Kamran Balayev: Revisiting London’s role as a global capital

Kamran Balayev is an international legal and policy expert, business leader, and former London mayoral candidate.

The London Conference last month served as a stark reminder of the critical conversations we must have about our capital. While we frequently and rightly discuss pressing issues like knife crime, housing, and transport, we have increasingly neglected London’s global standing.

London has always been more than just the English capital. It has been a global capital, thriving not only within its borders but on the world stage. Yet, in recent years, we have lost sight of our identity and our vision. The question is no longer whether London matters: it does. The real question is what role it should play in the post-Brexit world, and how we ensure it remains a world leader.

For centuries, London has been a powerhouse for finance, law, culture, and diplomacy, attracting the brightest minds, the biggest businesses, and the most ambitious investments. However, we cannot ignore the rise of rival cities: Dubai and New-York are making significant gains in areas where London once dominated, while Singapore and Silicon Valley are racing ahead in technology and digital markets, seizing opportunities in fintech, AI, and data-driven industries.

Despite these challenges, London still possesses immense strengths. The City remains a global financial leader, underpinned by deep capital markets and a trusted legal framework. Our universities produce world-class talent, and our creative industries continue to set the global standard. But in this new era, finance alone is not enough – data and artificial intelligence are shaping the future, and London must embrace these transformations if it is to lead once again.

London’s global rise was not inevitable; it was built on policies that made it the most attractive destination for business and investment. Margaret Thatcher understood this better than anyone. Her deregulation of the financial sector in 1986 – the “Big Bang” – transformed London into the world’s preeminent financial hub.

By removing outdated restrictions and embracing free-market principles, she unleashed a wave of investment, innovation, and global influence that cemented London’s dominance for decades. That same spirit of economic dynamism is needed today. If London is to reclaim its leadership, it must once again become the easiest place in the world to start, grow, and scale a business.

Brexit was a defining moment, bringing both challenges and opportunities. The UK now has the freedom to shape its own trade policies, regulations, and economic strategy, but London must redefine its place in this new order.

The city’s future will not be the same as it was a decade ago, and we must adapt accordingly. One of the most significant opportunities lies in establishing London as the world’s data capital. While finance has long been London’s cornerstone, the future belongs to AI, fintech, green finance, and data-driven markets.

With the UK’s data economy already contributing billions to GDP, London must capitalise on its potential by investing more in AI, digital finance, and cybersecurity. If we are serious about economic growth, we need a new “Big Bang” for the data age: removing barriers and regulations, making London the global hub for AI and Data Governance regulation, and ensuring the UK’s tech sector has the same competitive advantage that our financial sector once enjoyed.

Beyond economics, London’s soft power is another vital asset. The capital has always been a beacon of culture, education, and diplomacy, but we are failing to promote our strengths on the world stage. Cultural diplomacy should be at the heart of our strategy, reinforcing London’s role as a bridge between the US, Europe, and emerging markets.

Our universities should be magnets for the world’s brightest minds, ensuring the city remains a hub of innovation and research. British businesses should be aggressively promoted abroad, forging stronger economic ties beyond Europe. Unlike many of our European competitors, London still benefits from the global dominance of the English language, a trusted legal system, and world-class cultural institutions. These advantages must not be allowed to erode through complacency and overregulation.

Equally important is ensuring London remains the most attractive city for global talent. The biggest threat to the capital’s status is the cost-of-living crisis. If we want to sustain our global standing, we must be both competitive and liveable.

Business taxes and rates must be reviewed to keep London compelling for entrepreneurs and investors. Visa and immigration policies must support talent attraction, making it easier for the best professionals to work here. Infrastructure and transport must remain world-class, ensuring the city remains accessible and future-ready.

With AI expected to drive a seven per cent increase in global GDP over the next decade, London must prepare its workforce through AI education, re-skilling programs, and forward-thinking policies. If we make it too difficult to do business in London, talent will go elsewhere. We need to ensure this city remains the easiest place in the world to work, innovate, and succeed.

A city that stands still falls behind. London is still great, but greatness must be actively maintained and continuously redefined. While knife crime, housing, and transport are vital domestic concerns, we must also recognise that London’s future depends on its ability to remain a world leader.

To achieve this, we need bold, decisive leadership that looks beyond short-term politics and focuses on London’s global competitiveness. London’s Mayor must champion London’s strengths, engage with the private sector to attract investment, and ensure we are competing not just with Manchester and Birmingham, but with New York, Paris, and Singapore.

The world isn’t waiting for London to figure out its role. If we don’t define it, someone else will. The time for action is now.