In recent economic crises, London has fared better than most other UK towns and cities. Not this time. The flight of both tourists and commuters has hit the heart of London, more than any other UK city.
Tourism had been rising in recent years, with some twenty-one million international visitors in 2019. Their absence this year is leaving many of our famous landmarks empty. Passengers on the Tube are down by two thirds and even lower on Mondays and Fridays. Retailers report footfall at just 30%, compared with over 50% in many other cities. That means 700,000 fewer commuters every day — people not eating, drinking or spending money in Zone One.
At the start of September there had been a sense that, with schools re-opening, office workers would return. However, when the Prime Minister told the House of Commons that the latest restrictions would be in place for six months, you could feel the mood shift in many London boardrooms and business fora.
This pandemic isn’t going away and business owners now need to take the difficult longer term decisions: about jobs or investment; how to weather the next six months; and about the business environment thereafter. Given all this, what can we expect for the economy in London’s Zone One?