Osborne snubs City as he calls for balanced growth
CHANCELLOR George Osborne will today issue a stark message about the future of the UK economy, warning that it can no longer rely on the City to generate financial stability.
“We cannot put all our chips on the success of the City of London, as my predecessors did,” he is expected to say in the speech in Hong Kong.
Business leaders, many of whom have been calling for the government to do more to back the banking sector, warned that the chancellor risked alienating the City, with the speech.
“Defending and promoting the City of London is vital to Britain’s long-term economic success,” said Simon Walker, the director general of the Institute of Directors.
Mark Boleat, policy chairman at the City of London Corporation said the City plays a “crucial role” in underpinning the economy.
“Of course we cannot rely on the City’s success alone – but without the City’s success we cannot support the growth of other industries, such as manufacturing,” he added.
In his speech, Osborne will also warn that the recovery is not yet in place. “The recovery is not yet secure and our economy is still too unbalanced. We cannot rely on consumers alone for our economic growth, as we did in previous decades … Britain is not investing enough. Britain is not exporting enough.”