by Vittoria Zerbini

Recognising the common ground their cities share, LCCI and the Edinburgh Chamber of Commerce (ECC) have presented a bold, joint proposal to the UK government.

This proposal outlines five strategic policy priorities designed to spur economic growth, attract investment and cement both cities’ status as critical drivers of the UK economy.

Powerhouses
“London and Edinburgh are economic powerhouses with global influence,” said Karim Fatehi OBE, LCCI chief executive.

“We’re calling on the government to invest in our most innovative and productive cities – not just for our benefit, but for the prosperity of the entire UK. Enhancing connectivity, empowering SMEs and removing trade barriers are national priorities, not just local ones.”

Hubs
Together, London and Edinburgh generate over £617 billion in GDP, underscoring their role as two of the UK’s most dynamic economic hubs. Their collective strength stems from their diversity, world-class finance sectors, cutting-edge innovation, globally renowned universities and vibrant creative industries.

The cities also face shared challenges: rising costs; skills shortages; and a growing need for smarter, future-proof infrastructure. Despite these pressures, London and Edinburgh stand uniquely positioned to lead a new chapter of national renewal – powered by investment, trade and entrepreneurial ambition.

Ambition
“The UK government’s Industrial Strategy white paper set out an ambition to take advantage of the UK’s unique strengths and to tackle barriers to growth in the highest potential growth-driving places,” commented Joanne Davidson, ECC director of policy.

“As two of the UK’s largest capital cities, with a key role to play in driving the Scottish and English economies, and a unique position on the world stage, Edinburgh and London stand ready to drive forward this ambition.”

Five priorities for growth
1. Enhancing trade agreements
There is an urgent need for trade policies that better reflect the ambitions and capabilities of firms based in London and Edinburgh. Streamlining market access and supporting export activity will be essential for long-term growth.

2. Expanding access to finance for SMEs
Small and medium-sized enterprises form the backbone of both capital cities. Yet many still face barriers to securing the funding they need to grow. The chambers are urging the government to reduce red tape and create more inclusive financial pathways.

3. Supporting the creative industries
Home to world-renowned festivals, production studios, fashion houses and tech start-ups, both cities host a thriving creative sector. The report calls for targeted investment and supportive regulation to help this sector scale sustainably.

4. Reintroducing VAT-free shopping for international visitors
This is seen as a policy with the potential to boost tourism, retail and hospitality. According to Oxford Economics, restoring this scheme could generate £2.8 billion in tourist spending annually and attract over 1.6 million extra visitors.

5. Investing in connectivity
Connectivity improvements on the East Coast Main Line will unlock further opportunities for deeper collaboration between London and Edinburgh, deepening their relationship. Investment here will also help to drive economic resilience across their wider regions.

www.londonchamber.co.uk
www.edinburghchamber.co.uk