The City Within a City: The Square Mile and the Rest of London

These days the term the ‘city of London’ or the ‘square mile’ have become synonymous with the stench of inequality, corporate failure, elitism and popular protest.

Whether it was the nascent rage of the occupy movement, the recent LIBOR rate fixing scandal or the full-on-bank apocalypse that began in 2008, more people than ever are likely to heap scorn upon the captains of finance and law that stalk the boardrooms of the square mile.

City of London, England, UK by Torcello Trio

But why does the majority of the UK’s international financial activity happen in this one little bit of one of the largest and exciting cities in the world? What’s with all the creepy dragon and griffin statues that guard the entrance? Why do UK politicians always equate the interests of ‘the city’ with the interests of everyday Joe and Janes like us?

The answer sounds at first like it could be more then a little Dan Brown, and reveals a strange fact about one of the most well known cities in the world.

The City is Actually a Corporation

The first thing to note is that the City of London is not actually part of the wider urban sprawl that we all know and love as London. Got that? It is actually a city in its own right as well as a ceremonial county that has its own unique style of local authority.

What is now known as the Square Mile was actually the port that was established by the Romans around 47 AD and was granted successive special rights throughout its history until it became the centre of the world’s financial system during the heights of the British Empire.

The municipal governing body of the Square Mile is actually called the City of London Corporation, although the exact date this legal definition was bestowed upon it is unknown (the first royal charter from the corporation dates back to 1067). Many of the antiquated medieval practices and traditions are still carried on to this day.

The Uniqueness of the City of London Corporation

The City has a unique status among the local authorities of the UK for a number of reasons. Firstly, it has its own territorial police force, who are separate from the metropolitan police and even have their own distinctive black and gold badges. Secondly, the corporation is allowed to own properties and assets outside its own borders such as Epping Forest, Hampstead Heath and public spaces in Northern Ireland.

Thirdly, and most intriguingly, the City has its own Lord Mayor (distinct from the Mayor of London) who is flanked by a system of “aldermen” and sheriffs, and must have the blessing of the Court of Aldermen and the Livery (medieval trade guilds). If this sounds strange, that’s because it is.

The Lord Mayor is also expected to make a contribution out of their own pocket each year to the costs of running the City, which gives you some idea of what kind of income bracket you have to be in to be considered for this post.

But Why?

Well, it is hard to know the answer to this question due to the ongoing secrecy of the Corporation. Either it is just the fact that this is the way the City has always been run and it serves to make Bankers and Lawyers feel even more above the rest of us, or there is something else going on.

Possible theories are that the Corporation is actually one huge lobbying organisation or that it functions as a kind of offshore tax haven and enjoys different rates of tax to the rest of us. Either way someone should try and find out or let Dan Brown know all of this so that he can write another bestseller.

So if you ever need to explain to someone why all the bankers, lawyers and accountants in London seem to flock to the Square Mile, tell them it is probably because they are part of one of the oldest and strangest clubs in the world.

James Duvalis a freelance IT expert who didn’t believe what his drunken friend told him about the City of London down the pub, so went an researched it himself. When not working or writing blogs for companies such as Choose Your Accountant, James likes to search out good music and fine ales with his friends.

Tags: boardrooms, british empire, city of london, city of london england, corporate failure, dan brown, elitism, governing body, heap scorn, inequality, janes, libor rate, local authority, london corporation, london england uk, royal charter, stench, strange fact, uk politicians, urban sprawl

Category: Cities, Cities