Is London losing its status?
22/08/2008
London has topped the charts among the world’s financial centres in all three bi-annual research reports commissioned by the City of London since last year, but saw its lead over New York cut in the most recent report in March to just 0.9%.
With the next report measuring the top financial centres due out next month, Ruth Lea, economic adviser to Arbuthnot Banking Group, believes London’s leading position is under threat.
She said in a report: “London’s positions as the world’s leading financial centre cannot be guaranteed. The international challenges from New York and other centres are only too real.”
“Using findings from the third financial centres index report, there are at least two possible major reasons for the reduction in London’s lead. Firstly, the reputation of the UK regulatory environment has been damaged in some markets by the financial instability at Northern Rock. The Chancellor’s proposals [to reform the regulatory regime] are unlikely to be radical enough to satisfy the concerns of the financial sector. Secondly, the proposed changes to tax regime for non-domiciled UK residents.”
