The UK’s trade policy must “flip” to focus on services, given the country is no longer a “nation of shopkeepers”, a senior City of London figure argues.
Britain’s 80 per cent services based economy is not reflected in its overseas trade policy, Chris Hayward, the City of London Corporation (CoLC) policy chairman will say, stressing that services boast 81 per cent gross value added and 85 per cent of all UK jobs.
Hayward made the argument in favour of refocusing Britain’s ambitions at last night’s annual Policy and Resources Committee Dinner, with senior finance faces in attendance.
“In twenty-first century Britain, we are no longer a nation of shopkeepers but service providers.
“But my challenge to the government is to suggest that our trade policy does not recognise this. We must play to our strengths and flip our trade policy. Prioritising trade policy to promote services – as much as goods – is not creative genius – it’s common sense.
“As a country, we export more of our management consultancy services than we do cars, so let’s celebrate everyone who is showcasing the talent and expertise of this nation globally,” Hayward said.
“Sitting right at the heart of Britain’s economy is financial and professional services – contributing £278bn and £100bn in taxes, representing 13 per cent of the entire tax revenues of the Treasury.
“That’s more than our annual defence and policing budget combined.”
Hayward, argued that “embedding services into the heart of our trade strategy” may represent the “key that unlocks economic growth”, will speak alongside former cabinet minister Sir David Lidington.
It comes after the CoLC and The Global City released its report titled ‘Vision for Economic Growth’, in a bid to achieve aims including raising investment and turing the UK into a digital-first economy and anchoring the country as a leader in sustainable finance.
“Our proposals demonstrated how the nation could achieve £225bn of additional investment by implementing our programme of action,” Hayward added.
“We can unlock economic growth and prosperity right across our nations and regions.”