BusinessCompany NewsThink of a number…

Think of a number...

Last week's tube strike is estimated to have cost the economy anything between £60m and £100m, according to a variety of sources, with accounting consolidator Tenon offering the lower estimate.

While this may look like a massive sum of money, a closer look at London’s economic profile reveals that even at the high-end of the estimate, it hardly makes a dent. According to a study by Halifax and Barclays Bank Private Clients carried out earlier this year, London’s annual GDP stands at £158.7bn – making it the most economically productive European city by a long way, with Paris a distant second at £88.6bn and Milan third on £74.2bn.

This works out to roughly £1.6bn generated for every working day in Britain’s capital city, which means that even if the accountants got their numbers right – which in the current climate of accounting disasters, you might have to seriously wonder about – the strike reduced London’s productivity by between 4% and 6%. It’s hardly earth shattering.

Given the fact that recently the FTSE lost billions of pounds in just a few hours of manic trading, a tube strike, while inconveniencing and irritating commuters, is unlikely to ever be the straw that breaks London’s financial back.

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