Diplomacy with the EU, the US and beyond will help us bolster our financial services
Diplomatic relations with the EU and US will only help Britain’s standing post-Brexit, writes Nicholas Lyons
Oscar Wilde said America and Britain have everything in common, apart from the language. As President Biden made his way back to the States after a historic trip to Ireland and Northern Ireland last week, I travelled to the USA and Canada and found a confluence between our financial and professional services sectors Wilde would be proud of.
My trip to San Francisco, Chicago and Toronto was designed to ignite conversations about funding the growth economy, and to promote the UK’s investment management sector.
In San Francisco in particular, there was a real appreciation for the leadership that the UK is establishing in AI and crypto, and a recognition that our regulators are at the forefront in looking at this.
The UK can create long-standing business relationships because of the innovative nature of our financial services sector. But those partnerships wouldn’t exist without the diplomacy of our government ministers and ambassadors.
Tomorrow evening, I’ll bring Ambassadors and High Commissioners accredited to the Court of St James together for the annual Easter Banquet at Mansion House. Dinners like these are an opportunity to recognise the integral role diplomacy plays in the UK’s success, set out the state of play in the UK, and outline the role financial services can have in tackling global challenges.
It’s no exaggeration to say that the UK has been in a state of flux for some years now, with Brexit and political turmoil creating a febrility some predicted would mark our downfall. But the Square Mile demonstrated its strength through the pandemic and the current economic challenge. And stability – the foundation for prosperity – has, to a large extent, been restored.
Last week, the International Monetary Fund predicted interest rates will fall once inflation is brought under control. While this won’t offer immediate relief to homeowners, what could improve our economic position is an all-out focus on growth. Which is where our global partnerships come in.
As the Asia-Pacific region continues to play an increasingly important role in the world economy, the UK has become the first European country to join the CPTPP, a powerful trading bloc. A landmark agreement that will allow exporters to seize opportunities for new jobs, growth and innovation, with access to 500 million consumers across 11 nations.
Elsewhere, we’re improving our dialogue with the EU after the Windsor Framework, and there’s a sense of optimism as we prepare for the coronation of our new King. Meanwhile, support is growing for a private sector-led “future growth fund” that will give defined contribution pension savers the chance to invest in fast-growing businesses – an idea I’ve been championing.
But, of course, the UK does not exist in a vacuum. And all this is happening against an increasingly fragmented and fractious global backdrop, marked by war, economic shock, poverty and climate change.
We are at the forefront of developing green finance solutions that will help countries meet their climate commitments.
The City has shown it is resilient and resourceful – now, we must demonstrate how responsible the Square Mile is, too.