coppercapped
Established Member
Not just one way at all. Another option would be to incentivise businesses to operate outside the Capital and/or penalise those who operate within the Capital so that employment starts to be spread more evenly across the country again. Something like reduced employers NIC for businesses outside the M25/increased employers NIC for businesses inside the M25 - i.e. additional employment cost for operating in London. Or more grants and capital allowances for businesses setting up outside London. Review of business rates so that London businesses pay more and non-London businesses pay less. Lots of ways to start to force businesses to think about options outside London. Such changes could be phased in over say 10 years to lessen the immediate impact. Or a massive expansion in incentives such as Enterprise zones to bring life back to run down towns and cities across the country. Complete madness that there are areas with cheap or empty housing. We've had decades of London-centric thinking, so it's time to reverse that as it's simply not sustainable.
At the same time make better use of the vertical dimension and build more flats. Land is expensive in the UK, and is needed for more than building houses on. We also need, as a society, to regard things like housing and transport to be finite limited resources, and be treated as such, so a shift toward fewer single people living in four bedroom houses which is a horribly inefficient use of limited space.
Another option, if possible, is to encourage/persuade companies to set up in cities away from London. It is illogical to try and cram much of the employment opportunities into one small pocket of the country, then complain that the services and utilities required to serve the people who move and live there because of the employment opportunity, are bursting at the seams.
I have a feeling a déja vû...
The reasons cities grow is part due to geography and part due to the economics of agglomeration - which is also the reason why there are limits to growth. Trying to force organisations to move, or set up, somewhere which is not suitable for their type of business will affect economic growth generally and the employment opportunities will be fewer as a result. There used to be an organisation called the Location of Offices Bureau, set up in 1953 (and abolished in the early 1980s) to allocate permits to developers wishing to build offices in London as it was felt that London was too crowded. It claimed that between 1963 and 1969 more than 20,000 jobs a year were re-located outside London. It's advertisements were placed in tube trains and the declining population was one of the reasons it was so difficult to get approval to build the Victoria Line.
The net result of this and other measures was that London became a dying city with a decreasing population. The population was about 8.6 million in 1939 which fell during the war, dropping to 8.2 million in 1951; the population continued to fall over the next 40 years to a low of 6.4 million in 1991. Over the past 25 years it has recovered and risen to 8.8 million in 2016, for the first time surpassing the pre-war total.
So we're back to where we were in 1938. Nothing new there, then. But the wheel turns... I read recently that because of Brexit uncertainties the financial services sector in London has, since the referendum, relocated some 2,000 senior jobs to Dublin, Frankfurt and Amsterdam together with billions in assets now run by companies registered in those countries.