29-02-2008
London attractiveness "eroded"
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
The attractiveness of London as a destination for overseas business has been eroded, it has been claimed.
A new survey by the City of London Corporation has found that foreign firms see the UK's capital as a less attractive location for business, because of the demise and nationalisation of Northern Rock, in addition to suggested tax restrictions upon those residents who are categorised as non-domiciled.
The influence of the corporation extends only around London's 'Square Mile'. Indeed, the survey found that as London loses its appeal, it is being overtaken by New York, reports the Financial Times.
"It is important that we resist calls, both internationally and domestically, to ditch the principal-based regulation that has helped London to be the most innovative and dynamic financial centre in the world," said Yvette Cooper, chief secretary to the treasury.
Moreover, in a separate study - also commissioned by the City of London Corporation - it was noted that the "competitive edge" of the UK's tax system is failing.