You’ve probably seen the red dragon shields on the bollards near St. Paul’s Cathedral. Most people just walk past them, thinking they're just part of London's general aesthetic. But they’re actually markers of a border. Step past them and you aren’t just in a different neighborhood; you’re effectively in a different jurisdiction. The City of London Corp is, quite honestly, one of the weirdest political entities on the planet. It’s older than the UK Parliament. It has its own police force. It even has a special representative, the Remembrancer, who sits in the House of Commons to make sure the City’s interests aren’t stepped on by new laws.
It’s easy to get confused. Most people think "London" is just one big city. It isn't. There’s Greater London, the massive sprawl of nearly 9 million people governed by the Mayor of London and the London Assembly. Then there’s the "Square Mile." That’s the City. This tiny slice of land is the heart of global finance, and the City of London Corp is the body that keeps it spinning.
How the City of London Corp Actually Works (And Why It’s Not a Normal Council)
If you live in Camden or Westminster, you vote for your local council. Simple. In the Square Mile, things get weird. The City of London Corp operates on a voting system that would make a modern democracy theorist have a minor heart attack. It’s not just residents who vote. Businesses vote too.
Basically, the more employees a firm has, the more votes it gets. A massive investment bank like Goldman Sachs or JP Morgan has way more pull than a guy living in a flat near Barbican. This is because the "City" is barely a residential area; it's a workplace. There are roughly 8,000 residents but over 600,000 workers who commute in every day. The Corporation argues that since businesses pay the vast majority of the rates, they should have a say in how the streets are cleaned and how the police are funded.
It's a unique setup.
You have the Lord Mayor of London—not to be confused with Sadiq Khan, the Mayor of London. The Lord Mayor is essentially a global ambassador for UK financial services. They spend their year traveling the world, meeting heads of state, and pitching the UK as the best place to park capital. They live in Mansion House, wear 16th-century robes, and represent an unbroken line of civic leaders stretching back to 1189.
The Court of Common Council
This is the main decision-making body. It’s made up of Aldermen and Common Councilmen. To even stand for election, you usually have to be a "Freeman of the City." Back in the day, being a Freeman meant you could herd sheep across London Bridge without paying a toll. Today, it's mostly a ceremonial honor, but it's still a prerequisite for the top jobs in the Corporation.
The structure is messy. It’s archaic. But it’s incredibly efficient for the people it serves. While a normal London borough might struggle with bin collections and school funding, the City of London Corp is sitting on a massive private chest of wealth known as the "City's Cash." This isn't taxpayer money from the government; it's an endowment built up over centuries from land holdings and investments. They use it to manage things like Epping Forest, Hampstead Heath, and several major wholesale markets like Billingsgate and Smithfield.
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The Remembrancer and the Power of the Lobby
One of the most controversial aspects of the City of London Corp is the Remembrancer. This role was created in 1571. Today, Paul Double holds the office. He is the only non-MP allowed to sit in the chamber of the House of Commons (behind the bar).
His job? To watch.
When a bill comes through that might affect the City's "rights and privileges," the Remembrancer is there to flag it. Critics, like author Nicholas Shaxson in his book Treasure Islands, argue that this gives the financial sector an unfair "inside track" on legislation. The Corporation, however, maintains that the Remembrancer is just a legal officer ensuring that ancient charters aren't accidentally overwritten by modern laws.
It’s a fascinating tension. You have a medieval structure embedded in the heart of a 21st-century democracy.
Is the Square Mile a Tax Haven?
There’s a lot of chatter online about the City being a "state within a state." Some activists go as far as calling it the "money laundering capital of the world." While that’s a bit of a hyperbole, the City of London Corp does facilitate a specific kind of financial ecosystem.
The City isn't a tax haven in the way the Cayman Islands are—you still pay UK corporation tax there. However, it acts as the "hub" for a massive network of British Overseas Territories. It’s the legal and professional service engine that makes those offshore flows possible. The Corporation works tirelessly to keep regulation "light touch." They aren't the regulators—that’s the Financial Conduct Authority (FCA)—but they are the world’s most powerful lobby for the sector.
The City’s legal system is another draw. The Commercial Court in London is where global giants go to settle disputes. Even if two companies in Kazakhstan have a fight, they often have a clause in their contract saying the case will be heard under English Law in the City. The Corporation supports this infrastructure, ensuring London remains the "neutral ground" for global trade.
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Why the Corporation Survives Every Attempt to Reform It
Every few decades, someone in Parliament suggests that the City of London Corp should be abolished and turned into a normal London borough. It never happens.
Why? Because the City generates a massive chunk of the UK’s GDP. We’re talking about roughly 10% of the entire country's economic output coming from this one tiny square mile. No government, whether Labour or Conservative, wants to kill the goose that lays the golden eggs.
- Global Prestige: The pageantry—the Lord Mayor’s Show, the gold carriages, the Guildhall banquets—actually serves a purpose. It’s soft power. When a foreign billionaire or a sovereign wealth fund manager is invited to a candlelit dinner at the Mansion House, it carries a weight that a meeting in a glass office in Canary Wharf just doesn't.
- Administrative Independence: Because they have their own money, they don't rely on the Treasury for everything. They can fund massive infrastructure projects, like the lion's share of the Crossrail (Elizabeth Line) funding that came from the City.
- The "Lobby" Effect: They are simply too well-connected.
The Modern Shift: Green Finance and Tech
The Corporation isn't just about men in top hats anymore. They've realized that the world is changing. Right now, the City of London Corp is pivoting hard toward "Green Finance."
They are pushing for London to be the global center for ESG (Environmental, Social, and Governance) investing. They want the carbon credit markets to run through the Square Mile. It’s a survival tactic. As fossil fuel investment becomes toxic, the City is rebranding itself as the "clean" capital of the world.
They are also incredibly protective of the fintech sector. Post-Brexit, the City has lost some "passporting" rights to Europe. To compensate, the Corporation is lobbying for easier visa rules for tech workers and more favorable listing rules on the London Stock Exchange to keep companies from fleeing to New York.
Common Misconceptions About the City
People get a lot wrong about this place. Here’s the reality:
The Queen (or King) does not need "permission" to enter the City. There is a ceremony at Temple Bar where the monarch is met by the Lord Mayor, but it’s a gesture of loyalty, not a border check. The King is still the sovereign.
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Also, the City isn't just a "rich person's club." The City of London Corp actually manages a lot of social housing—most of it located outside the City's own borders. They are the biggest sponsor of academies in London. It’s this weird mix of extreme wealth and genuine civic duty that makes it so hard to categorize.
Navigating the City of London Corp: Actionable Insights
If you’re a business owner or just someone interested in how power works in the UK, here’s how you actually engage with this entity:
1. Use their research.
The Corporation produces some of the most detailed economic research on the planet. If you’re looking for data on office occupancy, global trade flows, or fintech trends, their "Research and Insights" section is a goldmine. It’s often more granular than what you’ll get from the ONS.
2. The Livery Companies.
If you want to understand the networking layer, look at the Livery Companies. There are 111 of them. Some are ancient (The Mercers, The Grocers), others are modern (The Information Technologists). They aren't just social clubs; they are major charitable givers and powerful networking hubs for specific industries.
3. Public Spaces.
Most people don't realize the City of London Corp manages some of the best green spaces in Greater London. If you have an issue with Hampstead Heath or Epping Forest, you aren't complaining to a local council; you’re complaining to the City Bridge Foundation or the Corporation’s open spaces department.
4. Business Support.
Small businesses within the Square Mile can access specific grants and support programs that don't exist in other boroughs. Because the Corporation has "City's Cash," they can fund pilot programs for things like "zero-emission zones" or small business tech upgrades much faster than a cash-strapped local authority.
The City of London Corp is an anomaly. It is a medieval relic that successfully hijacked the future. It’s a corporation, a council, and a lobby all rolled into one. Whether you think it’s a vital engine of the British economy or an undemocratic ghost of the past, you can't deny that it works. It has survived the Great Fire, the Blitz, and the 2008 financial crisis. It’ll probably be here, dragon shields and all, for another few centuries.