First the good news: London’s brand is still the strongest of any city in the world, a nose ahead of its nearest challengers New York and Paris.
And now the bad news: Its rating has slipped this year, putting the capital in danger in being overhauled by one its great traditional rivals, or the rising conurbations of the Gulf and Asia. London, for all its enormous strengths and global popularity, cannot afford to rest on its laurels.
The 2024 edition of the Global City Index from brand evaluation and strategy consultancy Brand Finance shows London, though still enjoying an enviable reputation the world over, scored particularly badly on crime, bureaucracy, personal taxation and, worst of all, cost of living.
The index ranked 100 major cities around the world, from Abu Dhabi to Zurich, based on survey results from more than 15,000 people from 20 countries spanning all continents.
They were asked to fill in a scorecard on a broad spectrum of characteristics ranging from culture to crime, even the weather. London’s overall rating, 90.9 out of 100, was down 1.4 points on 2023, but still just ahead of the Big Apple on 89.8, and the City of Light on 87.8.
The capital performed strongly in many areas. One of its greatest assets is the quality of its educational establishments, many well known as a major lure for students and parents all over the world. London was ranked first in the world for its universities, with Imperial, UCL, King’s and LSE all regularly appearing in lists of the global top 50 institutions. London is also world No 1 for the quality of its private schools, with St Paul’s, Westminster and Harrow all among the most famous and prestigious places of learning in the world.
Worryingly, London does far less well on the quality of its state education, ranked only 18th. Perhaps more alarming still, it is only 21st “for being a leader in tech and innovation”, lagging behind several other European cities. But in other areas London’s well known strengths are genuinely world beating. The English language is still a huge advantage, giving London first place for “speaks a language I understand”.
The capital is second for being diverse and multicultural, and also top of the tree for being “easy to get around by public transport”, though this may come as surprise to weary commuters. It scores well on economic yardsticks and is placed 9th for “easy to find employment” and for having a “strong and stable economy”.
London also punches above its weight for culture and heritage, coming third in the world overall, and earning top rankings for museums, art galleries, theatres and music venues.
So far, mainly so good. But the survey results also reveal how London is seen around the world as one of the most expensive places to live, with some serious challenges that limit its appeal. It ranks only 35th for future growth potential, and 57th for “attractive personal taxation”, a score that may well be further reduced following the abolition of the non-dom tax regime used by many foreign residents in last month’s Budget.
According to the Brand Finance report, “These lower scores raise questions about the city’s competitiveness compared to other leading global cities like Dubai and Zurich.”
On a handful of other measures London comes closer to the bottom than the top. In confirmation that global coverage of knife crime has harmed London’s status as a relatively safe major city, it scores only 59th for “low crime and terrorism”. Its reputation is now so bad that Indian business leaders reportedly lobbied for more rigorous policing as a condition of a trade deal earlier this year.
Other low rankings include the 73rd spot for bureaucracy, perhaps a reflection of the planning bottlenecks that developers and investors say make it so hard to bring forward projects. London is 83rd for ease of obtaining a visa, an issue that has become a huge burden for visitors from the massive emerging markets of China and India, particularly since Brexit. On affordability London ranks 97th — or to put it another way, fourth from bottom — with the capital’s notoriously high property costs making it a ruinously expensive place to buy or rent.
The findings suggest that London’s unique collection of qualities, charms and centres of excellence still give it strong claim to being the world’s greatest city. But as with any front runner there is no room for complacency, especially after years when Britain’s central government has pursued what has been seen as an anti-London agenda, particularly in loading the tax burden on the shoulders of London residents, businesses and visitors.
Behind New York and Paris comes a chasing pack that includes Tokyo, Dubai and Singapore, which all increased their index ratings and are closing in on the top three urban beasts.
As David Haigh, chairman and CEO of Brand Finance, puts it: “London continues to shine as the world’s best city brand thanks to its strong international presence, rich cultural identity and renowned educational institutions.
“However, challenges like affordability and perceived bureaucracy, including post-Brexit visa complexities, impact its image. While London ranks high for global significance and strong economy, its scores in liveability suggest room for improvement in how the city is perceived by international audiences. Strengthening these perceptions will be key for London to maintain its global appeal.”
The onus will be on the Mayor and the capital’s authorities — as well as the new Labour national government — to make sure that London does not lose that coveted top slot in the global city premier league.
