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...during his Mansion House speech on 10 July 2023.
The Mansion House Reforms are ambitious, pragmatic and necessary and will underpin the UK industry’s competitiveness and its contribution to supporting economic growth and resilience. Most importantly, the main beneficiaries will be the British people, who will gain from greater investment in the UK economy, revitalising communities and improving pension investment returns.
The Chancellor underlined the significant contribution made by financial and related professional services to the UK economy and public finances. The Chancellor reflected TheCityUK messaging and data to underline the significant contribution our industry makes to the economy and public finances. He noted that the industry employs nearly 2.5 million people, and that while two thirds of those are outside the south-east, London is the world’s second largest financial centre and one of the most dynamic cities on the planet. He also stressed that the industry generates more than £100 billion in tax revenue, paying for half the cost of running the NHS.
The Chancellor set out the government’s ambition to make the UK a ‘science superpower’. He recognised the important enabling role of financial services in achieving this, and that the industry needs the right architecture and the best talent to provide the best possible security for investors, as well as capital for businesses.
The Chancellor wants to ensure the UK remains an attractive world-class listing location. He recognised the excellent work of the Investment Research Review, led by Rachel Kent of Hogan Lovells, and confirmed that the government accepted all of its recommendations. He also announced a global first for the UK, pledging to establish a pioneering new ‘intermittent trading venue’ before the end of 2024, that will allow private companies access to capital before they publicly list. He also pointed to the publication of draft legislation on prospectus reform – a milestone of Lord Hill’s UK Listing Review – giving companies more flexibility to raise even larger sums from investors, and more quickly.
Pensions were another key area of focus, with the Chancellor announcing plans to unlock investment in high-growth companies and boost the UK’s capital markets. One of his major announcements was the ‘Mansion House Compact’, championed by the Lord Mayor. Nine of the UK’s largest Defined Contribution (DC) pension providers have already signed the voluntary Compact, committing to the objective of allocating at least 5% of their default funds to unlisted equities by 2030. He also set out a raft of other initiatives in this space, including:
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