More must be done to provide Londoners from outside Silicon Roundabout with the opportunity to help build on Tech City’s success if the Capital wants to maintain its competitive edge, shadow business secretary Chuka Umunna has warned.
Speaking at the launch of the Sussex Innovation hub in Croydon Umunna said that whilst Tech City had undoubtedly been a success story it could not rest on its laurels.
He said: “Tech City has definitely been a success, there’s no doubt about that, but what we need to strive for is a way to scale it up and ensure more of London can participate in what Tech City does.
“A huge part of the General Election debate in London is the fact that there are two Londons. One that can access international markets and enjoy a wealthy city, the other where a third of people are living in poverty and life is a struggle.
“How do we ensure more of the residents of Tower Hamlets, for example, are starting businesses in Tech City as opposed to people from abroad or red brick universities?”
He also pointed to the additional threat of a talent drain from the Capital as the costs of both business premises and private property continue to soar.
Recent figures from estate agent Bernard Marcus show that the average rent in London now stands at £1,507 a month.
The shadow business secretary blasted the state of the London property market, branding it an “outrage”.
“The situation some of my constituents are living in is atrocious and unacceptable. It’s also a barrier to new dynamic businesses being able to attract talent – because people can’t afford to live here,” he said.
“Labour would ban letting agents charging huge fees each time people move, make 3-year tenancies the norm and make is so that after the rent level is set, there is a ceiling on the rent price. Otherwise we price talent out of London.
“We’ve got to reduce the cost of doing business and living here.”
You can read more about the launch of the Sussex Innovation hub in Croydon here.