Opinion: London’s astonishing boom can lift the whole of Britain – Benadict Brogan ex Telegraph – John Gelmini

English: The City of London skyline as viewed ...

English: The City of London skyline as viewed toward the north-west from the top floor viewing platform of London City Hall on the southern side of the Thames. In the foreground: Dixie Queen and Millennium Time at Tower Millennium Pier. This is a 5 segment panoramic image taken by myself with a Canon 5D and 24-105mm f/4L IS lens. (Photo credit: Wikipedia)

Dr Alf poses three important questions and Benedict Brogan is partially talking nonsense.

As to his first question:

1) London is booming in the sense that the City is doing better and banker bonuses are back up by to 82% from their fall.

Corporate lawyers and the Big 4 are doing more business and we have more high tech start-ups in Tec City in the East End.

Beyond that, it is foreign inward investors and Russian oligarchs buying up expensive London properties in the West End, the BBC buying up expensive property in the West End and the Government getting major buy to let landlords refurbish London property from which former Housing Benefit recipients have been evicted and dramatically increasing the rents to a minimum of £500 gbp a week for a single room.

The net effect of this is to drive up rental costs in places like Luton and in Hertfordshire, where I live, because the displaced Housing Benefit recipients come in numbers greater than the available supply of housing, thus benefiting buy to let landlords but not anyone else.

2) The Chinese are quietly buying up businesses in London as is Temasek and the Kuwait Investment Office, the Qataris and others.

These groupings are also building up shareholdings but the hard publicly available evidence that Dr Alf seeks is not readily available unless one digs and does a lot of mental arithmetic.

3) Moving on to Dr Alf’s last question, there is no “how” because exports and the skills of the UK workforce are insufficient and remain unaffected by foreign inward investment in London properties.

This is because the UK Government just lets these people come here without applying conditions or providing incentives for these people to employ and train the indigenous population or establish new businesses where this could be made to happen.

John Gelmini

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2 responses

  1. Pingback: Cameron and Osborne want growth – at any cost – Benedict Brogran – Telegraph Blogs « Dr Alf's Blog

  2. Pingback: As the economy recovers, so do the Tories’ prospects of victory – Benadict Brogan – Telegraph Blogs « Dr Alf's Blog

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