WWW.FT.COM/LONDON-WORLD London andthe World OCTOBER42016 SUPPORTED BY Interview: MayorSadiq Khan | Beyond Brexit | The shadow music business | Running out of road Contents 08 14 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.