The capital must capitalise on its strengths to encourage employees back to the office

The discussion around return-to-office mandates was at the forefront of conversations at Labour Party Conference. As the business secretary and industry leaders debated how to unlock productivity while maintaining key worker freedoms such as flexible working, it became clear that we continue to grapple with a generational divide in attitudes towards office life. Nowhere is this more evident than in the capital, London.

Victoria, a location once dominated by government and parliamentary offices, has undergone a post-pandemic transformation. The area now attracts businesses from myriad sectors, ranging from marketing agencies to investment banks, drawn by its proximity to policymakers and an influx of private investment. Last week, a major US investment bank reportedly signed the largest-ever pre-let agreement in Victoria’s history, choosing a net zero carbon office development – a sign that positive change is already underway.

The return of senior employees

However, if the resurgence of London’s office market and economy are to really gather momentum, then more senior employees, especially those avoiding the commute, will need to be encouraged to return to the office, setting an example to their teams to follow suit.

Sadly, when we speak to office workers in our district, they often report little benefit in returning to the daily commute. This is evidenced by the Evening Standard’s switch from a daily to weekly paper. A recent report that we supported from the Centre for Cities calls for three practical steps to bring back office workers: lowering commuting costs; resetting expectations among both employers and employees; and fostering a collective sense of city identity. None of these steps are radical, but all are necessary and demand urgent attention.

The Centre for Cities report called on business leaders to act swiftly to preserve London’s edge over overseas challengers. Compared with cities such as Paris and New York, the capital is losing ground in the return-to-office race. Older employees in particular have been slow to return, with many questioning the personal benefit of leaving their garden offices.

Start in Whitehall and Victoria

It is therefore concerning to find senior government figures such as the business secretary failing to encourage a return to four or five days in the office. For centuries, Whitehall and Victoria have been home to the nation’s most powerful institutions, with thousands of professionals attracted by the proximity to Parliament. If the government wishes to lead by example, this is the place to start. A mandate to return to the office here could signal a broader push for revitalising London’s workforce and economy.

The government’s consultation on a four-day work week offers the opportunity to bring common sense to what has become a polarising debate between office and home-based work. The true value of personal freedom and flexible working can only be realised with proper investment in enriching in-person experiences. As the report highlights, there is little point in commuting to the office if employees are spending their time on virtual calls rather than face-to-face collaboration.

Defined by variety

One challenge unique to London is its decentralised business landscape, making public realm investments such as at Coal Drops Yard in King’s Cross or 105 Victoria Street (pictured) so crucial to creating the necessary critical mass of diners, shoppers and office workers for leisure and hospitality businesses to thrive. Unlike Paris or Manhattan, the capital’s business districts are scattered across distinct areas, from the corporate and political hubs of Victoria to the creative energy of Camden and Shoreditch. Far from being a weakness, this diversity is a strength. London’s business culture is defined by its variety, and this should be embraced.

London has long been a world-class workplace, underpinned by its dynamic built environment, well-connected transport network and safe streets. But to truly capitalise on this, we must embrace the social fabric of the city. Workers need to feel empowered to step away from their desks, engage with colleagues over lunch and make the most of London’s diverse districts. This informal social interaction is crucial to breaking down generational barriers and ensuring that London remains an attractive place for all to work and thrive.