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The UK should set up a public-private partnership to oversee a financial and professional services growth strategy and help secure a potential £225bn boost to the economy, according to the local authority for London’s financial district.
The City of London Corporation on Thursday published a report containing proposals for a government and financial and professional services council to support the local authority’s proposals to expand the sectors.
Other objectives in the report highlighted the need to increase investment, become a digital first economy, focus on sustainable finance and boost exports.
Chris Hayward, policy chair at the City of London Corporation, told the Financial Times that the public private partnership would ensure delivery of the growth strategy.
“The public private partnership . . . will make sure that the strategy is followed through,” he said.
“When I go around the world and look at competitor countries, particularly in Asia, they all have strategies . . . We don’t have an overarching strategy, what we have is piecemeal support.”
Hayward noted the government had set out various reforms to boost the City and wider economy — including plans to overhaul EU era regulation of insurance companies called Solvency II and rules covering financial markets known as Mifid II.
However, Hayward said there was “no plan for implementation” in relation to some of the government’s reforms.
The City of London Corporation report noted the government’s Mansion House compact announced in July, in which ministers set a goal of securing £75bn of investment by pension funds in high growth companies and other businesses.
The local authority said “cultural change” was needed to divert more pension money into areas such as venture capital.
Hayward said: “What we are trying to do is actually make sure we hold politicians’ feet to the fire.”
Analysis by the City of London Corporation and consultants Oliver Wyman estimated the proposals to boost the financial and professional services sectors would unlock £225bn of investment and economic growth into the UK by 2030.
Hayward said the £225bn — which consists of a £100bn boost from the insurance overhaul, £75bn from pension changes and £50bn from net zero investment — would not be achieved “if the reforms aren’t implemented”.
Other recommendations in the City of London Corporation report included promoting better use of data among regulators and developing an online system for company records similar to the US Edgar system.
Eight companies co-authored the report: asset manager Schroders, banks JPMorgan and Barclays, auditors EY and KPMG, insurance market Lloyd’s of London, cyber security company Glasswall and think-tank the Centre for Information Policy Leadership.
Sheila Nicoll, senior public policy adviser at Schroders, said the public-private partnership would “provide a significant opportunity to help us build on our competitive advantages in the sector”.
Chris Woolard, an EY partner, said: “There is momentum for collaboration across high-growth sectors and the recommendations . . . are important, tangible steps to ensure financial services continue to support strong economic growth for the UK long term.”
Hayward said: “We are making the case for a financial and professional services road map that helps drive growth across the UK for the rest of the decade and beyond. We look forward to working with the government and other partners to deliver it.”
As the local authority for the Square Mile, the City of London Corporation provides services and promotes the financial district as a place to work and live.