The City of London Corporation has published a roadmap to prosperity, which outlines five key objectives for the UK to escape from a low-growth trap.
The paper, co-authored by leading financial and professional services firms, calls for the creation of a new Financial and Professional Services (FPS) Council to advise the government on designing a long-term growth strategy. It also proposes a radical change in culture across the pensions industry, and the creation of a new UK knowledge and support hub.
The roadmap also recommends a change in approach for new UK trade agreements, which should focus on services given the UK’s position as the second largest exporter of services globally.
Chris Hayward, policy chairman at the City of London Corporation, said the roadmap is an “industry-shaped vision” for what the sector could look like by 2030. He said the £225 billion growth 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”.
The roadmap, Mr. Hayward said, “is not a wish list. It’s a roadmap of how the City can help the economy.” He added that the UK is “on the cutting edge of fintech and the world of green finance”, and that London “remains resilient and the heart of the UK economy”.
The key points of the roadmap are as follows:
- Create a new FPS Council to advise the government on designing a long-term growth strategy.
- Transform the culture of the pensions industry to unlock £75 billion worth of investment and help create a new generation of UK start-ups.
- Create a new hub for knowledge and support, which could bring in an extra £24 billion in FPS exports and £700 million in Foreign Direct Investment (FDI).
- Shift the focus of new UK trade agreements to services, as the UK is now the second biggest exporter of services in the world.
The roadmap is a significant step forward in the City’s efforts to shape the future of the UK economy. It is a clear and ambitious plan that, if implemented, could help the UK to escape from a low-growth trap and become a global leader in financial and professional services.