English place names strew confusion with all the restraint of a four-year-old trapped in a confetti barrel, so let’s start by sorting out what we’re talking about: The City of London isn’t the same as the city of London. Give city a small first letter and you’re talking about the place the world (sillly thing that it is) knows as London. Give it a capital letter and it’s not London but a square mile of high finance, non-resident voting, and that all-around oddity that the English do so gloriously. 

That capital-letter City calls itself the City, as if it was the only city the world ever knew. It’s also called the Square Mile because it’s not a square mile, it’s 1.2 square miles.

Follow me through the looking glass, kiddies. Let’s find out about the City of London. I’ll tell you everything I know. And much more. The sign that I’m telling you more than I know is that I quote big chunks of text from people who do know. Trust them. Ignore me.

History

We pick up our tale in Anglo-Saxon England, at a time when London was England’s biggest city. It wasn’t the capital, but it was a center of trade and commerce. Which are the same thing but doesn’t it sound more important when I use both words? 

The city was important enough that Edward the Confessor–the almost-last of the Anglo-Saxon kings–thought it would be a good place to build a castle, not to mention a church that became known as Westminster so it wouldn’t get itself confused with the east minster, a.k.a. St. Paul’s. 

Then the Normans invaded, and even though William upended the box that was England and gave it a good hard shake, rattling everything and breaking some of it, he was careful not to break London. He granted it a charter and promised its citizens that they’d live under the same laws they’d had under Ed the almost-last Anglo-Saxon king. 

That’s important, because its special status continued under his successors and London grew to be wealthy, self-governing, self-taxing, self-judging, and surprisingly independent of the crown. It had its own militias, called the trained bands, which played a pivotal role at assorted turning points in the country’s history.

Fascinating as that is, though, it’s a tale for another post. I tried to work it into this one but it’s a rabbit hole. It was when I found a bottle labeled “Drink Me” that I realized how much trouble I was in. 

In 1100, London had a population of 18,000. By 1300, that had grown to 80,000. (That’s from the Britannica. WikiWhatsia says it was 100,000. Fair enough. Nobody was counting noses.)

Nearby Westminster had also grown, but not as much. Westminster was for the bean counters and administrators. You wouldn’t have wanted to move there. London was where the action was.

Within London, guilds formed and gained charters from the king. Their role was to defend the interests of their members, set prices and standards in their industries, settle disputes, control apprenticeships, and limit their membership (which just happened to limit competition). By 1400, the City had 100 guilds, and at least some of them were powerful beasts indeed. When a monarch needed money–and rich as they were, monarchs always needed money–the guilds could bow a few times, then finance a war or two and buy themselves and their city increased freedom from royal meddling.

Some of the guilds took to wearing livery–basically uniforms for their trades–and called themselves livery companies. Make a note of that. It’ll be on the test.

With all that history, though, there’s no piece of paper we can turn to that marks the City’s beginning. According to an article by Nicholas Shaxson in the New Statesman, “No charter constitutes [the City] as a corporate body. It grew up beside parliament and the crown, not directly subordinate to either but intertwined with both.”

 

More History

Around London, a patchwork of settlements grew up. In 1550, three-quarters of Londoners lived in the City. Among other things, this means the definition of a Londoner is getting hazy already. By 1700, only a quarter of them did. By 1800, that was down to a tenth. 

Even so, the City was crowded–enough so that at one point the Court of Common Council (that’s a fancy phrase for the City government) tried to stop houses from being subdivided into smaller, even more crowded units in a process called pestering. That doesn’t have much to do with our tale, but I had to sneak it in. It’s a very shallow rabbit hole. We’ll climb back out now.

In the seventeenth century, the crown asked the Corporation–that’s also the City government, and please don’t ask me to explain why it needs two names–to extend its jurisdiction to the new settlements. If it had said yes, London would be one city, but it refused. That’s called the great refusal of 1637 and it set up the odd, two-city structure London still has. Inside the large city that we naive fools think of as London sits the City of London, like the pit inside a peach. It left the sprawling settlements outside to solve their own problems so it could continue as it always had.

This decision eventually turned around and bit it on the ass. The guilds that had controlled competition by limiting their membership? They had no sway outside the City, and competitors were free to offer cheaper goods and services. 

Time passed, and we’ll let the Financial Times article provide a bridge to the present day: 

“Even as Parliament displaced the Crown as the fundamental unit of sovereignty and democracy displaced the Divine Right of Kings as the principle of legitimacy, the state still refused to subordinate the Corporation of London to national laws and practices. Its assets and its ancient privileges remained untouched. . . . The Corporation’s assets, its property inventory and financial portfolio remain unpublished.”

 

Government and Independence

So here we are in the modern City of London. How’s the place governed? 

The guilds have been central from the start, and they still are. The lord mayor, who heads the City of London Corporation, has to belong to one of the livery companies. And he or she has to have been a City sheriff. Both positions are elected by the senior members of the livery companies, who also elect bridge masters, auditors, and ale conners. 

Ale conners? They’re essential. They taste the ale. Also the beer. It was a fairly standard medieval position that most towns and cities have been happy to let sink into quiet obscurity. Not the City.

The livery companies also approve the candidates for alderman. 

After the livery companies have made sure the alder-candidates are acceptable, what happens? Why, the people get to vote, of course. It’s a democracy, isn’t it?

Who are the people? That’s where it gets interesting. Some 8,000 people live in the City, but almost 19,000 people vote there. And it’s all legal. 

How? If a business has up to nine staff members, it gets one vote. Up to fifty, it can appoint one voter for every five staff members. Above that, it gets ten voters plus one for every additional fifty. 

Anyone want to place bets on how independent those voters are?

The City has twenty-five wards, but the residents are concentrated in four of them, which limits resident impact even more.

As a City spokesperson explained,“The City is a democratic institution. All of its councillors are elected.” 

They pay people a lot of money to say things like that with a straight face.

The spokesperson also said, “As the local authority we provide public services to both 7,400 residents and 450,000 City workers. Therefore to reflect the needs of the workers who come to the City each day, businesses located in the City can appoint people to vote in our local elections.”

Okay, we now have an elected government. What’s its purpose? According to several non-radical sources, its purpose these days is to represent international finance.

An article in the New Statesman says, “By the 1980s, the City was at the centre of a great, secretive financial web cast across the globe, each of whose sections–the individual havens–trapped passing money and business from nearby jurisdictions and fed them up to the City: just as a spider catches insects. So, a complex cross-border merger involving a US multinational might, say, route a lot of the transaction through Caribbean havens, whose British firms will then send much of the heavy lifting work, and profits, up to the City. . . .

“Thus, the role of the City of London Corporation as a municipal authority is its least important attribute. This is a hugely resourced international offshore lobbying group pushing for international financial deregulation, tax-cutting and tax havenry around the world.” 

To make sense of how a city can be a tax haven when it’s inside a country that isn’t a tax haven, we have to go back to the City’s independence. Parliament (and I keep checking this because I can’t entirely believe I have it right) doesn’t have authority over the City. The City functions, basically, as an autonomous state within the U.K. International banks can do things within the City that the governments of their home countries don’t allow. Even if their home country is Britain.

According to a paper called “The City of London Corporation: The quasi-independent tax haven in the heart of London,” “Parliament has powers to make legislation affecting the City of London; however, any suggestion brought forth to the Corporation of London falls within its discretion, without liability of enactment. [No, I didn’t get that the first or third time around either. It has to do with parliament not having authority over the City.] To keep a watchful eye on all legislation passing through Parliament, and to safeguard its exclusive rights and privileges, the City of London has a permanent representative, called the City Remembrancer, who sits in Parliament beneath the Speaker’s chair to observe House of Commons proceedings. The Remembrancer is the City of London’s envoy. Should Parliament contemplate any legislation against the City’s interests, the Remembrancer is duty-bound to communicate such matters to his peers, whereupon it shall lie within the Guildhall’s purview to engage a City Sheriff to petition Parliament against any unsavoury bill.”

To explain how this happened, the New Statesman article says, “Over centuries, sovereigns and governments have sought City loans, and in exchange the City has extracted privileges and freedoms from rules and laws to which the rest of Britain must submit. The City does have a noble tradition of standing up for citizens’ freedoms against despotic sovereigns, but this has morphed into freedom for money.”

Britain being Britain, the City’s independence plays out in outdated costumes and obscure ceremonies that everyone performs as if they made sense. Again, the New Statesman:

“Whenever the Queen makes a state entry to the City, she meets a red cord raised by City police [the City has its own police force; London’s police have no authority there unless they’re invited] at Temple Bar, and then engages in a col­ourful ceremony involving the lord mayor, his sword, assorted aldermen and sheriffs, and a character called the Remembrancer.” 

The surviving livery companies include the Worshipful Company of Mercers (its coat of arms looks like it was drawn by a twelve-year-old obsessed with blond-haired princesses; I looked for a unicorn but didn’t find one), the Worshipful Company of Tax Advisers, and the Worshipful Company of International Bankers.

No, I didn’t make any of that up. 

More than one government has tried to democratize the City. So far, they’ve all failed.