London loses edge over New York

London is losing its edge over New York as the world’s leading financial centre, says the Financial Times.

Research among the world's top finance professionals by the City of London Corporation reveals that the collapse of Northern Rock and the planned crackdown on non-domiciled residents are making the UK less attractive to overseas residents.

London’s lead over New York had halved over the last six months, according to The Global Financial Services Index. Offshore centres such as Jersey and Guernsey had become more competitive, as had Shanghai, Dubai, Qatar and Bahrain.

A second survey by the City said the UK tax system had lost its competitive edge over other financial centres. The UK had become increasingly unpredictable and uncertain, complex and unnecessarily aggressive in its approach to taxpayers, it found.

Ireland, Switzerland, the Netherlands, Bermuda and Singapore were seen as more attractive, while the UK tax regime was now seen as increasingly unpredictable and uncertain.

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