The economic performance of London compared to that of the rest of the Essay

The economic performance of London compared to that of the rest of the UK since 2000 - Essay Example a great concentration of professional and wholesale financial businesses.5 This form of business enables London in specific and the UK in general to benefit from international trade. London as an economic hub exports businesses to the rest of the UK. Notably, the world class nature of these businesses gives London a competitive advantage when it comes to engaging in business with the rest of the nation. Considering that London is one of the premier world cities, its economic performance in terms of financial a business services helps the entire nation through tax revenues received from public spending. Undoubtedly, London’s economy is strong and as such it benefits the rest of the UK. During financial year 2002/2003, London generated $ 2 billion and $ 9 billion more in taxes than it received from public spending. However, London economy experienced relative slow down in 2002 compared to the rest of the UK economy making the overall UK public sector debt move from $ 15 billion to $ 25 within the same period.6 London economy varies from that of the rest of the country. Even though London is popular with its unique financial services, its economy is not only hinged on financial activities, but has other revenue generating activities including management and business consultancy activities which it score highly in specialization index. This kind of ranking not only shows how London supplies such services to the other parts of the UK but also to other countries. Other economic activities which makes London rank highly in economic performance compared to other UK cities include tourism, telecommunications and consultancy services among many others. Such sectoral specialization has indeed helped London to contribute to over half of the UK’s exports for activities such as...This essay critically assess the economic performance of London in the years 2000-2010 and compares with that of the rest of the UK There has been mixed views regarding the economic relationship between London and the rest of the UK. Some people argue that, London grows at the expense of the rest of the country while other hold the view that London is the focal point of the UK economy. This study found that most big businesses were established and are based in London, but at the same time they have established branches to other parts of the country. London population comprises of the young generation which in real sense migrates not only from foreign countries, but also from other cities and rural areas. Notwithstanding the recent global financial crisis, London remains a dynamic city in the world due to its living appeal and commercial superiority. Undeniably, London is the UK’s leading base for export oriented employment, high value businesses and therefore, its position relative to other UK cities portrays no sign of abating. London economy relies on sectors with faster growth in productivity. As such, faster growth in output per person and rise in wages is equally expected to be higher. London boasts as a hub for some of the big financial institutions and health facilities. The presence of major businesses coupled with increased economic activities has enabled London generate the bigger part of the national revenues. However, inequality gap between rich and the poor continues to widen as the economic conditions worsens.