As described in my last post, many of Britain's political institutions have a proud, centuries-old tradition. This is as impressive as it is tragic, as the old structures stand in the way of modern governance. Before I look in more detail at the current political system, I want to take a closer look at one of these centuries-old institutions. One that has existed since the darkest times and continues to exert a not inconsiderable influence on British politics to this day. An institution that everyone has heard of, but hardly anyone knows how powerful it is. An institution that many tourists have entered without even realising it. I am talking about the City of London.
"The Ninth of November, 1888" Painting by von William Logsdail for the Inauguration of Sir James Whitehead as Lord Mayor of London (1890), Then Painting is owned by the City of London Corporation and is exhibited at Guildhall Art Gallery.
My story begins in 1066 with the Norman invasion of England, led by Duke William II. The army tried to cross the Thames near London. But its citizens threw them back. No problem, the army crossed the river at another point. Shortly afterwards, the local army commanders surrendered, the war ended and William was proclaimed King of England. London renounced further resistance and recognised the new ruler.
In return, William granted privileges. A year later, the city and its citizens were granted the same rights as before the conquest. Further freedoms came with the Doomsday Book of 1086. Among other things, the book listed ownership and the number of male inhabitants of the land. Without the book, it would have been almost impossible to collect taxes or requisition soldiers for war. Not an unimportant book if one wanted to govern the country. London and its inhabitants were excluded from the list.
The Crown's generosity was probably not just gratitude for the city's submission. London was already one of England's most important economic centres and thus an important political force, with which the king wanted to be on good terms. For instance if he needed financiers of royal enterprises.
That the king did not shower London with privileges out of pure friendliness is indicated by his building projects. To keep the Londoners in check, the Normans built several fortresses around the city. One still stands today, the Tower of London.
Over the centuries, London was granted further privileges. For example, from 1215 onwards the citizens were allowed to appoint their own mayor: the city was not subject to any authority except the Crown.
The entire region around the City of London, as the original city is called today, prospered greatly. Several attempts were made to merge the settlements into one administrative unit, but the city resisted. It feared the loss of its privileges. Thus, territorial reforms were carried out without the City until modern times, even after the settlements of the area had grown together to form a continuous metropolitan region.
Today, the special position of the City has disappeared at first glance. Like other parts of the metropolis, it is governed by the Greater London Authority, founded in 2000. But many of the privileges accumulated over the centuries still exist; the City is not a normal district of modern London.
Let's start with the more innocent ones. The Authority explicitly rules over two areas, the City of London and the Ceremonial County, consisting of 32 boroughs, such as Westminster, Kensington or Islington. The division of powers between the City and the Authority is almost identical to that between the Authority and the boroughs. One exception is the City's separate police force.
In addition, the City still has its own mayor, called the Lord Mayor of London. Not to be confused with the Mayor of London, responsible for the metropolitan area. He is known to the general public through two ceremonies: From the ceremony marking his inauguration, televised in November, and from receiving the King or Queen when they visit the City. Then the Lord Mayor has to present the sword to the City as a gesture of submission to the Crown.
Less well known is that the Lord Mayor presides over a unique city government, the Corporation of London. It is one of the oldest administrations in the world, founded before 1066, no one knows exactly when (remember: dark ages). Part of the Corporation is the City Parliament. The Court of Common Council has 125 members, 100 Commoners and 25 Aldermen. The latter form another chamber, the Court of Aldermen. The assemblies are considered the model for the House of Commons and the House of Lords respectively and are nicknamed the "grandmother of all parliaments".
To be eligible to stand as a candidate for parliament, interested parties must be Freeman of the City of London, in addition to some ordinary requirements, such as being of age. Freeman is a rank of medieval guilds, the Livery Companies, of which there are still over 100 in the City. Today, the title is usually conferred by the recommendation of sponsors and the payment of a fee of £100. The fee is waived for parliamentary candidates. So far, so quaint.
In addition to residents, resident businesses are eligible to vote. A fact that was abolished in other areas of the country (only) in 1969 with the Representation of the People Act. While each resident has one vote, the number of votes cast by companies is based on the number of local employees. Larger ones have hundreds of votes. In total, they are entitled to several thousand more than residents [1]. However, the influence of businesses is far greater, due to the division of constituencies. Only four of the 25 wards have a significant number of residents.
And of course you know what kind of businesses are based in old London. "The City" has long been synonymous with the financial industry of Britain. Many British banks, insurance companies and servicing law firms have their headquarters there. They are joined by branches of foreign firms. And they are all officially involved in voting for the local administration.
But it gets even better. Regular citizens have almost nothing to do with the election of the Lord Mayor. Only incumbent Aldermen who have already served as Sheriff of the City can stand as candidates. Only Liverymen, members of the guilds who are one rank above Freemen, are eligible to stand for election.
The most important task of the Lord Mayor is to act as a lobbyist for the financial industry; the administration of the city takes second place. At least that's what the City of London website says: "The Rt Hon the Lord Mayor of the City of London is an international ambassador for the UK's financial and professional services." [2]. And further: "The Lord Mayor also heads the City of London Corporation, the governing body of the Square Mile....".
In his role as ambassador, a Lord Mayor makes several hundred speeches a year, travels the world, attends receptions and hosts all manner of banquets. The most famous event is the Lord Mayor's Banquet where the Prime Minister delivers the Keynote Address.
And it just keeps getting better. The lobby of the City officially extends into the British Parliament. In the 16th century, the post of City Rememberancer was established at the Royal Court to remind monarchs of their debts to the City. Today, the Rememberancer sits as a Parliamentary Agent in the House of Commons, opposite the Speaker.
The Rememberancer does not take part in votes, nor is he allowed to make speeches or influence proceedings in the chamber. But he listens to debates, is allowed to see bills and, above all, is visible to everyone. Outside the chambers, his team organises receptions and makes contacts. If something doesn't suit him, he can set in motion the machinery of the city lobbyists with their ramified network and full pockets.
Full pockets? The Corporation probably has financial resources that other city councils can only dream of. For example its property is said to be worth close to £3 billion [5]. The Corporation does not specify exactly which properties it owns, how valuable they are, or how much income they generate. Although government bodies in the UK are required by the provisions of the Freedom of Information Act (FOI) to release relevant data in response to a request. The FOI Act does apply to the City of London, but only to local government and police matters, as well as Port Health Authority matters [5]. The property of the Corporation is excluded. As in the days of the Doomsday Book, the City's finances remain in the dark.
If the Corporation and its representatives seem like the worst kind of closed circle to you, you are not alone. Nicholas Shaxton devotes an entire chapter in his book on tax havens to the City, nick naming it as “the granddaddy of old boy networks." [3].
Britain seems more and more like a banana republic to me. Where else could international financial companies fall back on a centuries-old network, whose branches extend quite formally into the administration of a city or the national parliament?
Fittingly, many of the world's tax havens, such as the Cayman Islands or the British Virgin Islands, are under British sovereignty and are excellently linked to the City. What opportunities there are! No wonder London has risen to become the world's leading financial centre.
PS: For those who want to experience the City of London for themselves, I recommend this little tour (see also the photo gallery):
Starting at the Rotunda (A1), a visit to the Museum of London is worthwhile, as is a stop at the Barbican Centre (further north), the largest cultural centre in Europe. In between, you find slightly hidden, the Ironmongers' Guildhall. In the southern part of the Rotunda, you can delve into the city's Roman past and see the remains of the Roman city wall and, along Noble St, the remains of a Roman camp. To the left and right of the road, are buildings belonging to Lloyds Banking Group. Now head west along Gresham St. Glass palaces alternate with centuries-old buildings. Some of them are guild houses again (Wax Chandlers' Hall, Goldsmith's Hall). After three blocks, the City of London Corporation complex opens up on the left, with modern office buildings, a church, as well as Guildhall, the old City Hall, and the Guildhall Art Gallery. A visit to the Gallery is free and highly recommended. In addition to several thematically appropriate paintings and busts, the remains of a Roman amphitheatre can be visited in the basement. Afterwards head further east and south. The tour ends at Bank Station, the heart of the British financial industry. Here you find the Bank of England with its museum, the Royal Exchange and Mansion House, the official residence of the Lord Mayor of London. (The Royal Bank of Scotland is also represented here.) If you still feel like it, I recommend visiting the many side streets. Small and big surprises are waiting everywhere.
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[3] Nicholas Shaxson, “Treasure Islands: Tax Havens and the Men who Stole the World”, Vintage (2012)