British banks need to be let “off the naughty step” to allow the City of London to defend itself against post-Brexit challengers, according to the boss of the CBI.
Speaking to the Financial Times, Carolyn Fairbairn said the controversial eight per cent surcharge on bank profits should also be axed as she called for the UK's regulators to focus on improving competition.
“It's time for banks to be taken off the naughty step. This is about sending a signal that a chapter [of crisis] is over,” Fairbairn said, adding that both the FCA and the PRA should promote international competitiveness as a priority.
“We need really strong regulation,” Fairbairn said. “But we have to be competitive”
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And the CBI boss also calls for improved access to skilled overseas workers from both inside Europe and the rest of the world.
“If we are to appeal as a financial services hub to the likes of China and India, we need to be able to employ skilled workers from those countries,” she said.
“That is getting harder. After three to five years, visa restrictions force them to leave.”
It comes ahead of Fairbairn's speech to the Scottish CBI in Glasgow on Thursday.