Just over a year since the Government was elected, we were delighted to welcome Andy Silvester, London Editor of The Times, for a discussion on the political environment and outlook as part of our latest What Next for London? briefing.
Our host Dan Berger, Chief Investment Officer at Delancey, opened the meeting by stating that this is “a moment to be bold” and to reinforce London’s position as a world-leading business hub amid geopolitical instability. He also highlighted Delancey’s plans – in partnership with Australian Superannuation Fund Aware Super – to invest £1 billion in UK property, with a particular focus on Central London.
We then jumped into the main event with Andy. Here are some key points.
One year in: reset, rerun – or still wobbling?
Andy likened the Government‘s approach to riding a Lime bike too slowly over potholes – well-intentioned, perhaps, but you’re likely to be thrown off track if you try to cross them without sufficient momentum.
With a reshuffle likely, political focus will inevitably turn to personalities and portfolios. But Andy made the case that what matters to most of us outside Westminster is purpose: a clearer direction for the country and a renewed sense of how the UK can move forward on growth, innovation and international influence.
The capital as a true “place”
Against the stereotype of London as a disconnected capital of glass towers and grey suits, Andy underscored that when interviewing Sir Keir Starmer, he had spoken passionately about how London is a city of real communities and neighbourhoods.
London is not an abstract economic concept – it’s a place that needs investment, just like anywhere else. But that investment hasn’t been very forthcoming. Andy observed that London’s economic resilience, relative to much of the rest of the UK, has, in some ways, been its own worst enemy – allowing successive governments to assume it can keep going without the public investment the city needs. In the face of reluctance from HM Treasury, Andy argued that now is the time for London government to have meaningful fiscal autonomy: not to take more, but to deliver more, ease pressure on public spending and drive the national growth agenda.
This echoes our view. As I said at our summer reception with the Mayor earlier this month: unleash London – and we will deliver. Give us the tools – the funding, the flexibility, the powers – alongside the accountability that comes with responsibility – and this city will power the UK’s growth.
The relationship between Westminster and City Hall
June’s Spending Review finally saw Transport for London receive a four-year funding deal after years of sticking-plaster deals. Indeed, during the pandemic, TfL was forced to make do with weekly funding settlements – no way to run any transport network.
But Andy called for greater investment in London’s infrastructure. And as we said at the time, the Spending Review missed an opportunity here to deliver major schemes – notably extensions to the DLR to Thamesmead and the Bakerloo Line.
Andy highlighted that it will be worth watching closely how the Mayor’s relationship with this Labour Government evolves, should London not see tangible national investment and support.
Cautious optimism – but challenges
Andy struck a tone of cautious optimism when it comes to the business climate. The UK’s stability and relative predictability are assets – especially when compared with the political turbulence playing out elsewhere.
Still, challenges remain. Questions around immigration, skills and rising employment costs continue to weigh on sectors like hospitality.
Andy also called for a rethink of the proposed Higher Education levy on overseas students and an end to the tourist tax, both of which risk denting the capital’s international competitiveness – as well as its cultural dynamism and global pull.
These are two areas where we have campaigned actively, including a recent letter to the Chancellor, calling on her to think again about imposing this tax at a time when our universities are facing stark financial challenges, and high-profile media activity calling for the reintroduction of VAT-free shopping on goods for overseas visitors.
Planning for the future of outer London
The conversation also turned to the absence of a long view and the need to plan strategically for the future of outer London. Andy highlighted Croydon, with its abundance of high-rise office space, as one part of London that will need to think about how such spaces will be used in the future as artificial intelligence shakes up the capital’s jobs market.
Andy closed on a hopeful note. Strong engagement by readers of his Times London newsletter is just one sign of a wider appetite for thoughtful debate, sharper ideas – and a clearer vision for the capital’s future.