2026 will be the year the City moves from post-Brexit design to delivery, says Chris Hayward
As the new year begins, London’s position as a leading global financial centre is often framed in binary terms: rise or decline. That is no bad thing. Competition sharpens performance, and financial centres that assume their leading position rarely endure. But scrutiny should be grounded in evidence.
The facts are straightforward. By international standards, London remains a leading financial centre. Alongside this, we are one of the safest major global cities, with crime rates well below many international peers. The City of London Police plays a crucial role in achieving this status, which is important for the UK’s prosperity and economic security. The City Police is also the designated National Lead Force for fraud, with – uniquely – capabilities dealing with the entirety of the problem, from reporting, through investigation, to disruption and victim care. This does not exist anywhere else in the ‘system’.
London is rich in diversity. This is not a weakness but a source of strength – evident in our workforce, schools, cultural life and entrepreneurial dynamism. Beyond financial services, the capital continues to thrive, with a vibrant technology and innovation ecosystem that attracts talent and capital from around the world.
Policy direction is now beginning to reinforce those fundamentals. The Budget reaffirmed financial services as a strategic national asset, and the launch of the Office for Investment: Financial Services marks a significant step forward. For the first time, the UK has a dedicated mechanism to coordinate global investment promotion for one of its most internationally competitive sectors. Crucially, it is already delivering. The recent decision by AM Specialty Insurance Company (UK) to establish operations in London, strengthening the UK’s position as the world’s leading specialist and commercial insurance market, reflects growing confidence in the UK’s regulatory and investment environment. It is particularly encouraging that regulators have now delivered the first insurance approval through the UK’s accelerated authorisation pathway, developed through the Office for Investment in partnership with government and regulators. In a world of mobile capital and intense competition, such signals matter.
Trade
Trade policy is moving in the right direction too. The recently concluded UK-South Korea trade agreement, which I welcome, underlines the growing importance of services, finance and digital trade in modern economic partnerships. The inclusion of a cutting-edge digital trade chapter and expanded access for services, representing 80 per cent of our economy, will create exciting new opportunities for businesses and consumers alike. South Korea is a leading financial and technology hub in its own right. Deeper cooperation strengthens London’s role as a connector between Asian capital and global markets.
Regulatory reform must underpin this openness. The UK is now moving from post-Brexit regulatory design to delivery. The challenge is not whether to regulate, but how. Regulation must protect stability while supporting growth, innovation and investment. This balance is particularly visible in the government’s approach to digital assets. City minister Lucy Rigby has been clear that the UK’s ambition is to be a global hub for crypto and tokenised finance and in December tabled legislation in parliament to implement cryptoasset legislation. That combination of openness and trust has long been London’s comparative advantage.
These themes will shape global discussions in the weeks ahead. Later this month, I will travel to Davos as part of the City of London’s engagement at the World Economic Forum. The City’s role there is not to compete with governments, but to complement them, demonstrating how financial markets can support long-term investment, how innovation such as artificial intelligence and tokenisation can be deployed responsibly, and how sustainable finance can move from ambition to delivery.
Closer to home, engagement with Europe remains essential. In January, the City of London Corporation will host its annual EU reception in Brussels, bringing together policymakers, regulators and industry leaders. This is not about reopening old debates, but about pragmatic cooperation. The UK and EU remain deeply interconnected financial markets. Fragmentation raises costs for everyone; dialogue strengthens competitiveness on both sides.
London’s position as a global financial centre is sustained not by inertia, but by engagement. As Policy Chairman, I intend to focus on ensuring the City of London Corporation continues to connect markets, policymakers and institutions, in the UK and internationally, to reinforce openness, competitiveness and trust.
The task for the year ahead is execution: delivering reform at pace, maintaining regulatory clarity and continuing to engage globally. London’s future will not be secured by rhetoric, but by choices. The foundations are there. The opportunity now is to build on them and deliver inclusive and sustainable economic growth.
Chris Hayward is policy chairman at the City of London Corporation