We’re walking an economic tightrope and the wind is picking up

I spent much of my morning yesterday speaking with a group of City chiefs about the state of our economy and the political landscape. My fears about our economic troubles, low growth, and political uncertainty proved to be spot on. I compared our situation to a tightrope walker, balancing precariously over the Grand Canyon. The welfare bill, pension affordability, weak public markets, housing costs, wealth hostility, and regulatory burdens were all major concerns.

Politically, the possibility of a Reform government is a significant threat, and we're all watching the upcoming budget closely. Despite the grim outlook, London still ranks second globally thanks to its economic power, talent, and connectivity. The latest Global Cities Index places it second, just behind New York, while the Global Financial Centres Index confirms London's second place, behind New York, reaffirming its attractiveness.

However, the story is not all positive. While London has strengths and opportunities, it also has significant problems, some of which are acute and chronic, and most are not being adequately addressed by our political leaders. We're on that tightrope, with no safety net, and the wind is picking up.