
Sadiq Khan: Here's one thing I know that'll get us closer to Europe – and a post-Trump bump
In the last few weeks, an economic storm has been unleashed that poses a profound threat to global trade. We have witnessed the imposition of tariffs at previously unheard-of levels and seen financial markets in turmoil. Coming so soon after the battering of the pandemic – and at a time when the world economy remains fragile – the fallout will inevitably impact global cities like London and the whole of the UK.
It's why Labour Prime Minister Keir Starmer and Chancellor Rachel Reeves are right to insist that cool and calm heads must prevail, and that all options should remain on the table in dealing with this crisis. Their mission and my mission for London is to focus on economic growth, and whatever the volatility and upheaval of the next few weeks, protecting our economy and living standards must continue to be the priority.
The prime minister recognises this and has already demonstrated a readiness to intervene to shelter vital British industries and jobs from the storm. In the capital, we have set out a London Growth Plan to turbocharge productivity. This includes an inclusive talent strategy to train up Londoners to have the sought-after skills needed for the jobs being created.
Developed in collaboration with boroughs, businesses, trade unions and London's communities, it sets out how we can help more Londoners into work with better training, build more affordable housing and modernise our public transport system. But the current crisis means we must also look at further measures. It is again right that the government is seeking a trade deal with the USA while working with our allies to do more to uphold the rules of free and fair trade. I am confident it can and will work at accelerating trade deals with other countries, like India, to offset the impact of President Trump's tariffs.
There is another measure which is long overdue and now needs to be considered: a new youth mobility scheme with the EU, which would boost growth not only in London but across Britain and Europe. This has long been discussed, but now, in light of President Trump's tariffs, it is an economic priority, rather than a political talking point.
Such a scheme would allow our city and country to benefit from the talent, energy and skills of young EU citizens. They can help ensure we have the world's best hospitality sector, give our construction sector a shot in the arm, and bring new ideas, creativity and innovation across our economy. At the same time, young Londoners and Brits across the country will win back valuable freedoms to live and work abroad. They can broaden their experience, learn new skills and make new connections.
Crucially, it could also pave the way for closer economic ties with the EU, which would help British businesses, aid London's economy, and help mitigate some of the harm caused by the latest economic turbulence. And, of course, the Treasury would gain valuable tax revenues to fund our vital public services.
This is an idea which has already been supported by the UK Trade and Business Commission in their landmark report from 2023. Polling shows six in 10 Brits in favour of such a scheme. It is a win-win for the UK and Europe, and for our economy and young people. Europe is by far our biggest trading partner and our most reliable political ally. At a time when our communities can ill-afford to absorb another economic shock that pushes up prices, it makes sense for us to deepen our partnership.
As Mayor of London, I will continue to stand up for the interests of our city's economy and the values of openness and international exchange that for decades have underpinned our success. If others want to rush to put up trade barriers, London will always be in favour of tearing them down and strengthening our connections with the EU and the rest of the world in a mutually beneficial fashion.
Our city is forecast to grow at a faster rate than the UK average in the coming years, owing to our underlying strengths, including the fact that we are proudly open to talent, ideas and investment from around the world. In turbulent times, our city has also emerged as a safe harbour for international business, offering investors certainty and stability, in stark contrast to the unpredictability and uncertainty we see elsewhere.
With a pro-growth administration in City Hall and a pro-growth government in Downing Street, London can do more to help this country restore growth and bring prosperity for communities across the UK. We have already seen this government take bold action by proposing that London get greater strategic control over licensing regulations to ensure we can support our vital night-time economy.
Now it is time for new steps and new thinking. If others step back towards measures from the past, we must keep going towards progress and the future.
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