Since the 1990’s London has been reliant on a monocentric economic model – focussing on the single economic centre of Central London where London’s internationalised service sector has driven the national economy. Policy has favoured this monocentric model. Initiatives such as delineation of the Central Activities Zone (CAZ) and prioritising radial travel (in and out of the centre) has further driven economic activity towards Central London. The CAZ generates 48% of London’s Gross Value Added (GVA) despite making up just 2.2% of the city’s total land.

However, this model has substantial trade-offs, seeing diminishing productivity and growth returns. Since the 2008 financial crash London’s productivity has flatlined. Meanwhile, we’ve also seen income inequality rise in the capital, while remaining relatively stable in England overall. To kickstart a new era of productivity, while ensuring Londoners benefit from growth, we need to re-think our capital’s economic model.

This report looks at how to foster a more polycentric model for London’s economy – taking West London as a case study. Defined as an economy where ‘cities support multiple centres of economic activity’, a polycentric economy in the capital would unlock the growth potential of London’s sub-regions.

As the industrial heartland of the capital, West London has the potential to become a powerful engine of growth for the city – in symbiosis, not competition, with the centre.  The region has a thriving consumer economy worth £70bn GVA, greater than Leeds and Manchester combined. And, between 2010-2024, the number of businesses has grown by 171% in West London, far higher than Central London’s growth of 50%.

Despite the size and dynamism of the sub-region’s economy, West London has much greater potential. West London’s productivity has fallen 10.8% between 2010-22. Reversing this trend would have major implications for the region’s economic performance. Indeed, forthcoming research from Oxford Economics suggests that if each of West London’s industry sectors performed at the London sector average, West London would contribute an additional £7.3bn per year in GVA to the economy. This is close to the estimated economic output of Cambridge at £8.4 billion in 2024.

The current government have made big promises on economic growth. Fulfilling these promises requires empowering West London and London’s other sub-regions to capitalise on their economic potential, which would strengthen London and the UK economy as a whole.

Key Recommendations

National government should:

• Deepen fiscal devolution, to enable and incentivise local and regional government to drive growth.
• Expand proposals for devolution of skills, employment and training policy to local government.
• Ensure planning policy reforms recognise, protect and enhance the economic role and potential of strategically significant industrial and commercial land, alongside delivering on national housing ambitions.
• Prioritise tackling West London’s electricity energy constraints through urgent investment
• Invest in West London’s transport network, including new orbital routes to encourage intra-regional economic activity.

London’s regional government should:

• Ensure the London Growth Plan capitalises on the unique economic strengths of London’s sub-regions to accelerate and more evenly distribute economic growth city-wide
• Ensure the London Plan gives emphasis to economic development as well as residential housing delivery, with new jobs targets outlined alongside new homes.
• Expand Transport for London’s investment, maintenance and development portfolio in West London.
• Protect, enhance and expand West London’s industrial and commercial assets.
• Ensure the WestTech Corridor and Old Oak Park Royal are fully developed into a central economic district and a catalyst for growth.