Industrial Strategy: Labour to turn City into ‘most innovative financial centre’
Labour has vowed to turn the Square Mile into “the world’s most innovative full-service financial centre” as the government laid out the key pillars of its much-anticipated industrial strategy.
The policy document said the government would achieve the milestone by 2035, but was unclear about what the criteria were for hitting it or how it would go about getting there.
The report cited the creation of new pensions megafunds as a key linchpin of its strategy for the financial services sector, as well as the signing of the Mansion House Accord, a voluntary scheme under which pension funds vow to deploy more capital into UK infrastructure. The report also cited the creation of the new Pisces private market, which is set to launch later this year.
However, there was scant reference of any proposals to support the London Stock Exchange or the public markets, which have seen a steady acceleration in delistings and a dearth of IPOs since the start of last year.
“The UK’s status as a global financial sector cannot be taken for granted, and international competition continues to accelerate,” the report said.
“The UK must continue to adapt and innovate to maintain our world-leading position. We will always uphold the highest standards, but we must also ensure the regulatory environment supports growth.
“Building on recent ambitious and wide-ranging reforms, the government’s plans for financial services will rebalance the system, setting the financial services sector up to innovate, grow and enable investment across the UK. That means building on our existing success stories, including as a magnet for overseas capital, and creating new ones in digital markets, sustainable finance and beyond.”
More details in Reeves’ Mansion House speech
The report said more details on the government’s plans for the financial services sector would be set out in Chancellor Rachel Reeves’ Mansion House speech on 15 July following an “extensive” co-design process with industry, and working in “close partnership” with the regulators and the sector.
Commenting upon the Industrial Strategy, Shadow Business Secretary Andrew Griffith said: “I welcome the publication of the long-delayed industrial strategy, but it is poor that it has taken Labour a whole year to cut and paste previous sector strategies in a new cover.
“Ultimately, it is actions not words which count. Labour is not serious about an industrial strategy and UK competitiveness whilst they simultaneously bend over backwards to trade unions and add more and more burdens on to business.
“It is ironic that on the same day, employment is down for the ninth month on their watch.”