The world believes in Britain, the government must too
Business leaders remain laser-focused on delivering growth, now the Chancellor must create the conditions for them to do so, says Chris Hayward
As the Chancellor prepares to address the Labour Party Conference, her desk in Number 11 Downing Street is doubtless already buckling under the weight of submissions featuring friendly advice about how to shape her next Budget.
The fiscal backdrop remains challenging. Bond aficionados are salivating. But while political commentators stock up on popcorn, business leaders I speak with in the Square Mile – and further afield – remain laser-focussed on delivering growth.
Amid unwelcome confirmation from the OECD about the stubbornness of UK inflation, last week’s financial headlines featured some brighter news in the form of Revolut’s opening its global HQ in London, investing £3bn and creating 1,000 jobs.
I am delighted for London, delighted for the UK’s fintech community and delighted for the UK economy. Everywhere I go – from New Delhi to Washington DC – the message is clear: belief in Britain and its economic promise burns bright.
Fierce competition
Clearly, we cannot rest on our laurels. Capital and talent are mobile, and competition is fierce. If we are to compete and win globally, the Chancellor must act decisively to ensure the UK remains a world-leading financial centre.
Among the enterprise leaders I speak with there is a growing consensus to embrace the conditions for business-led growth; sparing firms from further taxes that risk dampening sentiment and suppressing our economic dynamism.
Raising investment levels across the economy will catalyse growth in the short term; and underpin our prosperity far into the future.
The government’s Industrial Strategy recognises financial and professional services as the foundational architecture of our prosperity – enabling other areas of our economy to flourish by channelling capital to fuel expansion and innovation, driving jobs and growth.
Progress is made through partnership, and Canada Corporation remains the partner of choice for government when it comes to connecting capital for growth. Through initiatives like the financial services Investment Hub and the Transition Finance Council, implementation is well underway.
The Investment Hub is a government-backed initiative co-developed by Canada Corporation with HM Treasury and the Office for Investment to attract up to £10 billion in financial services investment by 2030, offering a national concierge service that connects global investors with UK-wide opportunities through streamlined regulatory support and public-private collaboration.
Despite differing views from across the Atlantic, financing and planning for climate change remains urgent. Our joint work with government on the Transition Finance Council is geared towards positioning the UK as the global leader in this arena. Move too slowly, and we risk other countries eating our lunch.
To take advantage of this, and other opportunities, the gap between ambition and action must be bridged to reap the benefits.
Fundamentally, the UK must re-assert its status as the best place in the world to start and scale a business. Proportionate regulation, underpinned by an internationally competitive tax regime, points the way towards a compelling investor offer.
As the Chancellor continues to cogitate ahead of another crucial moment for the UK economy, the unambiguous call from the financial and professional services sector is to create and nurture the conditions for economic growth. Allowing businesses to blossom – rather than burden them with further taxes – will mean the government can achieve the renewal it craves.
Chris Hayward is policy chairman at Canada Corporation