According to the local authority of London’s Financial District, the UK should establish a public-private partnerships to oversee an economic growth strategy for financial and professional services and to help secure up to £225bn in potential boosts to the economy.
The City of London Corporation published on Thursday a report that contained proposals for a council of government, financial and professional service providers to support local authority proposals to expand these sectors.
The report also highlighted other objectives, including the need to boost exports, increase investment and become a digital economy.
Chris Hayward, the policy chair of the City of London Corporation told reporters that the public-private partnership would deliver the growth strategy.
The Public Private Partnership. . . “I will ensure that the strategy is carried out,” he said.
“When I travel around the globe and observe competitor countries, especially in Asia, all of them have strategies. . . “We don’t have a comprehensive strategy. We only have piecemeal assistance.”
Hayward said the government has set out a number of reforms that will boost the City’s economy and the wider economy. These include plans to revamp EU-era regulations for insurance companies, Solvency II, and rules covering the financial markets called Mifid II.
Hayward stated that there is “no plan of implementation” for some of the reforms proposed by the government.
The City of London Corporation’s report noted that the Mansion House Compact, announced by the government in July, set out a goal for pension funds to invest PS75bn in high-growth companies and other businesses.
Local authorities said that “cultural changes” were needed to redirect more pension funds into venture capital.
Hayward stated: “We are actually trying to make sure that we hold politicians to account.”
The City of London Corporation, in conjunction with consultants Oliver Wyman, estimated that the proposed measures to boost the financial services sector and the professional services sector would unlock £225bn of investments and economic growth for the UK by 2030.
Hayward stated that the £225bn, which is a boost of £100bn by the insurance overhaul and £75bn through pension changes as well as £50bn via net zero investment, would not be reached “if reforms aren’t put in place”.
The City of London Corporation also recommended that regulators use data more effectively and develop an online system similar to US Edgar for records of companies.
Eight companies contributed to the report. They are: Schroders Asset Management, JPMorgan, Barclays Bank, EY, KPMG and Lloyd’s of London Insurance Market, Glasswall Cyber Security, and the Centre for Information Policy Leadership.
Sheila Nicoll said that the public-private partnership “would provide a significant opportunity for us to build on our comparative advantages in the industry”.
Chris Woolard, a partner at EY, said that there is momentum for collaboration in high-growth industries and the recommendations. . . “There are important and tangible steps that can be taken to ensure the financial services support a strong economy in the UK for a long time.”
Hayward stated: “We make the case for a road map for financial and professional services that will help drive growth in the UK for the remainder of this decade and beyond. We are looking forward to working with government and other partners on delivering it.”
The City of London Corporation, as the local authority of the Square Mile area, provides services and promotes this financial district to be a desirable place to live and work.