There is no doubt that the recent hikes in personal taxation to 50% for high earners and the windfall tax on bankers’ bonuses have created a real stir in the London financial community.The current government seems determined to close tax loopholes and is actively considering transactional taxes as a way of recouping some of the enormous fiscal deficit in the UK (albeit the USA is equally open about this prospect).

There is also much focus on hedge fund activity and the ever-present threat of increased regulation, which could make operating anywhere in Europe far more difficult. With the UK General Election only months away, itis unlikely that the current Government would alienate the financial services industry now. Furthermore, The Mayor of London – who has previously supported London’s financial services community – would seek to deter a new Government from implementing onerous measures which could ultimately lead to a financial services exodus from London.

There has recently been much press speculation that the financial services sector could leave London, primarily as a result of a new tax regime, and relocate to alternative cities such as Geneva and Zurich. King Sturge has recorded increased levels of client interest in these locations and is now actively acquiring space for those seeking to open new offices.

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