Brexit is already damaging London’s economy, an independent think tank has warned.
The UK’s impending departure from the EU has caused a “wobble” in the capital’s economy because of a slowdown in job creation according to research from Centre for London .
The Haymarket-based think tank claimed Brexit is already leading to fewer Europeans seeking work in the capital, a decline in confidence among businesses and a deceleration in house price growth.
Registrations for new national insurance numbers by foreign workers have fallen by 15% in the capital over the last year, according to the research.
With three-quarters of the fall accounted for by a drop in EU migration.
It also found job growth was slowing for the first time since 2015 to lag behind the rate in the rest of the UK.
Year-on-year house price growth was under 3% for the three months to April 2017, the lowest level in London since 2012, while increases in private rental values dropped below 2% to their lowest rate since 2010.
The research, published in The London Intelligence and released to mark the launch of Centre's new research programme, noted that the capital’s unemployment rate was at an historic low of 5.5%.
The Mayor of London, Sadiq Khan, told the Standard : “The British people chose to leave the European Union, but they did not vote for fewer jobs, less investment and a slowdown in economic growth. That is why I teamed up with Centre for London, businesses, academics and politicians in the capital, to make the case for a positive deal for London.
“The General Election has clearly moved the goalposts in negotiating a deal with Brussels and that’s why a deal that puts jobs-first, with continued membership of the Single Market, is the only deal that will serve the best interests of our great city.
“It is crucial the government delivers a flexible system to attract the talent London needs to ensure it remains the best city in the world to do business.”
Centre for London director Ben Rogers added: “London has shown remarkable resilience in the years following the recession. But its growth has not been painless. Levels of inequality have soared. Congestion, pollution and the housing shortage have all worsened.
“While no-one knows how Brexit will play out, this new analysis suggests that London’s economy is beginning to wobble. It also highlights the need to tackle London’s critical challenges to ensure it is in the best possible position to deal with Brexit.
“Through The London Intelligence, Centre for London will continue to deepen our understanding of how London is changing in real-time, and identify whether these are bumps in the road or changes in direction for London.”
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