London is a city of inventors. The city created the first Scotch egg, underground railway, and television. It was also a pioneer in digital communication. In 1880, London issued what is believed to be the world’s first telephone directory, a six-page document listing 255 names and addresses.
This spirit of invention has helped drive London’s success. But in recent years, the capital has lost some of its momentum. Between 2019 and 2023, productivity in London shrank by 1.1 percent, according to the Office for National Statistics. The Northwest, by contrast, grew by nearly 10 percent.
There are many factors behind this shift, and the picture is far from simple. But leading on digital connectivity, such as 5G, rather than playing catch-up with global competitors, will help businesses thrive.
Our recent survey with YouGov of 108 MPs revealed that nearly 90% said good digital connectivity was important for increasing productivity and boosting UK economic growth. Yet only a third are confident that UK will meet 2030 goals for standalone 5G across populated areas, which is telling.
Surprisingly, the capital is not keeping digital pace with the 21st century. Glasgow, not London, has been named by Ookla as the UK’s best-connected 5G city, with download speeds 45% faster than the capital. Out of 11 major UK cities, London ranked second slowest.
Why does the capital keep buffering? Part of the problem is the urban environment. Skyscrapers and dense clusters of buildings disrupt signals, creating patchy coverage and dead zones. But these barriers are not insurmountable. Singapore, despite having one of the densest and tallest cityscapes in the world, has achieved exceptional 5G coverage and is already planning to roll out 6G in 2030.
So how can London catch up? Planning reforms to progress digital infrastructure is essential. This would help fast-track small cells, essentially small-signal boosters that can be attached to lampposts or telephone boxes to boost 5G coverage in high-demand areas such as central London.
We should also appoint digital placemakers – experts embedded in local authorities to coordinate 5G rollout and overcome infrastructure hurdles. These roles are already proving effective in places like Greater Manchester, where collaboration between councils, operators, and housing associations is smoothing deployment and accelerating results.
Other global cities show what is possible. Singapore has embraced a city-wide strategy for 5G and fibre deployment, working closely with the telecoms sector to integrate small cells. This proactive, coordinated model has allowed it to overcome the constraints of a dense urban environment and deliver some of the world’s fastest and most reliable mobile networks. London should learn from the best practices around the world if it is to close the gap and remain competitive.
The economic stakes of failing to upgrade digital infrastructure are considerable. A new report from BT shows delays in rolling out standalone 5G is costing the economy £230 billion, and that an hour of internet downtime can cost businesses up to £220,000, according to Wiredscore. The UK Government’s own studies estimate that 5G could add £43 billion to the UK economy by 2030 and £159 billion by 2035. Much of this growth will be concentrated in cities. London has the most to gain, but also the most to lose if rollout drags.
The sector-specific gains are striking. For life sciences and logistics firms could use 5G to run robotics, sensors and supply-chain monitoring. For commuters and tourists, reliable 5G across the Underground and rail networks could turn wasted hours into productive time. Cluttons report notes that super-commuters – those who moved further afield during the pandemic who travel to their London office two days a week – spend two and a half working days a month on trains, yet many rail lines still lack reliable connectivity.
London cannot afford to treat connectivity as an afterthought. Faster, more reliable 5G is not simply about streaming videos quicker but about unlocking billions in economic value, powering innovation and keeping the capital globally competitive. Cities with similar challenges have shown what is possible. London must act with the same urgency.
Grainne Gilmore is director of research and insights at Cluttons
