Finding a cure for UK’s anaemic growth cannot come soon enough. But the challenge to the Chancellor will be to ensure tomorrow’s treatment via the Spending Review doesn’t kill the patient.
London is the beating heart of the UK economy. But for the UK to be fit for the future prosperity must rise right across the country.
The UK’s financial and related professional services industry is an unparalleled national asset. Sustainable economic growth would be impossible without it. His Majesty’s Treasury is well aware of this, and we look forward to welcoming the industrial strategy imminently.
Meanwhile, at the City of London Corporation, we continue to work closely with Government to drive inward investment, which is the lifeblood of productivity growth needed for raising people’s living standards.
Investor confidence in the UK - and in London - is strong. Our time zone, language, rule of law and stable political environment are all standout reasons. Turbulence abroad creates opportunities at home.
This month alone, London is playing host to SXSW for the very first time; London Tech Week; the Concordia Europe Summit and London Climate Action Week. Just last week Howard Dawber addressed firms here in the City about the investment opportunity for London at BusinessLDN’s annual conference.
By any economic measure, London remains the engine of the UK economy. The City of London alone produces more than £110 billion in annual economic output, and its workers are nearly twice as productive as the national average.
Since the financial crisis, through the years of criticism aimed at the banking sector and the uncertainty following Brexit, London has often been left to carry the weight of driving the UK economy largely on its own.
Let me be clear; a thriving London is not the enemy of regional prosperity, it’s a key enabler.
The City remains a magnet for global capital; a hub for high-growth firms, and a gateway for international talent. Since the pandemic, jobs in the Square Mile have risen by 25%. Nearly half of City workers come from overseas, helping drive the dynamism the UK needs to compete globally.
Nowhere is this more evident than in tech. Across the ocean, from fintech and AI to biotech, UK firms are achieving global leadership. But we can go further and faster here too: implementing a scalable, secure Digital Verification Service (DVS) can boost security, reduce fraud, and streamline financial services.
City Corporation research ranks London second in the world for innovation in financial services ecosystems, just behind New York. Meanwhile, the UK’s role in cross-border banking remains unrivalled in Europe, with clients worldwide continuing to choose London to move capital and manage risk.
We remain world-leading. But with New York and Singapore vying for an even greater share, we cannot be complacent about fuelling London as the UK’s engine of growth.
With that in mind, this week we’re launching the City Business Investment Unit, a bespoke concierge service to attract, retain and grow firms in the Square Mile. It sends a clear message: London is open, ambitious and ready to grow.
Because when London succeeds, the rest of the country benefits. What’s needed now is a national policy environment that doubles down on London’s strengths: a fair and agile immigration system to plug persistent skills gaps; accelerated planning and infrastructure funding to keep pace with growth; and swift, equitable access to GB Energy funding to deliver on net zero.
Yes, we live in uncertain times, but that is all the more reason for the Chancellor to reinforce London’s role as a global capital and the UK as the world’s number one investment destination when she steps up to the despatch box.
The Spending Review will involve difficult choices. But some decisions should be easy. The City’s contribution to the public purse, through taxes, jobs, and investment, is unmatched in scale and impact. Investing in London isn’t about favouring one region over another, it’s about backing the entire country to succeed.
Chris Hayward is the Policy Chairman at the City of London Corporation
