‘Southern Superhub’ needed to address growth challenges

London and its neighbours must work together to ensure more economic growth, a report by the Centre for London and the Southern Policy Centre warns.

It says that greater collaboration is urgently needed as the economies of the capital and both the south east and the east of England become increasingly interdependent on each other.

The three regions must work together to deal with the ‘significant challenges’ of housing, infrastructure and ‘providing a good quality of life for all residents’, it says.

The report highlights the rising cost of living, with many areas in the south east and the east of England becoming less affordable for residents who work there.

Local authorities in the south east will need to deliver over 150,000 homes every year of the next decade, it says, while Essex, Kent, West Sussex and Kent councils are facing infrastructure funding shortages of between 30-60%.

‘Many councils are also fearful that the growth of London will swamp them, destroying local distinctiveness and identity as they struggle with their own challenges in meeting housing demand and providing the infrastructure and services to support growth,’ the report states.

‘Nonetheless, local politicians on both sides of the M25 have seen the relationship between London and its neighbours deepen in recent years: as London has grown, its commuting reach is extending every year, as are the supply chains that bind the city region economy together.’

The report calls on London and its neighbours to develop a vision for the future and a strategy for joint action.

It calls on central government to consider how national infrastructure decisions, local government finance and other funding mechanisms can take better account of the south east’s needs

‘The wider south east is the hub of the UK’s economy,’ said Centre for London’s research director, Richard Brown.

‘As commuting flows increase and business connections multiply, the region’s future economic success depends on London and its neighbours stepping up their commitment to working together.

‘The London Plan sets a framework for collaboration, but we believe partners need to go further, by developing a shared agenda for action, and considering a more formalised structure, recognised and supported by government,’ added Mr Brown.

‘The “Southern Superhub” needs to take its place alongside the Northern Powerhouse and Midlands Engine.’

Chair of the Southern Policy Centre, John Denham, said: ‘Our proximity to London has a significant impact on central southern England. Councils and communities around the capital see it as both an opportunity and a threat.

‘This report shows that our futures are intertwined, and suggests how all parties can work together for the benefit of people across the wider south east.’

The deputy leader of Surrey council, John Furey, commented: ‘With London and the south east key parts of the engine that drives the national economy, only by working more closely together on the big issues we face will we continue to boost economic prosperity, address population growth and secure infrastructure funding – whether that’s to create thousands of additional school places, champion Crossrail 2 for the extra capacity it would bring or build much-needed new homes.

‘This report makes a very useful contribution to setting out how that could be done.’