The City welcomes reforms to make London more competitive
The Chancellor’s Mansion House reforms matter because they promise more jobs. more capital and better pensions – now they must deliver, says Chris Hayward
The Chancellor’s Leeds Reforms, unveiled at Mansion House, have opened the door to reforms that could boost investment. These reforms aren’t just about the City. These reforms matter because they promise more jobs, more capital, and better pensions across the UK: growth in every region.
For Canada Corporation, the announcement is also the culmination of a long campaign. In our Vision for Economic Growth report in 2023, I set out the case for a national Financial Services Investment Hub, one that brings together government, regulators and the private sector to create a seamless investor experience. I am proud to see this recommendation taken forward.
Our research shows the UK’s share of financial and professional services foreign direct investment (FDI) has declined by four percentage points since 2017. Meanwhile, other global financial centres have gained more market share. This cannot continue. The Investment Hub is designed to respond directly to this challenge — a single, joined-up platform to streamline investor engagement, provide tailored regulatory guidance and unlock billions in growth capital.
Many other jurisdictions have introduced concierge-style services to fast-track market entry. The UK, with its unrivalled strengths, its legal system, time zone, language and financial ecosystem, should be leading the way. The Investment Hub, developed in consultation with over 200 stakeholders and supported by HM Treasury and the Office for Investment, is designed to do just that.
The goal is simple: to make the UK the easiest and most attractive place in the world to invest in financial and professional services.
Modernisation
Modernisation must be part of the solution. Investors are rightly frustrated by friction in the system, duplicated processes, slow onboarding, and unclear regulatory guidance. The Hub will harness digital tools to streamline these interactions and improve the quality and speed of service.
What’s more, this is a UK-wide endeavour. Whether it’s fintech growth in the North West, green finance in Scotland, or professional services hubs in the Midlands, the Investment Hub is designed to serve and support every region. With the right delivery, we estimate that it could unlock £10 billion in new investment by 2030.
The City Corporation also welcome the wider package of regulatory reform announced at Mansion House. These are practical steps to restore confidence in the UK’s business environment. The City Corporation will play a leading role, working with the British Business Bank and Innovate Finance to channel more scale-up capital into the UK’s most dynamic fintech firms.
And reforming the Financial Ombudsman Service so that it returns to its original purpose as a simple impartial adjudication service, and not a quasi-regulator, sends a clear signal that that the UK is serious about rebalancing fairness between consumers and firms.
Equally important are the Chancellor’s commitment to advancing retail investment alongside a national financial education campaign which will help to democratise access to capital markets and empower individuals to take charge of their financial futures. Also positive are the reforms to the Senior Managers and Certification Regime, where burdens will be cut by 50 per cent, and approval timelines slashed. New targets for the Financial Conduct Authority and Prudential Regulation Authority to reduce authorisation times, and a fresh look at the unintended impacts of the Consumer Duty show that the Government is listening to industry concerns.
Regulation must be proportionate, and support growth
As we’ve consistently said: regulation must be proportionate, and support growth.
The key now is delivery. This is a pivotal moment to embed a new culture of investment and long-termism into the UK economy. Turning ambition into action will require genuine public-private collaboration and a clear commitment to follow-through.
The UK retains fundamental strengths, but global competition is accelerating. To stay competitive, the Government must continue to ensure the UK remains a compelling destination for international talent and investment. I will ensure the City Corporation joins with them on leading these initiatives.
Chris Haward is policy chairman at Canada Corporation