Clegg Says U.K. Must Shift Economic Power Away From London

U.K. Deputy Prime Minister Nick Clegg will say the economic importance of cities outside London needs to be developed as part of Britain’s recovery.

Measures to help other cities grow would add 41 billion pounds ($64 billion) to gross domestic product a year, Clegg will say in a speech at 7 p.m. in London today, according to extracts released by his office. London has 13 percent of the country’s population and produces more than a fifth of its total output, he will say.

Britain’s economy needs to reduce its reliance on the capital and on financial services, he will say. That requires measures such as political decentralization, so that cities and towns have more control over their growth, instead of depending on investment from central government.

“When the banks went bust and the money stopped flowing, the extent of this regional dependence and underperformance was laid bare,” Clegg will say. “The challenge for us is to rebuild our economy so that it runs on all cylinders, tapping into our huge potential across the country as a whole.”

Before it's here, it's on the Bloomberg Terminal.