London, Actually: Resilience, renewal and the reality beneath the noise

Over the Christmas break, watching Love Actually offered an unexpected moment of reflection. It evoked a Britain of two decades ago – confident, outward-looking, and culturally assured. A Great Britain defined as much by the soft power of David Beckham’s right foot (and his left!) as by its global relevance.

Fast forward to 2026 and the national mood feels more fragile. Headlines continue to cycle through government policy reversals, fiscal constraint and a cost-of-living crisis that shows little sign of abating. Even the most resilient observers might reasonably question whether this small island retains the dynamism that once defined it. Nowhere is this narrative more exaggerated than in ‘Lawless London’, where selective statistics and viral clips have fuelled claims of urban decline.

Yet beneath the noise, the fundamentals tell a very different story, shaped by more than 2,000 years of history. Banks founded in the 17th century sit above modern heat networks that are quietly decarbonising the city’s commercial core. New cycling infrastructure runs in parallel with the Elizabeth Line delivering fast, low-carbon connectivity to 1.5 million people. Iconic hotels, historic institutions, world-class restaurants and modern workplaces coexist with remarkable density. And London is also one of the greenest capital cities around the globe.

From a macroeconomic perspective, London’s role remains pivotal. According to Arup, the UK is the world’s sixth-largest economy, with London accounting for approximately 20% of national GDP. In global terms, the city is Europe’s leading financial centre, second only to New York, and the world’s largest hub for financial and professional services talent. Around 2.6 million people are employed across finance, professional services, technology, life sciences and a thriving start-up ecosystem.

Culturally, London’s momentum is equally compelling. The opening of the V&A East Storehouse last year marked the beginning of a major wave of cultural investment across the capital. In 2026, the long-anticipated London Museum will open alongside the completion of Olympia, transforming exhibition space first built in 1886 into a new global entertainment destination. Together, these internationally significant projects enhance London’s standing as one of the world’s great cultural capitals.

The year also marks the 75th anniversary of the Festival of Britain – a moment originally conceived to unite a nation emerging from post-war austerity. Its legacy, most visibly the Southbank Centre, remains a powerful reminder of how culture can lift a nation and shape generations.

None of this diminishes the scale of London’s challenges. Housing affordability remains acute. Well-intentioned regulatory frameworks have coincided with historically low levels of housing starts, while the social consequences are increasingly stark. According to GLA City Intelligence, 26% of Londoners surveyed in January 2025 reported difficulty keeping up with rent or mortgage payments. This is not sustainable for a city that relies on access to talent at every income level.

Yet London also possesses the tools to respond. The capital sits at the heart of a globally significant built environment ecosystem. Research by NLA, in partnership with GLA Economics, LSE and Polygon Place Strategy, shows that built environment professions contribute 24% of Great Britain’s total GVA (£568bn) and employ around 3.8 million people. With a significant concentration of this expertise based in London, the city is already a global centre of excellence, exporting skills and services worldwide.

While planning complexity remains a constraint, the policy environment is broadly pro-development. With inflation easing and interest rate cuts underway, there is room for upside in 2026. Optimists may hope for greater geopolitical stability; pragmatists can take comfort in the UK’s position as a relative safe haven.

So whether or not ‘Love is, actually, all around’, there remains a lot to love for London. A city that continues to evolve – through investment, adaptation and confidence in its long-term fundamentals. That may not always dominate the headlines, but it is what ultimately sustains great cities.