By Louis Goss
The UK government should overhaul regulation of the financial sector with a view to boosting the City’s green credentials and extending its global reach, one of the Square Mile’s most powerful lobby groups has said.
The government should focus on the opportunities posed the global energy transition by transforming the City of London into a net zero finance hub, financial sector body TheCityUK said.
The UK should also work to boost sales of British financial and professional services in other countries by signing trade deals with foreign governments and becoming a leading hub for Islamic finance, the group’s report says.
The report says the government should double down on Britain’s competitive advantages by boosting the country’s financial sector, which currently produces more than 12 per cent of the UK’s economic output and employs more than 2.2m people.
It argues the UK should take advantage of the opportunities posed by technological innovation – including around blockchain technology – and the global green transition by ensuring regulation supports growth.
The lobby group also called on the government to “simplify and streamline” the UK’s tax system, by lowering taxes on the financial sector and delaying implantation of the OECD 15 per cent minimum corporation tax deal agreed to last year.
The group’s report argues “clear, proportionate and tailored regulation” is vital to the City’s future success.
The trade group urged the government to push forwards with efforts to overhaul EU regulations – such as MiFID2 and Solvency II – as it called for the reforms to be delivered “as swiftly and smoothly as capacity allows”.
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