London has been hit hard by the global economic downturn because of its importance in providing global financial services, chancellor Alistair Darling said yesterday.
His remarks came amid fierce inter-party fighting over the government’s stimulus package, designed to help recapitalise markets.
“London is the major financial services sector of the world,” he said.
“We were bound to be affected more substantially in relation to the loss of revenues we are now experiencing because of the lack of profitability in the financial services sector.”
Offices in London, especially those in the City can be considered central to the UK’s economic performance.
Leading banks, insurance companies and investment firms rent commercial property in the square mile – some have even decided to make it the base for their global headquarters.
The administration of the City of London is politically neutral, in that it is run on a non-party political basis.