25 October 2018
Funding our future
Enabling Financial Services to deliver prosperity across the UK
Two weeks ago, the CBI published its new report Funding our future, which assesses how to better enable financial services to drive prosperity across the UK.
Financial services provide a vital platform for growth across the whole economy. Whether it is the products and services provided, or its contribution in terms of jobs, tax revenues and innovation, the financial services sector matters to the health and prosperity of the UK economy.
With over 1.1 million people working directly in the sector across every region and nation of the UK, financial services contributed over £72 billion in taxes last year – 11% of total UK government tax receipts. This is equivalent to almost half the planned NHS budget across the whole UKfor 2017-2018. By seizing the opportunities presented by technology as well as getting the UK’s financial services strategy right, the sector will be better placed to support future growth.
In conducting the research, the CBI engaged with over 80 financial services members of every size across every region and nation of the UK, as well as leading sector associations. The CBI also discussed with non-financial services members their experience as customers of financial services. A complex picture emerged with sectors grappling with technological change, shifting regulatory expectations and tax policy, as well as emerging risks, particularly around cybersecurity. This vibrant sector has made significant strides to rebuild trust with customers, whilst innovating to deal with evolving customer needs and expectations of financial products and services.
As financial services continue to change, with new entrants offering new services, more needs to be done to help the sector deal with changing regulatory and taxation requirements. The CBI believesto keep the UK at the forefront of global financial services it requires a change in approach to put customers first as well as for the government and regulators to work better with the global financial services industry to avoid unintended consequences of regulation. Further to this, the report emphasises the needs for an acceleration of efforts to ensure the regulatory environment supports rather than stifles innovation.
When the sector is firing on all cylinders, everyone stands to benefit. The CBI will be taking these recommendations forward with politicians and policymakers through a programme of roundtables and events across the UK, the first event will be held in the North West on 1 November.
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