London’s financial sector leaders have announced plans to create a blueprint that would “kickstart” the city’s role as a global financial centre post-Brexit by 2030. The roadmap, which will be
presented to political parties in the autumn, aims to better position London to compete with financial centres such as Singapore and New York. The initiative will be spearheaded by the City of London and will include Lloyd's insurance market, Schroders asset management, KPMG auditor, Barclays bank, and other firms. The roadmap will focus on tech and innovation, sustainable finance, competitive marketplace, and international trade.
Chris Hayward, the City of London's policy chairman, stated that there is no overarching vision and strategy for UK financial services. The initiative aims to fill this void and deliver “ambitious, actionable recommendations for the competitiveness of UK financial services.” However, Hayward clarified that the initiative is not about deregulation, as good regulation and good growth are two sides of the same coin.
The UK’s financial services sector contributes 12% to the country’s GDP. With Brexit, the sector has been largely cut off from the European Union, causing concern in the City of London. Although the city remains the world’s second most important financial centre, its position has been challenged by other financial hubs. For instance, Amsterdam overtook London as Europe's biggest share trading centre since Brexit, and the decision by UK chip designer Arm to only list in New York added to the City's concerns.
The UK has already proposed over 30 changes to existing rules known as the “Edinburgh Reforms.” The EU and the US have also proposed reforms in some areas. However, the City's Finance for Growth initiative will be an umbrella, long-term strategy sitting above reforms of individual rules. City Minister Andrew Griffith has ruled out radical divergence from the US and EU, citing concerns that it would increase costs for global firms.
The roadmap is expected to be an important tool to help London retain its position as a global financial hub. The initiative is timely, with the city looking to attract international investors and businesses that may be seeking alternatives to other financial centres. The roadmap’s success will depend on the ability of the sector’s leaders to collaborate effectively and deliver a clear strategy that will position London as a competitive and attractive financial hub for the future. Photo by Philippe Salgarolo, Wikimedia commons.