Sir, - The City of London acts largely as an indirect mechanism of raising tax revenues. Bankers and brokers interpose between citizens and services; they operate under unnecessarily elaborate rules, costly for the consumer. The Individual Savings Account (ISA) is a good example. And one must go through a stockbroker plus a fund manager if one wants to invest in a Chinese utility company.
   Members of the financial sector receive our money and do outrageously well in the process. The taxes they pay go to the Treasury. For the nation as a whole, this messy tax collection is wasteful and unjust.
      Would it be a pity
      for us to lose the City?
      Do we really need
      a citadel of greed?

      Free us up to make
      an enterprising cake.
      Just let us turn a pound
      with feet on solid ground.
   In principle, small businesses could be funded by local councils or by large companies acting as local retail banks. References from local people plus the police should suffice for judgement as to whether or not an investment project would be sound.
   Having the money required, investors could act quickly. A solid ground of simple rules could be provided.
   NB: A rigorous deed of agreement need not require special professional qualifications. Essential is a gathering together of four parties: the two who are committing to one another plus two independent witnesses.
   At the end of the deed should appear a clause such as: "in the presence of us who at the request of ... and of ... and in their presence and in the presence of each other all being present at the same time have hereunto subscribed our names as witnesses".

Dr Charles Warner
Hindhead