London Daily

Focus on the big picture.
Saturday, Oct 03, 2026

Working from home may be bigger test for City of London than Brexit

Working from home may be bigger test for City of London than Brexit

City workers are executing a clumsy hokey cokey in response to the government’s reversed guidance on returning to offices. Boris Johnson has strong public health justifications for urging staff to stay home. But the longer it continues, the worse the damage will be to the City of London as a financial centre.

A world-beating cluster is worth more than the sum of its parts, thanks to tightly packed and interconnected businesses and services. When that grouping is geographically atomised by working from home there is a huge loss of what JPMorgan boss Jamie Dimon (speaking in a different context) recently dubbed “creative combustion”, where interactions are as productive as they are unplanned.

London has traditionally offered skills in risk modelling and regulation that it is inefficient and uneconomical for firms to try to replicate elsewhere.

But now homeworking UK employees are as reluctant to travel to occupy a desk in Bishopsgate as they would be to relocate to one in Hong Kong, according to the top boss of an Asia-focused London-listed finance house.

City firms will interpret government guidance in different ways. Goldman Sachs, which offered free lunches to staff to bring them back to the office in the summer, says if employees need to come into the office they should do so.

Even so, only about a fifth of Goldman’s bankers are commuting to Farringdon Street. UK high-street banks are being more restrictive.

The City, whose dealmaking buzz began centuries ago in its coffee bars and brasseries, is pretty much empty.

Property adviser Ingleby Trice reckons the square footage of newly rented office space in the City come August had dropped to about a tenth of what it was compared with the average monthly rate last year. Offices expected to fall vacant within 12 months had risen nearly a third.

Increasingly, companies are rethinking how they use their premises. As one of Lombard’s high-up informants says, his board won’t meet in the company’s landmark HQ for the foreseeable future.

UK rules on quarantining and travel have put paid to that, while the limit on social gatherings to no more than six in the UK creates difficulties for continuing the more convivial aspects of executive life.

Formal meetings matter less than the informal chats where top bosses gauge moods at the bar. Longtime board members can short-circuit such bonding moments. It is harder for newbie chiefs working from their kitchen or conservatories.

It is even tougher for the corporate leaders of the future. In the past, trainees learned their trade by sitting at their bosses’ feet waiting for pearls of wisdom to drop their way. Now they sit at home hoping to be noticed on a Zoom call.

Anthropologists have long studied how social capital smoothes the formation of the financial kind. The City has done a good job of keeping going through the crisis. But the tight personal connections that have made it so resilient are being whittled away.

Previously Brexit was thought to be the Square Mile’s biggest test. It may be homeworking.

Keep calm and carry on shopping


Supermarket chiefs are urging shoppers not to stockpile groceries in anticipation of a second wave of coronavirus infections. Tesco’s Dave Lewis said there was no need for it.

Food supplies are plentiful. The shelves are fully stocked. And panic buying creates unnecessary tension in the supply chain.

People didn’t so much panic buy in March ahead of lockdown as visit shops more often to build up stocks of tinned soup and borlotti beans that will explode before they are consumed. And still the shelves were denuded of loo paper and flour.

None of the big supermarket chains believe the pandemic has been a bonanza for them. True, sales have risen. But costs have risen more. And shoppers have maxed out on store cupboard basics rather than higher-margin goods.

Earlier this year Mr Lewis totted up the possible incremental costs of Covid-19 and said it could be £900m or more. Neither Tesco nor J Sainsbury believes they will make much more money than they did last year.

High-street grocers are also arming themselves for a price war this winter. During the financial crisis of 2008 traditional supermarkets ceded market share to German discounters Aldi and Lidl to maintain profits. They won’t do that this time.

Tellingly, Tesco’s share price still trails its 2015 level when the group made a record loss. Its peers’ share prices are down since February. And private equity fund Lone Star has pulled out of the running to buy Asda.

The private equity group clearly has doubts about the £6.5bn price tag that the supermarket’s owner Walmart has hoisted over the group.

Mr Lewis is being public-spirited. The footage of shopping trolley battles in the aisles were distressing in March. Lombard is keen to do its small bit to de-stress the nation.

During the Blitz, the ministry for food exhorted Brits to make Lord Woolton pies out of potato peelings. This column is compiling recipes that combine borlotti beans, sardines, unidentified spices and battery acid. Readers’ suggestions welcome.

Newsletter

Related Articles

0:00
0:00
Close
Church of England to Apologize for Role in Historical Forced Adoptions
UK Defence Ministry Investigates Historical Use of RAF Bases by Jeffrey Epstein
Scottish Housing Completions Fall to 11-Year Low
Welsh First Minister Calls for Expanded Devolution Settlement
UK Pledges £50 Million to Expand Domestic Military Drone Capabilities
UK Opens First Commercial Geothermal Plant in Cornwall
Green Party Wins Gorton and Denton By-Election as Labour Falls to Third
Prime Minister Andy Burnham Opens Review of UK-EU Relationship
UK Inflation Rises to 3.1%, Adding Pressure on Household Finances
UK Removes VAT From Domestic Electricity Bills to Ease Winter Energy Costs
Counterterrorism Police Arrest Sixth Suspect Over RAF Fairford Incident
UK Councils to Receive Sweeping Planning Powers to Ban New Vape and Betting Shops
Chancellor John Healey Faces Tax and Pension Scrutiny Ahead of Autumn Budget
Metropolitan Police Apologise for Accidental Disclosure in High-Profile Investigation
UK Universities Report Record International Enrolment as Housing Pressure Grows
UK Logistics Firms Monitor Rhine Disruption as Low Water Threatens European Supply Chains
UK Food Industry Warns Inflation Could Approach 7%
UK Introduces Vaping Duty and Mandatory Retail Stamps
Scotland Raises Property Taxes and Expands Child Payment in Annual Budget
Greggs Plans Four Factory Closures With 740 Jobs at Risk
OECD Raises UK 2026 Growth Forecast to 1.1%
UK Inflation Rises to 3.1% as Bank of England Faces Rate Debate
Andy Burnham Criticises Brexit and Says Rejoining EU Single Market Remains an Option
UK Imposes New Sanctions on Russian Military Networks and Propagandists
UK Launches Nationwide Early-Release Prison Scheme
Andy Burnham Says Security Services See Signs of Iranian Involvement in RAF Fairford Incident
Manchester City Found Guilty on Premier League Financial Charges After Independent Investigation
Scottish Court to Rule on Bid to Force No-Confidence Vote Against Aberdeen Council Co-Leader
UK Bans Extra Charges for Seating Children Under 12 Beside Accompanying Adults
UK Introduces Vaping Duty and New Licensing Requirements
Greggs to Close Four UK Factories and Cut 740 Jobs
Hundreds of Prisoners Released Early as England and Wales Prisons Reach 98% Capacity
UK Unveils New Russia Sanctions Targeting War Funding and Shadow Fleet
Burnham Says There Are Strong Indications of Iranian Involvement in RAF Fairford Security Breach
Prime Minister Andy Burnham Raises Prospect of Reviewing Britain's Post-Brexit EU Relationship
Markets Price in Bank of England Rate Increases as Inflation Rises to 3.1%
UK Borrowing Costs Climb Toward 5.5% as Global Bond Sell-Off Intensifies
UK-France One-In-One-Out Migration Agreement Expires as London Seeks Alternative Measures
Southwest England Faces Flood Alerts After Heavy Autumn Storms
UK Expands Funding for Rapid Electric Vehicle Charging Infrastructure
Welsh Government Approves Funding to Upgrade South Wales Transport
Northern Ireland Tensions Rise as Orange Order Rejects Drumcree Compromise
NHS Leaders Back Early Design of Proposed National Care Service
More Than One-Third of Regional UK Universities Face Financial Deficits
UK Current Account Deficit Narrows as Cross-Border Financial Flows Remain Strong
Bank of England and FCA Issue New Rules for Stablecoins and Digital Assets
MI5 Warns UK Universities Over Research Links With Chinese Institutions
UK Energy Price Cap Rises 4% as Electricity VAT Is Temporarily Suspended
Equity Calls for UK Personality Rights to Protect Performers From AI Replication
OpenAI Pauses Advanced Model Training Following Safety Concerns
×