Construction projects in central London are boosting Yorkshire’s economy by £57 million a year and creating 1,450 jobs, a new report claims.

The PwC report was commissioned by business group London First and shows that while London itself benefits by around £600 million annually, the knock-on benefit to regional economies across the UK was double that at £1.1 billion a year, along with 22,400 new jobs.

It said that 84 per cent of the investment in central London office development is spent in the UK – a higher figure than other industries. The report is based on research among nine of the capital's principal developers.

Baroness Jo Valentine, chief executive of London First, said: “The value of investment in London is huge in terms of generating jobs and economic benefits in London itself, but the knock-on contribution to regional economies is more impressive.” Ian Morrison, of PwC in Leeds, said: “While it is no surprise that London benefits from its own office development, the further contribution to the regions is huge with a significant part going to Yorkshire & Humberside.

“In addition, £22 million of wages in the region are from suppliers to central London office developments. We must therefore continue to capitalise on these opportunities arising from London to ensure the long-term impact is felt, resulting in further employment opportunities, job security and a highly skilled workforce.”