Promises of bold action from the Chancellor are gratefully heard in the City. Let’s not let this opportunity for growth pass, writes Chris Hayward
Firms in the City and beyond will be encouraged by the Chancellor’s recent speech, which matched her optimism about the UK’s economic prospects with bold action. Confidence is contagious, businesses are ready to run with it.
By partnering with businesses, the government can enhance the UK’s appeal for capital, firms and talent, leveraging trade deals to unlock new investment opportunities. The Chancellor rightly pointed to an India trade deal as a prize – one that could break new ground for financial services.
Second only to the USA, the UK is the most attractive investment destination in the world. Let’s build on our global advantage. Inward investment is the key to unlocking higher living standards across the UK.
The City of London Corporation is already supporting the Office for Investment, ensuring investors know the UK is open for business.
Risk is not a dirty word
The UK must also embrace a more risk-positive culture. Taking risk is not a dirty word – it’s the foundation of investment, jobs and growth. In the US, risk is rewarded, fuelling dynamism and prosperity. The UK must follow suit.
We’ve already seen the government’s intent to pursue growth with leadership changes at the Competition and Markets Authority. Now, regulators in financial services must do more. Regulators can be facilitators for global competitiveness, not just gatekeepers. The Financial Conduct Authority must work with business to accelerate the flow of capital, talent and firms into the UK. Streamlining and expediting the processes for authorising international talent and companies would support this goal while maintaining robust standards.
The Chancellor’s green light for long-overdue infrastructure improvements send the right signals. Modern infrastructure is the backbone of a modern economy. We welcome the government’s support for expansion at Heathrow and look forward to further updates from the transport secretary on Gatwick and Luton. The success of the Elizabeth Line, where City Corporation investment has helped to add £42bn to the UK economy, is proof that strategic infrastructure unlocks enormous benefits.
We also welcome efforts to channel defined benefit pension surpluses into UK assets – with the right safeguards. Let’s turn UK savings into UK success stories. But to make this work, the government must deliver a pipeline of investable projects. Planning reforms will be crucial to removing obstacles to growth.
Not a second to waste
Our work on the Mansion House Compact with 11 founding DC pension funds stands ready to unlock £50bn for productive assets by 2030. It’s initiatives like this that will help us create the British Silicon Valley, by backing and providing the required capital to our innovators. Innovation is Britain’s edge so it’s time we funded it like one. Fintech leaders in Scotland I spoke to last week are proof that, with the right support, the UK can lead the way in emerging technologies.
The clock is ticking. Growth needs action now. Industry needs swift delivery and decisive implementation. Let’s seize the moment, there isn’t a second to waste.
Chris Hayward is policy chairman at City of London Corporation