Financial services need to be strengthened in industrial strategy, says City
The City of London Corporation has called on the Government to use its Invest 2035 Industrial Strategy to tackle long-standing challenges facing the UK’s financial and professional services (FPS) sector. The Corporation’s recommendations aim to address barriers to growth, enhance productivity, and solidify the UK’s position as a global leader in green finance and innovation.
Among the critical issues highlighted were outdated digital infrastructure, regulatory inefficiencies, and the need for better access to global talent. The Corporation pointed out that London’s relatively slow internet speeds, compared to other major financial hubs, are a significant hindrance to the city’s competitiveness.
In response to the Government’s Budget proposal, the City Corporation stressed the importance of balancing tax increases with measures that boost the UK’s competitive edge. Without such action, the UK risks falling behind international competitors like Singapore and Ireland, which have developed comprehensive strategies to attract inward investment.
The City Corporation’s submission to the Government’s consultation includes six key recommendations to boost the UK economy:
1. Champion Financial Leadership
With more than half of the City’s workforce in FPS, the Corporation has called for a seat on the independent Industrial Strategy Council to ensure the sector has a strong voice in economic planning.
2. Improve Digital Infrastructure
London’s lagging broadband speeds need urgent upgrading to maintain the UK’s standing as a global financial centre.
3. Attract Global Talent
Streamlining the visa process and recognising international qualifications are essential for attracting top talent to the UK, while the new Growth and Skills Levy can help retain homegrown talent.
4. Drive Green Finance
Scaling green finance is vital to the UK’s net-zero goals, with the City playing a key role in advancing the green transition.
5. Streamline Regulation
Regulatory frameworks must encourage innovation, particularly in fintech and AI, to ensure the UK remains competitive.
6. Boost Inward Investment
A dedicated investment agency and strategic roadmap will help the UK compete with rivals like Singapore and Ireland to attract foreign capital.
Chris Hayward, Policy Chairman of the City of London Corporation, emphasised the importance of financial services in driving broader economic growth. He said: “The financial sector fuels investment across infrastructure, green industries, and digital innovation. Without urgent action, the UK risks falling behind its competitors.”
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