London First response to Labour manifesto

John Dickie, Director of Director of Strategy and Policy at London First, said:

We welcome the Labour Party’s commitment to driving up London and the UK’s competitiveness through improving infrastructure (through the mix of depoliticising long-term infrastructure planning, committing to a swift decision on the conclusions of the Airports Commission investment, and fixing broadband coverage ‘not spots’).

However, we remain concerned that Labour’s tax policies will undermine London and the UK’s competitiveness: increasing the top rate of tax to 50% will not increase the yield to the treasury in the medium term, but will make the UK a less attractive place for global talent; the proposed mansion tax is effectively a tax on Londoners; and there needs to be great care in reforming the non-domiciled tax rules.

We are also pleased that Labour has emphasised the need to “never cut Britain off from the rest of the world”. It has reaffirmed the importance of membership of the EU, and to reform it constructively. There is much that the EU needs to do to become more outward-focused, more competitive and to drive economic growth Meanwhile, the party’s calls for immigration reform, which recognises the value of international students and will enable businesses in the UK to employ global talent, is important signalling that London and the UK are open for business.