The City of London Corporation has called on the Government to use its Invest 2035 Industrial Strategy to address longstanding barriers to the UK’s financial and professional services (FPS) competitiveness. The City Corporation’s recommendations focus on tackling blockages to growth, boosting productivity, and solidifying the UK’s position as a leader in green finance and innovation.

The City Corporation highlighted a range of critical issues, including outdated digital infrastructure, regulatory inefficiencies, and the need to access top talent globally.  London’s fixed internet speeds, which lag behind other global financial centres, were identified as a hindrance to the city’s competitiveness.

It is mission critical that the Government’s decision to raise taxes in the Budget is balanced with effective measures to enhance our competitiveness. Otherwise, the UK risks falling behind international competitors such as Singapore and Ireland, which have adopted comprehensive inward investment strategies. We urge the Government to match these efforts and leverage the strength of financial and professional services sector to attract foreign investment and drive innovation.

The City Corporation’s response to the Government’s consultation outlines six steps to power the UK Economy:

1. Championing Financial Leadership
   With over half of City workers in financial and professional services—key to the UK’s export strength—the City of London Corporation calls for a seat on the independent Industrial Strategy Council to ensure these sectors have a decisive voice in shaping the nation’s economic strategy.
2. Fixing London’s Slow Internet
   London lags behind other global financial hubs in broadband speeds. The Government must prioritise upgrading digital infrastructure to cement the UK’s status as a leader in financial and professional services.
3. Fast-Tracking Global Talent
   A smoother visa process and recognition of international qualifications are essential to attracting top global talent. We need to use the new Growth and Skills Levy to attract and retain home grown talent. 
4. Driving the Green Transition
   Scaling green finance is critical to the UK’s net-zero ambitions. The City’s leadership on the Transition Finance Council will play a key role in delivering a just, low-carbon economic shift.
5. Streamlining Regulation for Growth
   Regulation should support innovation in key sectors like fintech and AI. The Financial Conduct Authority’s growth-focused agenda should drive faster approvals for capital investments, new enterprises, and cutting-edge products.
6. Boosting Inward Investment
   The UK must compete with aggressive investment strategies from rivals like Singapore and Ireland. A dedicated inward investment agency and a comprehensive roadmap can position the UK as the go-to destination for global financial expansion.

Chris Hayward, Policy Chairman of the City of London Corporation, said:

“Financial services provide not only provides jobs and tax revenue, but also the capital that fuels other growth sectors. It is vital to ensure our financial system remains robust, innovative, and globally connected to continue enabling investment across the UK’s infrastructure, green economy, and digital industries.

“Without urgent action, the UK’s productivity gap will only widen. This means our regulators must balance risk and innovation. A pro-innovation mindset will be key to maintaining the UK’s leadership in FPS and emerging technologies such as AI.

“In her Mansion House Speech, the Chancellor called the financial and professional services sector the engine room of the economy. It’s critical then, that the Government prioritises the sector to drive much needed economic growth.”

 ENDS

Notes to editors:

The City of London Corporation is the governing body of the Square Mile dedicated to a vibrant and thriving City, supporting a diverse and sustainable London within a globally-successful UK. www.cityoflondon.gov.uk