Each week we at City A.M. Towers receive some enlightening and occasionally constructively critical letters. Here are our favourites from this week.
London proves it’s still got it
[RE: London is still attractive to foreign investors, says Excel Centre boss, 21 Jan]
It’s tough out there right now, that’s no secret, and keeping up with the pulse of international trade during fluctuating economic and political tides has our work cut out.
London’s dominance in foreign direct investment across eight out of 10 categories may seem commonplace to some, perhaps even expected given its historical precedence. However, the reality is that maintaining London’s competitiveness within an ecosystem valued at over £600bn – by far the largest in Europe – is not a crown easily won, nor the result of resting on our laurels while they’re still green. London is embracing new technologies like AI and leading in areas like climate tech (#2 globally for funding) to stay ahead.
It is, in fact, the outcome of a well-oiled and determined foreign direct investment strategy that consistently attracts businesses and, when it comes down to the crunch, offers the best resources for those aiming to grow.
While some may try to dismiss London’s success as a relic of the past, its spirit of resilience, drive, tenacity, and success is clearer now than ever, and the proof is in the pudding.
Neil Brigden
London & Partners
Tourist tax proves puzzling
[RE: Hunt must scrap the tourist tax if the UK wants to stay competitive, 29 Jan]
Sir,
What James Chapman describes as a “so-called ‘tourist tax’” is nothing of the sort. Value Added Tax is paid by all purchasers of relative goods or taxes. Previously tourists were able to reclaim it, while residents could not.
Tourists as well as locals benefit from government expenditure on things like infrastructure. I see no reason why they should freeride on the host taxpayer. The real question is what the moral justification is for a 20 per cent VAT rate in addition to a plethora of other costly taxes.
Taxes in the kingdom are far too high.
I remain, Sir, your humble servant,
Christopher Ruane
Cross words for our crossword
[RE: Crossword, 12 Feb]
Do you not think the Cityam crossword should concentrate on words to do with business, accounting and investment?
Adding a sports crossword with players names as clues….e.g. Brazillian who played for Middlesbrough, 2022 FA CUP WINNERS, current Welsh prop forward, country where England woman played last…etc etc
Richard Edward
Show us the green
[RE: Labour confirms £28bn green investment pledge has been scrapped, 8 Jan]
Like many others, I’m disappointed to see the party hoping to become the next government drastically scaling back funding for green projects. Looking at the money pledged by other governments across the world, it’s clear that whoever is sitting in Number 10 next year will need to be prepared to open the cheque book.
For all the reassuring talk from government and the opposition, if we want to have a competitive response to the USA’s Inflation Reduction Act, we need to throw some real financial firepower behind carbon-free energy investment.
Nuclear energy is arguably our best bet, but with the UK nuclear fleet at end-of-life, new units are required just to replace existing capacity. The best time to build a new nuclear plant was ten years ago, and the second-best time is right now – it is simply getting too late to ignore the UK’s growing energy problem.’
Vincent Zabielski
Pillsbury
Investments + election = ?
[RE: An election this year may not free up much private investment, 6 Feb]
General elections always have an impact on investment because investors and dealmakers want to start and close deals when conditions are the most tax-favourable for them to do so.
Elections can change that equation, with a rush of activity both before and after the event as investors and dealmakers seek to capitalise on existing policy benefits or initial new policy benefits.
This year, this equation could be even more pronounced as voters take to the polls in the US and the UK, which may also increase cross-border deals.
Yet while the potential for increased private investment is likely, there is no certainty yet as to which industries will see the most activity. That will come down to the proposed regulatory changes, inflation, and any interest rate modifications.
For private investments and the M&A market to flourish this year, inflation needs to stabilise, and employment rates need to increase. On top of this, public investment in the UK should strategically bolster sectors that are focused on technology, innovation and infrastructure to create an attractive environment for both domestic and international investors.
Merlin Piscitelli
Datasite