12 per cent of all London workers are employed in the creative sector

About 18,000 jobs were created in the sector between 2004-5, bringing the total workforce up to 554,000 - a %5 increase in a year.

The growth is almost double that of the financial and business sector, said the Greater London Authority report.

The report coincides with a range of festivals in London such as London Fashion Week and London Film Festival.

"The creative industries are a crucial component in the overall strength of the city," said London's Mayor Ken Livingstone.

"Our lead in the creative industries helps ensure London remains at the global cutting edge, attracting all kinds of companies to choose London to do business because of the strength they can draw on in design, advertising, PR and many other creative fields."