Time to abolish the City of London?

The Tory politician calls for the abolition of the corporation that governs London's square mile and

So at long last after endless media speculation we have a decision from Gordon Brown: Crossrail will be built.

Never mind whether this project is still viable or practical having been first proposed fourteen years ago. Never mind that it has no benefit at all for most actual Londoners as opposed to commuters from the Home Counties.

The Government has bullied and cajoled the City Corporation, the business community and the Mayor of London to stump up the £16 billion required to fund this bribe for the election that never was.

The few days running up to the announcement that gave the go ahead to the project was a typical British bodge job. The deputy director of the CBI appeared on the Today Programme to announce they were very happy with the proposals for a supplementary business rate in London only to have three of his largest retail members, Tescos, Sainsburys and John Lewis partnership on the phone within an hour saying how cross they were.

The Lord Mayor of London was prevailed upon to call an extraordinary meeting of the Court of Common Council for the first time in living memory to roll over to the Government’s demands that the City Corporation cough up £300 million of their accumulated wealth , the so called “City cash” to make up the perceived shortfall.

The role of the City Corporation or the Corporation of the City of London as it has just rebranded itself, in this whole matter bears some investigation.

Unlike proper Local Authorities the Corporation has no Leader of the Council and indeed was immune from the provisions of the 2000 Local Government Act and therefore has an unofficial leader in the Chairman of its Policy and Resources Committee currently Mr Michael Snyder.

As the City of London does not have any Party Politics it is replaced by the much more vicious personality politics and Michael Snyder who is currently serving the final year as Chairman has his fare share of critics.

Indeed his nickname among his many enemies on the Court of Common Council is 'Lord Voldermort' and just like his two predecessors (Michael Cassidy who bizarrely thought he could run for Mayor of London in 2000, and Dame Judith Mayhew whose reward for doing the Government’s bidding was a disastrous period as Master of Kings College) is perceived to have become far too powerful and in his desperation to receive a knighthood regularly pops round to Number 10, City Hall and the Treasury to charm Messrs Brown, Livingstone and Darling.

Apparently the City Corporation holds about £1 billion in City Cash the interest for which pays for the many (on the whole excellent) services that the City provides to the rest of London and also for the endless and lavish hospitality dished out to the Great and the Good at Guildhall, Mansion House and sundry Livery Halls, (I suspect that my invitations to such functions will now cease to the benefit of my substantial waist line).

This money built up over Centuries is held in trust by the Corporation on behalf of all the people of London and quite why the current members of the Corporation feel they can surrender it at the behest of this current Government I cannot understand. The exact figures remain a mystery as the matter as with so much City Corporation business was discussed in secret.

Whilst the tradition, pomp and ceremony of the City of London adds much to our Capital's life, the politics of the Corporation would benefit considerably from more openness and democracy. Quite why the City Aldermen should reject candidates for the top jobs of Sheriff and Lord Mayor on the grounds that they are Gay, female or an Evangelical Christian is beyond me.

One senior London Tory suggested to me that abolition of the Corporation in its current Political form was long overdue and a number are now saying that the time has come for all three Political parties to run slates of candidates in City elections to give the voters a proper choice.

Crossrail may well benefit the Corporation in the short term but the long term Political damage may not be worth a few trains from Maidenhead

Brian Coleman was first elected to the London Assembly in June 2000. Widely outspoken he is best known for his groundbreaking policy of removing traffic calming measures
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In your 30s? You missed out on £26,000 and you're not even protesting

The 1980s kids seem resigned to their fate - for now. 

Imagine you’re in your thirties, and you’re renting in a shared house, on roughly the same pay you earned five years ago. Now imagine you have a friend, also in their thirties. This friend owns their own home, gets pay rises every year and has a more generous pension to beat. In fact, they are twice as rich as you. 

When you try to talk about how worried you are about your financial situation, the friend shrugs and says: “I was in that situation too.”

Un-friend, right? But this is, in fact, reality. A study from the Institute for Fiscal Studies found that Brits in their early thirties have a median wealth of £27,000. But ten years ago, a thirty something had £53,000. In other words, that unbearable friend is just someone exactly the same as you, who is now in their forties. 

Not only do Brits born in the early 1980s have half the wealth they would have had if they were born in the 1970s, but they are the first generation to be in this position since World War II.  According to the IFS study, each cohort has got progressively richer. But then, just as the 1980s kids were reaching adulthood, a couple of things happened at once.

House prices raced ahead of wages. Employers made pensions less generous. And, at the crucial point that the 1980s kids were finding their feet in the jobs market, the recession struck. The 1980s kids didn’t manage to buy homes in time to take advantage of low mortgage rates. Instead, they are stuck paying increasing amounts of rent. 

If the wealth distribution between someone in their 30s and someone in their 40s is stark, this is only the starting point in intergenerational inequality. The IFS expects pensioners’ incomes to race ahead of workers in the coming decade. 

So why, given this unprecedented reversal in fortunes, are Brits in their early thirties not marching in the streets? Why are they not burning tyres outside the Treasury while shouting: “Give us out £26k back?” 

The obvious fact that no one is going to be protesting their granny’s good fortune aside, it seems one reason for the 1980s kids’ resignation is they are still in denial. One thirty something wrote to The Staggers that the idea of being able to buy a house had become too abstract to worry about. Instead:

“You just try and get through this month and then worry about next month, which is probably self-defeating, but I think it's quite tough to get in the mindset that you're going to put something by so maybe in 10 years you can buy a shoebox a two-hour train ride from where you actually want to be.”

Another reflected that “people keep saying ‘something will turn up’”.

The Staggers turned to our resident thirty something, Yo Zushi, for his thoughts. He agreed with the IFS analysis that the recession mattered:

"We were spoiled by an artificially inflated balloon of cheap credit and growing up was something you did… later. Then the crash came in 2007-2008, and it became something we couldn’t afford to do. 

I would have got round to becoming comfortably off, I tell myself, had I been given another ten years of amoral capitalist boom to do so. Many of those who were born in the early 1970s drifted along, took a nap and woke up in possession of a house, all mod cons and a decent-paying job. But we slightly younger Gen X-ers followed in their slipstream and somehow fell off the edge. Oh well. "

Will the inertia of the1980s kids last? Perhaps – but Zushi sees in the support for Jeremy Corbyn, a swell of feeling at last. “Our lack of access to the life we were promised in our teens has woken many of us up to why things suck. That’s a good thing. 

“And now we have Corbyn to help sort it all out. That’s not meant sarcastically – I really think he’ll do it.”