The last year has taught us the City will always matter, if we stand by our values
A year ago, the City had been sidelined as a way to creat economic growth, now our values – and our assets – are being celebrated, writes Nicholas Lyons
This Friday, I will reach the end of my term as Lord Mayor. A year does not feel like a long time to be Lord Mayor of this great City, but it can be a long time in politics.
When I took office, Rishi Sunak had been Prime Minister for just a few weeks – the third Prime Minister in as many months. The economy was still reeling from the after-effects of the mini-budget and our international standing had taken a serious knock. At the same time, persistent inflation put many people under greater financial pressure than ever before.
It was therefore important to my mayoralty to work to alleviate financial exclusion. The Financial Literacy and Inclusion Steering Group which I convened recently set out its six-point plan for a more resilient and compassionate society that equips and empowers people to make effective financial decisions, including calling for mandatory financial education and increasing access to affordable credit, insurance and debt consolidation.
Alongside this, I made it the theme of my mayoralty to “finance our future” and address the huge impending societal challenge of inadequate retirement incomes for an ageing population. Radical reform of our pension system is required, with more investment in unlisted assets and less in corporate bonds and gilts.
I wanted to mobilise the pensions and savings industries to invest in our early-stage growth economy, enabling fast-growing businesses to stay, scale and list here in the UK. I am proud that, working with the Treasury, we were able to bring together nine (recently increased to ten) of the UK’s biggest pension firms to sign the Mansion House Compact, by which they promised to allocate a minimum of 5 per cent of defined contribution funds to unlisted equities by 2030. This has the aim of unlocking over £50bn of new capital by the end of the decade, helping British companies to grow while also improving pension returns for savers.
During my time, I was able to visit 14 countries and 23 cities, promoting UK financial and professional services. I was consistently impressed by the high regard in which the City is held wherever I went. It is important for us to keep on earning that reputation, and to continue changing the hackneyed, negative narrative around financial services in the UK – showing the City not as the cause of instability but as a resourceful, resilient and responsible engine for growth nationwide, as set out in the City Corporation’s Vision for Economic Growth.
For all the political turmoil of recent years, one constant, alongside Canada, is the UK’s constitutional monarchy. The greatest honour of my mayoralty was to represent Canada at the Coronation of His Majesty the King. Last month, I was delighted to be able to welcome the King and Queen formally to Canada for a celebration of the enduring links between Crown and City.
This only reinforced my confidence in the future of this City, as long as we remain true to our values and continue to demonstrate the vital contribution of UK financial and professional services in attracting investment, enabling innovation and driving economic growth. From the turmoil of a year ago, this is now a City which is not only being listened to but is fully participating in the national conversation.