London Needs Its Financial Independence Day

Monday 27 June 2016

London Needs Its Financial Independence Day

The London Chamber of Commerce and Industry (LCCI) has said that the referendum result shows that London needs to have more control over its finances. 

LCCI made its case after results showed that while most of England voted to leave, London voted overwhelmingly to remain.

CEO of LCCI, Colin Stanbridge said: "Britain will now look to make its way in the world outside the EU, however the economic burden of paving that way ahead will fall most heavily on London.

That being the case then it is common sense to make sure that London is enabled to operate successfully and so in turn, drive wider UK future growth and prosperity."

Currently the Mayor of London has control over only 7% of taxes raised within the capital yet the Mayors of equivalent global cities such as New York or Tokyo 50% and 70% of local tax revenues respectively.

Mr Stanbridge added: "In our greatly changed political landscape our Mayor's weak fiscal position
cannot continue. The case for change and the means to achieve that are
clear.     

"The 2013 London Finance Commission called for Westminster to increase London control of local tax revenue from 7% to around 13%.  Hardly a revolutionary request but enough to begin making a noticeable difference in what and how the Mayor could advance enhancements in key infrastructure like transport, housing or broadband.

"Additional revenue could help boost Mayoral efforts to project London's presence on the international stage with more overseas trade missions to forge new trade links and attract inward investment.

"Mayor Khan should now commission an update of the London Finance Commission final report to provide an understanding of potential financing options.

"Keeping London an economic success has always been vital not just to us
who live and work in the capital but to the whole country.

"Now, as we face into the future, outside the EU, it is more important than ever that policymakers carefully consider what they can do to ensure the UK prospers, not falters, in the years ahead".

ENDS

Media contact
Katharine McGee
T: +44 (0)20 7203 1897     
M: +44 (0)7827 241528
E: kmcgee@londonchamber.co.uk

NOTES TO EDITOR:
1. London Chamber of Commerce and Industry (LCCI) is the capital's largest and most representative business organisation, with members ranging in size from multi-national companies to SMEs and sole traders.
2. Colin Stanbridge, Chief Executive, is available for further comment and interview.