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The Chancellor of the Exchequer, Gordon Brown, and the Economic Secretary, Ed Balls, today met for the first time with members of the High-Level City Group to discuss proposals to maintain and enhance the City of London’s competitiveness throughout the world.
The Group discussed the following substantive proposals:
- Maintaining cutting edge principles based regulation for financial services. The Government set out proposals to reduce administrative burdens of regulation, to take further action against unnecessary gold-plating of European Directives and push for a more de-regulatory stance in the EU under the German presidency. The Government will examine, with the Financial Services Authority, whether the regulatory regime might be lightened for insurance services with low consumer detriment or systemic risk;
- Modernisation of the wholesale insurance market. Working with key players in the sector, Lord Levene will develop a plan to deliver further market reforms to improve efficiency, building on the recent introduction of some electronic trading, and, in parallel, the Government will examine the business environment for the wholesale insurance sector;
- Boosting professional financial skills in London. The Chancellor has asked Teresa Sayers and the Financial Services Skills Council to undertake research on financial skills gaps. At the same time, the Treasury, together with industry, will examine a proposal for a centre of regulatory expertise that would provide teaching and research.
- Promoting, in a new joined up strategy, the UK based financial sector in overseas markets, bringing greater coordination of the efforts of public and industry bodies. UK Trade & Investment (UKTI), which will be responsible for coordinating the strategy, will allocate additional resources to the promotion of financial services, with dedicated diplomatic staff and tailored promotional strategies in key overseas markets, including China and India. Roll out of the strategy will be overseen by a private public partnership – the Financial Services Sector Advisory Group.
Speaking after the High-Level Group meeting, Gordon Brown said:
“The message that the City’s success sends out to the whole British economy is that we will succeed if we think globally. But we must not be complacent about that success. So today’s meeting has discussed concrete steps that will allow us to take forward an agenda, bringing business and government together, to equip us to meet the challenges of global competition and promote the City and its financial service expertise throughout the world. We look forward to continuing our discussions.”
Ed Balls said:
"Today’s meeting happened at a time of huge opportunity for the City and UK financial services. If we get key decisions right, as we are doing with regulation of exchanges, and continue to attract the best talent from around the world, I believe we can entrench London as the key financial centre of the 21st century. I'm convinced there is a common understanding and a unity of purpose behind the agenda of making London and the UK financial sector the world leader."
