Ahead of the Chancellor giving his Autumn statement on the 3rd December TheCityUK has sent a representation to HM Treasury.
The Representation puts some carefully-considered requests in their macroeconomic context, and in this way, seeks to present a coherent, persuasive argument rather than a simple industry “wish-list”. The letter focused on three broad themes: UK competitiveness, economic growth and macroeconomic stability.
TheCityUK asserts that concern about financial stability is warranted, but that it should not result in legislation or policy that inadvertently stifles competitiveness and growth. To this end, we advocated that all new regulation be tested specifically for the impact it has on competitiveness.
Additionally, new regulations should be crafted with a view to the international context. As the world’s major economic powers give increased emphasis to bringing their monetary, tax, financial and other regimes into alignment, UK policy could be better attuned to the issue of global regulatory coherence – or risk undermining the competitiveness which is the foundation of the UK’s strength in the EU, as well as the cornerstone of its prosperity.
TheCityUK highlighted export promotion and encouragement of alternative and complementary finance as possible strategies to bolster economic growth. By implementing measures to revive and strengthen markets such as those for securitisation, private placements, crowdfunding, and peer-to-peer lending, funding to SMEs – the lifeblood of the economy – could be augmented.
The latest data indicate that the main focus of improved macroeconomic stability should be the public finances. Increased investment in infrastructure would encourage both short- and long-term economic growth by boosting spending now, and increasing the economy’s productive capacity in the years ahead. But in light of the need for continued fiscal consolidation, government policy should also facilitate greater involvement of financial and related professional services in infrastructure investment.
To view our 2014 Autumn Statement Representation in full click here