London accounts for 13 per cent of the UK’s population yet produces 22 per cent of the country’s economic output. The capital’s economy has outperformed all other regions since the economic downturn, increasing by 20 per cent in monetary terms between 2009 and 2013 compared with a 13 per cent increase for the UK as a whole. London continued to expand more rapidly than any other part of the country in 2013, growing by 4.0 per cent between 2012 and 2013 compared to 3.3% elsewhere.

Average income is significantly higher than elsewhere in the country, and home prices in the capital have risen by 49 per cent since mid-2009; significantly above the 19 per cent rise nationally. Added to this, those living in London tend to have higher education attainment and an above average life expectancy.

However, there are downsides to living in the capital: Savings are lower in relation to earnings than elsewhere in the UK – 26 per cent of annual pre-tax earnings against 35 per cent nationally – which may partly reflect its younger age profile. Crime is higher , plus property prices and costs associated with running a home are considerably higher than in any other region in the UK.

Martin Ellis, Halifax Economist, said: “As a leading global city, London provides major economic, social and cultural benefits not just to those who live in the capital but also for the rest of the country. The London economy has performed more strongly than any other part of the UK in recent years, resulting in a widening gap between the capital and the rest of the country.

“This economic success, however, comes at a cost. Property prices are substantially higher than elsewhere in the UK and the property divide has widened further in recent years. Crime also tends to be higher.”

London also saw the highest percentage increase (15.6 per cent) in workforce jobs between September 2007 and September 2014 (rising from 4.8m jobs to 5.6m jobs). This was considerably higher than the 4.5 per cent rise for the UK as a whole over the same period. However, at 71.8 per cent, the employment rate in London is slightly below the UK average of 73.0 per cent.