The City of London Corporation has urged the new Burnham government to establish conditions conducive to economic growth, emphasising that a stable and competitive tax system, streamlined planning processes, and proportionate regulation are essential for businesses to invest with confidence. Chris Hayward, a prominent figure from the City of London, stated that the City is ready to collaborate with the government to create these vital conditions.
With the new Prime Minister, Mr. Burnham, and his Cabinet now in place, the government faces significant challenges including regional inequality, strained public finances, sluggish productivity, and stagnant living standards. The City argues that addressing these issues will require sustainable growth and the unleashing of entrepreneurial energy nationwide. While early government actions such as a business rates cut, energy VAT reduction, and a bus fare cap are welcomed as steps to support the cost of living and the hospitality sector, the City cautions that these spending decisions alone will not significantly move the needle on overall economic growth.
The financial and professional services sector, often perceived as a London-centric success, actually supports approximately 2.5 million jobs across the UK, with two-thirds of these roles located outside the capital. The City of London Corporation believes the investment generated by its markets and institutions has the potential to benefit communities across the entire country, from Land's End to John O'Groats. Hayward stressed that every economic decision made by the government should be evaluated on whether it facilitates business investment, innovation, growth, and job creation.
The City also advocates for the government to double down on sectors where the UK already possesses a global competitive advantage. These include financial and professional services, technology, life sciences, and industries driving the digital and green transitions. The City of London Corporation highlighted its constructive engagement with previous governments and expressed eagerness to work with the new Chancellor, John Healey, pointing to successful collaborations on defence financing under his previous leadership at the Ministry of Defence.
Looking ahead, the City sees significant opportunities for the UK, particularly in defence finance and digital markets. A recent report by the City Corporation, in collaboration with Digital Wholesale Market Champion Chris Woolard, projects a potential £33 billion boost to the UK economy if plans for tokenised markets are accelerated. The City also called for the government to match its domestic growth ambitions with concrete actions, including providing planning certainty in London to unlock new workplaces and support businesses, and to be equally ambitious on the international stage, particularly in strengthening Britain's position as a world-leading financial centre.