The London economy will expand by 15 per cent in the next five years and account for almost a third of the UK’s total economic expansion, according to new figures.

The Centre for Economics and Business Research (CEBR), an economics consultancy, said the Capital will grow 4.2 per cent in 2014, slowing slighty to 3.4 per cent next year.

It contrasts strikingly with the North East of England at the other end of the spectrum. It will see growth of 2.1 per cent and 1.7 per cent respectively – the same as Northern Ireland.

London’s economy is being fired by foreign investment, sky-high property prices and financial services. These and other industries are expected to create 100,000 jobs during the next five years.

"Growth has returned to the financial services sector faster than expected in the capital and the strong bout of construction in the region will help fuel London's economy in 2014," said CEBR economist Christopher Evans.