The 'ghost town' Games: Businesses pay the price for deserted streets as 1.5m workers stay at home to stop London seizing up
As many as 1.5million people are working from home during the Olympics in what experts warned could prove a damaging blow to the capital’s economy.
Thousands of civil servants who would normally be at their desks in Whitehall have taken advantage of an offer of ‘flexible working’ while the Games are on.
And many big blue-chip firms, including the taxpayer-backed Lloyds Banking Group and Royal Bank of Scotland, have allowed staff to stay away from their offices following apocalyptic warnings of travel chaos.
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Trade hits rock bottom: Small businesses and sole traders vent their anger after messages to stay away from the capital have led to a slump in takings during the Games
Now that it is clear the transport network is coping with Games visitors, there are calls for both the public and private sector to rethink ‘work from home’ policies.
Retailers are warning that key parts of London have been turned into ‘ghost towns’ as workers who would normally be buying lunches, taking taxis, doing some lunchtime shopping or having an after-work drink stay away.
Where is everyone? A deserted Regent Street in London. Businesses say the centre of the city has become a 'ghost town' during the Olympics
Almost three in ten employers are accommodating requests by staff to work from home. Some 17 per cent said they were extending flexible working opportunities, allowing staff to vary hours, while 13 per cent are actively encouraging staff to work from home.
The London Chamber of Commerce estimated that 1.5million of the 5million people who work in London will work from home at some point over the next two weeks.
Chief executive Colin Stanbridge said: ‘Eighty per cent of companies offer some form of remote working, and I think up to a million and a half employees will take advantage of that at this special time.’
An estimated 800 Ministry of Justice staff are working from home, while around 400 London-based Department for Work and Pensions staff have relocated to offices outside the capital.
In total, more than 4,000 civil servants normally working in London – around six per cent of the total – are thought to have taken advantage of the offer to work from home.
A Department for Transport spokesman said: ‘Indications are that less than six per cent of civil servants are working from home and that many more are choosing to do their bit by adapting their commute, with some changing their choice of transport or route and others the times at which they travel.’
Britain’s biggest bank, HSBC, revealed that 40 per cent of its 8,500 staff based in Canary Wharf are working from home – 3,400 individuals.
The bank said it was acting on the advice of Transport for London and the Olympics Committee to reduce congestion at some of London’s key Tube stations during the Games.
A spokesman rejected claims that staff will be tempted to slack off.
He said: ‘People work harder from home. Lots of our staff have a one and a half hour journey to and from work.’
Other firms and institutions to have let workers avoid the chaos that has failed to materialise include the Bank of England, BP and British Gas.
Lloyds, one of the main Olympics sponsors, said some of its staff are working from home. The state-backed bank said this includes ‘non-customer facing’ staff who have to commute from outside the capital.
Hundreds of staff at taxpayer-owned RBS are also expected to work from home and the Bank of England confirmed some staff are also doing so.
Drugs giant GlaxoSmithKline, based in West London, said staff have been encouraged to work from home. However, analysts warn that many staff will be less productive than if they were in the office.
George Buckley, UK economist at Deutsche Bank, said: ‘The risk is that you can’t or don’t do as much from home, so while people may report similar hours worked their output – and therefore productivity – will be lower.’ Samuel Tombs, of Capital Economics, said: ‘The TV coverage of the Olympics will presumably be a big distraction.’
Pierre Williams, of the Federation of Small Businesses, said: ‘A lot of small businesses are feeling very hard pressed: not only are they facing the ongoing recession, declining consumer confidence and demand, they are now seeing the expansion of working from home in the public sector.’
Rebecca Clake of the Chartered Institute of Personnel and Development said: ‘Employers should communicate very clearly what their policy is, for example, whether employees are allowed to keep track of the Games online or whether they take a zero-tolerance approach.’