New Mayor of London Sadiq Khan and the City’s Global Financial Position

Among the three major functions of the mayor of London is to promote the development of the economy and the creation of wealth — aside from social and environmental development. Today, London is usually among the top financial centers around the world and being so makes it the key to the wealth of the city. That’s actually the reason why international companies have headquarters in London, thereby giving job opportunities to the residents and wealth to UK’s capital. With Sadiq Khan elected as mayor, the status of London as a global financial center may be kept.

The Manifesto of Sadiq Khan

The manifesto of Khan gave some insights to his plans for the economic development of London. According to him, his main priority is infrastructure as there is a need to work on Westminster which would improve transportation and secure big projects that may be the key for the growth and expansion of the city’s economy.

Mayor Sadiq Khan
(Stefan Rousseau / PA Wire)

London’s transportation system has greatly helped in its historic success being a financial center. Its link to the rest of the UK and other countries allowed it to export skills and goods to emerging markets. Having an up-to-date transportation system is essential for accessing markets and talents. It is important for job growth and for allowing the capital to support the growth of UK’s economy.

The international air transportation is very important to the financial health of London, as well as the economy of the UK. Currently, London is at a disadvantage because of its poor connections with the vastly growing markets in Latin America and Asia. Its airports are operating close to its capacity and the possibility of expansion should be considered by the new mayor. Where the expansion will happen, however, is still being discussed.

Sadiq Khan has opposed to the consensus of creating a third runway at Heathrow. Meanwhile, his election may make it easier for the UK government to follow through with the proposed expansion. On the other hand, this could enable a united front that may challenge the government into getting a second runway built at the Gatwick airport. Either way, expansion is a possibility to promote the well-being of London’s economy.

Support from Business

The larger business community of UK, particularly London, has shown their support in Khan as the mayor. According to the Confederation of British Industry, they are looking forward to working with him on certain issues that would need retention of competitiveness in the global financial arena.

Apart from being supported by big businesses, Khan pledged to promote a friendly environment for business start-ups, especially those who are in the fields of fintech or financial technology. Over the past few years, the FinTech environment of London has played a major role in ensuring the presence of the capital in the global arena as they brought more financial startups to the UK. This plays an essential role in maintaining London’s strong position in the financial rankings worldwide.

London has always had the distinction of being a global financial center. It is the business capital not only of Britain, but of the European continent as well.

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