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The City of London
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The City of London is the world's leading international financial centre - a global powerhouse at the heart of London. The jobs of more than 250,000 Londoners are dependent on the City, the one square mile in the centre of the metropolis that drives the whole of London's economy.
The City of London has earned its pre-eminence in world finance. Over the centuries the City has thrived in a climate of political stability and has continued to advance its reputation for financial innovation, openness, versatility, efficiency and professionalism. London's breadth of international financial dealing is quite remarkable. Straddling the world's time zones between Asia and America, it is unique as a centre where international issues and international markets dominate.
The UK is one of the largest economies in the world and Greater London accounts for a fifth of its GDP. London's economy is similar in size to Switzerland or Argentina. The City of London alone accounts for 13.0% of London's GDP and 2.6% of the UK total. (2000 figures*) Some of the key aspects of the City's international position include:-
- Foreign exchange - London is the largest international centre for foreign exchange, dealing with an average daily turnover of $504bn, representing nearly a third of the world's activity in April 2001.*
- Investment banking - London is the largest investment banking centre in Europe, undertaking half of European investment banking activity. Most investment banks are either headquartered or have a major office in London.*
- Fund management - the UK is one of the largest markets in the world for fund management. London is central to the UK's international position, being ranked as top city in the world for the management of institutional equity funds.
- Maritime activity - the UK, and London in particular, is the leading centre in the provision of services to the international maritime community. These services generate £943m in overseas earnings.*
- International insurance - all of the world's 20 largest international insurance and reinsurance companies are active in London.
London has more corporate headquarters than any other European centre and continues to attract - as it always has - the majority of the world's largest and most important monetary firms. In surveys of business, London consistently ranks as the top city in Europe to do business in, ahead of Paris and Frankfurt.
The vital role which the City plays in the economic well being of London as a whole needs to continue to be recognised and nurtured. Businesses face challenges that mount year on year. New markets are continually opening up. New technological advances bring new opportunities but they also bring new threats. If we fail to adapt and embrace these fresh openings then we will be granting our competitors a major competitive advantage.
There are several factors that business needs in order to flourish. It requires a skilled and flexible workforce. It needs a competitive environment where regulation does not suffocate enterprise. Furthermore, a modern, efficient transport network is a prerequisite as is ready access to the new technologies. Finally, a network of skilled professional advice is essential, especially in the legal, accountancy and property fields. London has long been a centre for world-class professional and business services. The world's big four accountancy firms each has major headquarters offices in London.
The Corporation of London's prime role is to support and promote the City. Our services will continue to sustain the City's 24 hour operational needs, our strategic economic development will position the City for the future and we will take every opportunity to ensure the City continues to thrive as the world's leading international finance centre and Europe's financial capital. London is meeting the challenges presented by new technologies, new markets and new competitors and it is vital for the overall well being of the UK economy that this continues.
* Figures quoted taken from "International Financial Markets in the UK", November 2002, International Financial Services London. www.ifsl.org.uk
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