In response to the City of London's report on London's Place in the UK Economy 2007-08, Dermot Finch (Director, Centre for Cities) said:

"There's no question that London is vital to the UK economy. But when talking about London and the rest of the UK, too much attention is being focused on London's tax contribution - when the real story is about trade. UK plc benefits hugely from two-way trade between London and the regions, for example high-tech manufactured goods imported from the Midlands, or financial services exported from the City to the rest of the UK.

"The amount of money flowing between London and the regions as the result of trade is more significant than any tax transfer - London exports over £120 billion in goods and services to the rest of the UK, and imports over £100 billion. Research we'll be publishing at the end of this month shows that cities and regions across the country should work to support their trade links with London - to achieve their economic potential, and to boost UK plc."

London's Links, by Paula Lucci and Patricia Seex, will be published by the Centre for Cities in November. For more information, contact Claire Hibbitt on 020 7803 4315.