Dear politicians: What the City wants to see in your election manifesto
With the news of a potential December election hanging in the balance today, the City is bracing itself for another potential new government in Downing Street.
Yet while much of the debate in the coming weeks is likely to be centred on Britain’s imminent departure of the EU, the financial sector is hoping to see some policy promises beyond Brexit. Here are a few of the ideas being touted in the Square Mile this afternoon.
Read more: PM says Brexit deal is ‘ready to be approved’ by Parliament
Infrastructure
Adam Marshall, director general of the British Chambers of Commerce, said: “For one, we need an expansive investment agenda for both road and rail that better connects jobs to people and businesses to markets here and abroad.
“To begin, the new government must urgently reaffirm its commitment to deliver of all phases of HS2 and construction of the third runway at Heathrow Airport. Any move to row back from these decisions would undermine business confidence and damage our reputation as a place to invest.”
Jasmine Whitbread, chief executive of business leader trade group London First, said the government needs to focus on four areas: “On connectivity, the next government must commit to investing at least 1.2 per cent of GDP each year on infrastructure. On immigration, it should set the salary threshold at around £20,000 so London can retain and attract the workforce it needs.
“On housing, we need to see a commitment to more public money, investment and land, and better ways of building, including a review of the Green Belt; and on tax, annual reviews of business rates and greater local flexibility around reliefs.”
Investment
Vicky Pryce, economist and Centre for Economics and Business Research (Cebr) board member, said: “I am guessing that businesses care less about cuts in corporation tax and much more about policies that will encourage them to start investing again. They want clarity over future contracting out and government procurement policies.
She added: “They would like resumption in government infrastructure and skill spending and joint innovation initiatives in Ai and climate change.”
Read more: Government should overhaul stamp duty ‘to boost housing market’
Business rates
Helen Dickinson, chief executive the British Retail Consortium (BRC), said: “Business rates remain the biggest driver of store closures and job losses in the industry.”
“The next government should scrap ‘downwards transition’, which forces retailers to pay £1.3bn more than they owe over five years; money which could otherwise support investment in staff, innovation and the overall customer-experience.”
Ruth Lea, an economist and adviser to the Arbuthnot Banking Group, added: “Given the state of the public finances there is probably limited scope for tax cuts. But if there are tax cuts, they should focus on business rates to help hard pressed retailers. More generally, priority should be given to tax simplification.”
Pensions
Edi Truell, a well-known financier and former pensions adviser to Boris Johnson during his City Hall tenure, said: “I’d like to see a radical simplification of the pension system. Inland revenue always come up with silly reasons why they want to make it so byzantine. It’s also controversial but I would actually stop pensions tax relief.”