UK financial chiefs urge government to expand reforms to attract large businesses

However, industry groups and financial chiefs are demanding further reforms, especially as the European Union and the United States modernize their own financial markets to stay competitive. Among the requests are financial incentives for companies setting up, going public, and establishing their headquarters in the UK, as well as tax breaks on investment returns and dividend income to attract more investors to UK-listed companies.

“There is no one-size-fits-all solution here,” said Miles Celic, CEO of lobbying group TheCityUK. “There are a variety of factors that make a place attractive in terms of investment, listing, and being an international financial center.”

Reforms to unlock pension fund investments

Financial chiefs expect the government to propose reforms to unlock pension fund investments in the coming months. However, some pension fund officials have expressed concerns about any attempt to force them to invest in riskier, early-stage British companies.

In September, senior financial officials will publish a “comprehensive vision” for the City, in time for the annual political party conferences. Major regulatory changes requiring legislation could be difficult to implement quickly, given that the UK is expected to hold general elections next year.

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Retaining talent and supporting key sectors

Industry officials believe that a fundamental shift in risk appetite, as well as adjustments in tax legislation, executive compensation, and post-Brexit immigration rules to retain top talent in the UK may also be necessary.

In the financial sector, over 7,000 jobs have been relocated from London to the European Union following Brexit, according to consulting firm EY. Industries considered to be part of the UK’s lifeblood, such as biotechnology, believe the government has a huge task ahead.

“The proposed changes for UK listings are encouraging, but may not be enough,” said Steve Bates, CEO of the BioIndustry Association (BIA). “It’s an important flower in the bouquet… but I think we need more than one rose to make this proposition attractive.”