Johnson warned about threat facing capital's finance status (From This Is Local London)

Johnson warned about threat facing capital's finance status

3:06pm Friday 12th December 2008 in News

London's status as a major global financial centre is under threat from cities such as Dubai and Singapore, leading business figures have warned Boris Johnson.

A report commissioned by London’s mayor found that emerging Asian and Middle Eastern economies are attracting investment and jobs away from the capital.

The mayor commissioned the report in June to examine the City's competitiveness as a financial centre.

It concluded that ccomplicated tax and regulatory systems, a poor transport network, the high cost of living, a skills shortage and the threat of knife crime were all making the capital less appealing as a business location.

The report's authors warned that London must radically up its game or face losing its status as the world’s top financial centre.

They also recommended creating a new body to promote the capital. Mr Johnson said the financial services board would act as a politically independent and strong voice for London's financial services.

Bob Wigley, who led the panel of city experts that compiled the report, urged the city’s banks to support the authorities “to rebuild London’s reputation for leading global financial regulation.

The Mayor also said he was taking a proactive approach to ensure London’s successful fight-back amidst the economic downturn.

“I will pull out all the stops to protect London’s position as the world’s premier financial centre and emerge from the downturn stronger than ever,” he said.