The UK’s credentials as a leading global financial centre are undisputed. The British time zone, language and regulatory system all contribute to this unrivalled status. Over the centuries the sector has combined tradition with innovation and shown openness and willingness to change and adapt.
This has made the financial district of London, with its myriad facilities, an attractive arena with unique strengths for business – such as the UK’s access to a deep pool of the most highly skilled and talented workers in the world. Currently just under 20 per cent of the financial services workforce is international, rising to 42 per cent in Fintech.
This world class multinational and multilingual workforce gives Britain an edge over its rivals. The benefits that the UK gains from being at the zenith of financial services are immense. The industry contributes over 10 per cent of the UK’s total economic output, and it is the country’s largest taxpayer and exporter.
With over 2.3 million people across the UK working in financial and related professional services – two thirds of whom are employed outside of London – the sector is vital in bringing about recovery. It provides a boost to the wider economy by financing businesses in all sectors, thereby creating jobs and driving growth. But other financial centres are taking steps to catch up with the UK which cannot rest on its laurels – however good they may be.
In order to protect the UK’s competitive advantage, policymakers must ensure that the country’s businesses maintain unrivalled access to the most important source of future growth available: top global talent. The question that arises here is what can be done. Last year the City of London Corporation and EY produced a report which proposed reforms to develop a world class visa regime to help international businesses.
At the same time, The CityUK and EY published a paper outlining how the UK’s new independent trade and investment policy could help UK businesses secure access to global talent. Both bits of work emphasised this as a top priority for industries across the UK in order to ensure its enduring competitive edge. Since then, the Government has acted on many of the recommendations.
But businesses continue to struggle with process-related issues. Since the introduction of the new points-based immigration system, it is becoming more difficult, and costlier, to secure the talent that the UK has always relied on to keep the country competitive.
Early last month, the City Corporation, The CItyUK and EY produced a series of recommendations to ensure the UK stays in front of the pack, including vital reforms to the countries immigration system which they had also mentioned in their previous report. It included a suite of proposals to attract the best people, and help firms to access and export to the high-growth market of the future.
Ministers need to create a new short-term business visa to allow overseas staff to visit and work in the UK. This would streamline the cost and time taken to move people around regional offices under current immigration rules.
Remote working has had a transformative impact on international talent. It has opened up new growth opportunities for UK based businesses and the finance industry. As the Lord Mayor of the City of London Corporation, William Russell points out, the UK needs to ensure it takes advantage of these opportunities. This needs to be a public and private partnership between Government and industry to keep the pools of talent deep and the country’s economy strong. (The writer is our foreign correspondent based in the UK)
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