Blitz devastation ‘added £4.5bn to London economy’

THE Second World War Blitz has made London better off by £4.5 billion a year, according to new academic research.

The Luftwaffe dropped more than 18,000 bombs on the capital, destroying two million homes, killing 60,000 civilians and wounding 87,000 from September 1940 to May 1941.

However, researchers from the Centre for Economic Performance at the London School of Economics have discovered that, in areas where buildings were destroyed, planning laws were subsequently relaxed, which allowed the construction of larger buildings and, in turn, brought in higher rates.

Dr Hans Koster and Dr Gerard Dericks calculated that, if the Blitz bombings had not taken place, the number of city workers would be around 50 per cent lower, equating to a loss to the economy equivalent to 1.2per cent of Greater London’s annual GDP.

In a discussion paper, Dr Koster and Dr Dericks conclude: “It is with great discretion that one should attempt to cast the deliberate bombing of civilians in a positive light.

“However, the results of this study do beg the distressing question: Did the Luftwaffe brave the Channel crossing and hostile fire only to rain down future lucre on ‘lucky’ London landowners?

“Thanks to what might be viewed as the British planning system’s modern war on development, the answer indeed seems to be yes.”

At the peak of the Blitz, it is estimated the raids cost Britain around £950million a night in today’s money.