Miles Celic is the Chief Executive Officer of TheCityUK
The challenge of boosting economic growth is not unique to Britain, but it has rightly become a central issue in our national debate. Whoever becomes the next leader of the Conservative Party it will be vital that they and their colleagues recognise the role of Britain’s world-class financial and related professional services industry in enabling growth and prosperity across the UK.
Our industry makes a significant contribution in every region and nation, with two-thirds of the 2.4 million people it employs (around one in every 13 workers) based outside the capital in thriving financial hubs such as Birmingham, Belfast, Manchester and Edinburgh. Financial services is also an outstanding productivity success story: its output per job is almost three times higher than the national average. The industry excels at creating opportunities nationwide, providing highly skilled, well-paid jobs, while helping people save for the future, buy homes, invest in businesses, and manage risks.
Our recent research shows that the industry generated 354,000 new jobs in the decade to 2022, with more than half outside London. In 2022 alone (the latest available data), the industry contributed £248 billion to the UK economy –12 per cent of the country’s total economic output. Its national impact is clear, supporting communities, businesses and people in their everyday lives, and enabling growth across the country.
Yet, despite its already considerable contribution, the UK’s role as a leading international financial centre creates a unique opportunity for our sector to unlock even faster growth.
Our latest report, ‘Enabling growth across the UK 2024’, highlights the targeted policy interventions needed to spur that outcome and enable the industry to accelerate growth. Our proposals are focused on greater devolution, improved connectivity between regions, and comprehensive reforms to skills policy and Britain’s outdated planning system – all of which will further power up local economies.
Greater and more consistent decentralisation of power can drive prosperity and job creation. This recommendation promises a clearer climate in which businesses can thrive and allows local leaders to make strategic decisions based on the needs and opportunities of their communities.
Improving connectivity, both in terms of physical infrastructure and digital networks, should be another priority. Strengthening the links between financial centres will help businesses expand and workers access new opportunities. This connectivity is especially critical as we aim to attract investment into and across the country.
Finally, reforming the country’s skills and planning systems are also vital. Our industry is involved in the planning system at all stages. Streamlined processes will encourage investment, deliver the infrastructure needed to grow the economy, address the housing crisis and support a sustainable transition to net zero.
It’s encouraging to see cross-party consensus on the need to prioritise economic growth and to build on positive changes in policy and regulation that will help our sector thrive. The new Conservative leader will have a big responsibility in setting out how the party plans to address the key economic challenges in the next Parliament.
Our industry has been, and always will be, a strong foundation from which our country can build and grow again. We look forward to working with the next leader of the Conservative Party to deepen the role we can play in Britain’s future success.
