The Mayor, Boris Johnson, commissioned Ian Livingston, Chief Executive of BT, and Richard Sharp, Chair, Royal Academy, to carry out a review of London’s overall business competitiveness in April. The report was presented today to the Mayor and members of his International Business Advisory Council (IBAC) at their annual meeting at City Hall.
Produced by Booz & Co, it confirms that London has established a powerful position as world capital of business but warns that many of the contributing factors to London's success as a world capital of business are at risk. Over fifty business leaders in the capital were interviewed for the report, which highlighted how measures such as the 50 per cent income tax rise and the £30,000 non-dom levy are causing individuals and companies to consider moving away from London.
In his keynote speech to the Council, the Mayor vowed to continue to protect and maintain the capital’s number one position. The threats to London’s position identified are:
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For more information, visit the website.Reputational damage due to the capital’s close association with the financial services industry and London’s close association with the financial crisisRival financial centres such as Geneva and Shanghai offering favourable tax advantages and are undertaking explicit campaigns in London to attract hedge funds and HQ to their citiesDamaging effect of EU legislation on London’s financial services industry such as the Alternative Investment Fund Management and EU working time directivesRestrictive immigration policy such as the UK government’s points based visa system that risks damaging London’s openness and diversityUK national policy issues such as the disproportionate impact of the 50 per cent tax rate on London financial sector and it's employees