London has dropped into a tie with New York City as the world’s top financial capital, according to a new survey.
London suffers from the British government’s decision to increase taxes, including a levy on banker bonuses, and to increase regulation on the banking industry.
London’s score fell 14 points to 775 in the Global Financial Centres Index compiled by Z/Yen, the Financial Times reports.
New York’s score rose one point to reach 775 in the semi-annual ranking, which combines a survey of financial professionals with statistics including office rents, airport satisfaction and transport.
The survey was conducted in the second half of last year.
“This research is a wake-up call for decision-makers,” Stuart Fraser, policy chairman for the City of London Corp., which promotes the British financial services sector, told the FT.
“You can’t take this route (of bashing banks and bankers) without endangering the competitiveness of London.”
New York beat out London in the categories of business environment, availability of workers and infrastructure, even though financial professionals surveyed in the report agreed that New York suffered more from the financial crisis.
One positive note for London: the U.K. isn’t part of the euro. So the fallout from Greece’s debt crisis is unlikely to affect the city.
“The strains and stress being felt in the euro zone are ones that we’re lucky to be able to avoid,” Conservative parliament candidate Rory Stewart told Newsmax.TV.
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