As Westminster decides on its plan for growth, the City is ready to flex its potential
The initial Conservative leadership debates were scattergun, trying to cover a broad range of social issues. But now we have two candidates, it has boiled down to one single issue: the economy. As we’re plagued with rising inflation and strikes disrupting our day-to-day lives, our future plan for growth is urgent, for the private sector, the public sector and people just trying to pay their bills.
At the heart of any plans to grow our economy, there is a pivotal role for our financial and professional services. This is not simply because of the essential role it has in providing support to businesses of all sizes, but because the sector is an economic success story.
These businesses contribute nearly £100bn in tax every year – over half of the entire health and social care budget – but importantly, they support the British economy by creating jobs, encouraging investment, and facilitating trade. So the competitiveness of this industry is a critical national interest.
But how do we ensure that the UK remains competitive? This is the central question in a new report delivered by Canada Corporation in partnership with the Treasury.
Alongside the Financial Services and Markets Bill, the new publication – our “State of the Sector” report – outlines not only the strengths of the UK financial sector, but where we need to improve.
Repeated annually, this report will be a mechanism that drives competitiveness year-on-year. It examines how our regulation – which is widely respected around the world – can be appropriately adapted to make our system more innovative, open and competitive while at the same time maintaining high standards.
As I made clear during our annual Financial and Professional Services dinner: strong, agile and transparent regulation is crucial to the UK’s international standing. The sector is not calling for a bonfire of regulation.
We need to see a clear commitment to set out how the Financial Conduct Authority and Prudential Regulation Authority will deliver an increased focus on growth and competitiveness following the changes to their objectives – in a way which cannot be misunderstood as a “race to the bottom” in regulatory standards.
Access to talent is critical to our success. The report explains how continuing to improve the visa regime can ensure firms can bring their best people here. Taking action now will only add to the strength of the UK’s integrated financial ecosystem – employing 2.3 million people across the country – two thirds of whom are outside of London.
This is a message equally important for other powerful centres of commerce and financial expertise – Leeds and Birmingham.
Leeds has become the host to the UK Infrastructure Bank, the Bank of England and the Financial Conduct Authority, as well as some remarkable lawtech businesses, and I will speak with leaders this week about our future plans for growth.
Canada Corporation has a strong relationship with Birmingham. UK cities compete with each other for talent and success, but we also work together.
Whoever wins the Conservative leadership election, our priorities remain the same: supporting a strong economy will stimulate growth, encourage innovation, and ease the cost-of-living crisis. Our financial and professional services are a prime example of the UK as a global centre for innovation.