How Would London Independence Affect British Labour Market?

The regional disparities and the gap between North and South Britain keep growing. Although this gap in prosperity has always been part of Britain National Identity, it never reached such a great level as it has today.

According to the Office for National Statistics, the figures show (as published by the Guardian) that  house prices in London have gone up 10% in price, while in Scotland and Northern Ireland, property prices went up only 0.8%. Another disparity between north and south is the number of households in work. According the report, 18% of households in the north do not work, while in the south, figures are lower. In Surrey for example it is 11.4% while in West Sussex it is 11.3%.   

If we look at the UK as one nation we will realize that it faces 27- 30% unemployment rate and that only the South has signs of recovery while the North still face a decrease in job availability and welfare.

Whether or not making London an independent state will affect the unemployment rates in a positive way is debatable, but many believe it is a step in the right direction. Of course this is a far-fetched strategy to employ for the UK. After all, London has about as much chance of becoming independent as I do of becoming the next Prime Minister! Nevertheless, it is a topic that is trending in the UK right now. 

Essentially, London is a power house and is making good money. Its economy is strong and it is showing the signs of a successful city. By taking London out of the UK equation, the rest of the UK will finally have the chance to compete in a fair and free market. The point is that the north and south need to compete against each other to get the economy back on track, but this is near impossible when London is taking over. 

If London was to become independent, there will be more than economic consequences, including changes to the labour market - and not necessarily for the better!

If London ever became an independent state, taxes will increase and jobseekers and business may consider relocating across England to avoid the London 'bubble'. Also, ifLondon adopted the Euro currency, it would affect its current status making it weaker and less stable in the eyes of investors.

What do you think about London's potential to become an independent state? Do you think it will benefit the labour market in Britain? 

Source Text: Larry Elliot, UK growth? Make London independent to mend the north-south divide. The Guardian. 23/09/2013