London Daily

Focus on the big picture.
Thursday, Dec 18, 2025

British fret over empty London offices

British fret over empty London offices

Schroders, a big asset management firm, wants more of its workers to return to its office in the city of London. Over the summer, it encouraged people to come in for a day to test their commute and so the firm could demonstrate the new safety measures in place, including an app to order food from the canteen.
Recently, about 15% of its 2,500 employees were in the office.

A 15-minute walk away, in the building where the law firm Dentons employs 750 workers, fewer than 10% were in the office.

Two streets to the west, Goldman Sachs' new 826,000-square-foot European headquarters was about 15% full. In east London, in Canary Wharf's cluster of towers, Citigroup had about 15% of its employees in an office that usually fits 5,000.

In cities across the country, the offices of the advertising firm WPP were only at 3% capacity.

Britain's sparsely populated offices have put the economy in a quandary. The dry cleaners, coffee shops, lunch places and clothing retailers specializing in suits that serve areas packed with offices are starved of their customers.

Many are still shut. In a country that relies on consumer spending to fuel economic growth, the government and business lobby are urging people to return to their offices, pressuring civil servants to set an example, and in turn spend more money on food and travel and in city center shops.

Earlier this month, Dominic Raab, a government minister, said, "The economy needs to have people back at work."

But the companies charged with responding to this call have discovered that they can function productively with their staff working at home, and many aren't in the mood to ask employees to risk getting on crowded trains or buses to return to the office.

Take the city of London, the financial and legal hub, which before the pandemic was the destination for more than half a million daily commuters. At the start of the month, many of the lunch chains were still unlit and locked, and the train stations were significantly quieter -- so were the pubs.

"The people are just not coming back," said Robert Cane, who has worked at a dry cleaners and shoe repair business in the city for the past six years. "Half of the people have left the offices. I'm watching them evacuate daily."

In the spring, Britain entered its worst recession since record-keeping began in 1955. After a sharp decline in economic activity during the national lockdown to control the spread of the coronavirus, a rebound started to take hold as early as May.

The strength and sustainability of that recovery is still being determined, though there are concerns it will be short-lived as coronavirus cases rise in Britain and continental Europe.

Catherine McGuinness, policy chair at the City of London Corp., the district's governing body, said last week that she was "very concerned" about the lack of foot traffic for the small businesses dependent on office workers, especially in the coming months as government support programs end.

The corporation has offered rent holidays and business advice, but "it's just a conundrum" for those businesses, McGuinness said.

"I do think there is a major challenge looming about unemployment rates and insolvency rates," she said.

Outside Britain's city centers, activity is returning faster and online shopping has helped push retail sales above their prepandemic levels. But foot traffic in shopping areas is still down a quarter from last year.

In August, after months of encouraging working from home, the British government changed its advice: People could return to their workplaces if employers made them safe.

After only a trickle of people responded, the government planned an advertising campaign -- to coincide with the reopening of schools last month -- to reassure employees that workplaces have been made safe over the summer.

That campaign has reportedly been delayed as ministers study a jump in infections across the country. On Tuesday, new restrictions were put in place in England banning gatherings of more than six people, but they don't apply to workplaces.

Even if the campaign works, social distancing measures that reduce the capacity of workplaces will continue to suppress the office-dependent economy. It's a problem that isn't unique to Britain.

In the long run, the pandemic has raised questions about the entire nature of the office economy. The role of the office could substantially change as many companies consider how to make some, or all, aspects of remote working permanent.

A deputy governor of the Bank of England warned that a lack of investment in commercial real estate could be one of the reasons the long-term economic impact of the coronavirus might be worse than the central bank recently forecast.
Newsletter

Related Articles

0:00
0:00
Close
UK Issues Final Ultimatum to Roman Abramovich Over £2.5bn Chelsea Sale Funds for Ukraine
Rare Pink Fog Sweeps Across Parts of the UK as Met Office Warns of Poor Visibility
UK Police Pledge ‘More Assertive’ Enforcement to Tackle Antisemitism at Protests
UK Police Warn They Will Arrest Protesters Chanting ‘Globalise the Intifada’
Trump Files $10 Billion Defamation Lawsuit Against BBC as Broadcaster Pledges Legal Defence
UK Says U.S. Tech Deal Talks Still Active Despite Washington’s Suspension of Prosperity Pact
UK Mortgage Rules to Give Greater Flexibility to Borrowers With Irregular Incomes
UK Treasury Moves to Position Britain as Leading Global Hub for Crypto Firms
U.S. Freezes £31 Billion Tech Prosperity Deal With Britain Amid Trade Dispute
Prince Harry and Meghan’s Potential UK Return Gains New Momentum Amid Security Review and Royal Dialogue
Zelensky Opens High-Stakes Peace Talks in Berlin with Trump Envoy and European Leaders
Historical Reflections on Press Freedom Emerge Amid Debate Over Trump’s Media Policies
UK Boosts Protection for Jewish Communities After Sydney Hanukkah Attack
UK Government Declines to Comment After ICC Prosecutor Alleges Britain Threatened to Defund Court Over Israel Arrest Warrant
Apple Shutters All Retail Stores in the United Kingdom Under New National COVID-19 Lockdown
US–UK Technology Partnership Strains as Key Trade Disagreements Emerge
UK Police Confirm No Further Action Over Allegation That Andrew Asked Bodyguard to Investigate Virginia Giuffre
Giuffre Family Expresses Deep Disappointment as UK Police Decline New Inquiry Into Andrew Mountbatten-Windsor Claims
Transatlantic Trade Ambitions Hit a Snag as UK–US Deal Faces Emerging Challenges
Ex-ICC Prosecutor Alleges UK Threatened to Withdraw Funding Over Netanyahu Arrest Warrant Bid
UK Disciplinary Tribunal Clears Carter-Ruck Lawyer of Misconduct in OneCoin Case
‘Pink Ladies’ Emerge as Prominent Face of UK Anti-Immigration Protests
Nigel Farage Says Reform UK Has Become Britain’s Largest Party as Labour Membership Falls Sharply
Google DeepMind and UK Government Launch First Automated AI Lab to Accelerate Scientific Discovery
UK Economy Falters Ahead of Budget as Growth Contracts and Confidence Wanes
Australia Approves Increased Foreign Stake in Strategic Defence Shipbuilder
Former UK Prime Minister Boris Johnson proclaims, “For Ukraine, surrendering their land would be a nightmare.”
Microsoft Challenges £2.1 Billion UK Cloud Licensing Lawsuit at Competition Tribunal
Fake Doctor in Uttar Pradesh Accused of Killing Woman After Performing YouTube-Based Surgery
Hackers Are Hiding Malware in Open-Source Tools and IDE Extensions
Traveling to USA? Homeland Security moving toward requiring foreign travelers to share social media history
UK Officials Push Back at Trump Saying European Leaders ‘Talk Too Much’ About Ukraine
UK Warns of Escalating Cyber Assault Linked to Putin’s State-Backed Operations
UK Consumer Spending Falters in November as Households Hold Back Ahead of Budget
UK Orders Fresh Review of Prince Harry’s Security Status After Formal Request
U.S. Authorises Nvidia to Sell H200 AI Chips to China Under Security Controls
Trump in Direct Assault: European Leaders Are Weak, Immigration a Disaster. Russia Is Strong and Big — and Will Win
"App recommendation" or disguised advertisement? ChatGPT Premium users are furious
"The Great Filtering": Australia Blocks Hundreds of Thousands of Minors From Social Networks
Mark Zuckerberg Pulls Back From Metaverse After $70 Billion Loss as Meta Shifts Priorities to AI
Nvidia CEO Says U.S. Data-Center Builds Take Years while China ‘Builds a Hospital in a Weekend’
Indian Airports in Turmoil as IndiGo Cancels Over a Thousand Flights, Stranding Thousands
Hollywood Industry on Edge as Netflix Secures Near-$60 Bln Loan for Warner Bros Takeover
Drugs and Assassinations: The Connection Between the Italian Mafia and Football Ultras
Hollywood megadeal: Netflix acquires Warner Bros. Discovery for 83 billion dollars
The Disregard for a Europe ‘in Danger of Erasure,’ the Shift Toward Russia: Trump’s Strategic Policy Document
Two and a Half Weeks After the Major Outage: A Cloudflare Malfunction Brings Down Multiple Sites
UK data-regulator demands urgent clarity on racial bias in police facial-recognition systems
Labour Uses Biscuits to Explain UK Debt — MPs Lean Into Social Media to Reach New Audiences
German President Lays Wreath at Coventry as UK-Germany Reaffirm Unity Against Russia’s Threat
×