The UK faces serious and far-reaching public policy challenges. Russia’s illegal invasion of Ukraine has further exacerbated the effects of the pandemic, further widening and deepening the scope of existing economic and social problems. Many people feel this firsthand through the impact on their cost of living.
It is clear that we need to stimulate economic growth. The role of finance and related professional services is critical to achieving this.
Our industry is one that fuels and enables the rest of the economy and brings jobs and prosperity across the UK. We support the transition to net zero, lead global innovation in emerging sectors such as fintech, and help people buy homes, start businesses and save for retirement in their everyday lives.
The latest edition of our ‘Delivering Growth Across the UK’ report explores the contribution of our industry across the UK regions and nation. Our company employs his 2.5 million people. This equates to one job for every 13 people in the UK. Two-thirds of these jobs are located outside London, with the North West being the second largest center for financial and related professional services jobs in the country. Of the 390,000 jobs created in the decade to 2021, more than half were outside the M25. London is a huge asset to the UK, but almost half of our industry’s exports come from outside the capital. Financial and related professional services are a true national success story.
But it has the potential to make an even bigger contribution. There are three areas for reform that can drive growth and provide further opportunities to unlock industry potential across the country.
Further decentralization to revitalize the economy
We believe that greater decentralization across the UK, and particularly in the UK regions, is key to further growth. However, if possible, the permissions provided to each area should be consistent to better ensure business growth.
For example, large companies operating in one region of the country can engage with local mayors on important issues such as skills policy and trade promotion in ways that large companies operating in another region cannot. can.
This mismatch across different disciplines leads to cost, complexity, and uncertainty. With more authority and the right organizational infrastructure, it will be easier for authorities to provide the coordination and leadership needed to maximize growth.
Reforming skills and apprenticeship systems to increase opportunities
Local policy makers and business leaders are in the best position to identify the skills needed in their area, especially if they have clusters in specialized areas such as fintech or lawtech.
That is why future English devolution arrangements will require further devolution of education policy and funding to Mayors’ Union authorities, and local leaders will need to play a greater role in the oversight of education.
Further reforms to apprenticeship fees have also been delayed. We need to improve access for small businesses, harmonize systems across home countries and give businesses more say in how long and when they take on apprentices.
Develop more effective regional infrastructure and support attracting international investment to the region
Connectivity within the UK and with key international markets is critical for business. More effective digital and transport infrastructure is needed to strengthen the connectivity of thriving regional hubs and support further growth across all industries.
We also see the recently announced role of the devolved leaders in promoting trade as a pilot for extending this power to other regional areas, and we look forward to strengthening trade and investment across the UK in all future It should be a priority for trade agreements and memorandums of understanding.
What now?
The finance and related professional services industry is a national asset that drives jobs and prosperity in every region of the UK. These are high-quality jobs and careers with some of the world’s largest companies and some of the most exciting startups.
Beyond our important role as a major national employer, our industry has an even bigger role to play in driving growth and unlocking potential in every region and country of the UK, with a focus on supporting people and businesses. There is a huge opportunity to fulfill this. We will continue to work with policymakers, regulators and community leaders on this transformative challenge to build a sustainable future for all.
[See also: How will we reach net zero?]
