Britain urgently needs a “one stop shop” advice and support hub for foreign investors or risk losing its status as a world-leading centre for financial services.
A new report from the City of London Corporation said a Singapore-style financial services investment hub could unlock as much as £10 billion in investment by 2030.
The report was written in close collaboration with HM Treasury, the Office for Investment and regulators, after consultation with more than 200 stakeholders across the UK. It warns that the country is at a “now or never” moment to defend and grow its global leadership in financial services.
The proposed hub would offer “joined-up, tailored support from market entry to expansion”.
The report, titled The Future of Financial and Professional Services Investment in the UK: A Strategic Blueprint for a Financial Services Investment Hub and Concierge Service, adds the hub “will offer....curated opportunities and seamless regulatory guidance”.
It points out the UK has seen a 4% fall in its market share of financial and professional services foreign direct investment (FDI) projects since 2017 “while other financial centres have recorded accelerated growth over the same period”.
The report argues that while the UK’s strengths, such as its time zone, legal system, global financial infrastructure, and political stability, remain unmatched, “these foundations must now be paired with modernised, frictionless investment services to remain competitive”.
Chris Hayward, Policy Chairman at the City of London Corporation, the governing body for the Square Mile, said: “This is a now or never moment for UK financial services. If we don’t act decisively, we risk losing our global position and the economic prosperity, jobs and innovation that come with it.
“Other markets have introduced services that fast-track market entry, including investor concierge services and fully coordinated government and regulatory support. The UK must urgently first match, then exceed these standards to remain competitive.
“We need a nationally joined-up service that makes the UK the easiest and most attractive place in the world to invest in financial services. This is an opportunity to protect and grow our future prosperity by encouraging government departments and regulators to work more collaboratively.”
