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Interview: MayorSadiq Khan | Beyond Brexit | The shadow music business | Running out of road

Contents

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COVER Illustration by Matt Murphy

Editor JerryAndrews Production editor GeorgeKyriakos Artdirector Konstantin Penkov Designers HarrietThorne, Callum Tomsett Picture editors MichaelCrabtree, Alan Knox 20 36 Sub editor Philip Parrish

Special reports editor Leyla Boulton Features Global sales director Dominic Good 08 36 Global client relationship director Columns INTERVIEW TRANSPORT Stephanie Collier MayorSadiq Khan on keepingLondon As traffic slows belowpre-congestion Commercialdirector,FT2 05 open forbusiness, self-rule, fighting charge speeds, difficult decisions are Alexis Jarman JANANGANESH terror and that tricky thirdrunway looming if thecity is to keep moving Projectmanager,FT2 Whythe vote to leave theEUcould DoraPopova reinvigoratedevolution as away to 14 42 Advertising production accommodatedifferences in theUK ECONOMY HOUSING Daniel Macklin Howserious is thethreat of Brexit to Asoaring population is heightening the 06 thecapital’s financial services sector — need formoreaffordable housing,but CONTRIBUTORS SIMON KUPER and might it evenbring opportunities? what can be donetofillthe gap? HarrietAgnew Citycorrespondent London maybeabouttobecome MuradAhmed Leisure correspondent less open to theworld —but also alittle 18 48 Peter Aspden Freelance arts writer less obsessed withmoney ECONOMY SPORT Clive Cookson Science editor Millennials across thecountrymade London football clubs areadrawfor PilitaClark Environment 58 clear their anger afterthe Leave vote. topplayers and lucrativeoverseas correspondent ROBERTSHRIMSLEY Howdid those in theCity react? fans, but that maybeabout to change Judith Evans Property correspondent Brexit means Brexit, but notknowing Janan Ganesh Political commentator what that actually means plays havoc 20 54 Edwin Heathcote Architecture critic withthe fivestages of grief CULTURE ART Ludovic Hunter-Tilney Popcritic London is apowerhouse of theglobal From riotstopastoral idylls, thepains Patrick Jenkins Financial editor recording industry—but also thecentre and pleasures of living in London have Simon Kuper Writer and columnist of alesser-known musicalworld captivated artists through thecenturies

NDISON; MARTIN O’NEILL Feargus O’Sullivan Freelance writer

SA GeorgeParker Political editor 26

VID RobertShrimsley Managing Online SCIENCE DA editor,FT.com Why‘scientific anarchy’ at thenew Conor Sullivan London reporter CrickInstitutecould help make London thebiomedical capital of theworld ]

OM PILSTON; 30

;T MORE ON FT.COM ARCHITECTURE Forvideos, audio and further The most radicalremaking yetof London and theWorld content go to Thames-side architectureisdrowning www.ft.com/london-world outadefining featureofthe city All editorial content in this report is produced by theFT. Our advertisers have no influence over

PHOTOS: CHARLIE BIBBY or prior sight of thecontent.

FT.COM/LONDON-WORLD |3

JananGanesh Brexit could breathe new life into devolution as away to accommodateirreconcilable differences

ondon is not quite as lonely could not straytoany job in anypartof within the UK as it sometimes the kingdom theyfancy. feels. In June, the capital voted Aside from those trammels, to stay in an EU that Britons however,each mayor or local authority as awhole rejected, but then would be free to decide the annual Lso did Scotland, Manchester,Bristol, number of visas and the qualifying Liverpool and Newcastle. To the criteria. Lincoln could retrench extent thatEuropeanism is shorthand while London opens up even more. for acertain sensibility—open, Thenervous-minded would see this businesslike, optimistic about change as the fragmentation of Britain. It —London has co-conspirators. The would actually be acase of politics countryisfragmented, not elegantly catching up to afragmentation that split between one cityand alumpen, already exists. undifferentiated hinterland. Britain’s tight laws on planning As aconsolation for liberal and land use could also give wayto Londoners still smarting at the local fiat. Theresulting decisions may referendum result, this is not much to confound stereotypes of an anything- hang on to. But it maycontain ahint goes capital and adeindustrialised as to how anation of such varying north averse to change. It is aregion impulses can be governed. likethe north-eastthathas every Britain is one of the most incentive to cutplanning constraints centralised countries in the rich world. on commercial property to the bare Until now,the case for devolving minimum. Businesses need areason to power within it has majored on despair.Ortheycould give the cause Aprotest outside setupthere and ease of construction efficiency. Public services might be of devolution an emotional force it has parliament theday is acompellingone. Conversely,itis better,for instance, if all material always lacked. If Britain is apatchwork afterthe Leave vote. London, spoilt for choice by high- decisions were made near the people of beliefs, national policycan never London strongly value planning applications, thatcan backedRemain who use them. If more taxes were fail to frustratealargeshare of the discriminate according to aesthetics raised and spent locally,communities population. Localdecision-making and the social good. could also makegrown-up choices is no clean fix —not everyLondoner Localism should not be oversold. about the proper size of the state. is relaxed about immigration, not Some questions can only be decided Theassumption here is thatevery everyone in Sunderland opposed to it by national governments and the voter and everytown ultimately wants —but its inherent looseness is abetter exactnature of Britain’s withdrawal the same thing: only the means are fit for asociety thathas grown too from the EU is one of them. If the contested. Localism has become a complexfor its institutions. countryleaves the single market,there technocrat’s cause, away of tinkering will be no carve-out thatsomehow our waytoasmoother-running keeps the capital and afew other country. And we wonder whyitnever The inherent loosenessoflocal pro-European cities inside. But the takes off. referendum exposed irreconcilable Thereferendum showed thatpeople decision-making is abetterfitfor differences on matters thatgobeyond disagree on whatconstitutes the good asocietythat has growntoo EUmembership, including the pace of life, not justhow to achieve it. Forced changeand our exposure to markets. tochoose, some voters would trade a complexfor its institutions These can only be accommodated, bit of economic dynamism for greater if imperfectly,byalooser model of social stability. National sovereignty government. was an esoteric concept to millions Thegreatgiveawayofpower If politicians have always talked a of people and apoint of unshakeable should startatthe ultimate point of better game about devolution than they principle for manyinthe triumphant contention. If London (or Bristol, or have played, it is because the clamour 52 per cent. Manchester,orany other commercial has been so muted. Thedivisions These divergent sentiments, city) is hungryfor foreign labour,it illuminated by the referendum might cloaked for decades under aBlairite- should be able to issue its own work changethat, galvanising athink-tank Thatcheriteconsensus among visas. Recipients would have to clear trope into apopular cause —with policymakers, could be the cuefor securitychecks at anational level and London at the vanguard. PHOTO: GETTY IMAGES L

FT.COM/LONDON-WORLD |5 SimonKuper London is at risk of becoming aless open —ifless money-obsessed —city

left London in 2002 more or less think about money, and thatstate of London’s financial industrywas by accident. Acousin had casually being is more attainableinParis than becoming more global, and the money mentioned thatyou could geta in London. sucked in people from everywhere. decent flatinParis for £60,000, so Brexit mayhavethe unintended But in the debate over Brexit — Icrossed the Channel and bought consequence of reducing the role of even before the vote for it in June — Ione. Ididn’tplan to live in it, but it felt moneyinLondon life. If some rich the British public sent an unmistakable likecompensation for never having people likemybanker friend are signal to the government thatit bought in London. Afew months later, pushed abroad, there will be more wanted less openness. Ican already Symbol of after my London flat-share hit trouble, air for people likeme. However,even see the consequences in my ownlittle openness: Itried Paris for aspring. I’mstill here, before Brexit happens, it is already TowerBridge working world. As acolumnist, I’m now accompanied by awifeand three always looking for ideas. Ioften tryto Parisian children. find them at conferences. However, But thoughts of returning to London since 2015 the rules governing visiting do occasionallysurface. Theplace looks conference speakers seem to have better than Ican ever remember it, and tightened: in manycases, those from the Brexit vote has deflated property outside the EU now need awork prices atouch. Warren Buffett says:“Be permit to give even one paid talk fearful when others are greedy,and be at one conference. Ican’t seemost greedy when others are fearful.”So speakers bothering. Either theywill post-Brexit might be the time to buy a breakthe lawand pretend theyare share in London. Yeteven if the city tourists, or London’s manyconferences becomes cheaper,Istill don’t seethatit are going to getlessvaried. makes sense for afamily. Another good place to steal ideas London starts out with three strikes is academia. Since the 1990s, British against: high costs, bad weather and a universities have filled up with sprawling expanse thatmeans getting excellent academics from everywhere. around can takefor ever.High costs But imagine aGerman academic who have aparticularly damaging knock- gets an offer of tenure at aBritish on effect:for most Londoners, money universitynow.The department becomes an obsession. Youneed trying to hire her might already be lots of it to afford adecent life here, losing its European grants. Then she so you spend lots of time thinking has to guess: will British employment about money. That’s whysomany rules changeafter Brexit? Can her middle-class London conversations German spouse makeacareer in are, famously,about house prices. London? Families have to make As John Lanchester,author of decisions for the long term, and the the novel Capital,has remarked, Brexit vote has deprived London the mostfrightening words in the of another of its biggest assets: English languagearen’t “I had avery predictable long-term stability. interesting dream lastnight”(Oscar The stateofnot havingtothink London’s newmayor,Sadiq Khan, Wilde’s candidate) but “Did you hear knows thathis battle will be to how much theygot for thathouse about moneyismoreattainable in keep the capital open. He mayeven down the road?” Paristhan inLondon succeed, especially once the restofthe Median Londoners don’t have UK realises how dependent it is on much moneyleftafter paying for their London’s tax revenues. housing, but theykeep bumping into tarnishing London’s biggest asset: its But for now Iprefer to be twohours, rich people. One evening in my late openness to the world. 15 minutes by train from London. In twenties Iwent out with an old friend, London’s eraofpeakopenness only afew days’ time I’ll be whizzing over an investment banker,who letslip began about 20 years ago. In 1993 the again. Iwill run around meeting work over cheap Chinese food thathewas EU legally became asingle market, contacts, then have dinner with a on a“seven-figure package”.Isuddenly making it easier for continental group of friends (none of whom live in felt depressed about my ownperfectly Europeans to live in London. The London anymore, mostly because it’s decent income. In Paris Idon’t meet Eurostar opened ayear later,and then too expensive). Thenextday I’ll attend manymillionaires. Thereal luxuryin easyJet and Ryanairconnected the city afestival, then go back to raising a life is not money, but not having to to places all over Europe. Meanwhile, family in Paris. PHOTO: ISTOCK L

6|FT.COM/LONDON-WORLD

Sadiq Khan: ‘I’m proud of the fact that London was the only region in England to vote to remain’ interview

‘Open is what we are’

Barely amonth intothe job, London mayor Sadiq Khan sawBritain vote to leavethe EU. Howwill he protect thecapital’spositionaswhat he believesisthe world’s pre-eminentglobal city? By GEORGEPARKER and CONORSULLIVAN Portraits by TOMPILSTON

FT.COM/LONDON-WORLD |9 interview

adiq Khan has an idle daydream of turning London into aself-governing citystate, shrugging offBritain’s Brexit vote and setting up aborder around the M25 orbital motorway. “I love the sound of ‘El Presidente’,” says the capital’snew mayor.“But it’s not going to happen.” S 1. Instead Khan and the cityherunshavetolive with the verdictofthe British people on June 23 to leave the EU,even though the capital voted by amargin of 60-40 industries, technologyand lowcarbon. He adds a to remain. “I’mproud of the factLondon was the only proviso: “I don’t want people to think thatbysaying that region in England to vote to remain,”hesays. Never has Iwant to diversifyLondon’s economyIamaccepting London felt more adriftfrom the restofthe country. thatLondon’s financial services are going to shrink.” While parts of Britain appear to be cutoff from TheBrexit vote left manyinLondon bewildered and globalisation and the free flow of money, talent and ideas angry, with some suggesting —only half-jokingly —that into the country, London is pluggeddirectly into the live it should setitself up as some kind of independent city current thathas shaped the world in the 21stcentury. state. Khan, the Muslim son of aPakistani bus driver, Themayor believes London is the pre-eminent global city is asymbol of London’s cosmopolitan and open nature. andwants it to remain so when the UK leaves the EU. He says the cityneeds more self-rule. “Our population “I’ve spent mostofmywaking hours since the Friday is 3m more than Scotland’s and it’s three times the size morning postBrexit speaking to chiefexecutives, FAME AND FORTUNE of Wales’s. [It] is settogrow from 8.6m to 10m —just Sadiq Khan made international entrepreneurs and investors, saying thatLondon thatgrowth is more than the population of Edinburgh, headlines as thefirst Muslim is open,”hesays. “It’s not simply astate of mind or mayorofLondon but is farfrom Cardiffand Belfastput together.” an attitude —it’swhatweare: open for talent, for thecity’s onlyrenowned first Khan is pressing the government to devolve more business, for investment.” citizen. The folk tale based on powers over areas such as borrowing, housing, planning Khan looks out from the rooftop of CityHall at the four-time LordMayor Sir Richard and health to CityHall and to letLondon hold on to “Dick” Whittington has become greyclouds over the CityofLondon and admits that thetemplatefor chancers who more of the taxes raised on its citizens and businesses Brexit has raised doubts about the future in some minds arrive seeking streets pavedwith (currently redistributed to parts of Britain thatoften and has prompted the capital’s rivals to begin laying gold. Sensibly, it ishis decision resent the capital’s growing might). out the red carpetfor people and companies thatare to persevere afterhavinghis “Justtogiveyou an idea of the comparison, we [kept] illusions shattered that thecity thinking about leaving. 7per cent of taxes raised in London versus 50 per cent in commemorates. Astatueofhis “The mayor of Milanishere trying to pinch our work,” cat nowstands on Highgate Hill, NewYork and 70 per cent in Tokyo,”hesays. the quick-talking 45-year-old says. “Not unreasonably, wheresupposedlyadejected Thecitycertainly needs the investment. As it Paris, Frankfurt, Berlin and Dublin are trying to court Whittington and his petheard continues to grow,Khan has identified affordable our businesses.”The question hanging over London thebells of London summoning housing as apriority, strongly criticising the former them to returntofame, fortune is whether it can continue to be an open gatewayto and themayorship. Conservative mayor Boris Johnson —now the UK Europe and the world after the UK leaves the EU.Khan Feargus O’Sullivan foreign secretary—for failing to secure more low-cost says London’s voice mustbeheard as the newBritish homes on sites such as the Olympic park in eastLondon. prime minister Theresa Maybegins negotiating exactly He also believes thatthe cityurgentlyneeds newrail what Brexit will look like.Headdsthatitisvital Britain investment, including anorth-south Crossrail 2link, an retains access to the single market and thatinternational extended Bakerloo Underground line and abiggerlight banks in the Citycontinue to have “passporting”rights rail network in the Docklands —anarea thatistaking thatallow them to sell services across the EU. shape as the capital’s 21st-centuryface. France and Germanyare discussing whether London Khan says thatthe prime minister should makea should be allowed to continue with its lucrative euro quick decision —already long delayed —onexpanding FP/GETTY IMAGES

clearing trade andKhan knowsthatthe capital’sfinancial 1. airportcapacity. But he argues anew runway should be ,A services are the mostexposed to the risks of Brexit. Conservativemayoral built not at Heathrow,whose flight path crosses much of He has tworesponses. First, London will continue to candidateZac Goldsmith westLondon, but in the fields to the south at Gatwick. and Sadiq Khan during an flourish outside the EU because global finance wantsto election debateinApril “If the government says yes to anew runway at be in the city, for its time zone, language, schools, culture Heathrow,itmeans years and years of legal challenges and lifestyle. “Given the choice of going to Frankfurtor 2. and legal obstacles,”hesays. “So the waytoget on with it coming to London, theyprefer London,”hesays. Sadiq Khan and his wife is to sayyes to anew runway at Gatwick.” Saadiyaathis swearing-in Themayor also believes the capital mustdiversifyits Khan was elected mayor in Mayinthe face of a ceremonythis Mayin economyand expand sectors such as culture, creative campaign by the Tory candidateZac Goldsmith, a SouthwarkCathedral PHOTOS: BRITAIN ON VIEW

10 |FT.COM/LONDON-WORLD ‘I’vespent most of my waking hours post Brexit speaking to entrepreneurs and investors, saying London is open. It’s notsimplyastateofmind or an attitude —it’swhat we are: open fortalent, forbusiness, forinvestment’

2.

FT.COM/LONDON-WORLD |11 interview

‘It’s crucial forustoprovide certainty to those Londoners of EU origin. Theyneed certaintyand shouldn’tbeused as bargaining chips’

Sadiq Khan says London must notbe complacent about Islamic extremism

millionaire environmentalist, who was accused of trying Several factors mayexplain whyLondon has not as to link him with Islamic extremism. It wasacampaign he speaks suffered alarge-scale Islamistterroristattack thatbackfired, as Londoners turned out in larger-than- since 2005. “Being an island obviously helps, so does expected numbers to back the Labour candidate. Video: Sadiq Khan answers being in chargeofour borders,”hesays. “The lack of While Labour nationally descended into civil war over questions about Brexit, business availabilityofautomatic weapons obviously helps, so has the leadership of the leftwing JeremyCorbyn, Khan and London’s place in Britain the success of verygood police and securityservices in wants to show thatthe party canbetrusted with power. and theworld. stopping people. We’vebeen lucky. ft.com/sadiq-khan (Hecame out in favour of Corbyn’s rival, Owen Smith, “Weshouldn’t be complacent. Just becausewe in the leadership election.)Hehas promised to run “the haven’t had aNiceoraParis or aBrussels doesn’t mean mostbusiness-friendly”CityHall regime yetand has things are hunky-dory, because theyare not.” He points hired some of Labour’s beststaffers from across the river to young girls in London being radicalised in their at Westminster.Herefers to CityHall as “Noah’s Ark bedrooms and going to Syria to become Isis brides. He is —arefugee camp” for those fleeing the party’s internal investing in more communitypolicing to trytobuild up chaos. It is clearly apower base from which he might intelligence in vulnerable communities. one daytry to achieve his own national ambitions. But in spite of the Brexit vote and the threatof Khan’s victorysuggestsLondon is too diverse to care Islamic extremism, Khan wants to keep up the flow of whether its mayor is aMuslim or from anyother EU migrants to the capital, making good on his slogan background. He points out that1mLondoners are from “London is open”. He is even asking the government to other EU countries and thattheykeep the capital’s look at the idea of a“London visa” to ensure employers hospitals and building sitesrunning. “It’scrucial for us to continue to have access to the world’s besttalent. They provide certaintytothose Londoners of EU origin,”he would vouch for the factthatarecruit had housing and a says. “Theyneed certaintyand shouldn’t be used as job in London, and would not be aburdenonthe state. bargaining chips.” Dreams of becoming El Presidente?“Well, aLondon But the mayor is perhaps better placed than most visascares offpeople becauseitsounds difficult,”Khan to understand thatfor allLondon’sattempts at says. “But if you think aboutitinadifferent way— integration, Islamic extremism remains athreat. “The about London businesses having theabilitytorecruit one thing thatkeeps youupatnight is the issue of terror talent —that’sadifferent discussion. Nothing should threats to London,”hesays. be offthe table.” L

12 |FT.COM/LONDON-WORLD

economy

Beyond Brexit

London’s financial services sectorwas left reeling by thedecision to leavethe EU. Howseriousisthe threat —and mightthere evenbesome opportunities? ByPATRICKJENKINS IllustrationbyMARTIN O’NEILL

14 |FT.COM/LONDON-WORLD FT.COM/LONDON-WORLD|15 economy

puntil June 23, London was prettysure Thepracticalities of employment rules aside, there of its place in the world. Building on its appears to have been amore general shiftinattitudes centuries-old position as atrading hub, towards foreigners, too. Within days of the Brexit vote, it had become increasingly confident as a there was a57per cent surgeinreports of racist hate cultural centre as well as, in recent years, a crime across the country. While the number of such Uhotbed of technological innovation. incidents is still small, the shiftinthe atmosphere Thereferendum vote in favour of Britain’s exit from perturbs cosmopolitan Britons and immigrant workers the EU pulled the rug from beneath the feetofthe alike. “I’mworried thatthe UK is turning into acountry city—one of the fewparts of the UK thathad voted Idon’t want to live in anymore,”saysone seniorBritish definitively (in its case, 60 per cent to 40 per cent)in financier in theyofL Cit ondon. favour of remaining partofthe bloc. Forbusinesses, though, the bigger Though it will takeyears to discover concern is about market access and the and negotiate exactlywhatBrexit extenttowhich exporters will be able means in practice, manyLondoners to retain anything of the seamless felt an instant instability, both single-market access theycurrently personally and professionally enjoy.Nowhere is thatmore —and on twofronts: the crucial than in London, where uncertain outlook for Britain’s the dominant financial services abilitytosell unrestricted into industryand the ancillarysectors the EU-wide single market;and of law, accountancyand other the even bleaker prognosis for so- professional services have ballooned called freedom of movement. overthe past30years —inlarge Perhaps the mosttangible short- part because of the capital’s status as term impactrelates to the right ofEU Europe’s dominant financial hub. nationals to live and work anywhere in Half ofthe UK’strade surplusin the bloc. Foreigners of almostall financial services —worthsome £18.5bn nationalities working in the cityseem to have been in 2014 —comes from exports to the EU.London rattled, uncertain whether dominates across multiple niche areas of finance. London’s multicultural It does 78 per cent of the EU’sforeign exchange atmosphere will be business and 74 percent of over-the-counter undermined by the interestratederivatives; 59 per cent of protectionistsentiment international insurance premiums are written pervading the Brexit in London; and 85 per cent of the EU’shedge campaign. Theissue fund assets and 64 per cent of privateequity is apractical one: assets are managed in the city. EU nationals have “Our industryisanational asset—one that received no employs nearly 2.2m people across the UK,” says guarantee of their John McFarlane, chairman of Barclays bank and continued right to also of TheCityUK,the financial services lobby group. remain in the UK “A robustand globally competitive industryhelps to after Brexit. But the buildastrong and thriving economy.” malaise is more profound Themajorityofleading financiers are convinced than that,saysKaren thatBrexit will be anegative for the CityofLondon — Briggs, head of Brexit at shorthand for the capital’s sprawling financial districts. professional services firm Thequestion is, how negative? KPMG,which is working with London’s abilitytoretain its role as ahub for pan-EU clients that employ largenumbers ofnon-UK nationals. financial services will depend inep larg artonthe “All international workers are worried, not justEU political deal thatisstruck in acomplexweb of bilateral nationals,”she says. “Theyare questioning whether, and multilateral negotiations between the UK,the without the abilitytomove freely around the bloc, they European Commission and the more powerful EU want to be based in London.” members such as Germanyand France.

‘Why would we continue to devote resources to acontinentwhose costs and capital

16 |FT.COM/LONDON-WORLD “Our changing relationship with the EU is critical,” world’s main financial hubs will not be threatened says McFarlane. “The newterms of trade will be of fundamentally.Thatispartlybecause rival European fundamental importance to our industryand tothe centres have their drawbacks —being too small, with long-term attractiveness of theUK.” restrictive labour laws or lacking the stabilityofEnglish Theearly signs were not encouraging. TheCity law —but also because of an underlying confidence that was quietly dismayed when the UK’snew prime London will adapt even if it does lose some business. minister,Theresa May, selected David Davis, a Some early hopes for alternative growth priorities hardline europhobe who has also shown little love for have been called into question. Theidea, for example, the financial services industry, as her Brexit minister. of doing more to promote the nascent partnership with Brussels quickly responded with whatwas seen as China in financial servicesybeu ma ndermined bythe aprovocative tit-for-tatappointment, with former cooler Sino-British relationship thatMay seems to have financial services commissioner Michel Barnier made signalled. Whether thathurts London’s fast-growing the EU’sman on Brexit. Barnier had led aregulatory status as the biggest offshore renminbi trading centre chargeatthe EU,cracking down on banks in the wakeof remains to be seen. the 2008 financial crisis. But other areas of growth —instart-up financial If the twomen can bear to look each other in the technology, for example—should be relatively eye, one of their keychallenges will be to establish the unaffected by Brexit. Some already see London degree to which UK-based companies will be allowed to as the world’s mostvibrant fintech hub. sell their products to the single market,even if the UK TheCityUK has highlighted the sectoras pulls up the drawbridgeonEUimmigrants, as Mayhas apriorityfor expansion. suggested she will. ThemoodintheCity, as across Forthe City, whose big banks, assetmanagers and the UK business environment, has insurers all rely on being able to “passport” their services undeniably beenknockedbyBrexit from London right across the EU,the outcome of those and thepervasiveuncertainty negotiations is all important. If Davis comes away with on rules and regulations that little or nothing in the wayofaccess, big employers willnow follow,potentially for are expected to move those parts of their operations years to come. Aweaker economic thatrelatetoEuropean sales to alternative EU bases. environment will makelife tougher for Dublin, Paris, Frankfurtand Luxembourg have all manyfinancial services operators, which made early pitches. is bound in turn to trickle down to the No one expects the Citytobedecimated overnight. broader London economy. But there will almost certainly be As Brexit enthusiasts an erosion of activityand stafff — pointout, though, the outlook and not only to rival European cannot be thatbleak because the centres. “Wewill be looking stock market,after an initial at our global resource wobble,bounced back strongly allocation,”saysone senior in the weeks after the vote. US investment banker The focus now will be on based in London. “Why thedealthatthe UK would we continue to government, after devote resources to consultation with the acontinent whose financial services costs and capital industry, manages to requirements will extractfrom the EU. increase and whose “Thekey,” says one person economyisweak, when atthe heartofthatprocess, we could investinsteadin “will be to maintain the the US or Asia?” strength and eminence of the Nonetheless, there are City, possibly in adifferent shape, plentyofvoicesarguing that and possibly in asmaller size, but London’s role as one of the still fundamentally strong.” L requirementswillincrease when we could invest instead in theUSorAsia?’ —USbanker

FT.COM/LONDON-WORLD|17 economy Millennial moods At theGlastonburymusic festivalthis summer,one actstole theshow: Brexit. Thousands of youngfestival-goersreacted withhorrorasnewsfiltered throughthat Britain had decided to exit theEU. Two-thirds of people over 65 votedLeave while nearlythree quarters of18to24-year-oldsbacked Remain, many of whom have made theiranger clear.Backinthe City, we askedfourmillennials who work in London’s financial services industry— one of thesectors likely to be most affected —for their reaction ByHARRIET AGNEW

Video: What leading City figures think about Brexit. ft.com/brexit-reaction

‘Ana’, 23, graduate trainee at alarge US bank. VotedRemain

“The older generation hasdictated seemstobe alarge downgrade thefutureofthe young. They were from London. born with social mobility,free Ihavenothing complicatinga education,golden pensions. move to anothercity. However, They could live andworkin27 watching my colleagues stress countries. Our children won’tbe aboutrelocatingtheir families, allowedthat. Brexit has been as well as worryabouttheir EU themostmemorable eventofmy citizenshipcomplicatingtheir career.Iwascompletelyshocked. chance to stay in theUK, makes Theimmediate aftermath me wonder whetherthere will be wasfull of adrenalineand super awaveofresignations. exciting. Trading floorswerebusier Over thesummer Ihavehad than ever. It wasclearly greatfor our more faiththatwewill keep some business. As reality kicked in,Irealised sortofaccesstothe single market, that thelonger-termconsequences whichinturnsupportsmyjob security arenot so sunny. Iamrelievedtobeina in London and makesmethink it won’tbe US bank,but if they sticktotheir pre-Brexit such an economic earthquake. Andmaybe TRATIONS: MARTIN O’NEILL

US plan to move partsofthe bankout of London in it’snot such abad thingstarting in asector when

ILL theevent of aLeave vote,thenamovetoFrankfurt it’sinatrough—surelyitcan only go up!”

18 |FT.COM/LONDON-WORLD ‘Emma’, 30, sales trader at a averyuglypath forEurope. What amazes me is that therewerenoparameters around US bank.Did nothaveavote thevote, such as amargin of majoritythat “I don’t feel less welcomeasaforeigner —Imoved neededtobeachieved. It feels as thoughthe here from NewYorkthree years ago.But Ithink referendum wasverythoughtlesslyplanned people don’tunderstand howimportant immigrants and it shocks me that something so complex aretothe dynamismofacity. They grossly and withsuchlarge consequences couldbe underestimate howmuchenergy andinnovation so irresponsibly runand decidedbyasimple theseyoung,foreignminds bringtothe country. The in/out vote. ones thatmakeithereare themostdriven. Andnow Brexit is just onedimensionofawider thesepeoplewill be reconsideringwhether London mistrustofelitessweeping throughthe world. is theplace they want andneed to be. People underestimatedthe chance of Brexit and It makesmefeelasthoughthe systemismuch Ithink thesame will go forDonaldTrump.The risk more functional in theUSasweare allunited, for that he wins is much larger than what is reflected in better or worse. This has startedwhatcould be thepolls.”

‘Robert’,33, fund ‘Olivier’, 25, analyst at alarge manager at a hedge fund. VotedRemain boutique. “Since Brexit I’ve been workingmoreorlessnon-stop.The experienceofwalkingontothe trading floor at 5:30am Voted afterthe resultcameinwas scarybut exciting. From a Leave professional perspective, Brexit is agoodthing forhedge funds.Itmeans morevolatilityand more uncertainty, “I runafund whichmakes my job tougherbut means thereare more that invests opportunities.There will be greaterstock disparity in Asian between winners and losers. equities,so On thehuman side,it’sprettysad and it’samassive allmyassets stepbackwards. What is scaryisthe conflictbetween areoutside theagesand theconflict betweendifferent partsofthe theUK. From UK.The oldergeneration has haditaloteasierthanthe apersonal youngergeneration. Ithink therichwillget richer and perspective, thepoorwill get poorer. I’ve benefited It says alot about whereweare as acountry.I becauseinsterling wouldn’tconsiderleavingthe UK anytimesoonbut Ihave terms they went up in Frenchcitizenshipaswelland Iwill be alot more open valuesignificantlyafter to theidea when Ireachmythirtiesbecause Istruggle to theBrexit vote.I’m also a identifywithvastswathsofthe population here. prospectivehousebuyer so To me theoutcome is evenworse forthe EU than it is I’mthrilled aboutthe dip in house forthe UK.The UK could become asortof prices. ‘Switzerlandlite’ —thatcould be a Like alot of people in finance I’mideologically good thing. Theproblemisthat liberal.The EU is presentedasabodythatactsinthe no one knows; that’s why interest of Europe,but anyreformthatwould benefit it’s hurtingsomuch Europe getsvetoed by companies that would be rightnow.” L detrimentally affected. Ithink theimpactonfinancialserviceswill be mixed. It will create alevel of friction with Europe in termsofonboarding European customers. Butitloses alevel of friction with other international countries. Look at thesuccess of Switzerland.Its financial services industry has thrived while being independent,and there is no reasontobelieve wewon’t follow theirsuccess. It’sall very well to saybanks willmoveout,but Ithink thereisa lot of scaremongering. It’sapeople businessand they would have to convince theirpeopletomove. London is moreinternational and culturally diversethanany other Europeancity.” culture

Mr Eazi, a star in Ghana, played to a packed venue in London this summer A different beat

London is apowerhouse of the mainstream music industry.But unknown to many residents,itisalso ahub of musical exchange —and business —plugged into sounds from aroundthe world By LUDOVICHUNTER-TILNEY Photographs by DAVID SANDISON

FT.COM/LONDON-WORLD |21 culture

ne in six albums sold worldwide last 1. is semi-nomadic in amoremodern way, afusion of year was produced by the UK music BabymetalofJapan, who westAfrican, Caribbean and US urban music thatgoes industry, headquartered in London. playedatthe 12,500-capacity under the umbrella term Afrobeats. London is aprime Thecity’sstreets teem with pop history, WembleySSE Arena in April point on its compass.

from tourists mimicking TheBeatles 2. “When Ilook at the metrics —the online views, sales Oon AbbeyRoad’s zebracrossing to TheKinks’ urban- Valeriya, one of Russia’s and streams —London has always come up as number pastoral masterpiece “Waterloo Sunset”.The capital biggest singing stars, performs one,”MrEazi (real name Oluwatosin Ajibade) explains is one of the world’s greatmusical hubs. But platinum in thecapital before the concert. “London is amajor HQ in terms of records and household names are only partofthe story. people actually paying for the music.” 3. There are numerous other musical Londons too. Bhangrarevolutionaries Alaap, Among themusicians joininghim on stageishis Ifind one on asummer evening at the O Forum who developed their sound in producer,DJJuls (real name Julian Nicco-Annan). 2 Kentish Town, a2,300-capacity venue in north London Southall, west London ALondoner whose Ghanaian parentscametothe city filled with ayoung,dressed-up audience. Almostall in the1970s, he produces musicalongsidehis job as an black Londoners, theyhavecome to see the Nigerian- analystatGhanaInternationalBank’sCityofLondon born, Ghana-based singer Mr Eazi, astar in his adopted offices.Hebegan working withMrEazi in 2014 after homeland who is trying to crack the UK. hearing his songs on the onlineplatformSoundCloud. The25-year-old performs with alarge band and “I think London is the starting point,”Nicco-Annan various guestrappers and vocalists. He wears awide- says.“If you areapopular figure in London it’s To hear music by artists brimmed woven hatintribute to asemi-nomadic tribe definitelygoingtocross over to therestofthe world. mentioned in this article, go to: scattered throughout westAfrica, the Fulani.His music ft.com/london-music Americansare kind of stuck in their ownthing: if it

1. 3.

From the 1950s, transformed by immigration from former UK colonies, London added its own hybrid creations. In thelate1970s,the Punjabi folk genre bhangrawas revolutionised by aband called Alaap from Southall, awestLondon suburb, which supplemented traditional instruments with the synthesised sounds of disco. Exported back to India, the rebooted bhangra proved immensely popular. 2. “I came up with newideas —meaningful and respectable lyrics, melodious compositions, mixing Indian instruments with western sounds, which had doesn’t relate to their culture, they’renot really going to TIN PANSUNSET never been done before in Punjabi music,”saysChanni mess around withittoo much.” Ashort, humdrum turning off Singh, the founder of Alaap, who is nicknamed the Nicco-Annan, 30, and Mr Eazijoin along line of Charing Cross Road maynot “godfather of bhangra”. travellers on the musical trade routes between Accra, look likeadream factory, but London, to which Singh moved in 1975from India, DenmarkStreetwas fordecades Lagosand London. Thepassageofideas, moneyand London’s answertoNew York’s was crucial. “Living in Southall, Iwas able to find out people dates back to the rise of the recorded music TinPan Alley. Thefounding thatAsian youngsters who were born in the UK wanted industryinthe 1920s, when the UK capital was the location of theNew Musical something more relevant to them than their parents. So centre of the largestempire in history. Express weekly paper and many Iwas able to fillthis big musical and cultural gap.” music publishers, Denmark “There was alot of movement between London and Asimilar development occurred in reggae during Street andits backoffices and anglophone westAfrica back then, in terms of records basement studios have seen the the 1970s with the invention of lovers rock, aLondon recorded in the UK and physically manufactured likes of The Rolling Stones, The elaboration thatemphasised romance and melody in there,”saysLloyd Bradley, amusic journalistand Kinks, David Bowie, Elton John reaction to the macho Rastafarianism thatdominated author of Sounds Like London: 100 Years of Black and theSex Pistols rehearse, Jamaican music at the time. It foundagrudging writeand record.The Beverley Music in the Capital.“Thetechnologywas much more Sisters areseen above filming audience in the birthplace of reggae. “Jamaicans, being advanced than it would have been in LagosorAccra, adocumentaryabout the Jamaicans, were rather scornful of anything made in which is whyAfricans would come over to record. streetin1950. Afew music England, so the singers would never admit theyrecorded Thestudios were better.” shops remain, but thegradual these songs in England,”Bradley says. loss of themusical character Thelive circuit was another draw.“Amusician or Modern London incorporates an immense led squatters to occupythe band could come over here and makemoneyasasession threatened (and nowclosed) diversityofmusic. Eastern European, Russian and player in the nightclubs, with all sorts of different styles 12 Bar Club in 2015. Turkish pop stars playtolarge diasporaaudiences. of music requiring black musicians,”Bradley says. Feargus O’Sullivan J-pop acts from Japan and K-pop acts from South “There was acraze for Cuban music in the 1930s, for Korea visit in search of followers. It takes place under instance. If you were asax player from Lagosyou could the nose of alargely indifferent UK music industry, too earn more in London.” busy selling records to the world to notice the world Such exchanges were common throughout the at its doorstep. empire. In theCaribbean, descendants of indentured TheAfrobeats scene, which Mr Eazi is partof, workers from India created so-called “chutneymusic” is tryingtobreak through that wallofindustry in the 1940s and contributed to the rise of soca in the indifference. In 2013,itproduced acrossover star 1970s. Ghana’suptempo highlife music, an influence on in theformofLondon rapperFuse ODG. Mr Eaziis Mr Eazi, developed from local folk and western styles hoping to do the same.“In the lastsix months I’ve in the 19th century. comeherethreetimes,”hesays. “Interms of sales

An immense diversity of music takesplace under thenoseofaUK industry

toobusy selling records to theworld to notice theworld at its doorstep PHOTOS: HULTON ARCHIVE/GETTY IMAGES; PHOTOSHOT

FT.COM/LONDON-WORLD |23 culture

‘London is acityofmixed cultures —and notjust mixed cultures but cultures that areopen to differentthings’ —MrEazi

1.

1. figures it has increased from then until now. It looks as Franco-Cameroonian singer Coco Mbassi moved

Mr Eazi, backstage at theO2 though London is becoming the centre of everything.” to London from Paris 12 years ago. Awinnerofmusic ForumKentish Town Mr Eazi played ashowcase for UK labels in March. awards in France and Germany, shehas found the city But precedents are discouraging. In thepast, biglabels to be less receptive to her particular blend of African 2. Coco Mbassi, who movedto have tended to viewhits from outside their main pop music, classical, jazzand gospel.“I’mtoo much in the London from Paris12years ago and rock constituencies as one-offs. Calypso had a middle for alot of UK-based African music critics,”she briefperiodofpopularityinthe UK in the 1950s but suggests. “In France there is amoreopen mind to fusion was forgotten when rock and roll took off. Lovers rock styles such as Afro-jazz.” supplied anumber of hits in the 1980s but received Lack of mainstream supportdoes not outweigh only aweakendorsement from the establishment. The London’s advantages as amusical entrepôt. “Being able same has been true of bhangra. “Inmyview, UK bhangra to be yourself without being questioned constantly has developed verylittle with the supportofthe UK because of the colour of your skin or whatever,it’s music industry,”Singh says. abig release, it justchanges your life. Iknowgood music comes from suffering, but Iamnot so fond of suffering,”Mbassi says. 2. While Mbassi’sexperiences have been nuanced, the jumbling of genres thattakes place ceaselessly on the capital’s streetsisanessential partofits allure for Mr Eazi. “I feel thatLondon is acityofmixed cultures —and notjustmixed cultures butcultures thatare open to different things,”hesays. Meanwhile, the technologythatenables him to pore over his sales metrics has also reduced the power of record labels, allowing him to makeand distribute songs himself. Recordings made in Accracan be sent to DJ Juls inLondon at the touch of abutton. This is how pop music will increasingly be created in an urbanised, globalised 21st-centuryworld, with London as one of its centres. “So much of the music in London is already made likethat,”saysBradley.“It’s the genuinely multicultural nature of proper Londoners —Imean multiculturalism as you’ll find it in playgrounds or pubs or mucking about in dancehalls. That’s whatLondon is.” PHOTO: REDFERNS/GETTY IMAGES L

24 |FT.COM/LONDON-WORLD science Discovery by design

The newFrancis CrickInstituteembodies aspiritof‘scientific anarchy’ in abid to makeLondon thebiomedicalcapital of theworld By CLIVECOOKSON

decade or so agosenior researchers in after their staffhaverelocated to the Crick. “Tohave the capital’s medical universities decided moved away from London would have been hugely the time had come to put aside ancient disruptive to our research effort,”Nurse says. rivalries. “Werealised thatunnecessary Theinstitute is named after Francis Crick, who with competition made London less than the James Watson discovered the structure of the DNA Asum of its parts,”saysSir Robert Lechler, vice-principal molecule in 1953. Thebuilding, which has steel, glass for health at King’s CollegeLondon (KCL). “Wedecided and terracotta cladding, was designed by HOK,based thatbycollaborating we could makeLondon the in NewYork, with PLP Architecture in London. Built biomedical capital of the world.” by LaingO’Rourke, it was completed within budget but Aspectacular symbol of thatcollaboration has risen 1. several months late and has 1m sq ft of space over 12 in London’s so-called KnowledgeQuarter,nexttothe floors, eight above ground and four.T below he masonry British Libraryand St Pancras station. The£650m 1. and the vaultedroof echo features of St Pancras station Francis Crick Institute will carryout discoveryresearch, Sir Robert Lechler of over the road. Theroof is arranged into twoshells —an investigating fundamental biological processes across King’s College London aesthetic feature thatalso conceals the heating and the biomedical sciences. cooling units and incorporates solar panels. 2. One thousand scientists and 250 supportstaffwill Sir Paul Nurse in themain atrium Thedesign is aimed at encouraging interaction and move into the Crick this autumn, as the institute gears of theFrancis CrickInstitute multidisciplinaryworking. Four “laboratory up to recruit afurther 250 scientists from next year. neighbourhoods” are linked by twoatriums, which cross Thecapital’s three leading research universities — at the centre of the building to create ahub with break KCL, Imperial CollegeLondon and UniversityCollege areas, collaboration space and alargecentral staircase. London —are partners in the Crick and will second Walkways and meeting areas criss-cross the main atrium academics to the institute. and connectneighbourhoods. Glass walls promote “Wesee the Crick as an international beacon for openness by allowing people to see into and out of labs. UK science, attractingresearchers from around the “Wedidn’t want anyphysical barriers between our 120 world,”saysSir Paul Nurse, the institute’s director.“The labs,”Nurse says. “It’sall about open-plan, collaborative discoveries we makehere will establish our place at the working and directsightlines, in an environment thatI forefront of science in London, the UK and worldwide.” hope will encourageasortofgentle anarchy.” Some critics have said thatthe organisations funding TheCrick’sadministrative structure is also intended the Crick —the government’s Medical Research Council to create constructive “scientific anarchy”.There are no (MRC) and twocharities, Cancer Research UK and departments or divisions, justthe 120 research teams the Wellcome Trust—should not have placed it in with about 10 scientists in each. overcrowded and expensive central London. But the Another unusual feature of Crick is thatmostofthe institute’s leadership insistthatnoother location would researchers will not have permanent posts but will be have such international appeal. appointed for amaximum of 12 years (with areview RRY Another point is thatthe Crick is replacing three after six years). When their term is up, the institute PA laboratories in the London area: the MRC’s Mill Hill will help them find asenior scientific job elsewhere — VID facility andCancer Research UK labs at ClareHall and probably in auniversity—including atransfer package. DA Lincoln’s InnFields. These labs, built in the mid-20th “Wewant to provide apipelineofthe brightest centuryand no longer fit for the 21stcentury, will close young researchers from around the world into UK PHOTO:

26 |FT.COM/LONDON-WORLD 2.

FT.COM/LONDON-WORLD |27 science

WELLCOME HOME Those who fear apost-Brexit brain drain might be comforted by thestory of HenryWellcome, theAmerican pharmaceutical entrepreneur.Although theUS wasinits ascendancyinthe late 19th century, Wellcome chose to come to Britain,wherehemade his fortune selling theUK’sfirst medicines in tablet form.The profits funded theWellcome Trust, thecelebrated biomedical research charity,now on Euston Road. Not allwent smoothly forWellcome however.His 1. marriage to interior designer Syrie Barnardo (whose father founded charity Barnardo’s) was dissolvedafter she had achild withwriterSomersetMaugham. ‘It’sall aboutcollaborativeworking in an environment I Feargus O’Sullivan hope will encourage asortofgentle anarchy’ —Sir Paul Nurse

institutions,”saysNurse. He admits to concern thatthe attitude to licensing and technologytransfer.“We’re threatofBrexit—and the imageofBritain as acountry adopting asomewhatdifferent approach to many becoming less friendly to foreigners —may putsome institutions, which are always thinking about how much people off, but he still expects this autumn’s recruitment moneytheycan makeout of adiscovery,”Nurse says. 1. drive to arouse stronginternational interest. London’s scientific leaders are well aware thatthe Ascientist uses an electron microscopeinone of TheCrick focuses on discoveryscience andwillnot city’sweak point as aglobalscientific powerhouse is the120 laboratories carryout clinical research, though there will be extensive the low level of commercial exploitation of its research rodent facilities for animal experiments. However,it —acharacteristic it shares with NewYork. Both cities 2. does aim to nurture partnerships with pharmaceutical have greatscience and greatfinancial institutions but The exterior of theinstitute in London’s burgeoning and biotechnologycompanies to translate discoveries arelatively poor record of supporting science-based ‘Knowledge Quarter’ into commercial products to combatdisease. The spinout companies. “London and Boston are on apar firstcollaboration, with pharmaceuticals group in terms of scientific publications but London has 3. GlaxoSmithKline, is already in operation. only 10 per cent of Boston’s commercialisation activity,” ‘Laboratoryneighbourhoods’ Anyintellectual property thatresults will belong to saysKCL’s Lechler. areconnected across the institute’s atriums the Crick, but the institute intends to takeagenerous To improve thatrecord London needs to enlisthelp from collaborating institutions beyond the citycentre where the high costand low availabilityofsuitable land and facilities are adauntingbarrier for biotechnology start-ups, Nurse says. Forinstance,Imperial College’s hugenew Imperial West campus on the edgeoftown at White Cityand,onthe other side of London, UCL East on the Queen Elizabeth Olympic Park in Stratford could hostspinout companies. More opportunities lie even further afield; one is StevenageBioscience Catalystat GSK’smain UK research centre in Hertfordshire. Then there is the question of how much London’s

scientificinstitutions should extend their collaboration AFP/GETTY IMAGES; WELLCOME IMAGES

to the other corners of south-eastEngland’s “golden Y; triangle”: Oxford and Cambridge. MedCity, setupin RR PA 2014 to promote medicine in London, has decided to do so. “From abroad, people see south-eastEngland VID DA as acluster so it makes sense to bring in Oxbridge,” says Lechler.“Oxford is enthusiastic about coming in, 2. Cambridgeabit sniffy.” L PHOTOS:

28 |FT.COM/LONDON-WORLD 3.

FT.COM/LONDON-WORLD |29 architecture

Ahoarding with apastoral river scene screens building work at Battersea

30 |FT.COM/LONDON-WORLD Thelost river

Themostradical remaking yetof Thames-sidearchitectureisdrowning outadefining featureofthe city, says EDWINHEATHCOTE PhotographsbyCHARLIE BIBBY

FT.COM/LONDON-WORLD|31 architecture

1.

3.

5.

2.

hen Canalettoarrived in London in 1746, he seemed to segue effortlessly from views of the Grand Canal and the Lagoon in his native Venice to expansive and grand views of the 4. WThames. London in the mid-18th centurywas aboom town. Thebanks of the river were lined by amix of ad hoc tenements, wharves and palaces. 1, 2and 3. MI6 headquarters and ahugeswathofwhathas become It was acityinflux, anchored by the greatdome Newresidential developments the Thames’ 21st-centuryvernacular,alandscape of of St Paul’s and the spikyskyline of dozens of spires at Nine Elms glazed towers stacking apartments for investment. puncturing the horizon. That particular mix of church, Vauxhall and its neighbour Nine Elms are emblematic 4. wealth, trade and poverty defined the y’cit shorizon for Canaletto’s‘The River Thames of ariverside wherethere is now only one option — centuries, asymbol of resilience as well as flexibility, withStPaul’s Cathedral on luxuryresidential. Whatshould be amixed, magical hereditarypower and the potential for the accumulation LordMayor’s Day’ (1747-48) piece of cityembracing its vegetable and flower market, of wealth from agood idea. abuzzing gayscene, alively Portuguese community 5. In Canaletto’sday,further westalong the river The newUSembassy in and the remains of light industryisfastbecoming a there was almostnothing, justafew villages andthe Nine Elms monoculture of the glass vitrines of assetapartments. occasional countryhouse —and one landscape of real Spurred on by the construction of the newUS charm. In Vauxhall there was apleasure garden. This 6. embassy and the rebuilding of Battersea Power Station Battersea PowerStation enchanted park was the social space, aworld that came for residential use, the riverside is being changed, tolife at twilight, dotted with thousands of lanterns and 7. arguably,moredramatically than at anytimeinits with music wafting through the air.Itwas thecity’sback Newapartment blocks history. But what, exactly, are we building —where is garden, aplace of display, consumption and sex. in Battersea the plan? It is often asserted thatLondon is acitythat Todaythatsamesite houses aweird mix of soot-stained grows organically,dictated by the market rather than 8. railwayarches,gruesome traffic junctions, the lumpy Flats at Vauxhall by dictators, but is the market capable of delivering real

32 |FT.COM/LONDON-WORLD 6.

7.

7. 8.

Whatshouldbeamixed, magical streets, the paths theytrace often following medieval or Roman routes. It is acityoflayers in which each piece of cityisfast becoming newmanifestation smashes through the old, yetone in whichtraces of each erasurvive so thatitbecomes a amonocultureofthe glass palimpsest, its evolution legible in its built fabric. vitrines of assetapartments Yetthis newriverside landscape more closely resembles Dubai —whatDanish architectand urban design expertJan Gehl refers to as “perfume bottles” — urbanityrather than askyline of isolated objects and a askyline of disassociated forms thatbearnorelation streetscape of gated developments? to the street, the river,the historyand grainorthe TheUSembassy is astandalone glass cube, asuper- waywemovethrough the city. Instead, each block is a secure structure thathas the river on one side and an discrete, deracinated object. actual, partial moat.Itisthe architecture of alienation. Vauxhall and Nine Elms are the mostcharacteristic Battersea Power Station, meanwhile, has long been manifestations of this phenomenon, but the whole south one of the city’ssaddestsights, amassive temple of bank, from Wandsworth to Blackfriars and beyond is power and industrythathas been emptyfor as long as it being blighted by blocks thathavenothing todowith was active and is increasingly looking likeitshould have anything —developments entirely aimed at maximising been put out of its misery. Itswalls, likebrick cliffs,are “river view” floorspace with its subsequent uplift. being entombed in glass canyons of luxuryresidential There is another version of the South Bank —that blocks designed by Foster &Partners and Frank Gehry of Europe’s biggest urban cultural centre, aconcrete —global names commissioned to invigorateaproject landscape embracing the Royal Festival Hall and stalled for so long it became ajoke. the brutalistlandmarks of the National Theatre, the Thefirstimpression of anyone approaching this HaywardGalleryand therest. That landscape of leisure, chaotic landscape of disconnected towers mustbeone now expanded by Tate Modern and the Globe theatre, of bemusement. Howhas this anarchic cityscape been is one of modern London’s success stories, but the allowed to emerge? London is acomplexcityofdense visionarypublicnature of thatforward-looking,

FT.COM/LONDON-WORLD |33 architecture

1.

2.

The current rebuilding of theriver’s banks is themostradical and massivethe city

has seen, acomplete remaking of its 3. panoramas. Anditisamess genuinely public cityscape also helps to highlight the and publicfunctionsare understood—fromSt privatisation of the skyline further west. Paul’s and Tower Bridgethrough to Westminster and In the easttoo —inthe Docklands, the same the cultural complexofthe SouthBank to itsbroad generic, globalised luxurytowers are metastasising Embankments. into adense yetstill oddly dispersed landscape that Thecurrentrebuildingofthe river’s banks is seems to look to the physical forms of NewYork or the mostradical and massive the cityhas seen, a Chicagoyet has none of the logic of those cities’ grids, completeremakingofits panoramas. Anditisamess, their mixed economyintensity or their relationship compoundedbythe Garden Bridgeproposal —an to the waters thatdefine them. eyesore thatthreatens to spoil London’sgreatestview London is not acityofsquares andpublicspaces. (from Waterloo Bridge). TheThames seems tobe Instead it is defined by itsparks and, mostfully,by losingits way. its river.The Thames is London’s defining civic space. With the crisis caused by Brexit and the sudden It is not justanarterybut aconduit through which slowdown in sales of whatnow appears to be aglutin the city is understood.Its winding complexitymeans luxuryproperties, this is acityremaking itself in afailed thatclusters of towers overlap and create background model. It has been adisastrous waste and amassive as well as becomingforeground themselves.Itisthe opportunitylost. Is it too late to save the Thames from passagethrough thecityalong which its ceremonial London’s lack of planning? L

34 |FT.COM/LONDON-WORLD 6.

1. 4. 7. Battersea PowerStation, framed by newapartments

2. Workers on aconstruction site at Nine Elms 5. 3. The newUSembassy in Nine Elms

4. The vieweast to St George Wharf, Vauxhall

5. The viewwest towards Battersea from Vauxhall

6. to 9. The SouthBank,nearthe National Theatre 9.

8.

FT.COM/LONDON-WORLD|35 transport

Rush-hour traffic inches toward theStrand in central London

36 |FT.COM/LONDON-WORLD Running outof road

Traffic speeds in London have slowedto belowpre-congestion charge levels but thecauseisnot simply thenumberof vehicles. Difficult decisionsare looming if thecityistokeep moving By CONORSULLIVAN PHOTO: CHARLIE BIBBY

FT.COM/LONDON-WORLD |37 transport

uses, taxis, vans, trucks and afew cars creep up the Strand, pastthe Savoy hotel and Charing Cross station, eventually reaching Trafalgar Square. It is atypical morning on one of London’s busiestthoroughfares and Bthe city’stransportchiefs privately admit thatanyone who happens to be stuck on abus would almostcertainly be better offwalking. Thescene is replicated citywide andthe situation has become noticeablyworse since early 2015. By the end of the year afive-mile journeythrough central London was taking an averageofnearly 30 minutes —almostfive minuteslongerthanatthe startofthe year (see chart). Thirteen years after acongestion chargewas levied on drivers in apioneering and initially successful attempt to getthe citymovingagain, traffic has slowed to pre-chargespeeds. In 2003, the firstyear of the charge, vehicles moved at an averageof10.9mph in the zone, up from 8.8mph the previous year,according to figures from traffic analysis companyInrix. In 2015,the averagespeed was8.3mph. Theworsening situation has been blamed on many factors, including the growth of Uber car hires and Amazon deliveries, the installation of cyclelanes and pressure from residents to reclaim the streetsfrom cars. Anysolution mustaddress the contentious question of how the cityallocates space on its narrow roads. Among the alleged culprits,one is noticeable by its absence —the privatecar.The number of people travelling into central London in their own car in the morning rush hour has been declining steadily for years. It fell by half between 2000 and 2014 and now accounts for about one in 20 people entering London during the morning peak. “The only privatecars on the road are residents 1. and rich people. We’vepricedoff therestofit,” says Leon Daniels, managing director for surface licensed to operateasprivatehirevehicles —a64 per transportatTransportfor London (TfL). (Residents rise in three years. Thenumber of traditional black cabs, of the congestion chargezone do not have to paythe at about 22,500, is the same as it was in 2011, the year £11.50 daily fee.) before Uber was launched. Attempts to curb the number However,this presents adilemma unique to London. of Uber cars on the road have so far failed. Aregulatory It has become commonplace to argue thatdriving in crackdown proposed by former mayor Boris Johnson privatecars is selfish and to suggest thatpeople should triggered apublicbacklash lastyear, whilecentral takeatrain or businstead, but whattodoabout other government has blocked calls for acap on their number. road traffic is amuchthornier question. Thelatestfront in the battle is the argument thatif “London is close to proving thatyou can takeaway travelling by car suddenly becomes much easier and

all the privatecars and still have chronic congestion,” cheaper,morepeople will do it and congestion will ETTY IMAGES

says Tony Travers, professor of local government at increase. Uber,however,points out thatmostofits ;G the London School of Economics. “There needs to be business is away from the centre of town and at night. athought-through policyabout what the roads are for, According to astudy of its data by Inrix, only 6per cent with ahierarchystarting with emergencyvehicles and of Uber trips lastyearwere in central London, during working down.” the daytime and on aweekday. One target of criticism has been Uber,the US car- Less controversial but harder to tame is “white van hailing app thathas grown rapidly in London, as it has man”. Thenumber of light goods vehicles is rising in manyother cities. This Augustthere were 81,710cars sharply,which TfL suspects is because of the tendency PHOTOS: CHARLIE BIBBY

‘London is close to provingyou cantakeawayall privatecarsand still have chronic

38 |FT.COM/LONDON-WORLD FOR WHOM THEBRIDGE TOLLS London’s contemporarycongestion maybeirksome,but spareathought forthe city’s Victorian cabmen. Until 1877 most of London’sriver crossings charged tolls, turning toll-free London Bridge intoabottleneck. It is little wonder that most workers in theVictorian City of London walked to their office —by1854, their feet hadwornthe bridge’s granitefootwayssodangerouslyflat and slipperythat they had to be roughened withchisels to aid grip. With driving on theleftonlyintroduced graduallyfrom 1867,horse-drawntraffic jams were acommon sight. Feargus O’Sullivan

for people to have personal parcels delivered to their place of work in central London. London’s growing economyhas been another cause —freight traffic tends to move in sync with the economy. “Everycrane you see is abuilding, and all those buildings are eventually going to be full of people, and all those people are going to need their photocopier paper delivered,”saysDaniels. Thedeliveryindustryisunregulated and for companies in it, the £11.50 daily chargeisasmall cost of doing business. “It’sachangeoflifestyle in terms of deliveryvehicles —people want things instantly,” saysCaroline Pidgeon, chair of the London Assembly’s transportcommittee. “Not in five days —theywant it in afew hours, to their office.” Although Daniels suggeststhat“theright thing for any Average time forafive-mile trip 1. responsible person to do is to have their Amazon parcels The encroachment of delivered to their home”,itisunclear whether many Travelling between 6am and 9pm(minutes) construction sites has been a people will heed his advice voluntarily. 30 factor in reducing road capacity Surprisingly,the neteffectofthese changes to London’s traffic appears to be small. According to most Central London sources of data, the overall amount of traffic is either 25 static or falling slightly.“Traffic levels have been fairly steady over the pastfour years; theyhavebasically been the same,”saysDominic Jordan,chiefdata 20 scientistatInrix. “However,trafficspeedshavefallen noticeably.Ifitisn’t down to extravehicles, it’s down to a 15 reduction in capacity.” Arangeoffactors have cutthe amount of traffic that Outer London London’s roads can handle. One of the mostobvious 10 examples of the reallocation of road space is the reservation for cyclists of one lane on twokey arterial 2012 2013 2014 2015 routes. Big construction projects —ofwhich there are Source:Inrix currently manyinLondon —often encroach on the congestion. Thereneeds to be apolicyabout what theroadsare for’ — Tony Travers, LSE

FT.COM/LONDON-WORLD |39 interview

‘There’s actually quitealotofroad space in central London, but rightlyor wronglymuchofitismadedifficult fortraffictouse’ — Alexander Jan, Arup

1.

2. This manifests itself in other ways. Asteadily increasing proportion of roads have speed limits of only 20mph, including all of the central borough of Islington. Meanwhile, manyroad junctions are being redesigned, making them less efficient at processing largenumbersof vehicles and better for pedestrians and cyclists. Explaining aredesign of Elephant and Castle, abusy south London junction notorious for accidents, TfL says: “Currently,trafficdominates the area, and there are more collisions here than at almostany other junction in the capital. Changing the waytrafficmoves around the area is expected to reduce collisions by athird. Journey times are expected to increase for all road users.” Back on the Strand, the traffic still crawls. But despite the seemingly random and unpredictable nature of London traffic, there is something else at play. Controllers sitting in an air-conditioned TfL office block, in front of an impressive array of monitors, exerta remarkable degree of control over the waytrafficflows. roads around them, while some argue thatthere is an They uselongstreets suchasthe Strand as aqueue, insufficiently strictapproach to utilitycompanies that and the traffic permitted to enter Trafalgar Square at dig up the roads. the end is monitored so that the junction does not seize Pressure from residents to close off“rat runs” and up. At the flick of aswitch, traffic lights across the city restricttraffictomain roads has also played apart. can be reprogrammed to choketrafficawayfroma While keyroads arecontrolled by the city, the restare gridlocked junction, while sensors buriedinthe road can the responsibilityofLondon’s 33 local councils, which automatically give prioritytodifferent lanesaccording to FP/GETTY IMAGES tend to listen to their residents. the volume or type of traffic thatiswaiting at each. ;A “There’s actually quite alot of road space in central 1. TfL,however,isstarting to run out of road —it Dedicated cycle lanes on arterial London, but rightly or wrongly much of it is made routes have reducedroad reckons thatinabout four years it will have exhausted difficult for traffic to”s use, aysAlexander Jan, adirector capacity forvehicles all possible technological tricks for squeezing as much at engineering consultancyArup. “Perhaps because traffic through the same streets. That puts the onus on of pressure from residents, authorities have found 2. politicians. As the city’spopulation soars towards 9m, it The congestion charge has themselves funnelling traffic down afew major roads will fall to mayor Sadiq Khan to decide who wins priority failed to halt thelong-termfall in thatsit next to often emptystreets.” in using London’s precious little road space. average traffic speeds L PHOTOS: CHARLIE BIBBY

40 |FT.COM/LONDON-WORLD Causing astink over pollution By Pilita Clark

Themillionsoftouristswho flock to London everyyear expect to seeBig Ben, Buckingham Palace and double-deckerbuses. Butthe EU’s largestcityisalso home to somethingfar less appealing:alarming levels of airpollution. Thecapital’sunhealthyair hasbeencausingup to premature 9,400deathsayear —far more than previously thought,astudy by researchers at King’s College London (KCL)concludedlastyear. Another report,for think-tankPolicyExchange, showed that nearly 4m people work in partsofLondon 1. with illegallevels of aprincipalculprit—nitrogen dioxide

(NO2), agas released by thelarge number of diesel vehicles. Some 328,000 children go to schools in areas figurelastyearwas 60.) But2006was theyearBirkett withunhealthyamountsofthe pollutant, whichcan begantoget involved.Hewas nearing theend of a inflameairways in thelungs,causingwheezing, colds 21-yearcareerwithHSBCwhenafriend conscriptedhim andworse. to aKnightsbridge residents’ associationinwestLondon

NO2 pollution wassobad in busy Putney High Street, that hadbeenfightingtostopmotorists usingresidential south-west London,thatitexceededannuallegal levels streetsasrat runs.Birkett discovered therewas an air in thefirsteight days of this year,according to theKCL quality monitoronBrompton Road,not farfromHarrods research,and it took just twodaystopassthe annuallimit departmentstore. “The pollution levels were much higher in crowdedOxfordStreetin2015. than they should have been,” he says. 2. “It’sascandal,”saysAlan Andrews, alawyerat This realisation set offaone-man campaign to nag, ClientEarth,anenvironmentallaw firmthathas been 1. niggle andpesterofficialsthroughoutthe city aboutthe fighting in thecourtsfor faster government action on Pollution overcentral London need forlegal levels.Birkett founded acampaign group, smog forthe pastfive years. CleanAir in London, butby2009decidedtocrank up the 2. Theproblembecameaprominentsubject of debate in Campaigner Simon Birkett legal pressure,making what he says wasa“significant” therun-uptothe mayoralelections in May. Newmayor donation to ClientEarth.“Hisearly investment in Sadiq Khan planstoimpose a£10 charge on thedirtiest ClientEarthallowed us to initiate anddevelopasuccessful vehiclesfrom2017and bringforward other anti-pollution campaign,” says Andrews. measures launched by his predecessor,Boris Johnson. Midway through2009, Andrewsrealisedadeadline

Forsomeofthe scientistswho have been monitoring formeeting EU NO2 limits wasgoing to be broken by a thecity’sair foryears,this is welcomenews. “Our significantmargin in London thefollowing year.Alengthy previousmayor didn’t really believeindoing anything to courtbattleensued andasthe case dragged on, it restrict businessorindividual freedoms,”saysProfessor emergedthatunder existing government plans, London’s Frank Kelly, director of theEnvironmentalResearch air would not meetlegal levels until2030. GroupatKCL.“Thecurrent mayorrecognises thereisa In Aprillastyear, ClientEarthscoredavictory. The penalty to pay.” SupremeCourt orderedthe government to redraftits

That recognition took years andisinpartdue to the NO2 plansbyDecember31tomeetlegal limits as soon effortsofone especially dogged, if unlikely,campaigner: as possible. Four months later, theworld learnt that SimonBirkett,anengineerturned investment banker. Volkswagen had been installing software in its diesel cars Adecadeago,manyenvironmentalactivists were that enabled cheatinginofficial emissionstests,focusing preoccupied morewith globalissues, includingclimate freshattention on air pollution. change,thanlocal ones such as smog.The phrase“air By theend of last year,the governmenthad come up pollution in London”croppedupeight times in news with anew setofplans, though analysts sayitwillstill storiesin2006, amedia database search shows. (The take yearsbeforeLondon’s air is legal.SoClientEarth is backincourt,tryingtoforce faster action. Birkett is now57and thinkshis work in raising awarenessabout London’s air pollution is closetobeing It took just thefirsttwo days of done.“I’ve made myselfredundant—deliberately,” 2015 forOxfordStreettopassits he says,pointingtothe widespread recognitionofthe problemand thelarge number of campaigners now workingonit. “There’s atidalwaverolling up thebeach.” annual limit on levels of NO2

FT.COM/LONDON-WORLD |41 h o u s i n g

Climbing out of reach

As the city’s soaring population heightens the need for more affordable housing, the new mayor’s biggest challenge is to encourage the private sector to fill the gap By JUDITH EVANS

ix weeks before his election as London mayor Long a worry for workers, the affordability of London in 2008, Boris Johnson unveiled his housing housing has become a prime concern for companies: in manifesto. “If we are to improve the quality of a survey by the CBI, the employers’ organisation, ahead life for all Londoners,” he told an audience at of this year’s mayoral election, it came second only to the Royal Institute of British Architects, “then transport as a priority for businesses. The London media Swe must do something about the impact housing has on have featured stories of “extreme renting” by young the rising cost of living.” residents who attempt to avoid high housing costs by The challenge of making homes more affordable was to living in minuscule apartments, boats and even garages. prove beyond the mayor during his two terms and eight Few blame Johnson alone for the housing affordability years in the post. At the time of his election, first-time crisis. With limited powers as mayor, he had to contend G R

E buyers were spending on average 6.5 times their annual with intense demographic pressures. In 2015, the capital B

M earnings on a home, according to Nationwide building exceeded its 1939 population record of 8.61m, reaching O

O society; now, the figure is 10.4 times (up from 2.8 times a new high of 8.63m, according to the Greater London L B

: in the early 1990s). Rents, meanwhile, have risen 48 Authority. But during his tenure he faced fierce opposition O

T per cent since 2007 against 11 per cent for incomes, to a succession of projects waved through with low O

H according to Countrywide, the estate agency group. proportions of affordable housing, including a large P

4 2 | F T . C O M / L O N D O N - W O R L D Flats under construction silhouetted against the arch of WembleyStadium, north-west London

FT.COM/LONDON-WORLD |43 housing

‘Almost allaffordable housingdepends on privatesector development. The Brexit vote will likelyslowthe paceofthat’ —Ben Rogers,Centrefor London

regenerationscheme at Earl’sCourt, the site of the former commercial developments to include below-market exhibition centre in west London. housing. But theywillnot changethe capital’s overall Abig redevelopment at Elephant and Castle in south reliance on these agreements, which in effectpiggyback London also faced angryopposition because only 25 per on profit-making schemes totha ften stall when cent of it was affordable housing —below the borough property marketsdrop. of Southwark’ssupposed minimum of 35 per cent —and That problem has come to the fore since the UK voted it will lead to alossofhomes at significantly reduced to leave the EU,which has injected uncertaintyintothe rents, known as social rents. More broadly,Johnson housing market.“Almostall affordable housing depends established apattern of pushing through developments on privatesector development, and [the Brexit vote] will thathad been rejected by local authorities. likely slow the pace of thatdevelopment,”saysBen Early in his mayoralty, the Conservative politician Rogers, director at the Centre for London think-tank. came under fire for dropping atargetput in place by 1. “There arealsoworriesabout the thingthatreally unlocks his Labour predecessor,Ken Livingstone, that50per newhousing in London, which is newinfrastructure. cent of all newhomes should be affordable. But he 1. AprojectlikeCrossrail 2[aproposed north-south rail actually beatLivingstone’s annual averageofaffordable James Murray, thedeputy link] depends on agreatdeal of parliamentary housing construction by about 1,600 homes, according mayorofLondon for legislation, and is there going to be time for that to GLA figures. He did, however,havethe benefit of a housing and residential legislation if we are uncoupling ourselves from Europe?” development wider definition of affordable housing from 2011, which Even without thatfactor, industry leaders agree that included rents of up to 80 per cent of the market rate. 2. more drastic changes are needed to bring about abig Thearrival of thenew mayor,Labour’s Sadiq Khan, Anew block of affordable increase in construction. Khan puts the overall number in Maythis year followed an election in which voters homes near Elephant and of newhomes thatthe capital needs to build each year Castle, beside older local identified housing as their top priority. This offered at 50,000, but in 2015 the figure was only 24,610 —and authority housing achance to takestock. Since taking office, Khan has thatwas the highesttotal in adecade. begun an overhaul of the processes by which most Despite the acute need for newhousing,construction affordable housing is now built. Developers currently in recent years has fallen far shortof20th-century negotiate with councils on levels of cheaper housing peaks: London built 37,400 newhomes in 1971,when through an adversarial and unpopular process of the number of households in the capital was athird “viabilityassessments” on each project. Instead, says lower than today, and 80,600 in 1934, when the city’s Khan’s deputymayor for housing, James Murray,the population was approaching current levels. administration will probably allow projects with a During these peaks, construction was less reliant on specified threshhold of affordable homes —potentially private-sector housebuilders, since local authorities were 35 per cent —toskip the viabilityprocess. prolific builders in their own right. Additionally,land In planning guidance to be released this autumn, was cheaper and planning regimes were less restrictive Khan’s team is also likely to introduce anew definition of development. Themostrecent housebuilding boom of “affordable” rents. Murray favours atougher definition “was agreat national effort”,saysStuartRobinson, based on median earnings. These measures will affect chairman of planning at CBRE, the property advisers. the quantityand nature of affordable housing provided “This time there are so manybodies competing for under so-called Section 106 agreements, which require labour and capital and materials. We livedinaworld

2. PHOTOS: MICHAEL CRABTREE

44 |FT.COM/LONDON-WORLD 1.

1. officers recommended rejectingthe scheme.Khanissued Protesters derail BishopsgateGoodsyardin asignaltodevelopersbyhiring theformer mayorof its current state Hackneyand aprominentopponentofthe scheme, Jules

2. Pipe,ashis newplanningchief. high-risescheme The original conceptfor the Once again,the schemehas gone backtothe £800m redevelopment drawingboard:Hammerson says it will takeanother12 months to reconsider its plans. Between theCityofLondon andthe boomingShoreditch Judith Evans technology belttothe north-eastlie 11 acresofdisused railway arches,wild plantsand temporary football pitches—this despitethe plot’s primelocationnextto an Overground station. Bishopsgate Goodsyard is one of severalpromising London sitesthatstill stands emptythankstowrangling over thenatureand purpose of its redevelopment. Thesitewas boughtbythe listed property company Hammerson anddevelopersBallymoreinthe early2000s after laying derelictsince afire destroyed itscontents, and killedtwo people,in1964. Theproperty companies proposed an £800mplanto redevelop thesite, includingseven towers between 17 and 46 storeyshigh, buthavefaced stiffopposition from acampaignled by DanCruickshank,the arthistorianand BBCtelevisionpresenter. Thecampaign has highlighted thelackofother skyscrapers in theimmediatearea, the shadows thetowers would cast andalow levelof affordable homes —15.8per cent under thelatestplans. Thedevelopers counterthattheir plansoffer morethan 1,350new homes,700,000 sq ft of officespaceand 5.5acres of new“public realm”, includingaraisedpark. Boris Johnson leftthe final decision on theGoodsyard 2. to his successor as mayor, SadiqKhan, afterhis planning

FT.COM/LONDON-WORLD |45 x x x x x x x x Prime market feelsthe pain

Afterthe 2008 financial crisis,London’s high-end residentialsectorrecovered quickly,asoverseasinvestors showed aseemingly limitless appetite forhomes in exclusive areassuchasKensington and Chelsea. Butthe Brexit shockcomes as thesectorisalready in declineagain, hitbyrepeatedchanges to thestampduty regime, afresh wave of newsupply being builtand a waning of demandfromAsian and Russianbuyers. Thenumberofproperties thatchanged handsinthe second quarterof2016inprime London areas wasdown 1. 42 per cent on thesame period ayearearlier,according to LonRes,aresearch company,which also notedawave of discountinginthe aftermathofthe referendum,as ‘Weneedtostepupthe unlocking of public somevendors finally conceded thatpriceswerefalling. “Overthe past 18 months vendorshad already begun land forhousing’ —Stephen Howlett, Peabody to adapt to thenew pricingenvironment, andinmany casesBrexithas been atrigger to make overdue reductions to asking prices,” says Liam Bailey,headofresidential then when people didn’t objecttohousing; theyjust 1. research at property advisersKnightFrank. allowed councils to getonwith it. Now, the fundamental Protests outside City Hall about Prices in London’s wealthiest areas were down nature of British society has changed. We don’tseem to theaffordable housing crisis 3.9per cent from ayearearlier in thesecondquarter encouragethose organisations that are seeking to provide 2. of 2016,and 8per cent below their2014 peak, housing through other means than housing for sale.” Eaton Squareinthe prime accordingtoSavills, theestateagency. At CityHall, Murray is aware of the need to bring district of Belgravia Oliver Hooper,director at Huntly Hooper, the fresh sources of capital into housebuilding. He is property searchfirm,sayshehas seen onevendor offer looking at ways to use the planning system to encourage to takea30 percentlossonthe pricetheypaid fora more construction of “build-to-rent”developments — home.But more generally, he adds,“theownership of the largeschemes thatare popular among big financial primecentral London market is fairly affluent, and on the institutions seeking steady income. whole,vendors areholdingout”. But the keytoachieving significant change, says Rogers, Estate agents have foundone rayofhopesince the is devolution, specifically control over more public funds. referendum: thedecline in sterling, whichhas made UK Johnson took control of housing policyand spending in assetsmorethan10per cent cheaper forthose whose thecapital; Rogers believes his successor should seek home currenciesare dollar-linked. both devolution of the stamp dutyregime on properties That ledtoabrief spikeinsalesinthe week afterthe and council tax reform, enabling additional receipts to vote,which agentssay they arehoping will heraldanew councils thatcould fund housing development. wave of interestamong overseasbuyers.But to revivea Khan is in discussions with central government on sinkingmarket, thosebuyersdrawn in by theprospect of further devolution, and has received an early positive bargains would need to outnumber thoseput offbythe response from the Treasury. He is also “making the many uncertaintiessurrounding Brexit. case thatcouncils should have more flexibilityto Judith Evans invest”,saysMurray. Stephen Howlett,chiefexecutive of Peabody, the housing association, believes Khan should also step up his predecessor’s efforts to unlock public land. “There’s been lots of talk about public land being made available for housing, and some progress has been made, but we need to step it up agear.That’sanissue for the mayor and for central government as well,”hesays. In the meantime, debate ragesoverthe changes Khan plans to maketothe existing regime. One hope is that tougher demands on affordable housing might help to

UY BELL/ALAMY bring down prices for development land, opening up

;G newopportunities. But CBRE’sRobinson worries these same demands might “create alot of undevelopable land”bymaking construction yetmore expensive. At the same time, Robinson hasfaithinthe mayor’s potential as acatalystfor broader changes. “You don’t have alot of power,but you do have alot of influence,” he says. “Hecan use his influencetoalign people’s actions.” 2. PHOTOS: CHARLIE BIBBY L

46 |FT.COM/LONDON-WORLD

West Ham this year added ‘London’ to its crest with an eye to the global market sport

Home advantage

London-based football clubsfind it easierto attracttop players andlucrative overseas fans. Mightthatbeabout to change? By MURADAHMED

ootball agent JonSmith is recalling his attempts Clubs from smaller cities such as Amsterdam, to convince Serbian footballer Sasa Curcic that Barcelona, Liverpool, Manchester,Munich, Turin and he should move from Bolton Wanderers to Aston Milan have lifted Europe’s top trophyonseveral occasions. Villa in 1996. Themidfielder was unsettled by Even Nottingham Forest twice won the European Cup, work permit problems thatwerehampering the as the Champions League was previously known. Ftransfer,soSmith settled on an original waytosell the Yetfootball executives saythatforeign players decide charms of the Birmingham-based club: he cited Villa’s whether to move to England based on several factors. proximitytothe British capital —nearly 120 miles away. These include clubs’ sporting merit and financial “Thatproducedasmile,”remembers the veteran rewards but also lifestyle —players and their families agent. “Itwas another easing of potential concern in the often see cosmopolitan London as amore appealing transaction… In thepastI’vesold Aston Villa as partof prospectthan thatofother towns and cities. Smith London. It’s an hour and ahalf up the road. It’s ‘North says this has created a“London discount”, with some London Plus’.” Jon Smithsayssome footballers footballers willing to playinthe capital for less than they Smith’s claims were prompted by abeliefthatclubs are prepared to earn less might earn with ateam in adifferent city. in London have astrong competitive advantagein than in other cities just forthe “Weknow London is an attractive placefor players attracting talent compared with others across the UK chance to playinLondon and their families to live, and thatdefinitely helps inour and Europe. This might be considered remarkable, as conversations,”saysMark Gonnella,communications the capital’s clubs are relative underperformers —at director at Arsenal. “Theylove the manyattractions the leastatEurope’s top level. No fewer than five London cityhas to offer. However,theywillalways focus on the clubs are competing in the Premier League this season club’s historyand reputation, our ambitions and the role —Arsenal, Chelsea, Crystal Palace,Tottenham Hotspur theywillplayinthe side. Our manager,Arsène Wenger, and West HamUnited —but only one London team, is also akey factor in attracting players.” Chelsea in 2012, has won the Champions League, the Aware of their strength in drawing players, London continent’s premier club competition. (There have been clubs are trying to further exploit their presence in the several victories in lesser tournaments such as the Uefa capital for commercial gain. ThePremier League is one Cup, now the Europa League.) of the UK’sbest-known exports. England and Wales’s PHOTO: WEST HAM UNITED/GETTY IMAGES

FT.COM/LONDON-WORLD |49

sport

In 2015,800,000 tourists watchedafootball matchwhile visiting theUK, with48per cent attending fixtures in London

1.

top division is settobenefit from overseas broadcasting 1. rights deals this year worth up to £3bn, though some are Singaporean supporters of still being negotiated. Arsenal, whose stadium,jointly Afew months after signing German forward withManchester United’s, is the most visited by foreigntourists Lukas Podolski in 2012, Arsenal filmed him taking a sightseeing tour of the capital. Theplayer,who has since 2. moved to Galatasaray in Turkey,can be seen asking his AChelsea faninTokyo. The cab driver whether he can pick up German meats at the team is theonlyLondon side to win theChampions League, famous Smithfield market.The video was essentially Europe’s topclub trophy apropaganda exercise,another attempt to firmly link Arsenal and London in the minds of millions of Premier 2. League viewers around the world, in the hope of luring them to watch Arsenal playwhen theyvisitthe city. visiting the UK in 2015, with 48 per cent attending Theclub also advertises its stadium tours heavily in fixtures in London. Thejoint most visited football London’s Underground stations. venues in the UK were Arsenal’s Emirates Stadium Meanwhile, perhaps with an eyeonthe global market, and Manchester United’s Old Trafford. Five of the West Hamthis year marked its move to the former eight mostvisited stadiums were in the capital —alist Olympic stadium in Stratford, in the eastofthe city, by thatincluded second-tier Fulham and its Thames-side redesigning its cresttoinclude theword “London”. Craven Cottageground in westLondon. Astudy by Visit Britain, atourism body,suggests However,the continued global interestinLondon’s thatsuchtactics are working. Theresearch showed football clubs —from players and fans alike—faces that800,000 tourists watched afootball matchwhile athreatfrom anew angle: Brexit. According to PHOTO: ARSENAL FC/GETTY IMAGES; REUTERS

FT.COM/LONDON-WORLD|51 sport

DOG DAYS OF ’66 England’s 1966 WorldCup win at Wembleymay be the most celebrated moment in London’sfootball history, butthe championship’s London home did notalwaysseem take the tournament as seriouslyas posterity would. One match— Uruguayversus France, above —was transferredto another ground, WhiteCity Stadium, built forthe 1908 Olympics and possessing apoor, unevenpitch. The reason? Wembleyrefused to cancel its regular greyhound racing meet. So while WhiteCitytook over forakey match, Wembley literallywent to thedogs. Feargus O’Sullivan

1.

sports industryexecutives, football clubs have been is more than double thatoftheir nearestcontinental taking advice from consultants and lawyers about the 2. rivals. In termsofspending power,English clubs will implications of the UK’svote this June to leave the EU. continue to dominate —it’sjustamatter of by how One fear is thatEnglish teamswillfind it more difficult much theydominate.” to sign the world’s bestplayers, damaging them as One area which Brexitmightaffectmostisthe brands and as aglobalspectacle. recruitment of younger footballers. British clubs Theimmediate concern thatclubs must address is maynolongerbenefit from EU rulesthatcurrently the sharp fall in sterling following the EU referendum allow 16-to18-year-olds from other EU countries to —the pound fell againstthe euro in the days after the join youth academies in theUK. Cesc Fabregas, for June vote faster than anytimesince the financial crisis example, joinedArsenalin2003atthe ageof16 of 2008. This means thatBritish clubs thatattempt to from Barcelona. recruit players from the eurozone will have to paymore. Players from continental Europe might also be subject Oneperson close to aLondon club in the Championship 1. to the same work permit rules thatapply to footballers —England’s second tier —saysanItalian player AndréAyew,aGhanaian, from outside the EU —suchasbeing internationally demanded an increase in wages following the Brexit vote signed forWest Ham established and having played in 30-75 per cent of their because of the disadvantageofbeing paid in sterling, over thesummer country’sinternational matches in the pasttwo years causing the transfer deal to collapse. 2. (depending on the nation’s Fifa ranking). Stefan Szymanski, author of Money and Football: A Vincent Janssen, from the JonSmith, the football agent, argues thateven after Soccernomics Guide and asports industryacademic at Netherlands, is arecent arrival Brexit, London’s attractiveness to players will remain the UniversityofMichigan, counters thatcurrencyshifts at Tottenham Hotspur strong, provided it remains avibrant, diverse and will have little long-term impactonthe Premier League’s affluent city. “Inour football,we’ve hadthe reputation attractiveness to overseas players. “If sterling continues of being abit of an island,”hesays. “The brand is OTTENHAM HOTSPUR FC, EXPRESS/GETTY IMAGES to be depressed, particularly againstthe euro, no isolationist. Obviously the success of the Premier League ,T question at the margin there will be an effect,”hesays. has engendered international respectand affection “But even if we have a20or30per cent depreciation for our product, but London is considered to be a of sterling, the annual revenue of Premier League clubs cosmopolitan, global citythatstands on its own.” L

‘Interms of spending power, Englishclubs will continue to dominate —

it’s just amatter of by howmuchtheydominate’ —StefanSzymanski PHOTOS: WEST HAM UNITED

52 |FT.COM/LONDON-WORLD art

The artof living

From fires andriots to post offices andpubs, thepainsand pleasures of London life have captivated artistsfor centuries By PETERASPDEN NDON

he image of London as abuzzing cultural 1. ViewofLondon from Bankside” of 1647, apanoramic LO metropolis is no mere inventionofan George Elgar Hicks, sprawlshows the old St Paul’s Cathedral standing high overexcited tourist board —ithas alongand ‘The General Post Office, above an energetic, if not the mostbeautiful, city. proudtradition.Inthe earliestknown oil One MinutetoSix’ (1860) But thatviewchanged for ever justacoupleof

painting of the city, by an anonymous Dutch 2. decades later,following the GreatFire of 1666. Tmaster of the early 17th century, four buildings in the John Bartlett’s ‘HistoryPainting’ Hollar himself responded with anew versionofhis foreground are shown flying hugeflags.Theyare the (1994) shows the1990 now-famous panorama “after the sad calamitie and poll taxriots greatTudor theatres of Southwark —the Swan, the destruction by fire”.Another unknown Dutch artist COURTESY MUSEUM OF

Hope, the Rose and the Globe—and theflags denote painted adramatic tableau of the disaster,and images T/ theyall had performances on thatbusyday (see page56). of the fire spread with journalistic speed throughout LET Here was acityfull of self-confidence and cultural Europe, acontemporaryapocalypse to rival historical RT importance. Illustrations of London were much in accounts of the eruption of Vesuvius. BA demand among the classes thatwereabletoaffordthe London bounced back. But there was amore city’sfineries. Themostprominentofthe artists who uncertain air around the city, which artists were drewthem was Wenceslaus Hollar,whose meticulous keen to explore. Awork by an anonymous artist views chronicled London’s growing stature. In his “Long from the 1730s shows an old woman selling curd IMAGES: JOHN

54 |FT.COM/LONDON-WORLD 1.

2.

FT.COM/LONDON-WORLD |55 art and wheyfrom awoodenbucket to young chimney sweeps on Cheapside. Thecontrastbetween the milky nutrients and the boys’ soot-blackened faces shows “an almostdystopian viewofthe realities of London life”, says AlexWerner,the Museum of London’s head of historycollections. Thecityremained avital centre of intellectual activity: look at Samuel Percy’swax diorama (1785-1800) of a gathering at the Turk’sHead tavern in Soho, showing, among others, Samuel Johnson and Joshua Reynolds in lively debate. But social critics were all too aware that there was adark side to the freneticism. Thescabrous satire of William Hogarth was never more wounding than in his 1751 prints “Gin Lane” and “Beer Street”, polemical works thatsought to contrastthe perils of gin addiction with the wholesome qualities of aworthy pint of ale. Hogarth did not hold back in showing scenes of moral depravity: infanticide, madness, suicide. “I know no one who had aless pastoral imagination than Hogarth,”saidcritic and philosopher William Hazlitt, lauding the artist’scruel visions of urban breakdown. By the beginning of the 18th centuryLondon was Europe’s largestcity, afactits more prosperous citizens were keen to celebrate. AMicrocosm of London, published in three volumes between 1808 and 1810, was unashamedly aimed at the luxurymarket.The set, adorned with Thomas Rowlandson and Auguste Pugin’s celebratoryillustrations, costawhopping 15 guineas. Theadvent of photographyforced artists to look at their subjects on amore intimate scale, and results were not always pretty. HenryMayhew’spioneering series of interviews with London’s poor included 1. drawings thatwerebased on photographs: amudlark sifts his waythroughout the city’ssewers looking for straycoins. Dickensian London also showed early Samuel Percy’s waxdiorama of theTurk’s signs of multiculturalism: John Thomson’s images of streetlifeinhis journalistic surveys included one of a Head tavern shows Samuel Johnson and Hindu seller of religious tracts. Joshua Reynolds in livelydebate

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1. Dutchartist (unknown), ‘London from Southwark’ (c1630)

2. John Thomson, ‘Hindoo Tract-seller’(1864)

3. Samuel Percy’s diorama of the Turk’s Head, Soho (1785-1800), withSamuel Johnson topleftand Joshua Reynolds, thirdleft

4. David Hepher,‘Camberwell 3. Nocturne’ (1984)

56 |FT.COM/LONDON-WORLD cosmopolitan vitalitytoits seemingly inevitable social problems. John Bartlett’s “HistoryPainting”of1994 (see previous page) portraysaviolent moment in the poll tax riots at the startofthe decade, but the artist has eschewed social realism and painted his scene in the manner of aRenaissance master.London’s multicultural make-up is widely celebrated —but not without reservations. Dominican-born TamJoseph brings exuberance to his troubling version of the Notting Hill Carnival, “Spirit of the Carnival” (1983), in which amasquerader defies acircle of police riot shields that LOST IN TRANSLATION surround him. Amoreunequivocally positive imageof Vincent vanGogh’s artistic London’s diversityare the dresses worn by the placard career had an improbable London prequel in suburban bearers at the 2012 Olympic Games’ opening ceremony, Isleworth. VanGogh taught at festooned with arandom selection of Londoners’ faces. aschool in Twickenham Road, Can artists find lyricism in the metropolitan fervour alsochildminding and reading of today’sLondon? David Hepher’s 1984 “Camberwell bedtime stories to theboarders. In alettertohis brother,Theo, Nocturne” shows dayand nightscenesofatower he worried that his accent rather block, contrasting the menacing aspects of the daylight than his narrativeskills sent them hours with the peace of night-time, when the block is to sleep: “I donot speakwithout improbably transformed, in the artist’swords, into a difficulty;how it sounds to “mass of coloured lights againstavelvetsky”. English ears, Idonot know.” L Feargus O’Sullivan See moreimages at ft.com/london-art

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In the meantime, London’s burgeoning population took afancytoviewing itself in action. When William Powell Frith’s “The RailwayStation”of1862 was displayed in a tinygallerynexttothe Haymarket Theatre, more than 1,000 people aday queued up to spend one shilling each to see the depiction of commuters at Paddington station. Thepainting, full of bustle and vivid detail, was displayed in ared-gold frame and surrounded by chocolate- coloured cloth. Itssuccess was also amasterpiece of marketing: the public was invited to buy black-and-white reproductions in advance of the exhibition. TheLondon Reviewwas less rather enthusiastic about the work. “Really apoor affair,” it complained. Railways wereasource of fascination in 19th-century London; the deliveryofmailwas another.In“The General Post Office, One Minute to Six”byGeorgeElgar Hicks(1860),the artistshows crowds rushingfor the last post(see page55).The pace of life,the deadlines imposed NDON;

LO by urban living, are no cause forconcern, however: the Post Office, oneofthe reliable administrative centres at the heartofahugeempire, willtakecare of things. Forthose whodid find the relentless imperatives of London living too much to bear in the early years of the 20th century, there was respite: the suburbs. No one strove harder than London Transporttoassure its newpublic thatthere was acalm, pastoral universe in which to escape the pressures of the inner city, just minutes way. Itsposters to persuade us of thathave subsequently become graphic design classics, including Edward McKnight Kauffer’s trippy depiction “Flowers VID HEPHER/COURTESY MUSEUM OF of the Riverside” (1920) and Kate Burrell’s verdant DA Hampstead scene, released adecade later. OGH MUSEUM/AP Modern London’s artists have continued to hover NG between the extremes of the city’slife, from its VA IMAGES:

FT.COM/LONDON-WORLD |57 RobertShrimsley We aretold that Brexit means Brexit, butnot knowing what that actuallymeans playshavoc with thegrievingprocess

ondoners are coming to terms settlement; fear; anger; betrayal of the with Brexit. Or we would be if winners; fightback; betrayal of the we had anyidea whatitmeant. losers; final settlement; reopening the Forthe heavily Remain-minded settlement; final answer; no, we’t don capital citythe Brexit vote was wish to phone afriend; defiance (or Lashock and manyLondoners will delight); blimey, whatwas allthe fuss have experienced the emotions that about; and acceptance. correspond to the classic five stages In the meantime, we existinastate of grief: denial, anger,bargaining, of limbo. Something momentous has depression and acceptance. occurred but nothing has really changed Somewhere along the path, however, and we are all waiting for it to happen. these five stages appear to have gotout So we live in aphoneywar in which the of kilter.Denialand angerkicked in tworival sides compete to write the prettymuch as expected, especially historyofthis decision. among young Londoners, but then TheRemainers face the greater things seemed to veer offcourse. Many challenge. It would be gratifying to be have moved straight to acceptance proved right about the economic except we don’treally know whatitis turmoil theysaid this decision would we are required to accept. Theonly bring. But then again theyhavetolive certainty on offerisfrom ournew prime here too. TheBrexiters, by contrast, fear minister,who tells us in Thatcherite blame if the dire economic warnings tones that“Brexit means Brexit”, which turn out to be true. They are engaged in would be veryhelpful ifweknewwhat the twin strategyofgrabbing every the second Brexit meant. Brexiters will piece of good news —some have seized also be concerned by its ambiguity. on positive consumer spending statsto Why, for example, did Theresa Maynot talk about aBrexit boom —while trying say“Brexit means Brexit means Brexit”, Something momentous has occurred to shiftthe blame for anydownturn on which would definitely have an added to Remain voters “talking thecountry level of conviction? but nothing has reallychanged, so down”. (Incidentally,isthere But while Brexit maymean Brexit, it we live in aphoneywar counselling for acountrywhen it gets mayalso mean SoftBrexit or Hard talkeddown? “Theyall talk aboutme Brexit. It could be somewhere-in-the- behind my back; it’s really damaged my Middle Brexit. So while we all now Whatabout those who thought they self-worth. I’mjustsodown I’m understand Brexit means Brexit, we had won; if theyare unhappy with the thinking of going into recession.”) know it might also mean Sexit or negotiations, might theyhavetogo Meanwhile, in other ways we are all Harxit or Mexit—ormaybe even through the five stages too? talking the countryup. We reassure WhatTheHeck’sit. Is the prime minister And do those Remainers wishing our European friends thatwhen the keeping her cards close to her chestor to takethe traditional five steps really dustsettles theywillstill feel justasat is she justafraid to look at them? have to wait twoyears before theycan home here and hope thatweare right. Theproblem of not knowing what even move on to depression? That We reassure ourselves thatwhatever Brexit means —other than meaning seemsterriblyharsh. Many want to go the bumps along the way, we’llget Brexit —isplaying havoc with the five straight to acceptance and getback to through it in the end. stages. Thecountry made adecision watching Strictly Come Dancing. But this is not all bad. London, like and for those of us who swiftly moved Should there be other stages? At the NewYork, is acitywhich, for all its from anger to acceptance, we might moment amore accuratedialectic wonders, thrives on neurosis. We fret not likeit, butthat’sdemocracy. But might be denial; anger; puzzlement; about house prices and terrorism, can you gettoacceptance without relief; acceptance; the search for Irish about jobs, crowded trains, traffic having gone through bargaining? ancestors; definition; more puzzlement; congestion and which schools our kids We’vegot at leasttwo years of economic data thatsuggest we were should attend, aboutthe loss of privacy bargaining to come before we can even right; economic data thatsuggest we and the loss of community. Nowwe look forward to depression. Does that were wrong; fingerpointing; Britain’s vote to have Brexit to worryabout too, for leave theEUbrought mean if we don’t likethe outcome we negotiation; renegotiation; depression; variety.Thatcan onlybegood. It’s what demonstrators on to have to go all the wayback to denial? negotiation; more puzzlement; keeps Londoners on their toes. PHOTO: ANDREW TESTA/NYT/REDUX/EYEVINE thestreets of London L

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