London should seize the opportunity to become a neutral financial hub
Amid global turmoil, London’s stability gives it the opportunity to become a neutral financial hub, writes Lord Mayor of London Alastair King
Like many others, I have been spending the weekend in quiet contemplation, and the only certainty I have come to is that uncertainty is now the new normal.
The rapidly changing global landscape brings challenges for the UK – not least in the form of a 10 per cent tariff on UK goods exported to the US. But it also brings opportunities, too.
Global turmoil could be an opportunity for London
There have been positive noises from Washington about a potential trade deal between the UK and the US. However, while those negotiations continue, to echo comments by Standard Chartered chairman José Viñals, the City could emerge as a winner from the rapidly evolving geopolitical landscape if it becomes a “neutral” financial hub.
In 2025, there are very few places in the world where you can get high single figure or low double figure internal rate of returns on a sustainable basis, with good rule of law in a safe political environment. London is one of them.
Indeed, I have been travelling to India, the Gulf, US and Canada, and the people I met with were quick to emphasise their perception of the UK as a safe and reliable place to do business.
With the global order tilting more toward power than principle, the UK’s commitment to stability and the rule of law is a strategic asset.
The City played an active role in the events that led to the creation of the Magna Carta, the foundation of modern democracy and one of Britain’s greatest exports. In the years that have followed, we have been guided by its principles and, today, we have an outstanding independent judiciary, lawyers with a well-deserved reputation for excellence, and world-leading dispute resolution, arbitration and mediation services.
This, coupled with the quality and range of UK advisory services and the fact that English Common Law is the most popular for cross border contracts makes the UK an attractive and predictable place to do business.
Law, tech and stability make London a safe harbour
The world knows that, in the UK, the law operates without fear or favour and with speedy, reliable, fair justice should anything ever go wrong.
Take tech as an example. The UK is Europe’s leading tech centre. Companies know that the UK patent application system is reliable and that people who steal their ideas will be punished. That knowledge leaves them free to create and take the calculated risks that will take their business to the next level.
We pride ourselves on being an international legal hub, home to offices of each of the world’s top 40 law firms and what is probably the largest representation of US lawyers and firms outside the US. Indeed, earlier in my own career, I was a solicitor at US Law firm Baker McKenzie here in the City.
English law governs around £250bn of global mergers and acquisitions and 40 per cent of global corporate arbitrations. If you want to settle a global dispute, you do it in London.
On top of this, as the Chancellor said in her Spring Statement, the UK has strengths that mean we can act quickly and decisively in a more uncertain world.
We are one of the world’s largest economies, an ally to trading partners across the globe and a hub for global innovation. That means we can act as a safe harbour for international investment, we are not confined to one particular grouping and can forge relationships with partners in emerging markets, and we can embrace the white heat of new technology, like AI and cyber.
At a time when certainty and confidence are lacking, our justice system gives people the certainty and confidence they need to do business in and with the UK. It is an enormous advantage for London – something that I am shouting about around the world.
But businesses are looking for more than calm seas; they want to sail. So, we must translate our political steadiness into commercial dynamism. Because for all the challenges, the opportunities for the UK are vast, if we choose to seize them.
is the Lord Mayor of London