London’s contribution to the national economy

The subject for the debate was determined by the Backbench Business Committee.  

The Library statistical briefing Regional and National Economic Indicators provides latest economic indicators for London and other regions and nations of the UK. A short summary of key economic data for London is presented here in advance of this debate.

GDP, productivity and FDI

The value of economic output, as measured by gross domestic product (GDP), in London was £618 billion in 2023, accounting for 22.3% of the UK’s GDP. These figures are from the Office for National Statistics (ONS) and are the most recent available. 

London’s GDP per person of £69,077 is the highest of any region or nation of the UK, and well above the UK average of £39,403.

In terms of labour productivity, London was 28.5% more productive than the UK average in 2023, based on the headline measure of output per hour worked.

London is a leading location for foreign direct investment (FDI). The FDI attractiveness survey conducted by the EY consultancy reported that London received the most FDI projects across Europe in 2024.

Public finances

The ONS produces estimates of how much the UK public sector spends and how much it receives in taxes and revenues from each region and nation of the UK.

London raised the largest revenue at £216.4 billion in 2022/23 (the most recent data available). London also received the largest amount of public sector spending at £172.8 billion. London’s estimated net fiscal balance, the difference between revenues raised and spending received, was £43.6 billion in 2022/23, meaning it recorded a surplus.  

London was one of only two regions or nations with a net fiscal surplus. The South East was the other, with a net surplus of £15.8 billion. On a per person basis, London’s net surplus was £4,900, as the chart below shows.

Note: Based on geographic share of North Sea oil and gas revenue
Source: ONS, Country and regional public sector finances, UK: financial year ending 2023, June 2024

Labour market and household incomes

The proportion of people aged 16 to 64 in London who were in work (74.2%) was a little below the UK average (75.1%) in February to April 2025. The unemployment rate in London was higher at 6.4% than the UK average of 4.6%.

The above estimates are sourced from the ONS’s labour force survey which has had issues with data reliability in recent years. The ONS warns that figures should be treated with additional caution.

More jobs in London’s labour market are in sectors generally associated with higher skills. Nearly a quarter of jobs in London (24% of the total) in March 2025 were in the ‘information and communication’ and ‘professional, scientific and technical’ sectors. In the UK overall, 14% of all jobs were in these sectors. London accounts for 3 in 10 of all UK jobs in these sectors.

In London, median wages of £853 per week for full-time employees in April 2024 was higher than in other regions and nations of the UK. The UK median was £728.

However, a relative poverty rate of 26% in London during 2021/22 to 2023/24 was higher than all regions and nations of the UK (on an after housing costs basis).

Further information

• Commons Library, Regional and National Economic Indicators
• Greater London Authority, London’s economy today, June 2025 and Business and economy publications
• Mayor of London and London Councils, London Growth Plan (Feb 2025)
• City of London, City statistics briefing
• Centre for Cities, Cities Outlook 2025 and Data tool
• Commons Library, Industries in the UK