Today is the 20^th anniversary of the ‘Big Bang’ in the City of London. In recent days many have gathered in London to celebrate its anniversary. It was an event, which, in the words of the Guardian, had “colossal and still unfolding financial, cultural and political consequences”. It swept away the restrictive practices of the London Stock Exchange in one fell swoop. Overnight, the LSE went from being a cosy club for those in the know to a cut-throat, financial powerhouse.

The economic consequences were numerous. Only 31 companies in the FTSE100 at the time remain in existence. Mergers and increased competition and funding from abroad have lead to the disappearance of the others. This very competition has reduced the cost of trading. The foreign money has funded the technological change that has allowed London to keep ahead of its competitors. The financial success brought about by the ‘Big Bang’ is borne out by the facts. In 1984 the companies of the FTSE100 were valued at £92bn. Today, three companies individually have values higher than that: BP, Shell and HSBC.

The wealth and dynamism generated by the ‘Big Bang’ have transformed London. It is a genuinely cosmopolitan and vibrant city. Talent from abroad is drawn by its pace, fashion and culture. Not only have the wealthy benefited. Look to East London and one sees the regeneration of some of London’s poorest areas. With this structural improvement have come thousands of jobs.

The financial sector is a large and vital part of the world economy. It is growing and London retains a remarkable position, far above that which the British economy should warrant. The Conservative Party should be proud of its role in bringing about this position. Cecil Parkinson and the then LSE Chairman, Nicholas Goodison, should be remembered for their great contribution to the ‘Big Bang’ process. There was opposition from both within the Party and (obviously) from the Labour Opposition. Despite this, the policy was pushed through and the rest is history.

Our position, however, is not secure. Gordon Brown’s complex taxation laws and overall increased taxation are threatening London’s pre-eminence. It is important that the next government of Britain legislates to aid the City of London, not hinder it. That is one reason why Britain needs the next government to be a Conservative one.