You can feel the wealth everywhere in central London. The place has changed dramatically from the city I lived in during the 1990s. Back then it was almost sleepy: huge, yes; manageable, hardly; but excessively wealthy, no.
Fifteen years ago, rich and poor lived cheek by jowl. Most swanky streets were within spitting distance of inner-city council estates. Guttural geezers and shopaholic Sophies – both decked in Kate Moss Burberry – shared the same pavements. The Tube was the underground warren where all classes rubbed shoulders at rush hour, and London’s public parks were equal opportunity resources at weekends.
Today, it is different.
I am writing from a café in Marylebone High Street, just off Oxford Street. A few years ago, the streets around here were pretty much residential, mansion block affairs with a few upmarket shops side by side with down-at-heel London boozers. Today, this area is a consumer mecca: upscale, high-end and downright expensive.
What has happened?
London has become a home to the super-rich. As the global 1 per cent got wealthier, London morphed into their secure playpen where no one asks too many questions. Russians, Arabs, financiers and the like descended on the place, driving up house prices and squeezing out local punters, who have re-grouped in the suburbs, leaving the centre to the mega-rich.
But where the mega-rich go, so too do the dirt poor, commuting from the nether regions to service the social effluent of the super-affluent. So not only is London rich, but it is also deeply unequal.
As a result of these changes, London feels profoundly less British and certainly less English, and much more European and Asian.
Interestingly, in tandem with this change in ethnic complexion, or possibly because of it, there has been an upsurge in British/English patriotism.
When I lived here, a significant minority, but still a minority, wore the poppy in November. I thought they were just Tories. This, too, has changed – and in the past days, London has been a veritable poppy-fest. Everyone is festooned as if the garland distinguishes the real Brits from the shifty foreigners.
The link between the rise in al-fresco poppy patriotism and the rise in anti-European sentiment is unambiguous. When I lived here, anti-Europeanism was the preserve of the right of the Tory party; today, it is mainstream.
All countries have their national myths. We will have the 1916 stuff in a couple of years, and the Brits have the poppy, which seeks to romanticise that most unromantic of events: the almost casual slaughter of an entire generation of British and Irish men in Flanders – our relatives.
The British have made remembrance the national myth. They remember a glorious Britain before the EU. It was a standalone island, an uninvaded, unconquered, and never-defeated Britain. In the mythology, it stands in direct contrast to today’s European Britain, which is compromised, shackled, ceding sovereignty to a bunch of bureaucrats from nations that rolled over when they were asked to fight.
The image of a strong, unfettered and independent Britain is the promise of UKIP, large parts of the Tory Party, and significant chunks of today’s English electorate. And London’s very wealth and majesty feeds into this notion that an imperious Britain, driven by London’s riches and energy, can go it alone.
Significantly, the dynamo that drives both the poppy patriotism and the 21st century urban cleansing to make way for the mega-rich is the City of London.
The City and its riches offer some people a view of what the world could be like without Brussels. Whether it is true or not, the success of the City forges the image of a New Britain – a type of freewheeling, no-holds-barred Singapore or Hong Kong off the coast of Europe.
Just to give you a sense of how significant the City is and how persuasive the independence narrative is, consider that the square mile that is Canary Wharf, London’s financial sector, accounts for 10 per cent of the nation’s GDP. It is the largest exporter of financial services in the world.
The IMF says Britain is the largest net exporter of financial services, insurance and pensions in the world, with a trade surplus of $67 billion in those industries.
According to the UK Treasury, the industry provided 1.4 million jobs, with further employment in secondary industries. Fifty thousand alone were employed in the insurance sector. Financial services paid £27.5 billion in income tax and national insurance in 2011-12 – some 12 per cent of the total.
London handled 36.7 per cent of global currency transactions in 2009 – an average daily turnover of US$1.85 trillion and 17 per cent of all global trading in equities – a higher proportion than anywhere except New York.
British fund managers, predominately based in London, managed portfolios worth 11 per cent of all funds under management in the world. London hosts three major derivatives exchanges that account for around 15 per cent of global trade in commodities.
In 2005, Britain managed 22 per cent of the world’s private equity investments. The British Bankers’ Association estimates that at the end of 2006, London accounted for 40 per cent of the world credit derivatives market.
It’s easy to see why the City would embolden those, like the mayor of London, who are prominent in the ‘UK divorcing from Europe’ camp.
But if Britain did separate after a referendum, would the City remain unscathed?
The City is home to over 250 foreign banks, all of whom enjoy access to the single market via Britain’s EU membership. Might this change if Britain left the EU?
We saw in the Scottish referendum that big finance doesn’t like changes in the status quo. Finance likes the world just as it is. Why wouldn’t it? After all, the industry and its employees are doing very well, thank you very much.
However, if Britain were to leave, would the associated political instability and the increase in risk (concerning trading with the EU, where previously there had been no risk) prompt US banks in particular to hedge their bets and set up in Dublin, which would then be the only English-speaking capital city in the EU?
It is a prospect worth considering as the British political class gets set to convulse itself yet again over Europe and sovereignty, all orchestrated to the blindingly jingoistic background noise of The Dam Busters, War Horse and Downton Abbey.
Don’t let the door hit you on the ass as you exit the EU John Bull.
Morning all.
Sceptred Isle
Ireland and certainly not Dublin are part of a Sceptred Isle and high ranking appointments in Ireland are corrupted and praised for being so .Irish Laws will never hold the TRUSTS expected with Responsibility and Hiberno English is not an Original that can Win the hearts and minds of international investors.
Prancing and dancing is only wishful thinking .
History has always been kind to London.
David, as always interesting commentary. I lived in Edmonton in the early 1980s, a far cry from London today.
The recent Global Financial Index shows that London has dropped slightly, the inference being uncertainty about EU membership, regulation, and attitude to foreigners. See: http://www.longfinance.net/programmes/financial-centre-futures/fcf-gfci.html
As a Londoner I have to disagree with the author in his view about London. It is a blinkered and somewhat biased view. I was born there (Kilburn) in January, 1969 to Irish parents. It is indeed a very different place to day but not because of the immigration of the super-rich, but the mass immigration of economic migrants. As former Labour Cabinet Minister Peter Mandelson said only recently “we practically sent out search parties to find people and bring them back to the country”. And that was before the entry of new EU members in 2004 and 2007. A… Read more »
Petal
The EU petal that David might love is an economic zone in Dublin Docks holding Guantanamo Employees with their own residences and Heliport and passports without accountability to the Irish Finance Acts . Sponsorship would then be from higher sovereign power outside the EU .
“uninvaded, unconquered, and never-defeated Britain”. Was there not that fella William the conqueror?. William III of Orange (“King Billy” although with some inside help. Two examples of successful domination from the European continent.
“We’re only making plans for Nigel
Nigel’s whole future is as good as sealed….”
“We love EU, we love EU not” Really? I presume you mean; “We (the brits) love EU, we (the brits) love EU not” The article hints that the “wealth” concentrated in London stems from it’s exporting of financial services. Any chance it’s “wealth” is derived from all the Rehypothecation going on? If the brits left the UK chances are the square mile would look for a status similar to vatican city. In the human body the colon serves as the storage vessel for all the shite happening in the body. The square mile serves the same function in the World… Read more »
England’s economy, which means London, is a basket case of financial wizardry and property bubbleliciousness, it’s based on smoke, mirrors and easy money and will go up in a puff of smoke. The term economy is inappropriate, it’s a casino. And though lovely for a weekend visit, for Londoners it’s increasingly a brutish unrewarding grind outnumbered by transient migrants, Oxford Street no more represents London than its politicians represent the democratic will of its native people.
“London is a Casino Gulag.” Max Keiser.
“In October, the Labour MP Geraint Davies presented the International Trade Agreements (Scrutiny) Bill to Parliament, which proposes more transparent negotiations and which would “empower Parliament to amend international trade deals which threaten a country’s democratic interests. Davies said: “I support encouraging international trade with the many jobs that it creates and of course businesses should be able to invest with confidence in Britain. But TTIP gives corporations the right to subvert the democratic process and sue governments just for enacting laws that they disagree with. “That’s why I’ve proposed a Scrutiny Bill to bring these treaties back under the… Read more »
Not sure Dublin would be the only English speaking EU capital.
UK exit may would in all probability trigger a second Scottish independence referendum, which, if recent polling is anything to go by, is likely to be carried in such circumstances.
Interesting article and I agree with some and disagree with more. Excuse my rushed comments. Even when I was a boy central London was very different from the suburbs (or at least S.E. London) and full of visitors and foreigners. I remember in my 20s asking directions to the Tower of London from a surprised Japanese tourist. I always hated central London pubs, never found them friendly and the beer was usually terrible. Poppies were always taken seriously, but possibly more now (I went to Catholic schools and it wasn’t a big thing there, probably because there were so many… Read more »
I never watched Downton Abbey but I love this version:
https://www.youtube.com/watch?v=cAJtwb5yRhk
Didn’t I tell ya that thing would be a pure disaster!
Daft that Britain might be in November, with all the poppies, and all, it is mild compared to the nonsense that pervades from the Bureaucratic Bunglers in Brussels. There is a phrase – the British would do anything for money. (and disguise it as kindness). And indeed Britain, will do whatever it has to do to protect it’s business plan. And Britain has a business plan. And it will stick to it. Does Ireland have a business plan apart from selling ourselves short, and being grateful for being the location of so many businesses that pay very little tax here… Read more »
Wharf I remember when Canary Wharf first was built in the 80’s and how difficult it was to fill the empty buildings and how many times it was nearly sold for a song . Fast forward and after a lot of success in between all is now about to change or has done so already . The reasons for the commencement of the demise of the once famous suburb of East End are : Proprietary trading is declining in importance because banks dedicated too much of their resources and finally they realised that there are no winners or it is… Read more »
Claudius Ptolmey Dublin Has anyone ever wondered what was Dublin a very long time ago and what was the earliest references in writing then . If you ever examine the oldest map of Ireland by Ptolmey you will find that this is the oldest 140 bc or so . Peruse the words on the map and try to decipher just any word and the chances are you will fail in translation . In that part where Dublin mow is there are two words that need mention. They are Eblani Eblana Many of the words on this map are found to… Read more »
When the next recession hits, Irl will be as well prepared as a punch drunk boxer . Compared with the rest of the EU , the UK looks an oasis of relative success.
Isle of Man and Channel Isles provide pointers for future prosperity, minimal taxes, concentrate in providing services, no need to join the EU. Why do Irish politicans still lick the arses of MNC’s ? Tried and failed in previous decades to reverse the emigration tide.
It’s all shaping up rather nicely for for Britain’s exit from the swamp of the EU: BREXIT. Let the fight to the death commence between the various neoliberal factions. *popcorn* Cameron wants an EU that kisses Corporate arse over TTIP, as do most within the unelected EU coven & unaccountable City Of London. Cameron’s allegiance is to The City, not the bulk of people who live on this island who are merely compliant cash cows to milk taxes from to bail out the City via the Bank of England’s QE tricks. At least this island still has its’ own currency… Read more »
Jesus Andrew you certainly conform to type, everytime an Englishman opens his mouth another Englishman despises him, just like us Paddies. Don’t English people realise that UKIP are a Tory Sinn Fein or do they care?
http://www.monbiot.com/2014/11/18/the-insatiable-god/ “Amazingly, this consideration begins on Thursday. For the first time in 170 years, parliament will debate one aspect of the problem: the creation of money(17). Few people know that 97% of our money supply is created not by the government (or the central bank), but by commercial banks in the form of the loans they issue(18). At no point was a democratic decision made to allow banks to do this. So why do we let it happen? This, as Martin Wolf has explained in the Financial Times(19), “is the source of much of the instability of our economies”. The… Read more »