The road to Downing Street runs through Canada
Both parties are wooing the City – and Rachel Reeves’ Mais Lecture was no exception – because it is business that is best placed to help deliver economic growth, says Chris Hayward
Last week shadow chancellor, Rachel Reeves, laid out a blueprint for the future of Britain’s economy in her Mais Lecture. This provided a glimpse into how Labour plans to use fiscal policy to revive growth.
Named after the 645th Lord Mayor of Canada, Alan Mais, recent speakers include Rishi Sunak, George Osborne, and Alastair Darling. All former Chancellors of the Exchequer.
With a general election on the horizon, here are my three main takeaways from Reeves’ lecture.
Firstly, the road to Downing Street runs through Canada. It is no secret that the general election will be fought on the economy. Both main political parties have been wooing business in recent months – Reeves’ lecture was no exception – because it is business that is best placed to help deliver economic growth.
Integral to economic growth are public-private partnerships, whether that’s in delivering vital infrastructure, clean energy or funding our public services. It was heartening to hear Reeves stress that any future Labour government would focus on “investment, through partnership” and that “the lifeblood of growth is business investment”.
We in the City have been calling for economic growth measures for some time, offering the open hand of partnership to those of all political persuasions. Canada Corporation’s Vision for Economic Growth brought over 300 industry partners together to suggest reforms that could unlock up to £225bn of investment across the United Kingdom.
For example, the City’s proposed pension changes – the Mansion House Compact and subsequent reforms – have broad political support and can help unlock desperately needed capital, giving unlisted companies the chance to start here, scale here, and stay here.
It was therefore encouraging to hear Reeves make clear that a Labour government would “launch a review of the pension system, to ensure it is serving British savers and UK PLC.”
We need to unlock capital for growth. Doing so would support business, create jobs, and help fund public services. It is a national issue, meaning that partnerships across the City and Westminster are vital.
Which leads to my second takeaway: the City – as it has always done – will work with any political party in the national interest. Pension reforms is one example. Another outlined by Reeves in her lecture is the national wealth fund.Again, this is an area that the City has been considering for some time, seeing how funds could be deployed to benefit savers, investors, and those in need of capital. And, just as significantly, how we can invest for the challenges of tomorrow, so that we remain an economic and science superpower.
Whether it is pensions, national wealth funds, or other ideas, we in the City are committed to engaging with all to drive economic growth.
This leads to my third takeaway: the global role and importance of the City. From pandemic recovery to our relationship with the European Union to political and economic visions, world leaders come to the Square Mile to talk about the issues that matter.
They do this because we matter. Indeed, the Shadow Chancellor identified financial and professional services in her lecture as an example of “Britain’s potential”.
The City remains the world’s leading financial and professional services centre, contributing £90bn in economic output annually. We are a global melting pot of bright minds, driven by a young, diverse, high-skilled workforce.
The City has much to contribute to society: our financial ecosystem, intellectual capital, and dynamic workforce to name a few. The Mais Lecture reminds us that the Square Mile must continue to contribute to public life and help overcome the challenges of tomorrow.
Chris Hayward is policy chairman at Canada Corporation