Package of reforms and new initiatives across insurance, pensions and sustainable finance could add £225 billion to the economy, according to new analysis by the City of London Corporation and Oliver Wyman.
The new report, Vision for Economic Growth – a roadmap to prosperity, is the result of months of collaboration with over 300 stakeholders across the financial and professional services industry and throughout the country designed to drive economic growth and jobs across the UK.
The roadmap identifies five key objectives to help the country escape from a low-growth trap, and allow the UK to play its part on the global stage, leading on the world’s key challenges ranging from artificial intelligence to climate change.
There is clear demand for a plan that addresses the needs of savers and consumers and unlocks growth for British businesses and the wider UK economy.
The roadmap, co-authored by eight leading industry experts from – Lloyd’s, Schroders, JP Morgan, EY, KPMG, Barclays, Glasswall and CIPL – offers concrete recommendations and outlines tangible economic benefit across key competitive advantages in UK FPS, sustainable finance and technological and data-driven industries whilst enhancing global policy and collaboration.
Chris Hayward, Policy Chairman at City of London Corporation, said, “This is an industry shaped vision for what the financial and professional services could look like by 2030 and beyond and how we can help contribute an additional £225 billion of economic growth into the UK economy.
“This figure highlights not only the significance of UK financial and professional services to our economy, but also the urgency by which we must make these reforms to drive the country forward. In a time of mounting competition and economic headwinds, it’s time for a roadmap that future-proofs UK financial services and produces more investment, more jobs, new businesses and more funding for public services.
“Almost everyone in the UK interacts with financial services daily, from the smallest of transactions to life-changing events like taking out a mortgage to buying a new home. This is not a wish list of asks, this is about what the City could contribute, how we can help unlock a significant amount of investment into the system. We’re ready to do this and it’s paramount that industries, Government and regulators work together now to build a strong economy for the future.”
Nicholas Lyons, Lord Mayor of the City of London added, “The financial and professional services sector is the engine of our economy, but it needs regular maintenance checks. The UK’s productivity growth is low, GDP increases are sluggish, and wages aren’t keeping pace. The standard of living for many has been flat or declining and the prospects for the younger generation are uninspiring. But, given the right legislative and regulatory conditions, the financial and professional services sector can boost investment in our businesses and drive growth right across the country, financing our future.
“Delivering the far-reaching outcomes outlined in this report will depend on the public sector and private sector collaborating to boost our competitiveness, create great jobs nationwide, and secure a more sustainable future for all.
“It is vital that there is political consensus around these priorities too, so that there is a consistent effort, across the political spectrum, to get the UK back on a path to prosperity. This report is the roadmap. That work begins today.”