City of London Corporation calls for creation of investment hub
The City of London Corporation has called for the creation of an “investment hub” for financial services in a bid to safeguard the Square Mile’s status as a world-leading financial centre.
In a report developed in collaboration with the Treasury, the Corporation said the hub would unlock as much as £10bn in capital for growth by streamlining investor engagement.
According to the report, the hub would serve as a “strategic one-stop shop” for international investors, offering “joined-up, tailored support” from market entry to expansion.
It aims to create a “unified, investor-centric and digitally enabled UK model” to attract and retain financial services investment, as well as offer regulatory guidance. The hub would be delivered through public-private partnerships.
Chris Hayward, Policy Chairman at City of London Corporation, said: “This is a now or never moment for UK financial services. If we don’t act decisively, we risk losing our global position and the economic prosperity, jobs and innovation that come with it.
“Other markets have introduced services that fast-track market entry, including investor
concierge services and fully coordinated government and regulatory support.
“The UK must urgently first match, then exceed these standards to remain competitive.”
UK risks losing competitiveness
The UK has seen a decline in its market share of financial and professional services foreign direct investment projects, with its share falling by 4 per cent between 2017 and 2024, while other financial centres have recorded accelerated growth over the same period.
Meanwhile, professional service providers told researchers at S&P Global that staff leavers were not replaced in May, leading to a “sustained downturn” in headcounts across UK firms.
Demand for new work in both domestic and overseas markets also slumped as a result of US tariff turmoil, researchers added.
While the UK’s strengths, such as its time zone, legal system and global financial infrastructure, are held in high regard by investors the report argues that these foundations must now be paired with “modernised, frictionless investment services” to remain competitive.