Hundreds of business leaders and policy makers have called for more investment and innovation to preserve London as a world-leading city.
A public forum at the Emmanuel Centre in Westminster provided a “powerful platform for debate” on the capital’s economy, capital markets, and the controversial wealth tax, among other areas of opportunity.
Hosted by the Central London Alliance, the event was initially set to preface the party conference season but was postponed due to industrial action.
Across the six panel discussions, the former MP for North West Cambridgeshire, Rt Hon Shailesh Vara, said “the voice of the business is too silent”, advising that 16,500 wealth creators have left the UK, taking their spending and investment capacity with them.
He proposed actions to stem the tide and bring the investment back to London.
Mr Vara added that the UK risks losing 20,000 jobs in the next year if the Business Property Tax Relief is abandoned.
Under new rules proposed by the Labour government, relief will be significantly reduced, meaning that only the first £1 million of assets will qualify for full relief.
The issue of wealth tax was also raised on the night, with the panel agreeing that the ongoing trend of individuals leaving the capital was at the detriment of the UK economy.
The panel said whilst wealth creation was important, the tax burden is currently too high in the UK.
Dia Chakravarty, contributing editor at the Daily Telegraph, said: “If you don’t also tackle spending at the same time, we won’t see the difference we need.”
Another panel raised the importance of channelling investment into the UK equity market to support domestic companies and generate returns for London.
Charles Hall, head of research at Peel Hunt LLP, cautioned that when capital is exported or UK businesses are acquired by foreign entities, the associated jobs, talent, and tax revenues are lost overseas.
Hospitality was also dubbed as London’s “flagship industry” by Kate Nicholls, chair of UK Hospitality, during a debate on the hospitality, travel, and tourism industries. She said the sector contributed £3.4 billion to the Exchequer – equivalent to 75% of its profits – and noted that the industry has suffered due to rising tax burdens.
“You need hospitality firing on all cylinders”, she said.
Annabel Singh, engagement manager for the City of London Corporation’s City and Business unit, emphasised how planning permission can be streamlined to unlock London’s full potential during a panel on property and infrastructure.
The City of London Corporation reported it had approved planning permission for a 31-storey building in just 38 minutes – a system it said can be replicated across the capital.
Tony Matharu, chairman of Central London Alliance CIC, said: “Today, London is facing complex structural and functional challenges. The capital is suffering from a heads down silence, anxiety, and uncertainty, and at CLA we want to open up date, to inspire fresh thinking and highlight opportunities that can overcome the obstacles facing our leaders, residents, investors, workers, visitors, and students.
“London’s success is vital to the UK’s prosperity. Tonight’s debate is about ensuring the capital remains a world-leading city – attracting investment, fostering innovation, and delivering opportunity for all.”
