London Daily

Focus on the big picture.
Saturday, Oct 17, 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
Russell Brand Trial Begins at Southwark Crown Court
UK Parliament to Debate Climate Risks and Council Tax Following Public Petitions
Department for Transport Demands Safety Audits Following Regional Rail Disruptions
House of Lords Scrutinizes Amendments to Armed Forces Bill
Devolved Administrations in Scotland and Wales Criticize Post-Brexit Funding Framework
Prime Minister Andy Burnham Defends Middle East Military Support Under Parliamentary Scrutiny
NHS Leaders Warn of Severe Pressure on Hospitals from Winter Virus Outbreaks
Retailers and Business Groups Lobby Chancellor for Relief from Rising Employment Taxes
City of London Taskforce Urges Radical Reform to Prevent UK From Becoming "Incubator Nation"
Bank of England Officials Signal Potential November Interest Rate Hike
Institute for Fiscal Studies Warns of £35 Billion Funding Gap in Upcoming Autumn Budget
IMF Upgrades UK Growth Forecast to 1.3% for 2026
Former UUP leader Jeffrey Donaldson sentenced to 15 years in prison for historical child sex offences
UK ministers adopt independent commission blueprint to fast-track AI in the NHS
Labour leadership orders local councillors to end power-sharing deals with Green Party
UK government considers regulatory intervention in proposed Sky and ITV merger
Environment Agency declares severe drought across six English regions as reservoirs hit critical lows
NHS England issues new guidance prohibiting transgender women from female-only wards
Norwegian teenager sentenced to 20 years for part of Iran-backed assassination plot in Britain
UK government threatens complete visa ban on Eritrea over refusal to accept deportees
UK Treasury lobbies UBS to move global headquarters to London amid banking sector tax threats
MI5 Warns of Growing Russian Sabotage and Espionage Threats Across Britain
UK Prime Minister Andy Burnham Plans Brussels Talks to Renegotiate Post-Brexit Trade Deal
MI5 Warns of Rising Russian and Iranian Sabotage Threats to British Military Facilities
UK Prime Minister Andy Burnham Pledges Closer EU Ties as MI5 Reveals Russian Brexit Interference
UK Orders Security Review Following Reported Killing of Former Politician Ann Widdecombe
UK Prime Minister Andy Burnham Meets German Chancellor Merz to Strengthen European Security Ties
Nearly 100,000 NHS Patients Treated in Hospital Corridors as England Braces for Winter Pressures
UK Government Rejects US-Russia Diesel Agreement and Reaffirms Sanctions Against Moscow
UK and Germany Agree to Deepen Security and Economic Cooperation Following Berlin Talks
British Prime Minister Burnham Pledges Closer EU Ties During Visit to Germany
UK Announces New Sanctions on 17 Russia-Linked Entities During Foreign Secretary's Ukraine Visit
UK and Germany Finalize Kensington Treaty to Strengthen Defense and Technology Cooperation
Britain Maintains Diplomatic Mission in East Jerusalem Despite Israeli Closure Deadline
English Councils Push Government to Rethink Proposed Funding Cuts
Scottish Homebuilding Falls to Lowest Level in 11 Years
BBC Chief Matt Brittin Defends Restructuring as Staff Challenge Job Cuts
UK Finance Warns High Energy Costs and Bond Yields Are Complicating Fiscal Outlook
UK Adopts All 44 Recommendations on Regulating AI in Healthcare
Chancellor John Healey Prepares Autumn Budget as Borrowing Costs Strain Public Finances
UK Investigators See Strong Indications of Iranian Link After RAF Fairford Security Operation
Laura Trott Pledges Tighter Controls on Political Activism in UK Classrooms
Welsh Ministers Launch Long-Term Review of North Wales and Anglesey Crossings
Welsh Government Orders 18-Month Study of Road Solutions Around Newport
Reform UK MP Sarah Pochin Faces Scrutiny Over £800,000 Second Home Purchase
British Households Grow More Concerned About Fuel and Energy Prices
NHS Leaders Warn of Rising Winter Pressure on Emergency Departments
Kemi Badenoch Proposes £2.3 Billion Employer National Insurance Cut for Young Workers
Middle East Conflict Could Erase UK Fiscal Headroom, Economists Warn
Manchester City Found Guilty of Multiple Premier League Financial Rule Breaches
×