Financial services

London is one of only two truly global financial centres, alongside New York
 
It is an international centre for finance and the hub of the UK’s service sector, from which 87% of the UK’s recent export growth has come.  London’s success is most marked in international markets with the result that more foreign banks have branches in London than in any other financial centre.

London’s success cannot be taken for granted however.  Much of this global investment is ‘footloose’.  We must reinforce London’s competitiveness and nurture the financial sector’s continued growth if we are to protect its enormous contribution to UK GDP.

Recognising this importance, the Chancellor has established a dialogue with London’s financial community through the formation of a high level advisory group, of which London First Chairman Harvey McGrath is a member.  We regularly brief this group on competitiveness issues. 


Read our influential report, Keeping the UK Competitive
executive summary ; full report


To safeguard the future global competitiveness of London’s world class financial services cluster, London must

  • invest in transport infrastructure fit for a world city – Crossrail and the ‘Heathrow experience’ are critical
  • develop home-grown talent – London’s success attracts global talent, but its high mobility means we could lose out to emerging world financial centres.  It is critical that we develop our indigenous skills base to support the continued growth of London’s financial sector.
  • maintain competitive taxation and regulation - tax on business should be competitive with rates globally and with other EU countries in particular.  Equally, regulation must be proportionate.
  • maintain an open market – resisting the trend towards protectionism
  • engage with competitive markets – view emerging financial centres as representing a wealth of opportunity
  • immigration – manage immigration in a way that maximises London’s competitiveness

To find out more about the work of London First in this sector, contact David Reay on 020 7665 1567