After midnight on January 1, 2025, fireworks ignited the London skyline and Big Ben.
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London is the crown of British economic and national culture, and recently Large businesses looking to expand elsewhereworkers seeking more affordable places to live and millionaires fleeing the city.
A new tax system targeting the “non-representative” situation of London’s super-rich It is estimated that an estimated 10 million people will flee the city in 2024 Find a safer haven for cash. For unknown people, the high cost of living and a massive reassessment of quality of life – has prompted many working-age people to leave the city, Data displaybecause it becomes too expensive.
In recent years, London’s pride as a business hub has also been eroded Or take their main list away from the UK
So, is big smoke a bad luck and depression? not necessarily.
While the streets may not be paved with gold, London can still attract millions of people looking for work, study and play, An estimated 20 million tourists visit the city in 2023.
CNBC asked several British analysts about their thoughts on whether the city is on a downward trajectory or just encountering some bumps on the road. That’s what they have to say.
The city is falling?
The London royal family has been “for years” in terms of its business appeal and affordability for ordinary folks, market strategist, former investment banker and author of the Bryan’s Morning Porridge newsletter told CNBC.
He said it was “not good” to do business in the capital, and the atmosphere in the wealthy city of London and the capital’s financial district Canary Wharf was even worse.
“We used to be in the city, there was no buzz in Canary Wharf,” Brian said.
Brian said: “Did you give me a major British investment bank? Did you give me the name of an important British private capital market company? They are all large American companies.”
Workers crossed the junction near the Bank of England in the city of London on April 8, 2025.
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When it comes to banks, you already have Europeans, French and Germans, they are just on the skin of the teeth. But there is nothing left in the UK, and you go into the city today and look around, it’s terrible. There are a lot of people out there, but they are all insurance salesmen, or they are not the previous generation of investment companies. They are the last generation of investment companies.
Blain blamed the city’s demise for overregulation, saying “the number of people involved in compliance and regulations and formed significantly more than the number of people financially.”
Brian said he believes it has lost its global reputation by having relatively stable political institutions, Six Prime Ministers in the past decadeand it was also damaged after the turmoil with the EU five years ago.
EU protesters protested outside parliament on January 31, 2024 on the fourth anniversary of the EU’s official departure from the European Union.
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Incumbent Labour Government and Finance Minister Rachel Reeves found himself after victory in last year’s landslide election, Adhere to self-implemented debt and borrowing rules under urgent pressurewhile trying to increase public spending and promote much-needed growth.
“In the past, you could look at the UK and say, yes, it’s no longer the largest economy in the world, but it’s usually stable in terms of capabilities, so you invested in it. But now these things are starting to be questioned, and that’s the biggest risk in the UK.”
Not all bad luck and depression
Barret Kupelian, chief economist at PwC, is eager to point out that in the long run, the capital is not all melancholy and doom.
“If I focus on London becoming the fundamentals of London,,,,, The first thing is the rule of law, and then you have all the intangible assets like history, culture, diversity, talent, innovation, regulation, time zone, probability, infrastructure, etc. These things have not changed dramatically over the past few years. ”
“We see London actually has a quiet, stable, softened infrastructure and the large businesses in London are still here due to the quality of regulation,” he said. Kupelian defends London’s position as a hub for financial services, but says it is adapting and developing as well.
“One of the things that happened in the background is that our commodity exports are stagnating, partly because we are in a trading environment now, tariffs and what you mean…but the growth in service exports is strong, a lot of them are driven by commercial services,” he said.
He noted: “We have always believed that FS (financial services) is the crown jewel of London, but in fact, in terms of growth rates, if you look at the exit side of the ledger, a lot of it is driven by commercial services.”
Canary Wharf seen from Greenwich Park in London.
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PWC is produced with poll demo “Good Growth in Urban Index” for the Year This measures the economic well-being of the UK city and takes into account factors such as work, income, health, skills and work-life balance.
It found in 2024 that while London is expected to see strong economic growth in 2025, it is not far from other British cities in terms of livability. This includes the lack of affordable housing and squeaky transportation infrastructure – like when you go to get off work in the morning, anyone is hot, dirty and narrow in the center tube.
No Londoner likes crowded tube trains during peak hours. This is a typical morning centerline during commute.
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“This is a story relative to the rest of the country, but what about the story relative to the rest of the world?” Kupelian said. “There is always fierce competition among the metropolis in the world, such as New York, Paris, Singapore, Beijing and Tokyo.
“I think London is feeling a more intense level of competition right now,” Cupelian said. The city needs to look at its peers and itself to look at a more critical eye to understand that it can do better.
He said prescriptions are “targeted interventions” rather than “completely reshape”, and he said London has a great place to continue to attract talented workforce, businesses and growth.
“Businesses are still here due to the quality of regulation, and large businesses are in London. I think that’s one of the main attractions of London. (Decision Makers should) re-emphasize these views and keep that. I don’t think there is one thing that will ignore, which will not weaken the shift that leads to wealth and success, but I think these smaller things may require these smaller things, not relying on London, not relying on London.
