The coronavirus pandemic has caused £2.3bn of spending to be lost or displaced in shops, pubs and cafes near London employment hubs, according to new analysis by a think tank.
The Centre for Economics and Business Research (Cebr) also estimated that the capital will lose out on roughly £178m a month of spending compared to pre-coronavirus trends as many people simply stop working in London’s business centres.
It comes after the government put reopening from lockdown on hold after an increase in coronavirus cases. The move raised the possibility that normal life could not return until there is a vaccine.
Economics think tank Cebr today estimated the cost people working from home is having on London’s business centres.
It said it thought the pandemic had resulted in £2.3bn of spending in shops, pubs and eateries near London employment hubs being lost or displaced between March and June.
Google mobility data shows that in April, the number of people going to places of work on weekdays was down 77 per cent compared to pre-coronavirus levels. By June, that figure was still 60 per cent lower than before the pandemic.
Cebr said that there is unlikely to be a full return to the office when the ‘new normal’ emerges in 2021. It said it is likely that for London 30 per cent of employees will still be working at home on any one day.