The City of London and the broader financial services sector underpin pensions, savings, investment, and insurance for millions of people across the country.
Financial services account for a significant share of UK GDP, tax revenue, and exports, supporting jobs not only in London but in major centres such as Edinburgh, Leeds, Birmingham, and Bristol.
A strong and well-regulated financial sector attracts international capital, supports businesses of all sizes in accessing funding, and reinforces the UK’s position as a trusted and stable place to invest. Protecting and promoting this global leadership is essential to the long-term prosperity of the British economy.
The 5 key challenges to the UK’s Global Financial position:
1. Regulatory burden. Increasing regulation and the growing cost of compliance, makes the UK more expensive and less appealing place for financial companies to do business.
2. Tax and policy environment. Increases in employer national insurance contributions, business rates, and capital gains tax are raising the cost of doing business in the UK, making it harder to compete with lower-tax jurisdictions for mobile capital and talent.
3. Talent drain. Without competitive visa regimes, remuneration frameworks, and quality of life, the UK risks losing skilled professionals to rival centres – like Paris, Singapore, New York or Hamburg – that are looking to attract skilled UK graduates.
4. Lawfare and litigation risk. Excessive or speculative legal action against financial institutions diverts resources away from investment, innovation, and growth.
5. Upskilling workforce. In 2025, a third of businesses (34%) struggled to recruit for finance and accounting positions in the last year. We need to ensure we have a talent pipeline to support our financial sector.