London

Seen in a more local context the Square Mile is not only one of London’s key economic drivers, it is also one of the most active agents of change in the capital’s physical and social fabric.To see the effect of City money – and in particular, bonuses – just take a look at that quintessential English obsession: property. Ask estate agents what is driving the market in areas popular with financial folk – Notting Hill, Islington, Fulham, Clapham and, for second homes, any of England’s lush southern counties – and the answer is quite predictable. ‘We get people putting down £700,000 cash bonuses to buy a house,’ says a Battersea-based agent from Foxtons. Feature continues

Then consider all those high-end services, consumer goods and leisure activities – whether in the form of smart restaurants, arts galleries and auction houses, expensive cars, swanky boutiques, bespoke florists and opulent tailors, private schools, divorce lawyers, plastic surgeons, limousines and dog-walkers. Throw in the odd treat like the hire jet or helicopter nosing its way towards Farnborough or Battersea heliport and you start to get an idea just how much of London is effectively dependent on a City wage.

But all this excess has come at a price. The flood of City money has made living in London more expensive and opened up new social divides. Even relatively well-paid members of other middle-class professions are now struggling to keep up with their counterparts in financial services.

According to David Kynaston, author of several books on the history of the City, the City is now ‘less human with less face-to-face contact as people are stuck inside huge buildings.’ Big financial rewards are a way of coping with life in a world where the phrase job security is something of an oxymoron. Fear and greed are typically cited as the prime drivers of markets. Over the last two decades the City’s appetite for growth has been well rewarded. But fear has never been too far away. This year has been a good one for the City; bumper bonuses are forecast. But who knows what next year holds?