The City of London Corporation is calling on whoever enters Downing Street next to work closely with the Square Mile to drive economic growth across the UK.
Chris Hayward, policy chairman of the City of London Corporation, says the organisation is ready to serve as a trusted partner regardless of which political figures take the top jobs.
The CBI responded to Sir Keir Starmer’s resignation by calling for “stability, confidence and a clear path to growth,” a sentiment Hayward says reflects the urgent economic reality facing the country.
Andy Burnham is widely expected to become the next Prime Minister, with a new Chancellor also anticipated to take office as political transition accelerates.
Reported counsel from figures including former Bank of England Chief Economist Andy Haldane, former Office of Budget Responsibility chairman Richard Hughes, and former Goldman Sachs economist Lord O’Neill has been welcomed.
The UK’s financial and professional services sector supports 2.5 million jobs, with two-thirds of those positions located outside of London, underlining its national importance.
According to a PwC report, the sector delivered roughly 12 per cent of all UK tax receipts in 2023, exceeding the government’s annual education budget and surpassing half the health budget.
The Square Mile alone generates over £109bn in economic output annually, representing four per cent of all UK gross value added, making it a critical national asset.
Hayward points to workforce participation as one of the most pressing challenges, citing Alan Milburn’s interim report finding that nearly one in eight people aged 16 to 24 are not in education, employment, or training.
The City of London Corporation’s partnership with the Financial Services Skills Commission, HM Treasury, and TheCityUK is intended to create clearer pathways into high-quality careers aligned with employer demand.
Savings reform is identified as another powerful lever for growth, with the Corporation’s research showing nearly one in four UK employees have no emergency savings whatsoever.
Low household savings constrain investment, weaken productivity, and leave the broader economy more exposed to external shocks, Hayward argues, making reform both urgent and achievable.
Practical steps including clearer boundaries between financial guidance and regulated advice, and expanded financial education in schools and workplaces, are among the measures proposed to shift behaviour at scale.
From financial services workers in Leeds to the financing of data centres in the North East, the City’s output supports economic activity and employment in every region of the UK.
Hayward concludes that sustainable growth requires policy developed in genuine partnership with business, ensuring the benefits are felt well beyond London and the South East.