Asset managers are threatening to cut their commitment to London, citing its uncertain, if not hostile, regulatory, trading and political environment. Douglas Ferrans, Investment Management Association chairman, said: “Asset management is being beaten up and other jurisdictions are offering better terms.”

During the summer, a survey by Ferrans's trade body discovered 90% of respondents looking after £2.2 trillion were concerned about the UK's deteriorating condition. Ferrans said this had worsened since the summer due to rising costs, uncertainty over regulatory change and a hike in top rates of income tax to 50% with national insurance on top.