXX Olympiad and also known as London 2012) was an international multi-sport event held from 27 July to 12 August 2012 in London, England, United Kingdom. The first event, the ...
. It includes the
London Underground The London Underground (also known simply as the Underground or by its nickname the Tube) is a rapid transit system serving Greater London and some parts of the adjacent ceremonial counties of England, counties of Buckinghamshire, Essex and He ...
,
London Overground London Overground (also known simply as the Overground) is a Urban rail in the United Kingdom, suburban rail network serving London and its environs. Established in 2007 to take over Silverlink Metro routes, (via archive.org). it now serves a ...
,
Docklands Light Railway The Docklands Light Railway (DLR) is an automated light metro system serving the redeveloped Docklands area of London, England and provides a direct connection between London's two major financial districts, Canary Wharf and the City of Londo ...
,
London Buses London Buses is the subsidiary of Transport for London (TfL) that manages most bus services in London, England. It was formed following the Greater London Authority Act 1999 that transferred control of London Regional Transport (LRT) bus se ...
and
London River Services London River Services Limited is a division of Transport for London (TfL), which manages passenger transport—leisure-oriented tourist services and commuter services—on the River Thames in London. It does not own or operate any boats itself ...
. A ring of 18 railway stations provides train links to cities, towns and villages around the country as well international services to Paris, Brussels and Amsterdam via the high-speed
Eurostar Eurostar is an international high-speed rail service connecting the United Kingdom with France, Belgium and the Netherlands. Most Eurostar trains travel through the Channel Tunnel between the United Kingdom and France, owned and operated sep ...
. The Thameslink rail network is undergoing a £6bn programme to upgrade and expand the line.


Crossrail

Crossrail Crossrail is a railway construction project mainly in central London. Its aim is to provide a high-frequency hybrid commuter rail and rapid transit system crossing the capital from suburbs on the west to east, by connecting two major railway ...
, originally planned to open in 2018 but delayed until 2022, will be a new railway line running east to west through London and into the surrounding countryside. It will run on 118 km (73 mi) of track with a branch to
Heathrow Airport Heathrow Airport (), called ''London Airport'' until 1966 and now known as London Heathrow , is a major international airport in London, England. It is the largest of the six international airports in the London airport system (the others be ...
. The main feature of the project is construction of 42 km (26 mi) of new tunnels connecting stations in central London including a branch to Canary Wharf in east London. It is Europe's biggest construction project with a £15 billion projected cost. An additional line,
Crossrail 2 Crossrail 2 is a proposed hybrid commuter rail and rapid transit route in South East England, running from nine stations in Surrey to three in Hertfordshire, providing a new North–South rail link across Greater London. It would connect the S ...
, has been proposed.


Roads

Most of the streets of central London were laid out before cars were invented and London's road network is often congested. There is a £16/day congestion charge in Central London. The
Ultra Low Emission Zone The Ultra Low Emission Zone (ULEZ) is an area in London, England where a fee is charged for driving the most polluting vehicles. Plans were laid out under Mayor Boris Johnson and introduced by Sadiq Khan in April 2019 in Central London, cover ...
(ULEZ) adds an extra charge of £12.50/day for vehicles which do not meet Euro 4 standards for petrol and Euro 6 for diesel (which corresponds to vehicles made before 2007 and 2015 respectively. The ULEZ charge will be extended to the North and South Circular from October 2021.


Airports

London is served by six international airports which are the world's busiest city airport system by passenger traffic. These are
Heathrow Heathrow Airport (), called ''London Airport'' until 1966 and now known as London Heathrow , is a major international airport in London, England. It is the largest of the six international airports in the London airport system (the others bei ...
,
Gatwick Gatwick Airport (), also known as London Gatwick , is a major international airport near Crawley, West Sussex, England, south of Central London. In 2021, Gatwick was the third-busiest airport by total passenger traffic in the UK, after H ...
,
Stansted London Stansted Airport is a tertiary international airport serving London, England, United Kingdom. It is located near Stansted Mountfitchet, Essex, England, northeast of Central London. London Stansted serves over 160 destinations acro ...
,
Luton Luton () is a town and unitary authority with borough status, in Bedfordshire, England. At the 2011 census, the Luton built-up area subdivision had a population of 211,228 and its built-up area, including the adjacent towns of Dunstable an ...
, London City, and
Southend Southend-on-Sea (), commonly referred to as Southend (), is a coastal city and unitary authority area with borough status in southeastern Essex, England. It lies on the north side of the Thames Estuary, east of central London. It is bordered ...
. There are a number of proposals for expanding airport capacity for London including
expansion of London Heathrow Airport The expansion of Heathrow Airport is a series of proposals to add to the runways at Heathrow Airport, London's busiest airport beyond its two long runways which are intensively used to serve four terminals and a large cargo operation. The plans ...
and expansion of Gatwick Airport. The principal argument in favour of airport expansion is to support economic growth in the UK by providing an international hub for air-transport links to fast-growing developing countries around the world. The Heathrow proposal expects to create 120,000 new jobs across the UK and bring economic benefits of more than £100 billion. It also anticipates boosting exports as a result of the expansion.


Ports

Once the largest port in the world, the
Port of London The Port of London is that part of the River Thames in England lying between Teddington Lock and the defined boundary (since 1968, a line drawn from Foulness Point in Essex via Gunfleet Old Lighthouse to Warden Point in Kent) with the North Sea ...
is today the second-largest in the United Kingdom, handling 48 million
tonne The tonne ( or ; symbol: t) is a unit of mass equal to 1000  kilograms. It is a non-SI unit accepted for use with SI. It is also referred to as a metric ton to distinguish it from the non-metric units of the short ton ( United State ...
s of cargo each year. The port is not located in one area – it stretches along the
tidal Tidal is the adjectival form of tide. Tidal may also refer to: * ''Tidal'' (album), a 1996 album by Fiona Apple * Tidal (king), a king involved in the Battle of the Vale of Siddim * TidalCycles, a live coding environment for music * Tidal (servic ...
Thames, including
central London Central London is the innermost part of London, in England, spanning several boroughs. Over time, a number of definitions have been used to define the scope of Central London for statistics, urban planning and local government. Its characteris ...
, with many individual
wharf A wharf, quay (, also ), staith, or staithe is a structure on the shore of a harbour or on the bank of a river or canal where ships may dock to load and unload cargo or passengers. Such a structure includes one or more berths (mooring locatio ...
s,
dock A dock (from Dutch language, Dutch ''dok'') is the area of water between or next to one or a group of human-made structures that are involved in the handling of boats or ships (usually on or near a shore) or such structures themselves. The ex ...
s, terminals and facilities built incrementally over the centuries. As with many similar historic European ports the bulk of activities has steadily moved downstream towards the open sea, as ships have grown larger and other city uses take up land closer to the city's centre. Today, much of the Port of London cargo passes through the
Port of Tilbury The Port of Tilbury is a port on the River Thames at Tilbury in Essex, England. It is the principal port for London, as well as being the main United Kingdom port for handling the importation of paper. There are extensive facilities for contai ...
, outside the boundary of
Greater London Greater may refer to: *Greatness, the state of being great *Greater than, in inequality (mathematics), inequality *Greater (film), ''Greater'' (film), a 2016 American film *Greater (flamingo), the oldest flamingo on record *Greater (song), "Greate ...
.
London Gateway DP World London Gateway is a port within the wider Port of London, United Kingdom. Opened in November 2013, the site is a fully integrated logistics facility, comprising a semi-automated deep-sea container terminal on the same site as the UK ...
, the UK's newest container port, opened in 2013. The £1.5bn facility at Thurrock, Essex, is down the River Thames from London. It is expected to be able to handle 3.5 million containers a year. The development is forecast to create 27,000 jobs in London and the South East and contribute £2.4bn a year to its economy.


See also

* Agriculture in London *
Economy of Croydon Croydon, located in Greater London, England, has a diverse economy with the service and retail sectors now dominating over the town's historical market status. Economy Transportation It is today served well by its extensive rail network c ...
*
Economy of Europe The economy of Europe comprises about 748 million people in 50 countries. The formation of the European Union (EU) and in 1999 the introduction of a unified currency, the Euro, brought participating European countries closer through the ...
*
Economy of the United Kingdom The economy of the United Kingdom is a highly developed social market and market-orientated economy. It is the sixth-largest national economy in the world measured by nominal gross domestic product (GDP), ninth-largest by purchasing power pa ...
*
List of companies based in London This is a list of companies in London, England. London is the capital city of England and the United Kingdom. With an estimated 8,308,369 residents in 2012, London is the most populous region, urban zone and metropolitan area in the United ...


References


External links


Labour Market Profile – London
Office for National Statistics Official Labour Market Statistics (Nomis)
Regional accounts
Office for National Statistics
Neighbourhood Statistics (NeSS)
Office for National Statistics
London: The Global Powerhouse
Greater London Authority
Economy and employment
Greater London Authority
Economic research and information
The City of London Corporation
Research
TheCityUK {{Economy of the United Kingdom