Spending review: Failure to back London will cost Reeves’s growth mission
Failing to back London in the spending review could cost the UK’s growth mission for years to come, writes Chris Hayward
Around the world, cities face a defining challenge: how to remain relevant in a world transformed by hybrid work, rising costs and shifting investor expectations. The City of London is rising to this challenge and reshaping itself to meet the needs of tomorrow’s businesses – guided by our ambitious Destination City programme.
And it’s working. Jobs in the City are up 25 per cent since the pandemic, our annual economic output exceeds £100bn, and weekday footfall and cycling are both on the rise. Major firms like HSBC, Clifford Chance and CUBE have already seen this opportunity and are reaffirming their commitment to the Square Mile by setting up shop here. They see what we see, a place of promise.
As we approach this week’s spending review, it’s more important than ever to reaffirm why London matters to the national economy. A thriving City fuels prosperity across the UK, attracting global investment, creating high-value jobs, driving tax revenues and supporting supply chains and skills in every region. Backing London means backing the UK’s growth, and the decisions taken this week will help shape that for years to come.
Our time zone, language, rule of law and stable political environment are all standout reasons attracting investment in the City. Far from being just London’s business district, the Square Mile powers prosperity nationwide, creating jobs, supporting industries and driving growth well beyond the capital.
Launching the City Business Investment Unit
Here at the City of London Corporation, we are actively creating the conditions to secure further inward investment. This week we’re launching the City Business Investment Unit (CBIU). It is a concierge-style service that will work with investors, developers and business occupiers to attract, retain and grow investment in the Square Mile.
The CBIU will offer tailored support to businesses, particularly in high-growth sectors like fintech, green finance, AI, life sciences and the creative industries. It will guide firms through planning, licensing and regulatory processes, connect them to senior leadership and decision makers, and help them access the networks they need to grow.
Amid competition from the likes of Paris, New York and Singapore, investors are seeking more than just space, they want support – clarity on planning, confidence in delivery and confidence that the City is a partner for the long term. Occupiers, meanwhile, are consolidating portfolios and demanding more from their destination – led by workers whose preferences and expectations from their workplace have also changed. They crave top-tier amenities, sustainability credentials and vibrant, well-connected environments.
The CBIU is designed to meet those expectations head-on. Success isn’t just about attracting investment, it’s also about retention. The CBIU will offer long-term support so businesses not only set up in the City, but scale, adapt and lead from it.
Need for skilled workers one of biggest growth barriers
In this age of AI, businesses still succeed based on their people. Firms need skilled, adaptable talent to grow. One-third of UK SMEs say a lack of skilled workers is their biggest barrier to growth. That’s why the CBIU will build skills into its core offer, helping firms access training, talent pipelines and partnerships. It will connect occupiers and investors with the workforce they need to scale sustainably.
Ultimately, we are building a more diverse, resilient business ecosystem in the Square Mile. And we’re doing this while preserving what makes the City special: its heritage, its culture and its unique sense of place. We’re also investing in the infrastructure that underpins growth. From public realm improvements like the transformation of Finsbury Circus Gardens to new cultural landmarks like the London Museum. All of these actions underpin the City’s offer as a magnetic destination.
So while the Chancellor has tough decisions to make in Wednesday’s spending review, backing investment in London and maintaining our openness to trade, talent and financial markets should be the easiest.
Chris Hayward is policy chairman at the City of London Corporation