Is London’s crown slipping? For decades Britain’s capital has been Europe’s number one destination for those wanting to make – and spend – a fortune, catch the latest lifestyle and cultural trends or simply be at the centre of the action. Now, as financial crisis stalks the city, its fortunes have turned.

Job losses are rising; house prices are tumbling. Distressed banks are throwing themselves at the mercy of the state, which in turn promises to swaddle them with regulations. Some of the world’s best and brightest who once swarmed to London are already heading home.