Rachel Reeves urges financial services to back emerging markets
Rachel Reeves has met with top financial services firms to urge them to work with development institutions and within “emerging markets”.
The Chancellor met with firms including Aviva, HSBC and Schroders in Canary Wharf today, as she called on industry leaders to seize on growth opportunities and shore up London as a leader in development finance.
It comes as Reeves was asked about reports she is considering a £4,000 limit on how much people can put into cash Isas per year, down from the current £20,000 ceiling, after meeting with senior City executives earlier this week.
The Chancellor said she wants to create “a culture of retail investing” and told broadcasters: “It’s really important that we support people to save to achieve their aspirations… we want to get that balance right… [and] to earn better returns for savers.”
Reeves wants the finance industry to work with key institutions such as the European Bank for Reconstruction and Development (EBRD) and British International Investment as she aims to improve sustainable sovereign debt financing to developing economies.
She is aiming to boost private capital mobilisation for development ahead of her attendance of the EBRD annual meeting in mid-May in London, officials said, and a new institutional investor taskforce will advise government and investors on this work.
At the roundtable, co-hosted with Odile Renaud-Basso, EBRD president, Reeves launched the London Coalition on Sustainable Sovereign Debt, which officials said would capitalise on the City’s financial expertise and create new business opportunities for British firms.
It will be co-chaired by City minister Emma Reynolds, and aim to bring together government and private sector stakeholders on solutions to sustainable sovereign debt financing, to ensure emerging economies can progress climate and development goals.
Reeves said: “Business and government must work together to seize opportunities in emerging markets and kickstart economic growth.
“The UK’s world-leading financial centre can help countries unlock new opportunities for our brightest and best British companies to create wealth and drive growth.”
While Renaud-Basso added: “Mobilising private capital is key to meeting global development needs. I’m delighted to co-host UK business leaders with the Chancellor to discuss how multilateral banks like the EBRD can help channel further financing to emerging markets.
“By joining forces, we aim to deliver the much-needed impact for developing countries while creating new opportunities for businesses from developed economies.”
The EBRD is the largest institutional investor in Ukraine, officials added, and has worked with ministers to support the country which has been at war since Russia’s 2021 invasion.
The Chancellor and Renaud-Basso also signed a memorandum of understanding setting out cooperation on the EBRD annual meeting and business forum in London.
Reeves will attend the bank’s first annual meeting in London since 2016 where it will see governors approve the bank’s next five-year strategy and highlight opportunities for UK businesses to work with the EBRD in its key markets such as Ukraine, Poland and Turkey.
It comes ahead of the Chancellor’s visit to Cape Town, South Africa, next week to attend the G20 Finance Ministers and Central Bank Governors meeting.