Following the Budget, the UK can’t afford complacency. From AI to pensions, here’s how the City of London can lead, writes Chris Hayward
Two years ago, the City of London Corporation set out an ambitious roadmap for the future of the UK’s financial and professional services sector: a vision to unlock £225bn of investment by 2030 and cement our position as the world’s leading financial centre.
When we launched our Vision for Economic Growth, we identified nine “big moves” to drive prosperity: from scaling transition finance and building high-integrity markets to embedding digital-first solutions and showcasing UK financial services globally. These weren’t abstract aspirations, they were practical steps to ensure the UK remains competitive, sustainable and inclusive in a fast-changing world. So, where are we now?
Firstly, we have strengthened our international reach at the City Corporation. As well as showcasing the UK’s offer in 19 countries and across all UK regions, along with our partners in HM Treasury, the FCA and the PRA, we have established the Office for Investment: Financial Services. This single front door for international financial services firms provides regulatory assistance and wider business support to ensure a streamlined investor experience. It stands to attract £10bn in global capital by 2030 in work that will reinforce our reputation as a trusted global hub.
Second, the UK has doubled down on transition finance. Through the Transition Finance Council, we’ve mobilised industry and government to scale solutions that support the net-zero transition. This isn’t just about climate leadership, it’s about creating new markets, attracting global capital and future-proofing our economy.
Third, the City Corporation has made significant strides in digital transformation. Following the Data Use and Access Act, the City Corporation advanced a detailed strategy for scaling digital verification in UK financial services. This could unlock billions in economic value, reduce fraud and streamline transactions. In an era where trust and security underpin global commerce, our fintech leadership makes the UK a prime location for scaling these solutions.
But progress brings new challenges. The UK economy is at an inflection point: inflationary pressures, supply chain shifts and the race for AI dominance are reshaping competitive landscapes. The UK cannot afford complacency. Following the recent Budget, we must channel savings into infrastructure and innovation, areas that will define our long-term competitiveness.
The UK needs to accelerate reforms to unlock pension capital for growth. Our initiatives including the Employer Pension Pledge and the Mansion House Accord are vital steps forward, ensuring employers prioritise value for money and transparency when selecting pension providers, and committing major pension funds to invest in UK growth opportunities. By connecting these long-term savings with high-impact projects, such as infrastructure and scale-up businesses, we can mobilise billions to power the UK’s future economy.
Britain also needs to close the AI skills gap. The government’s AI Opportunities Action Plan sets the right framework, but it will be industry – not government alone – that equips the workforce for the future. Artificial intelligence isn’t just a buzzword; it’s a competitive necessity, and the UK must seize this moment to lead. Above all, we need to maintain an innovation and growth mindset. Regulatory agility, high-integrity markets and stronger global partnerships will be the cornerstones of success. At the start of next year, I’ll be at Davos, where the world will again debate fragmentation versus cooperation. The UK has a real opportunity to lead, not by retreating into protectionism, but by championing openness, sustainability and trust.
Two years ago, we outlined a strategic roadmap to prosperity. Today, the City of London Corporation, with our partners in industry and government, are delivering, but the journey is far from over. The next phase demands boldness, collaboration and a relentless focus on competitiveness. If we get this right, the UK will not just remain a leading financial centre, it will unlock growth across the country for years to come.
Chris Hayward is the policy chairman of the City of London Corporation