London’s economy is sufficiently strong that workers in the capital are unlikely to be among the 60,000 people predicted to lose their job as a result of the Government’s introduction of a new national living wage.
The claim is made in a new report written by former Treasury Minister Kitty Ussher and published today independent think tank the Centre for London.
Employer groups including the CBI, as well as the Office for Budget Responsibility, have warned that moving from the current £7.20 minimum wage to the new £8 national living wage is likely to result in up to 60,000 job losses across the UK.
However modelling of London’s “unique economy” by the think tank predicts that, while jobs may be lost outside the capital, London’s workforce is likely to untouched by the change.
The Centre for London says its findings “highlight the problems in applying a one-size-fits-all minimum wage across different regions” and warns that setting a national rate which is affordable in London could have a negative impact on other parts of the UK.
Director Ben Rogers said: “This report shows that if jobs are lost they will not be in London – this could lead to an even wider economic gap between London and the rest of the UK.
“It is time for the Government to take a closer look at the regional minimum wages which have been a huge success is American cities.”
Ms Ussher added: “It is now becoming clear that the 60,000 people across the UK who are estimated to lose their jobs as a result of the introduction of a national living wage, are unlikely to live in London.
“It is time for the Chancellor to explain where these job losses are likely to come, and what his plans are to support those affected.”