Westminster Property Association (WPA) chair and Grosvenor Property UK chief executive James Raynor has called on the government to give its "full-throated support" to London in the face of development viability challenges that threaten the capital's global competitiveness.

James Raynor

Speaking at the WPA’s 37th annual lunch, Raynor said it has “never been more expensive, complex or risky” to develop in central London, adding that major planning applications in the capital are down 50% over the past 10 years.

Raynor, appointed chair of the WPA in May, used the speech to make the case for central London as the “driving force” of the UK economy, which he pointed out generates almost 10% of the country’s economic output.

He also revealed that WPA members alone deliver around £3bn in direct economic output annually, with almost £1bn in annual tax contributions and business rates.

“As the government looks to drive growth across the country, it should be giving this city its full-throated support,” Raynor said.

“And if central London is the engine of the nation’s economy, Westminster is what keeps it firing, generating nearly £100bn of economic output a year.”

He continued: “All of this is what we are accomplishing during a period of comparatively low planning consents, with major planning applications having dropped by 50% over the last 10 years.

“Proposed changes to address the collapse in housing starts are welcome, but the fact remains that it has never been more expensive, complex or risky to develop in London.

“This threatens an essential part of London’s global competitiveness: a functioning office market.”

He added that “if London cannot provide the very best workplaces, companies will look elsewhere”.

“Enabling us to provide the spaces that keep London competitive is the most effective way to generate the CIL [Community Infrastructure Levy] revenues that provide everything from tree planting to the Elizabeth line.

“Too often, the link between development and these social benefits is overlooked or obscured.”