Time to abolish the UK's last "rotten borough" - the City of London Corporation

One year on from the Occupy protest at St Paul's, we're no closer to reforming the dark heart of predatory capitalism.

On the night Occupy LSX marched into the City tweets came into me asking for help as the police kettled activists on the steps of St Paul's. I went down there and did what little I could to prevent people being roughed up. Over the next few days the tents soon appeared and the occupation became a debating forum on the causes and creators of the economic crisis.

As days turned into weeks and the cathedral hierarchy split over whether to evict the camp, the occupiers soon discovered the existence of an organisation the vast majority of the population barely knows exists. The City of London Corporation was flushed out of the shadows in which it normally lurks to show that it was something more than the organiser of a good pageant in the Lord Mayor’s Show.

Naturally members of Occupy turned their inquisitive attention to this seemingly quaint body that was threatening to send in the bailiffs. Just as the direct action by UK Uncut transformed the issue of tax evasion from a dry debate for accountants into a popular cause, Occupy has helped turn the spotlight on the abuse of power that is the City Corporation.

In Michael Chanan’s and Lee Salter’s new film, “Secret City”, Maurice Glasman explains ironically that St Paul’s was the site of our earliest democracy, where the citizens of London in medieval times would hold hustings. In the sixteenth century the city took over from Amsterdam as the centre of international credit and maritime trade. Its coffee houses became banks and governments became dependent upon them for loans, largely to finance wars.

Government's reliance on the city to finance the national debt gave the city such influence that the Corporation was able to avoid the successive reforms that established democratic local government in the rest of the country.

Instead the City Corporation to this day retains the business vote, which overwhelms the votes of residents in the elections for its Common Council. The vast proportion of elections in the City have not been contested. Instead an old boys’ network amongst the companies sorts out which favoured son is to be bestowed the seat.

This usually prevents anyone slipping through the net who shows any spark of independence, although not always. Around a decade ago, Malcolm Matson was elected with 80 per cent of the vote but was known to favour reform. He was hauled before the City’s Court of Aldermen and was blackballed. Local vicar, the William Taylor, was also successful in being elected but as soon as he started asking questions about the Corporation’s unpublished accounts, his bishop received letters with more than a hint of a threat.

Matson and Taylor could not be tolerated because they were asking questions about the massive resources being spent on the secretive role the City Corporation plays as the lobbyist for finance capital. The Corporation has used its influence to dictate successive government’s policies on the regulation of finance and taxation.

This secured the deregulation of the “Big Bang” era of Thatcher and the hands off approach under Blair and Brown. City speculators were allowed to create the bubble that eventually burst to create the current economic crisis. London became a funnel through which trillions poured into tax havens and the concentration on financial speculation rather than investment in our manufacturing base unbalanced our whole economy. Obscene levels of incomes and conspicuous spending in the City have also created a society grotesquely scarred by inequality and a capital city in which immense wealth is located cheek by jowl with stark levels of poverty.

It was Labour Party policy since its foundation to abolish the City Corporation, until Blair arrived and the policy changed to reform. The City cynically interpreted reform as simply giving more businesses the vote.

The abolition of this last “rotten borough” would show that Ed Miliband is serious about tackling predatory capitalism.

John McDonnell is the Labour MP for Hayes and Harlington

"Secret City" previews at the House of Commons on Tuesday 16 October. For details of screenings and to watch a trailer for the film, visit: secretcity-thefilm.com

A statue of a dragon that marks the boundary of the City of London. Photograph: Getty Images


John McDonnell is Labour MP for Hayes and Harlington and has been shadow chancellor since September 2015. 

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Commons Confidential: Could Corbyn's El Gato kick Larry out of Downing Street?

The No 10 cat fight.

A rolling revolt is gathering speed, as the suspicion grows that Theresa May called her snap poll to escape potential by-elections, should the Crown Prosecution Service find that her MPs were involved in electoral fraud during the 2015 campaign.

A growing number of Tory MPs are informing HQ that they don’t want a battle bus visit. Driving the rebellion is the hard-boiled Andrew Bridgen, who made his cash by selling prewashed spuds to supermarkets. “I’m going to post party workers on every route into my constituency,” growled the veg baron, who is defending an 11,373 majority in Leicestershire, “with orders not to let any bloody bus on to our patch.” Here’s an opportunity for Tory command to raise a few bob: flog tyre-bursting spike strips to candidates.

Fur would fly in the unlikely event that Jeremy Corbyn moves into No 10. The more optimistic among his entourage fret over whether the moggy El Gato could cohabit with Larry the Downing Street cat. Corbyn muses that El Gato is a socialist, sharing food with a stray that turned up in his north London garden. If Labour wins, I understand that El Gato is the top cat or Larry is out with May. Jezza’s first call wouldn’t be to Donald Trump or Angela Merkel but to Battersea Dogs and Cats Home.

George Osborne’s £650,000 BlackRock sinecure is jeopardised, I hear, by his London Evening Standard editorship. An impeccable source whispers that the world’s largest investment fund, controlling £4trn of loot, anguishes over possible conflicts of interest. BlackRock hired Osborne to nurture high-net-worth clients, who are suddenly wary of divulging secrets to an ambitious hack. Perhaps the super-rich should relax. He is incapable of recognising a story, even missing Standard deadlines with his resignation as a Tory MP.

The word is that Ukip’s seven-time loser Nigel Farage declined the chance to risk an eighth loss to retain his £800-per-hour LBC radio gig. The Brexit elites’ Don Farageone needs the money – a chauffeur-driven Range Rover with tinted windows won’t be cheap.

Corbyn’s war on dandelions is on hold during the campaign, with green-fingered comrades tending his allotment. Cherie Blair was accused 20 years ago of mentally measuring up curtains for No 10. Corbyn quipped that he is tempted to measure flower borders to plant runner beans. Labour’s No 10 would certainly be no bed of roses.

What will retiring MPs do? Middlesbrough South’s Tom Blenkinsop informed colleagues that he might join the army. My hunch is that at 36, with a Peaky Blinders haircut, the general secretaryship of the Community trade union is more likely.

Kevin Maguire is the associate editor (politics) of the Daily Mirror

Kevin Maguire is Associate Editor (Politics) on the Daily Mirror and author of our Commons Confidential column on the high politics and low life in Westminster. An award-winning journalist, he is in frequent demand on television and radio and co-authored a book on great parliamentary scandals. He was formerly Chief Reporter on the Guardian and Labour Correspondent on the Daily Telegraph.

This article first appeared in the 27 April 2017 issue of the New Statesman, Cool Britannia 20 Years On

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