Working from home risks 'hollowing out' London

BBC News

10-02-2025

Sir Sadiq Khan has said London "cannot afford" to become a city where "the centre has been hollowed out" due to people working from home.Speaking at an event on Wednesday, the mayor repeatedly outlined his concerns about the post-lockdown decline in office working across the capital, according to the Local Democracy Reporting Service.He urged employers to encourage staff back into the office, but suggested companies had a responsibility to find ways to make the office environment more appealing for workers.It comes as flexible working arrangements to allow staff to work from home are being restricted or brought to an end by some employers with offices based in London.
Sir Sadiq told the event, hosted by the consultancy firm Project Leaders, he was also concerned about young graduates entering their first jobs in the wake of the pandemic.He said they may fail to strike up connections with their colleagues or acquire certain skills due to the lack of office working.He added London's businesses should think "very carefully" before deciding to reduce their office space, as they may regret the longer-term impact on their staff.The mayor stressed that London was not alone in having failed to return to pre-pandemic commuting levels, adding that it was proving a challenge for most other cities around the world – with the notable exception of some in Asia.
It follows moves by several companies in London to restrict or end remote working policies including Amazon, the Metropolitan Police and global communications firm WPP.For some companies, incentives are being used to encourage employees back into the workplace instead.Just Eat for Business, which asks staff to be in the office three days a week, offers an allowance for free food every month.The rise in flexible working has also reduced Transport for London's (TfL) revenue from fares.As of March 2024, the number of Tube journeys during morning peak hours on a Monday stood at 70% of the level seen on the equivalent Monday in March 2019. On Friday mornings, the comparative rate was only 62%, whereas for Tuesdays, Wednesdays and Thursdays, ridership stood at 79%.In an attempt to address the collapse in ridership on Fridays in particular, the mayor ran a £24m reduced fare trial over three months last year, but a recent report found that it made "no noticeable difference" in the number of peak-time journeys on Fridays.
One guest at the event told Sir Sadiq he felt his company was "losing the battle" in its attempts to persuade workers back into the office, due to the high cost of rail fares – particularly for those commuting from the Home Counties.The mayor blamed private train operators for overseeing a series of above-inflationary fare increases, stressing he had tried to freeze Tube and bus fares whenever possible. He added he and his City Hall team had lobbied the Department for Transport to consider "innovative" ways of making rail travel more attractive for commuters in and around London.In separate remarks, Sir Sadiq admitted he was still "annoyed" that HS2 would not be travelling further north than Birmingham, after the project's northern leg was axed by then-Prime Minister Rishi Sunak in 2023.Since taking power last year, the Labour government has refused to commit to reinstating plans for a route as far as Manchester, although it confirmed that trains will reach Euston station, rather than terminating at Old Oak Common in west London.The government has been contacted for a response.