City of London urges Chancellor to ‘supercharge’ financial services ahead of Budget

The City of London financial services sector must be “supercharged” to keep Britain’s economy growing, according to City of London Corporation Policy Chairman Chris Hayward, who urged the Chancellor to back the Square Mile in next month’s Budget.

Speaking as the City Corporation published its recommendations, Mr Hayward said:

“The financial services sector is the engine of the UK economy; it must be supercharged – we cannot afford to let it stall. Given the £115 billion investment gap, this Budget must be the moment to inject creativity, capital and confidence needed to drive growth.”

The City of London Corporation, which governs London’s historic financial district, said its latest figures show 678,000 jobs in the Square Mile, around 25 per cent above pre-pandemic levels, generating more than £110 billion in annual economic output.

Its new budget submission argues that closing the UK’s investment gap will depend on aligning regulation, capital, and technology. Among its top priorities are tax reforms, pension investment, and sustainable finance initiatives designed to maintain the UK’s global competitiveness.

In recent weeks, the Corporation has strengthened its role as the Government’s preferred partner on financial policy. The Office for Investment: Financial Services, a collaboration between HM Treasury, regulators, and the City Corporation, is now fully operational, intended to make Britain “the best place in the world to invest and do business.”

At the Regional Investment Summit last week, Chancellor Rachel Reeves outlined her intention to expand on the Mansion House Accord, mobilising billions of pounds into projects designed to boost UK productivity and living standards.

Mr Hayward said the next step is for Government to help identify “a credible pipeline of investible projects to unlock jobs and prosperity across all regions and nations of the UK.”

City recommendations for the Autumn Budget

The Corporation’s submission calls for the Government to:

• Maintain VAT-free status for financial services.
• Phase out the bank levy and surcharge to increase international competitiveness.
• Abolish stamp duty on UK shares, beginning with new IPOs to encourage more London listings.
• Develop a national pipeline of digital, energy and transport projects to enhance productivity.
• Support the Employer Pension Pledge, backed by major UK employers representing over one million pension pots.
• Encourage a culture shift from saving to investing, through reforms to ISAs and advice rules.
• Adopt AI-enabled digital platforms in the new Office for Investment to connect global capital with UK opportunities.
• Lead on sustainable finance, by aligning public finance institutions and championing the Transition Finance Council’s global guidelines ahead of COP30.

“The City Corporation is playing a leading role in building the architecture for investment,” Mr Hayward added. “From the Mansion House Accord to the new Office for Investment, the framework is there – what’s needed now is the capital and confidence to use it.”

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