COMMENT The government is desperate for us all to go back to the office; public transport revenues have nose-dived and the service economy is struggling. Some employers, certainly in the City, don’t seem so keen while others have stressed the importance of returning to normal services as soon as possible. Wherever you might stand, with so much uncertainty one can be forgiven for wondering what the future actually holds.
The problem is that London needs these people – and given that the capital produces more than one-third of UK GDP and 29% of its tax take, Britain needs London. This is not, despite the headlines, a matter of saving the Pret economy, but the economy as a whole.
Virtuous circle
First, what makes London tick – what brings millions of people here to live and work – is a diverse tapestry of interconnected businesses, from real estate to financial services, hospitality and tech entrepreneurs.
All these companies play two essential roles; they create the culture of London and pump money into and around the City economy. It only takes one part to fail and the whole edifice risks crumbling. An entire virtuous circle suffers without all of these businesses. London is a large professional services hub, providing billions of pounds in value for businesses from across the globe, and these are people businesses. Those people need amenities. And this is what keeps the City contributing to the national economy.
Secondly, London is one of the world’s pre-eminent financial centres. Since March there has been more than £10bn in equity raised in the City (our firm acting on 12 of these – forgive the plug). People come here to raise money, invest across the sectors – including real estate – and gain a foothold in the rest of the UK; London is a gateway city in the same way that New York, Hong Kong or Shanghai.
Other cities may vie for the title of “biggest global financial hub”, but London is it, in my humble opinion. Ask anyone who works in the city and they will give a number of plausible explanations; our first-class legal system, for example, which brings scores of people here to get justice and transact. Or a time zone that allows us to trade with the Americas and Asia in the same day. They will mention the sophistication of our markets, which attracts investors who can feel secure investing their money. But there is another reason too; in the words of Lin-Manuel Miranda’s runaway hit Hamilton, people want to be “in the room where it happens”, and the room where it happens is in London. Take away the people and this suffers.
Look outwards
This is even more important with Brexit on the horizon. Now, more than ever, we need to show that London is open for business, that Britain is not turning inwards but preparing to become even more global and diverse. But that diversity will suffer, too, if people aren’t brought together.
If recent events have shown us anything it is that we need to make more progress in creating a more inclusive working culture. You cannot do this over Zoom alone. Allies are real people supporting each other in person. Lose this, and we risk losing talented people who create the very culture that this city is lauded for – and ultimately that risks revenues as well.
It is understandable that people are uneasy about returning to the office. For some there will be genuine health fears. For others, the lack of a commute and more time with family will have been life-changing.
But this is not true for everyone. Some people’s experiences of lockdown have not been rosy. These people deserve our support as well. Wellbeing and returning in a safe way is, of course, paramount but at the same time it is vital that we get people back into the office to drive the City forwards. Not just for the sandwich shops and the coffee shops and the water-cooler moments. It could be that our national economy depends on it. Our City needs us!
Leona Ahmed is head of London at Addleshaw Goddard
