London's Exclusion from Budget Support May Jeopardize Reeves's Growth Plan
Let's Get Real, UK - Support London Now or Regrettably Struggle Later!
By Chris Hayward
In today's interconnected world, cities are grappling with a monumental challenge: staying relevant amidst the surge of remote work, escalating costs, and evolving investor expectations. London, our beloved City, is spearheading this transformation through its daring Destination City programme.
Here's why London's on the rise—with jobs surging by 25% post-pandemic, an annual economic output that exceeds £100bn, and a steady increase in foot traffic and cycling. Key players like HSBC, Clifford Chance, and CUBE recognize this upswing and have decided to make the Square Mile their home base. They see something special here; a city teeming with potential.
As the spending review looms, it's crucial we amplify why London's importance extends beyond our boundaries. This thriving hub fuels the nation's prosperity by attracting global investments, creating high-value jobs, boosting tax revenues, and strengthening supply chains and skills across the country. The UK's growth is tied to London's—the decisions this week will chart that path for years to come.
So, what sets London apart? Our prime time zone, English language, rule of law, and stable political environment make us a compelling destination for investors. Beyond being just our financial district, the Square Mile is the engine of prosperity that propels not only London but the entire nation.
Introducing the City Business Investment Unit (CBIU)
Here at the City of London Corporation, we're actively constructing the foundations for more inward investment. This week, we're unveiling the CBIU—a concierge-style service designed to entice, retain, and nurture investment in the Square Mile.
The CBIU offers customized assistance to businesses, particularly in high-growth sectors such as fintech, green finance, AI, life sciences, and the creative industries. It will act as a guide, navigating firms through regulatory hurdles, connecting them with key decision-makers, and providing access to essential networks required for expansion.
Competing against heavyweights like Paris, New York, and Singapore, investors want assistance—clarity in regulations, confidence in delivery, and assurance that the City is their long-term partner. Tenants, on the other hand, are consolidating portfolios and demanding superior amenities, sustainability, and lively, well-connected environments.
The CBIU is aimed at responding directly to these expectations. Success is not just about drawing investment, it's also about retention. The CBIU will offer ongoing support for businesses to establish, adapt, and lead from the City.
The Skills Gap: A Major Obstacle to Growth
Amid the burgeoning AI era, it's still the people that power businesses. Firms need skilled, adaptable employees to grow. Nearly a third of UK SMEs cite a lack of skilled workers as their primary barrier to growth. To address this challenge, the CBIU will weave skills development into its core offer. It will help businesses access training, talent pipelines, and partnerships. By connecting occupiers and investors with the workforce they need, the CBIU will fuel sustainable growth.
Ultimately, we're building a dynamic, resilient business ecosystem in the Square Mile, one that retains its heritage, culture, and distinctive identity while embracing innovation and cutting-edge infrastructure. From transforming Finsbury Circus Gardens to introducing new cultural landmarks like the London Museum, our endeavors strive to preserve the City's allure as a magnet for businesses.
While the Chancellor faces difficult decisions at this week's spending review, backing the transformation of London and maintaining our openness to trade, talent, and financial markets should be a no-brainer.
Chris Hayward serves as policy chairman at the City of London Corporation.
- Recognizing the crucial role London plays in the nation's economy, investors are drawn to its prime location, stable political environment, and thriving financial markets, making it a competitive hub against cities like Paris, New York, and Singapore.
- To attract and retain investment, the City Business Investment Unit (CBIU) has been established, offering customized assistance to businesses in high-growth sectors like fintech, green finance, AI, life sciences, and the creative industries. The CBIU aims to ensure regulatory clarity, provide access to essential networks, and help businesses adapt and lead from the City.
- Facing a skills gap that remains a major obstacle to growth, the CBIU will also integrate skills development into its core services. This will involve helping businesses access training, talent pipelines, and partnerships, ensuring a workforce that can fuel sustainable growth and drive the City's dynamic, resilient, and innovative business ecosystem.
